2023年-管理会计示范性双语习题

CHAPTER1

MANAGEMENTACCOUNTING:INFORMATIONTHATCREATESVALUE

TRUE/FALSE

Managementaccountinggathersshort-term,long-term,financial,andnonfinancialinformation.

True

False

Managementaccountinginformationgenerallyreportsontheorganizationasawhole.

True

False

Companieshavetofollowstrictguidelineswhendesigningamanagementaccountingsystem.

True

False

Agoodmanagementaccountingsystemisintendedtomeetspecificdecision-makingneedsatalllevelsintheorganization.

True

False

Duringthehistoryofmanagementaccounting,innovationsweredevelopedtoaddressthedecision-makingneedsofmanagers.

True

False

Akeyelementinanyorganization'sstrategyistoidentifyitstargetcustomersandtodeliverwhatthosetargetcustomerswant.

True

False

Thevaluepropositionhasonlytwoelements:costandquality.

True

False

Qualityisthedegreeofconformancebetweenwhatthecustomerispromisedandwhatthecustomerreceives.

True

False

Recently,thedemandforimprovedmanagementaccountingandcontrolinformationwithinmanufacturingfirmshasalsooccurredinserviceorganizations.

True

False

THEFOLLOWINGINFORMATIONAPPLIESTOQUESTIONS68AND69.

Thefollowinginformationpertainstothreedivisions:

Shrubs Trees

$28,000 $120,000

$2,000 $6,000

$40,000 $100,000

Flowers

Sales $15,000

Operatingincome $2,000

Investment $22,000

WhatisthereturnoninvestmentfortheShrubDivision?

2.00%

5.00%

7.14%

70.00%

WhichdivisionismoreprofitablebasedonROI?

Flowers

Shrubs

Trees

BothFlowersandShrubsareequallymoreprofitablethanTrees.

Tohelpevaluatemanagement'sappropriategovernanceandstrategicchoices,organizationshavecalledonmanagementaccountantstodevelop:

internalcontrolsystemstoprotectassetsfromtheft

measurestomonitorcompliancewithbehaviorthatisconsistentwiththeorganization'sbestinterests

systemstoevaluateprofitability

reportstohighlightvariancesfromamountsplanned

ManagementaccountinginformationisBESTdescribedas:

providingasignalthatsomethingiswrong

identifyingandhelpingtoexplainwhatiswrong

simplysummarizinginformation,butgivingnoindicationthatanythingiswrong

measuringoverallorganizationalperformance

Forimprovingoperationalefficienciesandcustomersatisfaction,nonfinancialinformationis:

critical

helpful

infrequentlyused

unnecessary

Nonfinancialinformationmightbeusedto:

improvequality

reducecycletimes

satisfycustomerneeds

Alloftheabovearecorrect.

Theactofsimplymeasuringandreportinginformation:

focusestheattentionofemployeesonthoseprocesses

divertstheemployee'sattentiontootheractivities

disprovesthesaying“Whatgetsmeasuredgetsmanaged.”

hasnoeffectonemployeebehavior

WhichstatementbelowisFALSE?

“Whatgetsmeasuredgetsmanaged/5

Peoplereacttomeasurements.

Employeesspendmoreattentiononthosevariablesthatarenotgettingmeasured.

“IfIcan'tmeasureit,Ican'tmanageit.”

Whenachangeisintroduced,employeestendto:

embracethechange

beindifferenttothe change

exhibitnochangein behavior

resistthechange

TheintroductionofanewmanagementsystemisMOSTlikelytomotivateUNWANTEDemployeebehaviorwhenitisusedfor:

evaluation

planning

decisionmaking

coordinatingindividualefforts

ManagementaccountantsareMOSTlikelytofeeloutsidepressuretofavorablyinfluencethenumbersfavorablywhentheinformationisusedfor:

budgeting

compensationandpromotions

continuousimprovement

productcosting

FosteringacultureofhighethicalstandardsincludesallofthefollowingEXCEPT:

followingthegoodexamplesetbyseniormanagement

communicatingtoemployeesabeliefsystemthatinspiresandpromotescommitmenttotheorganization'scorevalues

followingthegeneralexamplessetbyfront-lineemployees

communicatingtoallemployeesaboundarysystemthatstateswhatactionswillnotbetolerated

TheInstituteofManagementAccountants(IMA):

isaprofessionalorganizationofmanagementaccountants

isaprofessionalorganizationoffinancialaccountants

issuesstandardsformanagementaccounting

issuesstandardsforfinancialaccounting

CRITICALTHINKING/ESSAY

Describemanagementaccountingandfinancialaccounting.

Whatisthepurposeofmanagementaccounting?

Brieflydescribehowmanagersmakeuseofmanagementaccountinginformation.

Describethevaluepropositionandtheelementsthatcompriseit.

Isfinancialaccountingormanagementaccountingmoreusefultoanoperationsmanager?Why?

Whatrolehastheincreasinglycompetitivebusinessenvironmentplayedinthedevelopmentofmanagementaccounting?

Describereturnoninvestment(ROI).Whywasitdeveloped?Whenwasitdeveloped?

Givetwoexamplesoffinancialinformationandnonfinancialinformation.

Discussthepotentialbehaviorimplicationsofperformanceevaluation.

CHAPTER1SOLUTIONS

MANAGEMENTACCOUNTING:INFORMATIONTHATCREATESVALUE

TRUE/FALSE

MULTIPLECHOICE

LOI

1.

a

LOI

26.

d

LO3

56.

a

LOI

2.

b

LOI

27.

d

LO3

57.

b

LOI

3.

b

LOI

28.

a

LO3

58.

c

LOI

4.

a

LOI

29.

d

LO3

59.

b

LOI

5.

a

LOI

30.

a

LO3

60.

a

LO2

6.

a

LOI

31.

d

LO3

61.

d

LO2

7.

b

LOI

32.

a

LO3

62.

d

LO2

8.

a

LOI

33.

d

LO4

63.

a

LO3

9.

a

LOI

34.

b

LO4

64.

d

LO3

10.

a

LOI

35.

c

LO4

65.

a

LO3

11.

b

LOI

36.

b

LO4

66.

c

LO3

12.

a

LOI

37.

c

LO4

67.

a

LO3

13.

a

LOI

38.

b

LO4

68.

b

LO3

14.

a

LOI

39.

c

LO4

69.

a

LO3

15.

a

LOI

40.

c

LO5

70.

b

LO4

16.

b

LO2

41.

c

LO5

71.

b

LO4

17.

a

LO2

42.

b

LO5

72.

a

LO5

18.

a

LO2

43.

c

LO5

73.

d

LO5

19.

b

LO2

44.

a

LO6

74.

a

LO5

20.

a

LO2

45.

c

LO6

75.

c

LO5

21.

b

LO2

46.

a

LO6

76.

d

LO5

22.

b

LO2

47.

d

LO6

77.

a

LO6

23.

a

LO3

48.

d

LO6

78.

b

LO6

24.

a

LO3

49.

a

LO6

79.

c

LO6

25.

b

LO3

50.

d

LO6

80.

a

LO3

51.

c

LO3

52.

a

LO3

53.

b

LO3

54.

c

LO3

55.

b

MULTIPLECHOICE

$2,000/$40,000=5.00%

$2,000/$22,000=9.09%;$2,000/$40,000=5.00%;$6,000/$100,000=6.00%

CRITICALTHINKING/ESSAY

LO1

Describemanagementaccountingandfinancialaccounting.

Solution9.Managementaccountingprovidesinformationtointernaldecisionmakersofthebusinesssuchastopexecutives.Itspurposeistohelpmanagerspredictandevaluatefutureresults.Reportsaregeneratedoftenandareusuallybrokendownintosmallerreportingdivisionssuchasdepartmentorproductline.Therearenorulestobecompliedwithsincethesereportsareforinternaluseonly.

Financialaccountingprovidesinformationtoexternaldecisionmakerssuchasinvestorsandcreditors.Itspurposeistopresentafairpictureofthefinancialconditionofthecompany.Reportsaregeneratedquarterlyorannuallyandreportonthecompanyasawhole.ThefinancialstatementsmustcomplywithGAAP(generallyacceptedaccountingprinciples).ACPAaudits,orverifies,thattheGAAParebeingfollowed.

LOI

Whatisthepurposeofmanagementaccounting?

Solution:Managementaccountinggathersshort-termandlong-termfinancialandnonfinancialinformationtoplan,coordinate,motivate,improve,control,andevaluatesuccessfactorsofanorganization.Managementaccountingconvertsdataintousableinformationthatsupportsstrategic,operational,andcontroldecisionmaking.

LOI

Brieflydescribehowmanagersmakeuseofmanagementaccountinginformation.

Solution:Managersuseaccountinginformationforthreebroadpurposes.

ONE:Toplanbusinessoperationsthatincludespreparingstrategiesandbudgetsanddeterminingthepricesandcostsofproductsandservices.Acompanymustknowthecostofeachproductandservicetodecidewhichproductstoofferandwhethertoexpandordiscontinueproductlines.

TWO:Tocontrolbusinessoperationsthatincludescomparingactualresultstothebudgetedresultsandtakingcorrectiveactionwhenneeded.

THREE:Toevaluateperformance.

LO2

Describethevaluepropositionandtheelementsthatcompriseit.

Solution:Thevaluepropositioniswhatanorganizationtriestodelivertoitstargetcustomers-itdefinestheorganizationalstrategy.

Thefourelementsarecost,quality,functionalityandfeatures,andservice.

Costisthepricepaidbythecustomer,giventheproductfeaturesandcompetitor'sprices.

Qualityisthedegreeofconformancebetweenwhatthecustomerispromisedandwhatthecustomerreceives.

Functionalityandfeaturesreferstotheperformanceoftheproduct.Forexample:Amealinarestaurantprovidesthedinerwiththelevelofsatisfactionexpectedforthepricepaid.

Serviceisalloftheotherelementsoftheproduct.Forexample:Howthecustomeristreatedatthetimeofthepurchase.

LO3

Isfinancialaccountingormanagementaccountingmoreusefultoanoperationsmanager?Why?

Solution:Managementaccountingismoreusefultoanoperationsmanagerbecausemanagementaccountingreportsoperatingresultsbydepartmentorunitratherthanforthecompanyasawhole,itincludesfinancialaswellasnonfinancialdatasuchason-timedeliveriesandcycletimes,anditincludesquantitativeaswellasqualitativedatasuchasthetypeofreworkthatwasneededondefectiveunits.

LO3

Whatrolehastheincreasinglycompetitivebusinessenvironmentplayedinthedevelopmentofmanagementaccounting?

Solution:Thecompetitiveenvironmenthaschangeddramatically.TherehasbeenaderegulationmovementinNorthAmericaandEuropeduringthe1970sand1980sthatchangedthegroundrulesunderwhichservicecompaniesoperated.Inaddition,organizationsencounteredseverecompetitionfromoverseascompaniesthatofferedhigh-qualityproductsatlowprices.Therehasbeenanimprovementofoperationalcontrolsystemssuchthatinformationismorecurrentandprovidedmorefrequently.Thenatureofworkhaschangedfromcontrollingtoinforming.Firmsareconcernedaboutcontinuousimprovement,employeeempowerment,andtotalquality.Nonfinancialinformationhasbecomeacriticalfeedbackmeasure.Finally,thefocusofmanyfirmsisnowonmeasuringandmanagingactivities.

LO4

Describereturnoninvestment(ROI).Whywasitdeveloped?Whenwasitdeveloped?

Solution:ROI=(operatingincome/sales)x(sales/investment)

TheROImeasurecombinesaprofitabilitymeasure(operatingincome/sales)withacapitalintensitymeasure(sales/investment)toprovideasinglemeasureofdepartmentalanddivisionalperformance.

ROIwasdevelopedintheearlydecadesofthe1900ssothatseniormanagersatmulti-divisionaldiversifiedcorporations,suchasDuPontandGeneralMotors,couldevaluatetheoperatingperformanceoftheirdecentralizeddivisions.

LO5

Givetwoexamplesoffinancialinformationandnonfinancialinformation.

Solution:Financialinformationincludesamountsthatcanbeexpressedindollaramountssuchassales,netincome,andtotalassets.Italsoincludesratiospreparedusingfinancialinformationsuchasincreaseinsales,return-on-sales,andreturn-on-investment.

Nonfinancialinformationincludesmeasuresthatarenotexpressedindollaramounts.Forexample,nonfinancialmeasuresofcustomersatisfactionincludethenumberofrepeatcustomersorrankedestimatesofsatisfactionlevels.Nonfinancialmeasuresofproductionqualityincludepercentofon-timedeliveries,thenumberofdefects,productionyield,andcycletimes.

LO6

Discussthepotentialbehaviorimplicationsofperformanceevaluation.

Solution:Asmeasurementsaremadeonoperationsand,especially,onindividualsandgroups,thebehavioroftheindividualsandgroupsareaffected.Peoplereacttothemeasurementsbeingmade.Theywillfocusonthosevariablesorthebehaviorbeingmeasuredandspendlessattentiononvariablesandbehaviorthatarenotmeasured.Inaddition,ifmanagersattempttointroduceorredesigncostandperformancemeasurementsystems,peoplefamiliarwiththeprevioussystemwillresist.Managementaccountantsmustunderstandandanticipatethereactionsofindividualstoinformationandmeasurements.Thedesignandintroductionofnewmeasurementsandsystemsmustbeaccompaniedwithananalysisofthelikelyreactionstotheinnovations.

Recently,thecompetitiveenvironmentforbothmanufacturingandservicecompanieshasbecomefarmorechallenginganddemanding.

True

False

Servicecompaniesareverysimilartomanufacturingcompaniesinmayways,includingthefactthatmanyemployeeshavedirectcontactwithcustomers.

True

False

Sensitivitytotimelinessandqualityofserviceisespeciallyimportanttoserviceorganizations.

True

False

Governmentandnonprofitorganizations,aswellasprofit-seekingenterprises,arefeelingthepressuresforimprovedperformance.

True

False

Managementaccountinginformationallowsmanagerstocompareactualandplannedcostsandtoidentifyareasandopportunitiesforprocessimprovement.

True

False

Managementaccountingcanprovideinformationoncustomersatisfaction,a.Trueb.False

ROI(returnoninvestment)combinestwoprofitabilitymeasurestoproduceasinglemeasureofdepartmentalordivisionalperformance.

True

False

Around1920,centralizedcontrolofdecentralizedoperationswasaccomplishedbyhavingcorporatemanagersreceivefinancialreportsaboutdivisionaloperationsandprofitability,a.Trueb.False

Inthelate1990s,littleinterestorattentionwaspaidtoevaluatingmanagement'sappropriategovernanceandstrategychoices.

True

False

Financialinformationidentifiesandexplainstheunderlyingproblems.

True

False

Managementaccountingmeasurescanprovideadvancewarningsofproblems.

True

False

Customersatisfactionisanexampleoffinancialinformation.

True

False

Operatingprofitisanexampleofnonfinancialinformation.

True

False

Organizationalleadershipplaysacriticalroleinfosteringanorganization'scultureofhighethicalstandards.

True

False

Informationisneverneutral;justtheactofmeasuringandreportinginformationaffectstheindividualsinvolved.

True

False

Boundarysystemsarealwaysstatedinpositivetermsthatoutlinemaximumstandardsofbehavior.

True

False

MULTIPLECHOICE

Managementaccountinghelpsacompanyachieve:

itsstrategicobjectives

itsoperationalobjectives

controlandalsosupportsperformanceevaluation

Alloftheabovearecorrect.

Whichofthefollowingtypesofinformationareusedinmanagementaccounting?

financialinformation

nonfinancialinformation

informationfocusedonthelongterm

Alloftheabovearecorrect.

Managementaccounting:

focusesonestimatingfuturerevenues,costs,andothermeasurestoforecastactivitiesandtheirresults

providesinformationaboutthecompanyasawhole

reportsinformationthathasoccurredinthepastthatisverifiableandreliable

providesinformationthatisgenerallyavailableonlyonaquarterlyorannualbasis

Whichofthefollowingdescriptorsrefertomanagementaccountinginformation?

Itisverifiableandreliable.

Itisdrivenbyrules.

Itispreparedforshareholders.

Itprovidesreasonableandtimelyestimates.

Whichofthefollowingstatementsreferstomanagementaccountinginformation?

Therearenoregulationsgoverningthereports.

Thereportsaregenerallydelayedandhistorical.

Theaudiencetendstobestockholders,creditors,andtaxauthorities.

Thescopetendstobehighlyaggregate.

Managementaccountinginformationincludes:

tabulatedresultsofcustomersatisfactionsurveys

thecostofproducingaproduct

thepercentageofunitsproducedthatisdefective

Alloftheabovearecorrect.

ManagementaccountingreportsMOSTlikelyincludeinformationabout:

customercomplaints

netincomefortheyear

totalassets

Alloftheabovearecorrect.

ThepersonMOSTlikelytousemanagementaccountinginformationisa(n):

bankerevaluatingacreditapplication

shareholderevaluatingastockinvestment

governmentaltaxingauthority

assemblydepartmentsupervisor

WhichofthefollowingisNOTafunctionofamanagementaccountingsystem?

strategicplanning

financialreporting

operationalcontrol

productcosting

FinancialaccountingprovidesthePRIMARYsourceofinformationfor:

decisionmakinginthefinishingdepartment

improvingcustomerservice

preparingtheincomestatementforshareholders

planningnextyear'soperatingbudget

Financialaccounting:

focusesonthefutureandincludesactivitiessuchaspreparingnextyear'soperatingbudget

mustcomplywithGAAP(generallyacceptedaccountingprinciples)

reportsincludedetailedinformationonthevariousoperatingsegmentsofthebusinesssuchasproductlinesordepartments

ispreparedfortheuseofdepartmentheadsandotheremployees

ThepersonMOSTlikelytouseONLYfinancialaccountinginformationisa:

factoryshiftsupervisor

vicepresidentofoperations

currentshareholder

departmentmanager

TheaccountingprocessisconstrainedbymandatedreportingrequirementsbyallofthefollowingorganizationsEXCEPTthe:

InternalRevenueService(IRS)

InstituteofManagementAccountants(IMA)

FinancialAccountingStandardsBoard(FASB)

SecuritiesandExchangeCommission(SEC)forcompaniesthatarepubliclytraded

Historically:

inthebeginningofthe20thcentury,theGuildskeptdetailedrecordsofrawmaterialsandlaborcostsasevidenceofproductquality

inmedievalEngland,thebasicsofmodernmanagementaccountingemergedwithstandardsformaterialuse,employeeproductivity,andbudgets

inthelate19thcentury,railroadmanagersimplementedlargeandcomplexcostingsystemstocomputethecostofdifferenttypesoffreight

from1400-1600,largeandintegratedcompaniessuchasDuPontandGeneralMotors,developedwaystomeasurereturnoninvestment

Ingeneral,itwasnotuntilthe1970sthatmanagementaccountingsystems:

wereimprovedbecauseofdemandsbytheFASBandtheSEC

stagnatedandprovedinadequate

startedtodevelopinnovationsincostingandperformance-measurementsystemsduetointensepressurefromoverseascompetitors

startedtoaddressthedecision-makingneedsofmanagers

Allsuccessfulorganizationsmustidentifyandunderstandtheir:

weaknesses

competition

strategy

definitionofquality

Akeyelementofanyorganization'sstrategyisidentifying:

itspotentialshareholders

itstargetcustomers

competitor'sproducts

employeeneeds

Whatanorganizationtriestodelivertocustomersiscalleditsvalueproposition,whichincludestheelementsof:a.costandquality

cost,quality,andfunctionalityandfeatures

cost,quality,functionalityandfeatures,andservice

cost,quality,functionalityandfeatures,service,andindustrystandards

Thepricepaidbythecustomer,giventheproductfeaturesandcompetitor'sprices,isreferredtoastheelementofthevalueproposition.

cost

industrystandards

quality

service

Thedegreeofconformancebetweenwhatthecustomerispromisedandwhatthecustomerreceivesisreferredtoastheelementofthevalueproposition.

cost

industrystandards

quality

service

Theperformanceoftheproduct,forexample,amealinarestaurantprovidesthedinerwiththelevelofsatisfactionexpectedforthepricepaid,isreferredtoastheelementofthevalueproposition.

functionalityandfeatures

industrystandards

quality

service

Howthecustomeristreatedatthetimeofthepurchaseisanexampleoftheelementofthevalueproposition.

functionalityandfeatures

industrystandards

quality

service

Managementaccountingprovides:

informationontheefficiencyoffactorylabor

informationonthecostofservicingcommercialcustomers

informationontheperformanceofanoperatingdivision

Alloftheabovearecorrect.

WhichofthefollowinggroupswouldbeLEASTlikelytoreceivedetailedmanagementaccountingreports?

stockholders

customerservicerepresentatives

productionsupervisor

vicepresidentofoperations

Topexecutivesofamulti-plantfirmareLEASTlikelytousemanagementaccountinginformation:

tosupportdecisionsthatresultinlong-termconsequences

toevaluatetheperformanceofindividualplants

forstrategicplanning

foroperationalcontrol

ManagersofservicedepartmentsneedallofthefollowinginformationEXCEPT:

efficiencydataonworkperformance

qualitydataonworkperformance

profitabilitydataofthewholecompany

profitabilitydataoftheservicedepartment

Anationalcompanymanufacturesalineofmodernfurniture.InformationMOSTusefultotheemployeewhoassemblesthefurnitureincludes:

adailyreportcomparingtheactualtimeittooktoassembleapieceoffurnituretothestandardtimeallowed

amonthlyreportontheportionoffurniturepiecesassembledwithdefects

thenumberoffurniturepiecessoldthismonth

revenueperemployee

Anationalcompanymanufacturesalineofmodernfurniture.InformationMOSTusefultothetopexecutiveincludes:

individualjobsummariesofmaterialsused

monthlyfinancialreportsonthecompany'sprofitabilitybyproductline

timereportssubmittedbyeachemployee

scheduleddowntimeforroutinemaintenanceonmachines

AquarterlyreportdisclosingdecliningmarketshareinformationisMOSTusefulto:

afront-lineemployee

themanagerofoperations

thechiefexecutiveofficer

theaccountingdepartment

AweeklyreportcomparingmachinetimeusedtoavailablemachinetimeisinformationMOSTusefulto:

afront-lineemployee

themanagerofoperations

thechiefexecutiveofficer

theaccountingdepartment

AdailyreportonthenumberofqualityunitsassembledbyeachemployeeisinformationMOSTusefulto:

afront-lineassemblyworker

theaccountingdepartment

thechiefexecutiveofficer

thepersonneldepartment

WhichofthefollowingwouldbeLEASThelpfulforatopmanagerofacompany?

profitabilityreportofthecompany

informationtomonitorhourlyanddailyoperations

numberofcustomercomplaints

operatingexpensesummaryreportedbydepartment

Recently,increaseddemandformanagementaccountinginformationhasbeen:

primarilyfrommanufacturingfirms

primarilyfromserviceorganizations

fromboththemanufacturingandtheserviceindustries

anillusion;infact,thedemandformanagementaccountinghaschangedverylittle

Managementaccountingcanplayacriticalroleintheservice