MPA EXIT EXAM STUDY GUIDE
Utilitarianism - Answer -Process of identifying various courses of action that evaluates
the consequences of actions of all stakeholders, then selects the option that creates the
greatest good for the greatest number of people
Act utilitarianism - Answer -examines specific actions to determine whether the action
provides the greatest net benefits
Rule Utilitarianism - Answer -select the action that conforms to the correct moral rule
that produces the greatest net benefits
Rights Principles - Answer -John Locke's Rights theory- humans were born with natural
rights
Kant's categorical Imperative- maintained that each of us has a worth or dignity that
must be respected. Humanity should be treated as an end and not a means
Justice theory (Rawls) - Answer -Liberty principle- each person has an equal right to
extensive basic liberty
Difference Principle- social and economic inequalities are to be arranged so theyre both
reasonably expecte to be to everyone's advantage and attached to positions and offices
open to all
Justice as fairness- basis of the objectivity principle in the AICPA Code that establishes
a standard of providing unbiased financial info
Giving Voice to Values - Answer -Near term skills needed to deal with ethical
challenges
Know what to say, who to say it to, how to say it, and when it is right to say it)
KPMG Framework - Answer -professional judgement - clarifies issues, considers
alternatives, gathers and evaluates information, reach conclusion, and document
rationale
Integrated Ethical Framework - Answer -Identify ethical and professional issues (Ethical
Sensitivity)
Identify and evaluate alternative courses of action (Ethical Judgement)
Reflect on the moral intensity of the situation and virtues that enable ethical action to
occur (Ethical intent)
Take Action (ethical behavior)
AICPA Principle - Answer -Rude Penguins Irritate Old Dying Seals
Responsibilities
Public Interest
Integrity
Objectivity and Independence
, Due Care
Scope/Nature of services
Whistleblowing obligation - Answer -an accounting duty when it is motivated by a desire
to protect the public
Standards for Tax Services - Answer -Not recommend tax return positions unless he
has good-faith belief that the position has a realistic possibility of being sustained if
challenged
PCAOB Rules of ethics and independence - Answer -Rule 3520- Auditor Independence
- Accounting firm must be independent of its audit client throughout the audit and
professional engagement period
Moral Intensity - Answer -degree to which an individual intentionally wants to act
ethically
Higher intensity = greater likeliness that an individual is aware of ethical implications-
more likely to blow whistle
Cost accounting decision making process - Answer -Determine the business
environment and competitive strategy
Specify criterion and identify alternative actions
Perform Relative Cost analysis and Strategic analysis
-Short Term (Predict future values of relevant costs and revenues)
- Long term (Strategic analysis)
Select and implement best course of action
Evaluate Performance
Sunk Cost - Answer -Has been incurred in the past or is already committed for future
and is not relevant to decision making
Relevant Cost - Answer -Future costs that will change as a result of a decision
Variance analysis - Answer -compares the actual financial results to the forecast and
explains the variances
Price Variance - Answer -(actual price - standard price) x actual quantity
Quantity Variance - Answer -(actual quantity - standard quantity) x standard price
Total Overhead Variance - Answer -(total variable overhead + Total Fixed Overhead)-
(Total overhead application rate * Standard labor hours allowed during this period's
production)
Utilitarianism - Answer -Process of identifying various courses of action that evaluates
the consequences of actions of all stakeholders, then selects the option that creates the
greatest good for the greatest number of people
Act utilitarianism - Answer -examines specific actions to determine whether the action
provides the greatest net benefits
Rule Utilitarianism - Answer -select the action that conforms to the correct moral rule
that produces the greatest net benefits
Rights Principles - Answer -John Locke's Rights theory- humans were born with natural
rights
Kant's categorical Imperative- maintained that each of us has a worth or dignity that
must be respected. Humanity should be treated as an end and not a means
Justice theory (Rawls) - Answer -Liberty principle- each person has an equal right to
extensive basic liberty
Difference Principle- social and economic inequalities are to be arranged so theyre both
reasonably expecte to be to everyone's advantage and attached to positions and offices
open to all
Justice as fairness- basis of the objectivity principle in the AICPA Code that establishes
a standard of providing unbiased financial info
Giving Voice to Values - Answer -Near term skills needed to deal with ethical
challenges
Know what to say, who to say it to, how to say it, and when it is right to say it)
KPMG Framework - Answer -professional judgement - clarifies issues, considers
alternatives, gathers and evaluates information, reach conclusion, and document
rationale
Integrated Ethical Framework - Answer -Identify ethical and professional issues (Ethical
Sensitivity)
Identify and evaluate alternative courses of action (Ethical Judgement)
Reflect on the moral intensity of the situation and virtues that enable ethical action to
occur (Ethical intent)
Take Action (ethical behavior)
AICPA Principle - Answer -Rude Penguins Irritate Old Dying Seals
Responsibilities
Public Interest
Integrity
Objectivity and Independence
, Due Care
Scope/Nature of services
Whistleblowing obligation - Answer -an accounting duty when it is motivated by a desire
to protect the public
Standards for Tax Services - Answer -Not recommend tax return positions unless he
has good-faith belief that the position has a realistic possibility of being sustained if
challenged
PCAOB Rules of ethics and independence - Answer -Rule 3520- Auditor Independence
- Accounting firm must be independent of its audit client throughout the audit and
professional engagement period
Moral Intensity - Answer -degree to which an individual intentionally wants to act
ethically
Higher intensity = greater likeliness that an individual is aware of ethical implications-
more likely to blow whistle
Cost accounting decision making process - Answer -Determine the business
environment and competitive strategy
Specify criterion and identify alternative actions
Perform Relative Cost analysis and Strategic analysis
-Short Term (Predict future values of relevant costs and revenues)
- Long term (Strategic analysis)
Select and implement best course of action
Evaluate Performance
Sunk Cost - Answer -Has been incurred in the past or is already committed for future
and is not relevant to decision making
Relevant Cost - Answer -Future costs that will change as a result of a decision
Variance analysis - Answer -compares the actual financial results to the forecast and
explains the variances
Price Variance - Answer -(actual price - standard price) x actual quantity
Quantity Variance - Answer -(actual quantity - standard quantity) x standard price
Total Overhead Variance - Answer -(total variable overhead + Total Fixed Overhead)-
(Total overhead application rate * Standard labor hours allowed during this period's
production)
