1.

The cost management information system is primarily concerned with producing outputs for external users.

True

False

2.

The cost management information system has two major subsystems: the cost accounting information system and the operational control information system.

True

False

3.

Evaluating the performance of a segment of the company is an example of planning.

True

False

4.

In resolving an ethical conflict, it would be appropriate to take the matter to the press where there's no legal requirement.

True

False

5.

Divulging company information when not legally obligated to do so violates the confidentiality part of the IMA Code of Conduct.

True

False

6.

JIT is a critical part of a more comprehensive approach referred to as Lean Manufacturing.

True

False

7.

The focus of Lean Manufacturing is to eliminate waste, which is anything that does not add value to the end user (customer).

True

False

8.

Enterprise resource planning (ERP) software has the objective of providing an integrated system capability and is able to run all the operations of a company.

True

False

9.

The three broad objectives of financial accounting information systems are to provide information for costing out services and products, planning and control, and decision making.

True

False

10.

The service sector of the U.S. economy has decreased in importance as traditional industries have declined in importance.

True

False

11.

The primary objective of the cost management information system is to provide

a. management with information useful for planning and control of operations.

b. the Internal Revenue Service with information about taxable income.

c. banks and other creditors with information useful in making credit decisions.

d. stockholders and potential investors with useful information for decision making.

12.

Which of the following activities is associated with the cost management information system?

a. preparing reports for the IRS

b. preparing financial statements that conform to GAAP

c. preparing reports for division managers

d. preparing reports for the SEC

13.

Which of the following emerging trends in cost accounting deals with managers striving to create environment that will enable workers to manufacture perfect (zero-defect) products?

a. total quality management

b. advances in information technology

c. global competition

d. time as a competitive element

14.

A critical measure of efficiency is

a. the cost of activity.

b. a T-test.

c. employee job satisfaction.

d. customer satisfaction.

15.

All of the following would be considered staff functions EXCEPT the

a. vice president of finance.

b. vice president of research and development.

c. vice president of marketing.

d. vice president of corporate planning.

16.

Which of the following positions would most likely be a staff manager?

a. manager of a Sears store

b. president

c. controller

d. manager of a clothing division

17.

The chief accounting officer of an organization is the

a. internal auditor.

b. controller.

c. vice president of finance.

d. treasurer.

18.

Which of the following would be considered a line function?

a. administrative services

b. maintenance

c. public relations

d. production

19.

Accounting reports that provide feedback by comparing planned (budgeted) data with actual data are called:

a. favorable reports.

b. auditing reports.

c. improvement reports.

d. performance reports.

20.

The formulation of a program for the accomplishment of a specific purpose is referred to as

a. organizing.

b. motivating.

c. controlling.

d. planning.

21.

The certification sponsored by the Institute of Management Accountants that emphasizes economics, finance, management, financial accounting and reporting, management reporting, and decision analysis is the

a. CIA

b. CMA

c. CPA

d. All of these choices are correct.

22.

Which of the following certifications require a candidate to pass a qualifying examination in Financial Planning, Performance, and Control and Financial Decision Making?

a. The Certificate in Internal Auditing

b. The Certificate in Financial Accounting

c. The Certificate in Management Accounting

d. The Certificate in Public Accounting

23.

An accountant certified to possess the minimal professional qualifications for an external auditor is a

a. CPA

b. CIA

c. CMA

d. All of these choices are correct.

24.

Persons in the United States who provide external auditing services are designated as

a. Certified Public Accountants.

b. Certified Management Accountants.

c. Chartered Accountants.

d. Certified Financial Accountants.

25.

The Standards of Ethical Professional Practice of the Institute of Management Accountants addresses all of the following EXCEPT

a. competence

b. confidentiality

c. integrity

d. strategic cost management

26.

When a management accountant ignores data in favor of unsupported opinion, this action would speak most directly to which part of the IMA Code of Conduct?

a. competence

b. confidentiality

c. credibility

d. independence

27.

Engaging in or supporting an activity that would discredit the profession would relate to which part of the IMA Code of Conduct?

a. credibility

b. independence

c. integrity

d. competence

28.

In resolving an ethical conflict, it is inappropriate to discuss the problem with the immediate supervisor because of a violation of which standard of ethical conduct for management accountants?

a. confidentiality

b. competence

c. credibility

d. This action is not in violation of the code of conduct.

29.

In resolving an ethical conflict, which of the following would NEVER be appropriate?

a. taking the matter to the press where there is no legal requirement

b. resigning from the position because of a conflict

c. discussing the matter with an external member of the board of directors

d. discussing the matter with the chief executive officer

30.

Which of the following relates to the credibility section of the IMA Code of Conduct?

a. Communicate information fairly and objectively.

b. Prepare clear and complete reports.

c. Communicate professional limitations.

d. Avoid actual or apparent conflicts of interest.