ACC 406 Midterm Questions and Answers|2025
Revised Update | 100% Correct Complete Solutions
Managerial Accounting
The area of accounting that focuses on reporting information to internal users. Not required to
follow guidelines. Focuses on the future.
Managerial accounting has three broad objectives
-To provide information for planning the organization's actions.
-To provide information for controlling the organization's actions.
-To provide information for making effective decisions.
Triple Bottom Line (TBL)
Refers to establishing objectives within the organization that reflect the company's concern for
its financial, social, and environmental impact.
Pillars of the TBL accounting framework
Profits, people, planet
Activity-Based Costing (ABC)
Emphasizes cost of many activities or tasks that must be done to produce a product
Effective cost information can help increase customer value through two strategies:
Cost leadership: Provide the same or better value to customers at a lower cost
,Superior products through differentiation: Increase customer value by providing something to
customers not provided by competitors.
Value Chain
The set of activities through which a product or service is created and delivered to customers.
Cross-Functional Perspective
Allows management to see the big picture and increase quality, reduce time, and improve
efficiency. A decision affecting one function affects the others.
Lean accounting is:
Organizes costs according to the value chain and collects both financial and non-financial
information
Enterprise Risk Management (ERM)
Formal way for managerial accountants to identify and respond to the most important threats and
business opportunities facing the organization
The 10 Core Values of Ethical Behaviour
Honesty
Integrity
Caring for others
Accountability
Fidelity
Fairness
Respect for others
, Responsible citizenship
Pursuit of excellence
Promise keeping
Company Codes of Conduct
To promote ethical behaviour by managers and employees, organizations commonly establish
standards of conduct
According to the CPA Code of Professional Conduct, what are the fundamental principles
of ethics?
Professional behaviour, integrity and due care, professional competence, confidentiality,
objectivity
True or False: professional accountants in Canada now operate as Chartered Professional
Accountants (CPAs).
True
True or False: The belief that each member of a group bears some responsibility for the
well-being of other members is a common principle underlying all ethical systems.
True
Line positions
Positions that have direct responsibility for the basic objectives of an organization
Staff positions
Revised Update | 100% Correct Complete Solutions
Managerial Accounting
The area of accounting that focuses on reporting information to internal users. Not required to
follow guidelines. Focuses on the future.
Managerial accounting has three broad objectives
-To provide information for planning the organization's actions.
-To provide information for controlling the organization's actions.
-To provide information for making effective decisions.
Triple Bottom Line (TBL)
Refers to establishing objectives within the organization that reflect the company's concern for
its financial, social, and environmental impact.
Pillars of the TBL accounting framework
Profits, people, planet
Activity-Based Costing (ABC)
Emphasizes cost of many activities or tasks that must be done to produce a product
Effective cost information can help increase customer value through two strategies:
Cost leadership: Provide the same or better value to customers at a lower cost
,Superior products through differentiation: Increase customer value by providing something to
customers not provided by competitors.
Value Chain
The set of activities through which a product or service is created and delivered to customers.
Cross-Functional Perspective
Allows management to see the big picture and increase quality, reduce time, and improve
efficiency. A decision affecting one function affects the others.
Lean accounting is:
Organizes costs according to the value chain and collects both financial and non-financial
information
Enterprise Risk Management (ERM)
Formal way for managerial accountants to identify and respond to the most important threats and
business opportunities facing the organization
The 10 Core Values of Ethical Behaviour
Honesty
Integrity
Caring for others
Accountability
Fidelity
Fairness
Respect for others
, Responsible citizenship
Pursuit of excellence
Promise keeping
Company Codes of Conduct
To promote ethical behaviour by managers and employees, organizations commonly establish
standards of conduct
According to the CPA Code of Professional Conduct, what are the fundamental principles
of ethics?
Professional behaviour, integrity and due care, professional competence, confidentiality,
objectivity
True or False: professional accountants in Canada now operate as Chartered Professional
Accountants (CPAs).
True
True or False: The belief that each member of a group bears some responsibility for the
well-being of other members is a common principle underlying all ethical systems.
True
Line positions
Positions that have direct responsibility for the basic objectives of an organization
Staff positions
