Name: Aubrey Camille C.

Cabrera
Student ID: AMAOED-20190100206
MANAGEMENT AACCOUNTING (MBA002)
Assignment 1

True/False Questions

True 1. Managerial accounting places less emphasis on precision and more emphasis on
flexibility and relevance than financial accounting.

True 2. Managerial accounting is not governed by generally accepted accounting

principles (GAAP).

False 3. Financial accounting and managerial accounting reports must be prepared in

accordance with generally accepted accounting principles (GAAP).

True 4. When carrying out their directing and motivating activities, managers mobilize
the organization's human and other resources so that the organization's plans are
carried out.

False 5. When carrying out planning activities, managers rely on feedback to ensure that
the plan is actually carried out and is appropriately modified as circumstances
change.

False 6. When carrying out their directing and motivating activities, managers select a
course of action and specify how the action will be implemented.

True 7. Persons occupying staff positions provide support and assistance to other parts
of the organization.

False 8. Staff departments generally have direct authority over line departments in an
organization.

True 9. Informal relationships and channels of communication often develop that do not
appear on the organization chart.

False 10. The controller's position in a retail company is considered a line position rather
than a staff position.

False 11. The Chief Financial Officer of an organization should present facts and refrain
from offering advice and personal opinion.

True 12. A strategy is a game plan that enables a company to attract customers by
distinguishing itself from competitors.

False 13. A strategy requires effective use of Six Sigma improvement techniques.
Name: Aubrey Camille C. Cabrera
Student ID: AMAOED-20190100206
True 14. A customer value proposition is essentially a reason for customers to choose a
company's products over its competitors' products.

True 15. Customer value propositions tend to fall into three broad categories--customer
intimacy, operational excellence, and product leadership.

True 16. Companies that adopt a customer intimacy strategy are in essence saying to
their target customers, “The reason you should choose us is because we
understand and respond to your individual needs better than our competitors.”

False 17. Companies that choose an operational excellence strategy are in essence saying
to their customers, “Choose us rather than our competitors because we strive
for zero defects.”

True 18. A value chain consists of the major business functions that add value to the
company's products and services.

True 19. Efforts designed to increase the rate of output should generally be applied to the
workstation that is the constraint.

True 20. The lean thinking model is a five-step management approach that organizes
resources such as people and machines around the flow of business processes
and that pulls units through these processes in response to customer orders

False 21. Supply chain management involves acquiring and bringing inside the company
all of the processes that bring value to customers.

True 22. An enterprise system integrates data across an organization into a single
software system that enables all employees to have simultaneous access to a
common set of data.

False 23. Corporate governance is the legal framework that allows managers to control
and direct lower-level workers on the job.

True 24. The Sarbanes-Oxley Act of 2002 was intended to protect the interests of those
who invest in publicly traded companies by improving the reliability and
accuracy of corporate financial reports and disclosures.

True 25. The Standards of Ethical Conduct promulgated by the Institute of Management
Accountants specifically states, among other things, that management
accountants have a responsibility to disclose fully all relevant information that
could be reasonably be expected to influence an intended user's understanding
of the reports, comments and recommendations presented.
Name: Aubrey Camille C. Cabrera
Student ID: AMAOED-20190100206
Multiple Choice Questions

26. Managerial accounting places considerable weight on:

A) generally accepted accounting principles.
B) the financial history of the entity.
C) ensuring that all transactions are properly recorded.
D) detailed segment reports about departments, products, and customers.

27. The plans of management are often expressed formally in:

A) financial statements.
B) performance reports.
C) budgets.
D) ledgers.

28. The phase of accounting concerned with providing information to managers for use in
planning and controlling operations and in decision making is called:
A) throughput time.
B) managerial accounting.
C) financial accounting.
D) controlling.

29. A staff position:

A) relates directly to the carrying out of the basic objectives of the organization.
B) is supportive in nature, providing service and assistance to other parts of the
organization.
C) is superior in authority to a line position.
D) none of these.

30. For a manufacturing company, what type of position (line or staff) is each of the
following?

Manager of a Data Manager of a Production

Processing Department Department
A) Staff Staff
B) Staff Line
C) Line Staff
D) Line Line

31. A _______________ position in an organization is directly related to the achievement of

the organization's basic objectives.
A) line
B) management
C) staff
D) None of the above.

32. ______________ is an example of a line position.

Name: Aubrey Camille C. Cabrera
Student ID: AMAOED-20190100206
A) Controller for a merchandising company
B) Chief financial officer of a merchandising company
C) Store manager for Best Buy
D) Human resources manager for a community college

33. Which of the following is NOT one of the three major customer value propositions
discussed in the text?
A) customer intimacy
B) discount pricing
C) operational excellence
D) product leadership

34. Which of the following is NOT one of the five steps in the lean thinking model discussed
in the text?
A) Continuously pursue perfection in the business process.
B) Identify value in specific products/services.
C) Implement an enterprise system.
D) Create a pull system that responds to customer orders.

35. One consequence of a change from a push to a properly implemented pull production
system can be:
A) an increase in work in process inventories.
B) an extremely difficult cultural change due to enforced idleness when demand falls
below production capacity.
C) an increased mismatch between what is produced and what is demanded by
customers.
D) an increase in raw materials inventories.

36. All of the following are characteristics of a pull production system EXCEPT:
A) Inventories are reduced to a minimum by purchasing raw materials and producing
units only as needed to meet consumer demand.
B) Raw materials are released to production far in advance of being needed to ensure no
interruptions in work flows due to shortages of raw materials.
C) Products are completed just in time to be shipped to customers.
D) Manufactured parts are completed just in time to be assembled into products.

37. The five step framework used to guide Six Sigma improvement efforts includes all of the
following EXCEPT:
A) Analyze.
B) Control.
C) Digitize.
D) Measure.

38. The Sarbanes-Oxley Act of 2002 contains all of the following provisions EXCEPT:
A) The audit committee of the board of directors of a company must hire, compensate,
and terminate the public accounting firm that audits the company's financial reports.
Name: Aubrey Camille C. Cabrera
Student ID: AMAOED-20190100206
B) Financial statements must be audited once every three years by the Government
Accounting Office.
C) Both the CEO and CFO must certify in writing that their company's financial
statements and accompanying disclosures fairly represent the results of operations.
D) A company's annual report must contain an internal control report.

39. The Institute of Management Accountants' Standards of Ethical Conduct contains a

policy regarding confidentiality that requires that management accountants:
A) refrain from disclosing confidential information acquired in the course of their work
except when authorized by management.
B) refrain from disclosing confidential information acquired in the course of their work
in all situations.
C) refrain from disclosing confidential information acquired in the course of their work
except when authorized by management, unless legally obligated to do so.
D) refrain from disclosing confidential information acquired in the course of their work
in all cases since the law requires them to do so.

40. Which of the following is NOT one of the Institute of Management Accountants' five
Standards of Ethical Conduct?
A) Competence
B) Confidentiality
C) Independence
D) Integrity