Managerial Accounting Exam #1
(Rutgers - Sahay) With 100% Correct
And Verified Answers
Management Accounting - Correct Answer-- Measures, analyzes, and reports financial
and non financial information that helps managers make decisions to fulfill
organizational goals.
- Develops, communicates and implements strategies
- Coordinates product design, production and marketing decisions and evaluate a
company's performance
Financial Accounting - Correct Answer-Focuses on reporting financial information to
external parties such as investors, government agencies, banks and suppliers, based
on GAAP. This allows the board of directors, stockholders, potential investors and
financial institutions to see how the company has performed during a specific period of
time in the past. These reports are filed on an annual basis.
Cost accounting - Correct Answer-Measures, analyzes and reports financial and non-
financial information related to the costs of acquiring or using resources in an
organization
Strategy - Correct Answer-Specifies how an organization matches its own capabilities
with the opportunities in the marketplace to accomplish its objectives
Two broad strategies are cost leadership and product differentiation
Cost Leadership - Correct Answer-Outperform competitors by producing at the lowest
cost, consistent with quality demanded by the consumer
Product Differentiation - Correct Answer-Creating value for the customer through
product innovation, product features, customer service, etc. The customer is willing to
pay more for these added values
Value - Correct Answer-The usefulness a customer gains from a company's product or
service. The entire customer experience determines the value a customer derives from
a product.
The Value Chain - Correct Answer-The sequences of business functions by which a
product is made progressively more useful to customers.
Departments in the Value Chain - Correct Answer-- Research & Development
- Design of Products and Processes
- Production
- Marketing (including Sales)
, - Distribution
- Customer Service
Value-Adding Activities - Correct Answer-Activities that add value to a product or
service, as perceived by the customer
Nonvalue-Adding Activities - Correct Answer-Activities that add cost to product or
service but do not increase its market value
Supply Chain - Correct Answer-Describes the flow of goods, services and information
from the initial sources of materials, services and information to their delivery regardless
of whether the activities occur in one organization or in multiple organizations
Planning - Correct Answer-1. Selecting an organization's goals and strategies
2. Predicting results under various alternative ways of achieving those goals
3. Deciding how to attain the desired goals
4. Communicating the goals and how to achieve them to the entire organization
Control - Correct Answer-- Taking actions that implement the planning decisions
- Evaluating past performance
- Providing feedback and learning to help future decision making
Budget - Correct Answer-The quantitative expression of a proposed plan of action by
management and is an aid to coordinating what needs to be done to execute that plan.
Line Management - Correct Answer-Directly responsible for achieving the goals of the
organization
Staff Management - Correct Answer-Provides advice, support and assistance to line
management
Four Standards of Ethical Conduct - Correct Answer-1. Competence
2. Confidentiality
3. Integrity
4. Credibility
Cost - Correct Answer-Sacrificed resource to achieve a specific objective
Actual Cost - Correct Answer-A cost that has occured
Budget Cost - Correct Answer-A predicted cost
Cost Object - Correct Answer-Anything of interest for which a cost is described
Cost Accumulation - Correct Answer-A collection of cost data in an organized manner
(Rutgers - Sahay) With 100% Correct
And Verified Answers
Management Accounting - Correct Answer-- Measures, analyzes, and reports financial
and non financial information that helps managers make decisions to fulfill
organizational goals.
- Develops, communicates and implements strategies
- Coordinates product design, production and marketing decisions and evaluate a
company's performance
Financial Accounting - Correct Answer-Focuses on reporting financial information to
external parties such as investors, government agencies, banks and suppliers, based
on GAAP. This allows the board of directors, stockholders, potential investors and
financial institutions to see how the company has performed during a specific period of
time in the past. These reports are filed on an annual basis.
Cost accounting - Correct Answer-Measures, analyzes and reports financial and non-
financial information related to the costs of acquiring or using resources in an
organization
Strategy - Correct Answer-Specifies how an organization matches its own capabilities
with the opportunities in the marketplace to accomplish its objectives
Two broad strategies are cost leadership and product differentiation
Cost Leadership - Correct Answer-Outperform competitors by producing at the lowest
cost, consistent with quality demanded by the consumer
Product Differentiation - Correct Answer-Creating value for the customer through
product innovation, product features, customer service, etc. The customer is willing to
pay more for these added values
Value - Correct Answer-The usefulness a customer gains from a company's product or
service. The entire customer experience determines the value a customer derives from
a product.
The Value Chain - Correct Answer-The sequences of business functions by which a
product is made progressively more useful to customers.
Departments in the Value Chain - Correct Answer-- Research & Development
- Design of Products and Processes
- Production
- Marketing (including Sales)
, - Distribution
- Customer Service
Value-Adding Activities - Correct Answer-Activities that add value to a product or
service, as perceived by the customer
Nonvalue-Adding Activities - Correct Answer-Activities that add cost to product or
service but do not increase its market value
Supply Chain - Correct Answer-Describes the flow of goods, services and information
from the initial sources of materials, services and information to their delivery regardless
of whether the activities occur in one organization or in multiple organizations
Planning - Correct Answer-1. Selecting an organization's goals and strategies
2. Predicting results under various alternative ways of achieving those goals
3. Deciding how to attain the desired goals
4. Communicating the goals and how to achieve them to the entire organization
Control - Correct Answer-- Taking actions that implement the planning decisions
- Evaluating past performance
- Providing feedback and learning to help future decision making
Budget - Correct Answer-The quantitative expression of a proposed plan of action by
management and is an aid to coordinating what needs to be done to execute that plan.
Line Management - Correct Answer-Directly responsible for achieving the goals of the
organization
Staff Management - Correct Answer-Provides advice, support and assistance to line
management
Four Standards of Ethical Conduct - Correct Answer-1. Competence
2. Confidentiality
3. Integrity
4. Credibility
Cost - Correct Answer-Sacrificed resource to achieve a specific objective
Actual Cost - Correct Answer-A cost that has occured
Budget Cost - Correct Answer-A predicted cost
Cost Object - Correct Answer-Anything of interest for which a cost is described
Cost Accumulation - Correct Answer-A collection of cost data in an organized manner
