MAC 3701 MANAGEMENT ACCOUNTING APPLICATIONS
TECHNIQUES EXAM QUESTIONS WITH CORRECT
ANSWERS GRADED A+
Provide an example of a whistleblower- CASE STUDY - ✔✔ The EY Whistleblower case
(Amjad Rihan) uncovered unethical gold audits in Dubai, resulting in an $11M settlement.
What characteristics identify unethical companies? - ✔✔ Unethical companies may be identified
by environmental harm, poor labor/human rights records, animal rights violations, and
undemocratic practices.
What role do management accountants play in corporate ethics? - ✔✔ Management accountants
ensure ethical supply chain practices and advocate for transparency in financial reporting.
Cultural Perspectives on Ethics - ✔✔ - 1) Culture: Ethics may vary by culture
- 2) Universalism: Global ethical standards
- 3) Moral Minimum: Basic ethical thresholds apply universally
Key questions to note:
- Is the gift a courtesy or bribe?
- Does it encourage unethical behaviour
,What is the significance of the AAA 7-Step process for professional accountants? - ✔✔ The
AAA 7-Step process provides a structured approach for ethical decision-making, ensuring
adherence to core values.
Define Sustainable Development. - ✔✔ Development that meets present needs without
compromising future generations (Bruntland Report, 1987).
Explain the concept of the Triple Bottom Line (TBL). - Sustainability - ✔✔ TBL includes three
dimensions:
Environmental (Nature Capital)
Social (Human and social capital)
Economic (Financial and manufactured capital).
Describe the purpose of Social Accounting. - ✔✔ Measures an organization's social impact both
internally (e.g. employee welfare) and externally (e.g. community development), linked to
ethical and political considerations.
List the methods used in Social Accounting. - ✔✔ 1) Total Impact: Monetary valuation of costs.
2) Socio-Economic: Cost-benefit analysis.
3) Social Indicators: Qualitative metrics.
How does the case study of Vestergaard illustrate Social Accounting? - CASE STUDY - ✔✔
Vestergaard is a profitable company that addresses social issues, exemplified by their product
LifeStraw for clean water.
, Identify the focus areas of Environmental Management Accounting (EMA). - ✔✔ Waste
Management
Packaging
(3Rs: Reduce, Reuse, Recycle)
Explain the Mass Balance method in EMA. - ✔✔ Mass Balance tracks inputs and outputs,
represented as A=B+C.
Describe the stages of Life Cycle Assessment (LCA) for business - ✔✔ The stages of LCA are:
Inventory, Impact Analysis, and Improvement.
Describe the stages of Life Cycle Assessment (LCA) for Accountants - ✔✔ Accountant's Role:
Audit data, assess risks, and implement improvements
Define Full Cost Accounting (FCA). - ✔✔ FCA captures true costs, including hidden
environmental and social externalities.
List the types of costs considered in Full Cost Accounting. - ✔✔ Damage (pollution cleanup)
Avoidance (preventative measures)
Remedial (corrective actions).
Explain the process of Full Cost Accounting. - ✔✔ Define cost objectives, measure external
impacts, and monetize impacts (e.g., PWC's TIMM framework).
TECHNIQUES EXAM QUESTIONS WITH CORRECT
ANSWERS GRADED A+
Provide an example of a whistleblower- CASE STUDY - ✔✔ The EY Whistleblower case
(Amjad Rihan) uncovered unethical gold audits in Dubai, resulting in an $11M settlement.
What characteristics identify unethical companies? - ✔✔ Unethical companies may be identified
by environmental harm, poor labor/human rights records, animal rights violations, and
undemocratic practices.
What role do management accountants play in corporate ethics? - ✔✔ Management accountants
ensure ethical supply chain practices and advocate for transparency in financial reporting.
Cultural Perspectives on Ethics - ✔✔ - 1) Culture: Ethics may vary by culture
- 2) Universalism: Global ethical standards
- 3) Moral Minimum: Basic ethical thresholds apply universally
Key questions to note:
- Is the gift a courtesy or bribe?
- Does it encourage unethical behaviour
,What is the significance of the AAA 7-Step process for professional accountants? - ✔✔ The
AAA 7-Step process provides a structured approach for ethical decision-making, ensuring
adherence to core values.
Define Sustainable Development. - ✔✔ Development that meets present needs without
compromising future generations (Bruntland Report, 1987).
Explain the concept of the Triple Bottom Line (TBL). - Sustainability - ✔✔ TBL includes three
dimensions:
Environmental (Nature Capital)
Social (Human and social capital)
Economic (Financial and manufactured capital).
Describe the purpose of Social Accounting. - ✔✔ Measures an organization's social impact both
internally (e.g. employee welfare) and externally (e.g. community development), linked to
ethical and political considerations.
List the methods used in Social Accounting. - ✔✔ 1) Total Impact: Monetary valuation of costs.
2) Socio-Economic: Cost-benefit analysis.
3) Social Indicators: Qualitative metrics.
How does the case study of Vestergaard illustrate Social Accounting? - CASE STUDY - ✔✔
Vestergaard is a profitable company that addresses social issues, exemplified by their product
LifeStraw for clean water.
, Identify the focus areas of Environmental Management Accounting (EMA). - ✔✔ Waste
Management
Packaging
(3Rs: Reduce, Reuse, Recycle)
Explain the Mass Balance method in EMA. - ✔✔ Mass Balance tracks inputs and outputs,
represented as A=B+C.
Describe the stages of Life Cycle Assessment (LCA) for business - ✔✔ The stages of LCA are:
Inventory, Impact Analysis, and Improvement.
Describe the stages of Life Cycle Assessment (LCA) for Accountants - ✔✔ Accountant's Role:
Audit data, assess risks, and implement improvements
Define Full Cost Accounting (FCA). - ✔✔ FCA captures true costs, including hidden
environmental and social externalities.
List the types of costs considered in Full Cost Accounting. - ✔✔ Damage (pollution cleanup)
Avoidance (preventative measures)
Remedial (corrective actions).
Explain the process of Full Cost Accounting. - ✔✔ Define cost objectives, measure external
impacts, and monetize impacts (e.g., PWC's TIMM framework).
