Managerial Accounting 10 Answers

1 1.) Which of the following activities would not be an example of a value-added activity? a.Customers being offered a variety of products b.Storage of finished products c.Timely delivery of products d.Excellent customer service Answer: b.Storage of finished products 2.) The standards of ethical conduct for managerial accountants include: a.caring for others, intuition, and respect for others. b.confidentiality, confidence, integrity, and observance. c.pursuit of excellence, credibility, and immediacy. d.competence, confidentiality, integrity, and credibility. Answer: d.competence, confidentiality, integrity, and credibility. 3.) Accountants that have a Certificate in Public Accounting (CPA): a.must pass a national examination and be licensed by the state in which they practice. b.are the only accountants permitted to serve as external auditors. c.are responsible for providing assurance concerning the reliability of a firm's financial statements. d.All of these statements are true. Answer: d.All of these statements are true. 4.) The primary objective of managerial accounting is: a.to produce financial information that must comply with various accounting standards. b.to provide the Internal Revenue Service with financial and nonfinancial information about the taxable income of an organization. c.to produce information for external users, including investors, creditors, customers, suppliers, and government agencies. d.to provide management with financial and nonfinancial information useful in planning, controlling, and decision making. Answer: d.to provide management with financial and nonfinancial information useful in planning, controlling, and decision making. 5.) Which of the following statements is true of profit maximization? a.Profit maximization is achieved by considering the financial measures focused only on efficiency. b.Profit maximization is an objective of financial accounting but not managerial accounting. c.Profit maximization results in maximum cost to and maximum production by a company. d.Profit maximization should be achieved through legal and ethical means. Answer: d.Profit maximization should be achieved through legal and ethical means. 6.) Who among the following would occupy a line position in a hospital? a.The manager of the cafeteria b.A hospital administrator c.The chief of surgery d.None of these choices are correct. Answer: c.The chief of surgery 7.) Which of the following statements is true of total quality management? a.It has replaced the acceptable quality attitudes of the past. b.It emphasizes the elimination of waste. c.It is a management philosophy in which manufacturers strive to create an environment that will enable workers to manufacture zero-defect products. d.All of these statements are correct. Answer: d.All of these statements are correct. 8.) Which of the following functions is an example of the management activity referred to as planning? a.Developing a strategy for disposing of hazardous waste b.Ensuring that the most competent candidates are recruited by a company c.Tracking the cost of employee absence d.All of these items are correct. Answer: a.Developing a strategy for disposing of hazardous waste 9.) Which of a.Managerial b.Managerial c.Managerial d.Managerial the following statements is true of managerial accounting? accounting provides historical information. accounting is the provision of accounting information for a company's external users. accounting attempts to provide information for controlling the organization's actions. accounting is subject to rules for external financial reporting. Answer: c.Managerial accounting attempts to provide information for controlling the organization's actions. 10.) Which of the following statements is true of financial accounting? a.Financial accounting is subject to externally imposed rules. b.Financial accounting is directed toward external users. c.Financial accounting provides information that can be objectively verified and audited. d.All of these statements are correct. Answer: d.All of these statements are correct.