Professional Documents
Culture Documents
1. Management accountants play a role in the planning and control functions. An action that
would be involved in the control function is
A) Near the end of a fiscal year with lower than expected profits, suggesting that an
expensive advertising campaign be delayed until the next fiscal year.
B) Recommending that the highest quality and least expensive bid for a certain supply
be rejected on the basis that the supplier’s practices have a detrimental effect on the ecological
environment.
C) At the request of the division manager, using the most favourable projections to
support a proposal without drawing any attention to the potentially unfavourable
projections.
D) Reporting to the controller a suspicion that a line manager is providing incorrect
production data in an effort to increase his year-end bonus.
e. Near the end of a fiscal year with lower than expected profits, suggesting that
performance incentives to sales staff for the fourth quarter be increased.
3. Upon which of the following does managerial accounting place considerable weight?
Source: John Molson School of Business COMM 305: Managerial Accounting Mid-term Exam,
Fall 2004, MCQ 1
ANSWER: D
4. What broad functions does the management of an organization perform?
Source: John Molson School of Business COMM 305: Managerial Accounting Mid-term Exam,
Fall 2005, MCQ 1
Answer: B
A) The Standards of Ethical Conduct for Practitioners of Management Accounting and Financial
Management.
B) The Sarbanes-Oxley Act of 2002.
C) Relevance to the decisions
D) Generally accepted accounting principles
Source: John Molson School of Business COMM 305: Managerial Accounting Mid-term Exam,
Fall 2005, MCQ 3
Answer: A
A) Chain of command
B) Competitive position
C) Cash flow
D) Business entity
E) Company image
A) Interpreting why a manufacturing plant did not adhere to its production schedule.
B) Explaining the assembly department’s performance report.
C) Preparing a variance report on the sales department’s performance during the third
quarter.
D) Preparing the annual budget for the maintenance department.
E). Analyzing the impact of a proposed new product on net income.
Source: Canada CMA Entrance Exam, Part 1, Sample #1, June 2005, MCQ 1
ANSWER: E
A) Is the information the manager needs to effectively manage the firm or not-for-profit
organization.
B) Includes only financial information
C) Is not needed for strategic management
D) Is used only for management and operational control.
E) Is not needed to provide accurate accounting for inventory
9. Which of the following isn’t one of the issues facing the contemporary business world?
10. The process for creating competitive advantage in which a firm reorganizes its operating and
management functions, often with the results that jobs are modified, combined, or eliminated, is
known as what?
11. A process by which a firm identifies its critical success factors, studies the best practices of
other firms for these critical success factors, and then implements improvements in the firm's
processes to match or beat the performance of these competitors is termed:
A) Continuous improvement
B) Reengineering
C) Strategic management
D) Benchmarking
E) Total quality management
12. Which of the following determines the desired cost for a product based upon a given
competitive price?
A) Benchmarking
B) Target costing
C) Reengineering
D) life-cycle costing
E) activity-based costing
13. Which contemporary management practices involves using a variety of financial and non-
financial performance measures to assess the overall performance of the firm?
14. __________ is a set of policies, procedures, and approaches to business that produces long-
term success.
A) Theory of constraints
B) Total quality management
C) Strategy
D) IMA
E) Critical success factors
A) TQM
B) Cost leadership
C) Differentiator
D) Critical success factors
E) CMA
16. All of the following are private sector professional accounting organizations, except the:
A) Financial Accounting Standards Board (FASB).
B) Securities and Exchange Commission (SEC)
C) American Institute of Certified Public Accountants (AICPA)
D) Institute of Management Accountants (IMA)
E) Financial Executive Institute (FEI).
17. Which professional accounting certification is considered to be the most relevant when
regarding issues discussed in this class?
A) The Certified Management Accountant.
B) The Certified Financial Manager.
C) The Certified Public Accountant.
18. The following statement would be under which main section of the IMA Code of Ethics?
Perform professional duties in accordance with relevant laws, regulations, and technical
standards.
A) Competence
B) Confidentiality
C) Integrity
D) Objectivity
20. State whether each of the following most likely describes financial accounting (FA) or
managerial accounting (MA):
A. Managerial accounting
B. Managerial accounting
C. Financial accounting
D. Financial accounting
E. Financial accounting
Match each of the new production management concepts with the phrase that best describes it by
filling in the blank with the appropriate letter:
1. c
2. e
3. b
4. a
5. d
26. Managerial accounting places greater emphasis on the future than does financial accounting
which is primarily concerned with the past.
A) True
B) False
A) Managers inside the organization as well as information to shareholders, creditors, and others
outside the organization
B) Information to shareholders, creditors, and others outside the organization.
C) Information to managers inside the organization.
D) Information to governmental regulatory agencies.
28. The four broad managerial functions of planning, organizing and directing, controlling, and
decision making typically are
29. Managers must direct day-to-day operations, plan for the future, solve problems, and make
numerous routine and non-routine decisions, all of which may require
A) Only the balance sheet and income statement prepared for shareholders, creditors, and other
external users.
B) Information based on estimates and projections of the future.
C) Only the statement of cash flows prepared for shareholders, creditors, and other external
users.
D) Only information based on the past since such information is completely objective and
verifiable.