ACC 241 Exam 1 Questions and
Answers (Graded A)
Primary responsibilities of a manager - ANSWER - Planning - setting goals for
company and determining how to achieve them
Directing - overseeing companies day to day operation
Controlling - evaluating results of the business operation against the plan and
making adjustments to keep company pressing towards goal
Evaluating
management accounting - ANSWER - specializes in the study of how managers use
accounting and/or financial information in current or future business decisions.
Management accountants use both qualitative and quantitative information in their
work. Unlike other accountants, they primarily report to the internal management of
a company, rather than to an external body like shareholders or tax collection
agencies.
financial accounting - ANSWER - produces annual and quarterly consolidated
financial statements that will be used by investors and creditors to make
investment and lending decisions. Must follow GAAP (Generally Accepted
Accounting Principles)
Skills of management accountants - ANSWER - in order to become a certified
management accountant, one must pass a series of tests sponsored by the Institute
of Management Accountants. These tests examine one's knowledge in four subjects:
business analysis, management accounting and reporting, strategic management,
and business applications.
IMA (Institute of Management Accountants - ANSWER - A forum for research,
practice development, education, knowledge sharing, and the advocacy of the
highest ethical and best business practices in management accounting and finance.
Ethical decision-making framework - ANSWER - IMA's Statement of Ethical
Professional Practice: Maintain professional competence, preserve confidentiality of
info they handle, uphold integrity & perform duties with integrity.
, Purpose and major provisions of the Sarbanes-Oxley - ANSWER - Restore trust in
publicly traded corporations, their management, their financial statements, & their
auditors.
Cost Objects - ANSWER - Anything for which cost data is desired by a manager, e.g.,
products, product lines, customers, jobs, and organizational sub-units such as
departments or divisions of a company.
Direct Costs - ANSWER - A cost that can be directly related to producing specific
goods or performing a specific
service.
Indirect Costs - ANSWER - Manufacturing cost that cannot be easily seen in the
product. Electricity, hazard insurance on the factory building, and real estate taxes
are examples of indirect costs.
Service, merchandising and manufacturing companies & their inventories - ANSWER
- S - sell intangible things (medicare, coaching) generally don't have inventory
Me - Like Walmart resell tangible products. Have inventory and incur inventory
related costs (ads, travel)
Ma - use labor, plant, and equipment to convert raw materials into a product. Like
car companies. Have Raw materials inventory, work in process inventory, & finished
goods inventory.
Value Chain - ANSWER - Research&Development, Production, Distribution,
Marketing, Design & Customer Service
ISO 9001:2008 - ANSWER - International Organization of Standardization (163
countries)
Sustainability Pillars - ANSWER - Economics, Social, Environmental
Value-chain - ANSWER - Linked set of all value-creating processes or activities that
convert basic input materials into products or services for the final consumer.
Answers (Graded A)
Primary responsibilities of a manager - ANSWER - Planning - setting goals for
company and determining how to achieve them
Directing - overseeing companies day to day operation
Controlling - evaluating results of the business operation against the plan and
making adjustments to keep company pressing towards goal
Evaluating
management accounting - ANSWER - specializes in the study of how managers use
accounting and/or financial information in current or future business decisions.
Management accountants use both qualitative and quantitative information in their
work. Unlike other accountants, they primarily report to the internal management of
a company, rather than to an external body like shareholders or tax collection
agencies.
financial accounting - ANSWER - produces annual and quarterly consolidated
financial statements that will be used by investors and creditors to make
investment and lending decisions. Must follow GAAP (Generally Accepted
Accounting Principles)
Skills of management accountants - ANSWER - in order to become a certified
management accountant, one must pass a series of tests sponsored by the Institute
of Management Accountants. These tests examine one's knowledge in four subjects:
business analysis, management accounting and reporting, strategic management,
and business applications.
IMA (Institute of Management Accountants - ANSWER - A forum for research,
practice development, education, knowledge sharing, and the advocacy of the
highest ethical and best business practices in management accounting and finance.
Ethical decision-making framework - ANSWER - IMA's Statement of Ethical
Professional Practice: Maintain professional competence, preserve confidentiality of
info they handle, uphold integrity & perform duties with integrity.
, Purpose and major provisions of the Sarbanes-Oxley - ANSWER - Restore trust in
publicly traded corporations, their management, their financial statements, & their
auditors.
Cost Objects - ANSWER - Anything for which cost data is desired by a manager, e.g.,
products, product lines, customers, jobs, and organizational sub-units such as
departments or divisions of a company.
Direct Costs - ANSWER - A cost that can be directly related to producing specific
goods or performing a specific
service.
Indirect Costs - ANSWER - Manufacturing cost that cannot be easily seen in the
product. Electricity, hazard insurance on the factory building, and real estate taxes
are examples of indirect costs.
Service, merchandising and manufacturing companies & their inventories - ANSWER
- S - sell intangible things (medicare, coaching) generally don't have inventory
Me - Like Walmart resell tangible products. Have inventory and incur inventory
related costs (ads, travel)
Ma - use labor, plant, and equipment to convert raw materials into a product. Like
car companies. Have Raw materials inventory, work in process inventory, & finished
goods inventory.
Value Chain - ANSWER - Research&Development, Production, Distribution,
Marketing, Design & Customer Service
ISO 9001:2008 - ANSWER - International Organization of Standardization (163
countries)
Sustainability Pillars - ANSWER - Economics, Social, Environmental
Value-chain - ANSWER - Linked set of all value-creating processes or activities that
convert basic input materials into products or services for the final consumer.
