管理会计示范性双语课件习题01MANAGEMENT ACCOUNTING: INFORMATION THAT CREATES VALUE TRUE/FALSE1. Management accounting gathers short-term, long-term, financial, and nonfinancialinformation.a. Trueb. False2. Management accounting information generally reports on the organization as a whole.a. Trueb. False3. Companies have to follow strict guidelines when designing a management accountingsystem.a. Trueb. False4. A good management accounting system is intended to meet specific decision-making needsat all levels in the organization.a. Trueb. False5. During the history of management accounting, innovations were developed to address thedecision-making needs of managers.a. Trueb. False6. A key element in any organization’s strategy is to iden tify its target customers and todeliver what those target customers want.a. Trueb. False7. The value proposition has only two elements: cost and quality.a. Trueb. False8. Quality is the degree of conformance between what the customer is promised and what thecustomer receives.a. Trueb. False9. Recently, the demand for improved management accounting and control information withinmanufacturing firms has also occurred in service organizations.a. Trueb. False10. Recently, the competitive environment for both manufacturing and service companies hasbecome far more challenging and demanding.a. Trueb. False11. Service companies are very similar to manufacturing companies in may ways, including thefact that many employees have direct contact with customers.a. Trueb. False12. Sensitivity to timeliness and quality of service is especially important to serviceorganizations.a. Trueb. False13. Government and nonprofit organizations, as well as profit-seeking enterprises, are feelingthe pressures for improved performance.a. Trueb. False14. Management accounting information allows managers to compare actual and planned costsand to identify areas and opportunities for process improvement.a. Trueb. False15. Management accounting can provide information on customer satisfaction.a. Trueb. False16. ROI (return on investment) combines two profitability measures to produce a singlemeasure of departmental or divisional performance.a. Trueb. False17. Around 1920, centralized control of decentralized operations was accomplished by havingcorporate managers receive financial reports about divisional operations and profitability.a. Trueb. False18. In the late 1990s, little interest or attention was paid to eval uating management’sappropriate governance and strategy choices.a. Trueb. False19. Financial information identifies and explains the underlying problems.a. Trueb. False20. Management accounting measures can provide advance warnings of problems.a. Trueb. False21. Customer satisfaction is an example of financial information.a. Trueb. False22. Operating profit is an example of nonfinancial information.a. Trueb. False23. Organizational leadership plays a critical role in fostering an organization’s culture of highethical standards.a. Trueb. False24. Information is never neutral; just the act of measuring and reporting information affects theindividuals involved.a. Trueb. False25. Boundary systems are always stated in positive terms that outline maximum standards ofbehavior.a. Trueb. FalseMULTIPLE CHOICE26. Management accounting helps a company achieve:a. its strategic objectivesb. its operational objectivesc. control and also supports performance evaluationd. All of the above are correct.27. Which of the following types of information are used in management accounting?a. financial informationb. nonfinancial informationc. information focused on the long termd. All of the above are correct.28. Management accounting:a. focuses on estimating future revenues, costs, and other measures to forecast activitiesand their resultsb. provides information about the company as a wholec. reports information that has occurred in the past that is verifiable and reliabled. provides information that is generally available only on a quarterly or annual basis29. Which of the following descriptors refer to management accounting information?a. It is verifiable and reliable.b. It is driven by rules.c. It is prepared for shareholders.d. It provides reasonable and timely estimates.30. Which of the following statements refers to management accounting information?a. There are no regulations governing the reports.b. The reports are generally delayed and historical.c. The audience tends to be stockholders, creditors, and tax authorities.d. The scope tends to be highly aggregate.31. Management accounting information includes:a. tabulated results of customer satisfaction surveysb. the cost of producing a productc. the percentage of units produced that is defectived. All of the above are correct.32. Management accounting reports MOST likely include information about:a. customer complaintsb. net income for the yearc. total assetsd. All of the above are correct.33. The person MOST likely to use management accounting information is a(n):a. banker evaluating a credit applicationb. shareholder evaluating a stock investmentc. governmental taxing authorityd. assembly department supervisor34. Which of the following is NOT a function of a management accounting system?a. strategic planningb. financial reportingc. operational controld. product costing35. Financial accounting provides the PRIMARY source of information for:a. decision making in the finishing departmentb. improving customer servicec. preparing the income statement for shareholdersd. planning next year’s operating budget36. Financial accounting:a. focuses on the future and includes activities such as preparing next year's operatingbudgetb. must comply with GAAP (generally accepted accounting principles)c. reports include detailed information on the various operating segments of the businesssuch as product lines or departmentsd. is prepared for the use of department heads and other employees37. The person MOST likely to use ONLY financial accounting information is a:a. factory shift supervisorb. vice president of operationsc. current shareholderd. department manager38. The accounting process is constrained by mandated reporting requirements by all of thefollowing organizations EXCEPT the:a. Internal Revenue Service (IRS)b. Institute of Management Accountants (IMA)c. Financial Accounting Standards Board (FASB)d. Securities and Exchange Commission (SEC) for companies that are publicly traded39. Historically:a. in the beginning of the 20th century, the Guilds kept detailed records of raw materialsand labor costs as evidence of product qualityb. in medieval England, the basics of modern management accounting emerged withstandards for material use, employee productivity, and budgetsc. in the late 19th century, railroad managers implemented large and complex costingsystems to compute the cost of different types of freightd. from 1400-1600, large and integrated companies such as DuPont and General Motors,developed ways to measure return on investment40. In general, it was not until the 1970s that management accounting systems:a. were improved because of demands by the FASB and the SECb. stagnated and proved inadequatec. started to develop innovations in costing and performance-measurement systems dueto intense pressure from overseas competitorsd. started to address the decision-making needs of managers41. All successful organizations must identify and understand their:a. weaknessesb. competitionc. strategyd. definition of quality42. A key element of any organization’s strategy is identifying:a. its potential shareholdersb. its target customersc. competitor’s productsd. employee needs43. What an organization tries to deliver to customers is called its value proposition, whichincludes the elements of:a. cost and qualityb. cost, quality, and functionality and featuresc. cost, quality, functionality and features, and serviced. cost, quality, functionality and features, service, and industry standards44. The price paid by the customer, given the product features and competitor’s prices, isreferred to as the __________ element of the value proposition.a. costb. industry standardsc. qualityd. service45. The degree of conformance between what the customer is promised and what the customerreceives is referred to as the __________ element of the value proposition.a. costb. industry standardsc. qualityd. service46. The performance of the product, for example, a meal in a restaurant provides the diner withthe level of satisfaction expected for the price paid, is referred to as the __________element of the value proposition.a. functionality and featuresb. industry standardsc. qualityd. service47. How the customer is treated at the time of the purchase is an example of the __________element of the value proposition.a. functionality and featuresb. industry standardsc. qualityd. service48. Management accounting provides:a. information on the efficiency of factory laborb. information on the cost of servicing commercial customersc. information on the performance of an operating divisiond. All of the above are correct.49. Which of the following groups would be LEAST likely to receive detailed managementaccounting reports?a. stockholdersb. customer service representativesc. production supervisord. vice president of operations50. Top executives of a multi-plant firm are LEAST likely to use management accountinginformation:a. to support decisions that result in long-term consequencesb. to evaluate the performance of individual plantsc. for strategic planningd. for operational control51. Managers of service departments need all of the following information EXCEPT:a. efficiency data on work performanceb. quality data on work performancec. profitability data of the whole companyd. profitability data of the service department52. A national company manufactures a line of modern furniture. Information MOST useful tothe employee who assembles the furniture includes:a. a daily report comparing the actual time it took to assemble a piece of furniture to thestandard time allowedb. a monthly report on the portion of furniture pieces assembled with defectsc. the number of furniture pieces sold this monthd. revenue per employee53. A national company manufactures a line of modern furniture. Information MOST usefulto the top executive includes:a. individual job summaries of materials usedb. monthly financial reports on the company’s profitability by product linec. time reports submitted by each employeed. scheduled downtime for routine maintenance on machines54. A quarterly report disclosing declining market share information is MOST useful to:a. a front-line employeeb. the manager of operationsc. the chief executive officerd. the accounting department55. A weekly report comparing machine time used to available machine time is informationMOST useful to:a. a front-line employeeb. the manager of operationsc. the chief executive officerd. the accounting department56. A daily report on the number of quality units assembled by each employee is informationMOST useful to:a. a front-line assembly workerb. the accounting departmentc. the chief executive officerd. the personnel department57. Which of the following would be LEAST helpful for a top manager of a company?a. profitability report of the companyb. information to monitor hourly and daily operationsc. number of customer complaintsd. operating expense summary reported by department58. Recently, increased demand for management accounting information has been:a. primarily from manufacturing firmsb. primarily from service organizationsc. from both the manufacturing and the service industriesd. an illusion; in fact, the demand for management accounting has changed very little59. Management accounting can play a critical role in the service industry because of all thefollowing reasons EXCEPT:a. firms must be especially sensitive to the timeliness and quality of customer serviceb. many employees have very little contact with customersc. customers immediately notice defects and a delay in serviced. dissatisfied customers may never return60. Historically, the NEGLECT of management accounting in the service industry was a resultof:a. noncompetitive environmentsb. global customer demandsc. the switch to free market economiesd. an influx of higher-quality and lower-priced products from overseas61. Currently, management accounting information within government and nonprofitorganizations is in greater demand because:a. public and private donors are demanding accountabilityb. citizens are requesting responsive and efficient performance from their governingunitsc. more nonprofit organizations are competing for limited fundsd. All of the above are correct.62. Currently, pressures for improved cost and performance measurements are being felt by:a. nonprofit organizationsb. governmental agenciesc. profit-seeking enterprisesd. All of the above are correct.63. Financial accounting information:a. provides a signal that something is wrongb. identifies what is wrongc. explains what is wrongd. simply summarizes information but gives no indication that anything is wrong64. Decentralized responsibility refers to allowing lower-level managers to do all of thefollowing EXCEPT:a. make decisions without seeking higher approvalb. take advantage of local opportunitiesc. make periodic financial reports to upper-managementd. pursue individual objectives even though they may not contribute to the entirecompany65. The return on investment (ROI) performance measure uses __________ to evaluate theperformance of operating divisions.a. a single numberb. four numbersc. five numbersd. ten numbers66. The return on investment (ROI) performance measure combines __________ to produce ameasure of departmental performance.a. two profitability measuresb. two capital utilization measuresc. one profitability measure and one capital intensity measured. two profitability measures and two capital intensity measures67. All of the following are true regarding the return on investment (ROI) formula developed atDupont EXCEPT that:a. it is the sole measure top-management utilizes to evaluate which division shouldreceive additional capitalb. it allows companies to have centralized control with decentralized responsibilityc. it produces a measure of divisional performanced. it equals (Operating income/Sales) x (Sales/Investment)THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 68 AND 69.The following information pertains to three divisions:Flowers Shrubs TreesSales $15,000 $28,000 $120,000Operating income $2,000 $2,000 $6,000Investment $22,000 $40,000 $100,00068. What is the return on investment for the Shrub Division?a. 2.00%b. 5.00%c. 7.14%d. 70.00%69. Which division is more profitable based on ROI?a. Flowersb. Shrubsc. Treesd. Both Flowers and Shrubs are equally more profitable than Trees.70. To help evaluate management’s appropriate governance and strategic choices,organizations have called on management accountants to develop:a. internal control systems to protect assets from theftb. measures to monitor compliance with behavior that is consistent with theorganization’s best interestsc. systems to evaluate profitabilityd. reports to highlight variances from amounts planned71. Management accounting information is BEST described as:a. providing a signal that something is wrongb. identifying and helping to explain what is wrongc. simply summarizing information, but giving no indication that anything is wrongd. measuring overall organizational performance72. For improving operational efficiencies and customer satisfaction, nonfinancial informationis:a. criticalb. helpfulc. infrequently usedd. unnecessary73. Nonfinancial information might be used to:a. improve qualityb. reduce cycle timesc. satisfy customer needsd. All of the above are correct.74. The act of simply measuring and reporting information:a. focuses the attention of employees on those processesb. diverts the employee’s attention to other activitiesc. disproves the saying “What gets measured gets managed.”d. has no effect on employee behavior75. Which statement below is FALSE?a. “What gets measured gets managed.”b. People react to measurements.c. Employees spend more attention on those variables that are not getting measured.d. “If I can’t measure it, I can’t manage it.”76. When a change is introduced, employees tend to:a. embrace the changeb. be indifferent to the changec. exhibit no change in behaviord. resist the change77. The introduction of a new management system is MOST likely to motivate UNWANTEDemployee behavior when it is used for:a. evaluationb. planningc. decision makingd. coordinating individual efforts78. Management accountants are MOST likely to feel outside pressure to favorably influencethe numbers favorably when the information is used for:a. budgetingb. compensation and promotionsc. continuous improvementd. product costing79. Fostering a culture of high ethical standards includes all of the following EXCEPT:a. following the good example set by senior managementb. communicating to employees a belief system that inspires and promotes commitmentto the organization’s core valuesc. following the general examples set by front-line employeesd. communicating to all employees a boundary system that states what actions will notbe tolerated80. The Institute of Management Accountants (IMA):a. is a professional organization of management accountantsb. is a professional organization of financial accountantsc. issues standards for management accountingd. issues standards for financial accountingCRITICAL THINKING/ESSAY81. Describe management accounting and financial accounting.82. What is the purpose of management accounting?83. Briefly describe how managers make use of management accounting information.84. Describe the value proposition and the elements that comprise it.85. Is financial accounting or management accounting more useful to an operations manager?Why?86. What role has the increasingly competitive business environment played in thedevelopment of management accounting?87. Describe return on investment (ROI). Why was it developed? When was it developed?88. Give two examples of financial information and nonfinancial information.89. Discuss the potential behavior implications of performance evaluation.CHAPTER 1 SOLUTIONSMANAGEMENT ACCOUNTING: INFORMATION THAT CREATES VALUETRUE/FALSELO1 1. a LO1 2. b LO1 3. b LO1 4. a LO1 5. aLO2 6. a LO2 7. b LO2 8. a LO3 9. a LO3 10. a LO3 11. b LO3 12. a LO3 13. a LO3 14. a LO3 15. a LO4 16. b LO4 17. a LO5 18. a LO5 19. b LO5 20. aLO5 21. b LO5 22. b LO6 23. a LO6 24. a LO6 25. b MULTIPLE CHOICELO1 26. dLO1 27. dLO1 28. aLO1 29. dLO1 30. aLO1 31. dLO1 32. aLO1 33. dLO1 34. bLO1 35. cLO1 36. bLO1 37. cLO1 38. bLO1 39. cLO1 40. cLO2 41. cLO2 42. bLO2 43. cLO2 44. aLO2 45. cLO2 46. aLO2 47. dLO3 48. dLO3 49. aLO3 50. dLO3 51. cLO3 52. aLO3 53. bLO3 54. cLO3 55. bLO3 56. aLO3 57. bLO3 58. cLO3 59. bLO3 60. aLO3 61. dLO3 62. dLO4 63. aLO4 64. dLO4 65. aLO4 66. cLO4 67. aLO4 68. bLO4 69. aLO5 70. bLO5 71. bLO5 72. aLO5 73. dLO6 74. aLO6 75. cLO6 76. dLO6 77. aLO6 78. bLO6 79. cLO6 80. aMULTIPLE CHOICE68. $2,000 / $40,000 = 5.00%69. $2,000 / $22,000 = 9.09%; $2,000 / $40,000 = 5.00%; $6,000 / $100,000 = 6.00%CRITICAL THINKING/ESSAYLO181. Describe management accounting and financial accounting.Solution: Management accounting provides information to internal decision makers of the business such as top executives. Its purpose is to help managers predict and evaluate future results. Reports are generated often and are usually broken down into smaller reportingdivisions such as department or product line. There are no rules to be complied with since these reports are for internal use only.Financial accounting provides information to external decision makers such as investors and creditors. Its purpose is to present a fair picture of the financial condition of thecompany. Reports are generated quarterly or annually and report on the company as awhole. The financial statements must comply with GAAP (generally accepted accounting principles). A CPA audits, or verifies, that the GAAP are being followed.LO182. What is the purpose of management accounting?Solution: Management accounting gathers short-term and long-term financial andnonfinancial information to plan, coordinate, motivate, improve, control, and evaluatesuccess factors of an organization. Management accounting converts data into usableinformation that supports strategic, operational, and control decision making.LO183. Briefly describe how managers make use of management accounting information.Solution: Managers use accounting information for three broad purposes.ONE: To plan business operations that includes preparing strategies and budgets anddetermining the prices and costs of products and services. A company must know the cost of each product and service to decide which products to offer and whether to expand ordiscontinue product lines.TWO: To control business operations that includes comparing actual results to thebudgeted results and taking corrective action when needed.THREE: To evaluate performance.84. Describe the value proposition and the elements that comprise it.Solution: The value proposition is what an organization tries to deliver to its targetcustomers – it defines the organizational strategy.The four elements are cost, quality, functionality and features, and service.•Cost is the price paid by the customer, given the product features and competitor’s prices.•Quality is the degree of conformance between what the customer is promised and what the customer receives.•Functionality and features refers to the performance of the product. For example: A meal in a restaurant provides the diner with the level of satisfaction expected for the price paid.•Service is all of the other elements of the product. For example: How the customer is treated at the time of the purchase.LO385. Is financial accounting or management accounting more useful to an operations manager?Why?Solution: Management accounting is more useful to an operations manager becausemanagement accounting reports operating results by department or unit rather than for the company as a whole, it includes financial as well as nonfinancial data such as on-timedeliveries and cycle times, and it includes quantitative as well as qualitative data such as the type of rework that was needed on defective units.LO386. What role has the increasingly competitive business environment played in thedevelopment of management accounting?Solution: The competitive environment has changed dramatically. There has been aderegulation movement in North America and Europe during the 1970s and 1980s thatchanged the ground rules under which service companies operated. In addition,organizations encountered severe competition from overseas companies that offered high-quality products at low prices. There has been an improvement of operational controlsystems such that information is more current and provided more frequently. The nature of work has changed from controlling to informing. Firms are concerned aboutcontinuous improvement, employee empowerment, and total quality. Nonfinancialinformation has become a critical feedback measure. Finally, the focus of many firms is now on measuring and managing activities.87. Describe return on investment (ROI). Why was it developed? When was it developed?Solution: ROI = (operating income / sales) x (sales / investment)The ROI measure combines a profitability measure (operating income / sales) with a capital intensity measure (sales / investment) to provide a single measure of departmental anddivisional performance.ROI was developed in the early decades of the 1900s so that senior managers at multi-divisional diversified corporations, such as DuPont and General Motors, could evaluate the operating performance of their decentralized divisions.LO588. Give two examples of financial information and nonfinancial information.Solution: Financial information includes amounts that can be expressed in dollar amounts such as sales, net income, and total assets. It also includes ratios prepared using financial information such as increase in sales, return-on-sales, and return-on-investment.Nonfinancial information includes measures that are not expressed in dollar amounts. For example, nonfinancial measures of customer satisfaction include the number of repeatcustomers or ranked estimates of satisfaction levels. Nonfinancial measures of production quality include percent of on-time deliveries, the number of defects, production yield, and cycle times.LO689. Discuss the potential behavior implications of performance evaluation.Solution: As measurements are made on operations and, especially, on individuals and groups, the behavior of the individuals and groups are affected. People react to themeasurements being made. They will focus on those variables or the behavior beingmeasured and spend less attention on variables and behavior that are not measured. In addition, if managers attempt to introduce or redesign cost and performance measurement systems, people familiar with the previous system will resist. Management accountants must understand and anticipate the reactions of individuals to information andmeasurements. The design and introduction of new measurements and systems must be accompanied with an analysis of the likely reactions to the innovations.。