Managerial Accounting - Chapter 1 questions with correct answers

activity accounting Correct Answer-The collection of financial or operational performance information about significant activities in an enterprise. activity-based costing (ABC) system Correct Answer-A two-stage procedure used to assign overhead costs to products or services produced. In the first stage, significant activities are identified, and overhead costs are assigned to activity cost pools in accordance with the way resources are consumed by the activities. In the second stage, the overhead costs are allocated from each activity cost pool to each product line in proportion to the amount of the cost driver consumed by the product line. activity-based management (ABM) Correct Answer-Using an activity-based costing system to improve the operations of an organization. attention-directing function Correct Answer-The function of managerial accounting information in pointing out to managers issues that need their attention. balanced scorecard Correct Answer-A model of business performance evaluation that balances measures of financial performance, internal operations, innovation and learning, and customer satisfaction. Certified Management Accountant (CMA) Correct Answer-An accountant who has earned professional certification in managerial accounting. chief financial officer (CFO) Correct Answer-An organization's top managerial and financial accountant. (Also see controller.)