Management accounting involves partnering in management decision making, planning, and performance measurement to assist in the formulation and implementation of an organization's strategy.
Management accounting is the process of gathering, reporting, and
Management accounting involves partnering in management decision making, planning, and performance measurement to assist in the formulation and implementation of an organization's strategy.
Which of the following is the correct sequence in which cost management information is developed and used?
Business events, data, information, analysis, decisions
Business events, data, analysis, information, decisions
Business events, data, information,
Business events, data, information, knowledge, decisions
Cost management uses the expertise of the management accountant to
Improve business processes and lean operations
Implement a strategy of customer value and shareholder value
Implement a strategy of cost leadership or differentiation
Improve quality and r
Implement a strategy of cost leadership or differentiation
The cost management professionals in an organization probably report directly to the:
Controller
Chief financial officer (CFO)
Chief executive officer (CEO)
Treasurer
Controller
Walmart, Costco, and Dollar General are retailers that compete on the basis of
Desirable locations
Quality and customer service
Product differentiation
Low prices
Low prices
Cost management has evolved from a focus on measurement to one of identifying those measures that are critical to the organization's success. Given this new focus, indicate which one of the following types of cost management systems cost managers are like
A system in which strategically relevant cost management information is an integral part
A management method in which managers and employees commit to a process of continuous improvement is best described as:
Lean accounting
The theory of constraints
Total quality management
Business process improvement
Business process improvement
Professional certifications are issued by the American Institute of Certified Public Accountants (AICPA), the Institute of Management Accountants (IMA), The Chartered Institute of Management Accountants (CIMA), and the Society of Management Accountants in
IMA
To determine whether a particular action is professionally ethical or not, using the Institute of Management Accountants Statement of Ethical Professional Practice, it is necessary to know:
Whether the act is legal in your jurisdiction
The intent and the
The intent and the business context of the act
(The intent and the business context of the act) is correct. (Whether the act is legal in your jurisdiction) an act can be legal but not ethical; (The amount of the fraud or theft that is involved) the amount
Firms that want to grow quickly in the global marketplace often employ the cost leadership strategy because:
Manufacturers around the world adopt lean manufacturing methods to bring their costs down.
There are relatively few product variations across diff
Manufacturers around the world adopt lean manufacturing methods to bring their costs down.
(Manufacturers around the world adopt lean manufacturing methods to bring their costs down.) is correct. (This produces favorable customs rates and import duties.)
The IMA ethical standard that requires the management accountant to mitigate conflicts of interest:
Requires the management accountant to act with integrity
Is not a part of the IMA Statement of Ethical Professional Practice
Is necessary to ensure that th
The three aspects of integrity in the IMA statement are:
1.
Mitigate actual conflict of interest. Regularly communicate with business associates to avoid apparent conflicts of interest.
2. Refrain from engaging in any conduct that would prejudice carrying
The three aspects of integrity in the IMA statement are:
1.
Mitigate actual conflict of interest. Regularly communicate with business associates to avoid apparent conflicts of interest.
2. Refrain from engaging in any conduct that would prejudice carrying
(The strategy map provides a guide to implementing the BSC by linking the critical success factors.) is correct. (The strategy map is a subset of the BSC.) the BSC has perspectives which could be called subsets, but the strategy map is not a perspective o
SWOT analysis is a useful tool for:
Developing the organization's value chain
Identifying the organization's critical success factors
Evaluating the performance of an organization
Developing the organization's strategy map
(Identifying the organization's critical success factors) is correct. SWOT analysis is used to develop and implement an organization's strategy, and the key role played by the SWOT analysis is to help identify the organization's critical success factors t
The following strategy implementation technique can be particularly enhanced by using benchmarking, as for example, participating in the Malcolm Baldrige National Quality Program.
Execution
The strategy map
The value chain
The balanced scorecard (BSC)
While all the above listed implementation methods can benefit from benchmarking, execution of goals is the one that most relies on benchmarking in setting goals and evaluating progress to meeting these goals.
The balanced scorecard is related to the strategy map in a similar way as:
Sustainability can be related to financial reporting
SWOT analysis is related to execution
The organization's key activities are related to the value chain
The value chain is relat
(The organization's key activities are related to the value chain) is correct because the strategy map links the critical success factors in the BSC, and the value chain links the activities the organization uses to execute its strategy.
A company taking a strategic and customer-centered point of view can best address sustainability, a concern for environmental and social as well as economic performance, through:
Lobbying in Congress for stronger environmental regulations
The use of a sus
(The use of a sustainability perspective in the balanced scorecard) is correct: most companies that report sustainability results have either a separate sustainability scorecard or include sustainability as a perspective of the BSC. (Annual financial repo
The implementation of the balanced scorecard (BSC) can involve all of the following except:
The strong support of top management
A link to reward and compensation systems
An accurate reflection of the organization's strategy
An effective value chain
While an effective value chain is an important component of strategy implementation, it is not required in implementing the BSC.
What does it mean for the balanced scorecard to "reflect strategy"?
The balanced scorecard is one of the key methods for implementing strategy.
One should be able to infer an organization's strategy from the balanced scorecard.
The management accountant d
(One should be able to infer an organization's strategy from the balanced scorecard.) is correct. (The management accountant develops the balanced scorecard prior to developing a strategy.) the management accountant develops the BSC after having determine
Opportunities and threats in Strengths-Weaknesses-Opportunities-Threats (SWOT) analysis can be
identified most readily by:
Analyzing the industry and the organization's competitors
Analyzing the organization's critical success factors
Using the strategy m
Opportunities and threats are external to the organization, so the analysis to identify opportunities and threats is to target developments outside the company, that is, to the industry and the organization's competitors.
Which of the following statements about the value chain is correct?
A company need not operate in all activities of the value chain.
The value chain is intended primarily for manufacturers.
The two phases of the activities of the value chain are the upstr
(The two phases of the activities of the value chain are the upstream activities and the downstream activities.) there are three phases of the activities: upstream, operations, and downstream, (There are usually 6-8 activities in the value chain.) there m
Identifying a company's strengths and weaknesses requires a(n):
Evaluation of the company's operations, strategy, and management competence
Review of the company's industry and competitive environment
Careful analysis of the company's value chain
Analysis
(Careful analysis of the company's value chain) and (Analysis of the company's balanced scorecard) the identification of strengths and weaknesses is done as part of developing the value chain and the balanced scorecard, not an analysis of the completed va
The required resources for implementing a cost leadership strategy include which of the following?
Strong marketing capability
Substantial capital investment and access to capital
Effective product engineering and process planning
Reputation for quality a
See Exhibit 2.2. below. (Strong marketing capability), (Product engineering), and (Reputation for quality and innovation) are resources for a differentiation strategy.
The World Resources Institute is an organization that:
Assists companies in understanding the changing environment of financial and material resources worldwide
Provides resources for organizations that intend to expand globally
Provides resources for org
(Provides resources for organizations that want to develop credible scorecards that include sustainability) is correct because the mission of the World Resources Institute is to assist companies in reporting sustainability within acceptable world-wide sta
Which of the following is an important method for implementing strategy?
Differentiation
Cost leadership
Value chain analysis
Sustainability
(Sustainability) is a strategic goal, and not a method to implement strategy; (cost leadership) and (differentiation) are generic strategies, and not methods to implement strategy.