Acct 505 Quiz Notes

Only available on StudyMode
  • Download(s) : 508
  • Published : September 19, 2012
Open Document
Text Preview
CH 1
|
1 CORRECT| |
Managerial accounting is concerned with:|
| | A)| reporting financial information to stockholders.| | | B)| reporting financial information to regulators.| | | C)| providing information for use within the organization.| | | D)| the financial consequences of past activities.| | | | | |

Feedback:The correct answer is C:
Managerial accounting is concerned with providing information to managers for use within the organization.| |
2 CORRECT| |
Which of the following statements is not correct?|
| | A)| A plan is always expressed in formal quantitative terms.| | | B)| Planning involves establishing goals and specifying how to achieve them.| | | C)| Controlling involves gathering feedback to ensure that the plan is being properly executed or modified as circumstances change.| | | D)| Decision making involves selecting a course of action from competing alternatives.| | | | | |

Feedback:The correct answer is A:
Plans include the goals established and information specifying how those goals will be achieved. As such, plans may or may not be expressed in formal quantitative terms. On the other hand, plans are often accompanied by a budget. A budget is a detailed plan for the future that is usually expressed in formal quantitative terms.| |

3 CORRECT| |
A performance report:|
| | A)| is part of the control process.|
| | B)| compares budgeted data to actual data in an effort to identify and learn from excellent performance.| | | C)| is prepared to identify and eliminate sources of unsatisfactory performance.| | | D)| is all of the above.|

| | | | |
Feedback:The correct answer is D:
Part of the control process includes preparing performance reports. A performance report compares budgeted data to actual data in an effort to identify and learn from excellent performance and to identify and eliminate sources of unsatisfactory performance.| |

4 CORRECT| |
In order to do their jobs, managers must possess a variety of skills including:| | | A)| enterprise risk management skills.|
| | B)| process management skills.|
| | C)| measurement skills.|
| | D)| all of the above.|
| | | | |
Feedback:The correct answer is D:
Managers must possess a variety of skills to do their jobs including strategic management skills, enterprise risk management skills, process management skills, measurement skills, and leadership skills.| |

5 CORRECT| |
Which of the following statements is correct?|
| | A)| A business process consists of the major business functions that add value to a company's products and services.| | | B)| Lean thinking bloats inventories and results in more defects.| | | C)| The Theory of Constraints is based on the insight that effectively managing what it is that prevents you from getting more of what you want is a key to success.| | | D)| All of the above statements are correct.|

| | | | |
Feedback:The correct answer is C:
A business process is a series of steps that are followed in order to carry out some take in a business. On the other hand, a value chain consists of the major business functions that add value to a company's products and services. (Thus, choice A is incorrect.) Lean thinking differs from traditional manufacturing methods, which encourage departments to maximize their output even it if exceeds customer demand and bloats inventories. Because lean thinking only allows production in response to customer orders, minimal inventories result. This approach also results in fewer defects than traditional production methods. (Thus, choice B is incorrect.) A constraint is anything that prevents you from getting more of what you want. The Theory of Constraints is based on the insight that effectively managing the constraint is a key to success. (Thus, choice C is correct.)| |

6 CORRECT| |
Which of the...
tracking img