”

1 Which of the following aspects of a company would not be
considered a critical success factor, for a company that competes on
differentiation?

A. Cutting edge research and development.
B. Excellent customer service.
C. Award-winning product quality.
D. Continually beating competitors to the market with new,
innovative products.
E. High level of production efficiency.

2.

The competitive strategy of cost leadership allows a firm to
outperform competitors by producing products or services:

A. With lowered quality standards, thus reducing overall
costs.
B. In smaller operational units.
C. At lower cost achieved by increased productivity.
D. With attractive added features making the product more expensive,
or “”the cost leader””.
E. That are heavily promoted and heavily warranted.

3.

Cost management information typically is the responsibility of
the:

A. Chief Financial Officer.
B. Controller.
C. Treasurer.
D. Chief Information Officer.

4.

Which one of the following critical success customer factors is
best measured by warranty expense?

A. Quality.
B. Dealer and distributor efficiency and effectiveness.
C. Timeliness of delivery.
D. Customer satisfaction.

5.

All of the following actions enhance the new focus on making
management accounting information more relevant in helping a firm achieve
strategic goals, except:

A. Increasing emphasis on the management accountant as a
business partner.
B. Increasing emphasis on external financial reporting.
C. Decreasing emphasis on financial statement inventory cost
valuation.
D. Increasing emphasis on timely and useful information.
E. Increasing emphasis on detailed and accurate costing methods
such as ABC costing.

6.

According to the IMA Code of Ethics, what should a management
accountant do if a significant ethical situation can’t be resolved?

A. The accountant should confront the guilty party and demand
the unethical action be stopped.
B. The accountant should try to rationalize and understand the
position of the other party.
C. The accountant should say nothing about the matter until he or
she has retired.
D. The accountant should first discuss the matter with the immediate
supervisor.

7.

In SWOT analysis, strengths and weaknesses are most easily
identified by looking:

A. At the firm as a potential customer.
B. Inside the firm at its specific resources.
C. At the firm’s competition.
D. At the firm’s product.
E. Outside the firm from a consultant’s perspective.

8.

RTP Corp. is developing a new computer processor to compete
against Intel’s successful product line. RTP has already determined the
market price and the required profit margin on each processor sold in order
to be successful. Which costing method will RTP most likely use to reduce
costs and obtain the desired results?

A. Target Costing.
B. Product costing.
C. Relevant costing.
D. Cost management.

9.

The balanced scorecard can be made more effective by developing
it at a detail level so that employees:

A. Can see how it is put together.
B. Appreciate all the effort that goes into its preparation.
C. Respect management for including them in its formulation.
D. Can see how their actions contribute to the success of the
firm.
E. Do not feel left out.

10.

Cost management has moved from a traditional role of product
costing and operational control to a broader strategic focus, which places an
emphasis on:

A. Competitive pricing.
B. Domestic marketing.
C. Short-term thinking.
D. Strategic thinking.
E. Independent judgment.

11.

Which of the following is the primary user of management
accounting information regarding business units?

A. Company management.
B. Investors.
C. Creditors.
D. Industry and governmental organizations.

12.

The balanced scorecard:

A. Is not comprehensive, since it doesn’t include all the
CSFs which contribute to competitive success.
B. Helps focus managers’ attention to bottom line profits.
C. Is forward looking, stressing nonfinancial measures that can
lead to benefits in the future.
D. Fails to reflect environmental and social effects of the
firm’s operations.
E. Is heavily weighted toward the financial critical success
factors (CSFs).

13.

Which of the following could be considered part of the value
chain in a service firm?

A. Inspection of product.
B. Advertising.
C. Raw materials.
D. Customer service.
E. Advertising and customer service.

14.

Which of the following is not considered part of the Institute
of Management Accountants’ definition of management accounting?

A. Partnering in management decision making.
B. Devising planning and performance management systems.
C. Gathering, summarizing, analyzing, and providing information.
D. Providing expertise in financial reporting and control.
E. Assisting management in the formulation and implementation of
an organization’s strategy.

15.

The following problems have occurred at your company: management
seems to be making decisions based on guesses and intuition, there’s a lack
of clarity concerning direction and goals, and profitable opportunities are
being missed. What is your company suffering from?

A. A lack of strategic information; management has not
determined its strategic competitive position.
B. Managers have too much information.
C. The company is not familiar with business reengineering and
value chain analysis.
D. The company has an inappropriate mission statement.

1.Which of the following aspects of a company would not be
considered a critical success factor, for a company that competes on
differentiation? A. Cutting edge research and development.
B. Excellent customer service.
C. Award-winning product quality.
D. Continually beating competitors to the market with new,
innovative products.
E. High level of production efficiency. 2.The competitive strategy of cost leadership allows a firm to
outperform competitors by producing products or services: A. With lowered quality standards, thus reducing overall
costs.
B. In smaller operational units.
C. At lower cost achieved by increased productivity.
D. With attractive added features making the product more expensive,
or “”the cost leader””.
E. That are heavily promoted and heavily warranted. 3.Cost management information typically is the responsibility of
the: A. Chief Financial Officer.
B. Controller.
C. Treasurer.
D. Chief Information Officer. 4.Which one of the following critical success customer factors is
best measured by warranty expense? A. Quality.
B. Dealer and distributor efficiency and effectiveness.
C. Timeliness of delivery.
D. Customer satisfaction. 5.All of the following actions enhance the new focus on making
management accounting information more relevant in helping a firm achieve
strategic goals, except: A. Increasing emphasis on the management accountant as a
business partner.
B. Increasing emphasis on external financial reporting.
C. Decreasing emphasis on financial statement inventory cost
valuation.
D. Increasing emphasis on timely and useful information.
E. Increasing emphasis on detailed and accurate costing methods
such as ABC costing. 6.According to the IMA Code of Ethics, what should a management
accountant do if a significant ethical situation can’t be resolved? A. The accountant should confront the guilty party and demand
the unethical action be stopped.
B. The accountant should try to rationalize and understand the
position of the other party.
C. The accountant should say nothing about the matter until he or
she has retired.
D. The accountant should first discuss the matter with the immediate
supervisor. 7.In SWOT analysis, strengths and weaknesses are most easily
identified by looking: A. At the firm as a potential customer.
B. Inside the firm at its specific resources.
C. At the firm’s competition.
D. At the firm’s product.
E. Outside the firm from a consultant’s perspective. 8.RTP Corp. is developing a new computer processor to compete
against Intel’s successful product line. RTP has already determined the
market price and the required profit margin on each processor sold in order
to be successful. Which costing method will RTP most likely use to reduce
costs and obtain the desired results? A. Target Costing.
B. Product costing.
C. Relevant costing.
D. Cost management. 9.The balanced scorecard can be made more effective by developing
it at a detail level so that employees: A. Can see how it is put together.
B. Appreciate all the effort that goes into its preparation.
C. Respect management for including them in its formulation.
D. Can see how their actions contribute to the success of the
firm.
E. Do not feel left out. 10.Cost management has moved from a traditional role of product
costing and operational control to a broader strategic focus, which places an
emphasis on: A. Competitive pricing.
B. Domestic marketing.
C. Short-term thinking.
D. Strategic thinking.
E. Independent judgment. 11.Which of the following is the primary user of management
accounting information regarding business units? A. Company management.
B. Investors.
C. Creditors.
D. Industry and governmental organizations. 12.The balanced scorecard: A. Is not comprehensive, since it doesn’t include all the
CSFs which contribute to competitive success.
B. Helps focus managers’ attention to bottom line profits.
C. Is forward looking, stressing nonfinancial measures that can
lead to benefits in the future.
D. Fails to reflect environmental and social effects of the
firm’s operations.
E. Is heavily weighted toward the financial critical success
factors (CSFs). 13.Which of the following could be considered part of the value
chain in a service firm? A. Inspection of product.
B. Advertising.
C. Raw materials.
D. Customer service.
E. Advertising and customer service. 14.Which of the following is not considered part of the Institute
of Management Accountants’ definition of management accounting? A. Partnering in management decision making.
B. Devising planning and performance management systems.
C. Gathering, summarizing, analyzing, and providing information.
D. Providing expertise in financial reporting and control.
E. Assisting management in the formulation and implementation of
an organization’s strategy. 15.The following problems have occurred at your company: management
seems to be making decisions based on guesses and intuition, there’s a lack
of clarity concerning direction and goals, and profitable opportunities are
being missed. What is your company suffering from? A. A lack of strategic information; management has not
determined its strategic competitive position.
B. Managers have too much information.
C. The company is not familiar with business reengineering and
value chain analysis.
D. The company has an inappropriate mission statement.”