ACG2071 Chapter 1 Concept Questions Exam verified solutions and explanations.

ACG2071: Chapter 1 Concept Questions Exam verified solutions and explanations Managers' three primary responsibilities are planning, directing, and controlling - Correct Answers: True Management accounting is geared toward external stakeholders, such as investors and creditors - Correct Answers: False: Management accounting is geared toward helping internal managers run the company efficiently and effectively Management accountants often work in cross-functional teams throughout the organization - Correct Answers: True The internal audit function reports to the audit committee of the board of directors - Correct Answers: True Management accountants are now more often looked upon as internal business advisors rather than "bean counters" recording historical transactions - Correct Answers: True Management accountants should be technically proficient, but they don't need strong oral and written communication skills - Correct Answers: False: Management accountants must be able to effectively communicate with people throughout the organization. As a result, they need to have strong oral and written communication skills Management accountants should be proficient in Excel - Correct Answers: True The AICPA (American Institute of Certified Public Accountants) issues the CMA (Certified Management Accountant) certification - Correct Answers: False: The IMA (Institute of Management Accountants) issues the CMA certification. However, the AICPA has recently instituted the CGMA designation for qualified CPAs who have experience in business and industry The Sarbanes-Oxley Act of 2002 (SOX) imposes stricter requirements for financial reporting and internal controls and stricter consequences for those who engage in financial statement misconduct and other white-collar crimes - Correct Answers: True Most business decisions are now based on gut feelings and hunches, rather than being data-driven - Correct Answers: False: Big data is driving most business decisions Critical thinking can be improved by asking yourself a series of questions about any issue or problem you encounter. These questions, for example, include: What is the objective? What data will I need? What assumptions am I making? Is my conclusion logical? - Correct Answers: True The triple bottom line assesses company performance on three factors: people (social impact), planet (environmental impact), and profit (economical impact) - Correct Answers: True Manufacturing makes up the largest sector of the U.S. economy - Correct Answers: False: Service makes up the largest sector of the U.S. economy The globalization of business has little bearing on management accounting - Correct Answers: False: Globalization has several significant implications for management accounting Computer systems that integrate all of a company's worldwide functions into one data-base are known as Integrated Worldwide Systems (IWSs) - Correct Answers: False: These types of systems are known as enterprise resource planning (ERP) systems. Lean thinking focuses on eliminating waste from operations - Correct Answers: True