Student name:__________

1) At one time, management at General Motors decided

to improve the competitiveness of its products by stressing
product quality, style, and innovation. The objective was to
improve the image of GM vehicles and thus improve sales
and brand loyalty. Managers decided to push this strategy in
both the manufacturing and marketing divisions of the firm.
One of the key moves to implement this strategy was to insist
that GM dealers stop price-cutting and push brand value and
image instead. GM exerted some control over dealers'
pricing/selling strategy in part by reducing the money it set
aside for dealers to use in local ads.
Required:
Was General Motors following a strategy of cost leadership
or differentiation at this time? Comment on how effective you
think the new strategy in dealer relations is likely to be.

2) In six months you are scheduled to graduate with a

degree in business; you are majoring in accounting and
minoring in finance and management information systems. In
the first few chapters of your cost management text, there are
repeated references to the following two terms: strategic
management and the strategic emphasis to cost management.
Required:
Explain these ideas, using as a framework your need to
develop a plan for interviewing successfully for a challenging
professional opportunity within the next six months.

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3) One of the many changes in the business environment
in recent years that has had significant impact on cost
management practices is a focus on the customer. You are
part of the management team in a medium-size computer
service company. The company is just three years old and is
growing fast, doubling its customer base every six months.
Required:
1. (a) Describe your typical customer's needs and service
expectations.

2. (b) How has the doubling of your firm's customer base

every six months affected its ability to maintain this focus on
the customer? If this dramatic growth continues, what are
some specific actions your firm can take to retain its goal of
"focus on the customer"?

4) Apex Corporation manufactures a complete line of Required:

high quality bits for electric drills. Apex has a good record for
product innovation and effective marketing and distribution.
An increase in domestic and international competition during
the past two years has limited the firm's sales growth to 3
percent per year, down from the previous five-year average
annual growth of 5 percent. In addition, market share declined
by 0.5 percent this past year. Apex is experiencing profit
reductions caused by price competition and manufacturing
cost increases.

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 Choose one of the 13 contemporary management techniques
introduced in Chapter 1: Explain why the technique you
selected is appropriate in helping Apex develop a plan for
reversing the decline in sales growth and controlling the
growth in costs.

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7) The controller of one division of a large diversified
firm is compensated by salary plus bonus. The bonus is a
significant part of total compensation, and is based directly on
the profits of the division. Thus, the controller has an
incentive to find ways to increase profits, including the delay
of discretionary expenses such as research and development,
delay of maintenance and repair of manufacturing equipment,
and delay of sales promotions.
Required:
Is finding ways to increase profits as described above
unethical? Why or why not? Who is to blame, if anyone?

8) Required:
Consider the contemporary management techniques and
how they might be used in each of the following industry
groups. For which industry type is each management
technique most applicable?
1) Manufacturing, for example, auto manufacturing,
appliances, and consumer electronics
2) Professional service firms, for example, accounting firms,
law firms, and medical practices
3) Retail firms, for example, Walmart and Sears

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9) Required:
Identify two of the most successful companies or
organizations in today's business environment, in your
opinion. Explain why they are so successful.

10) Samsung, the large Korean manufacturer of

electronics, has just developed a new QLED (Quantum Dot
Light Emitting Diodes) TV. The TV retails retail in the range
of $6,800 for the 75 inch, curved panel model. Normally,
Samsung sells its TVs and other electronics in Big Box
retailers such as Best Buy. In this case, Samsung is thinking
of choosing a different means to retail the product.
Required:
What retail store or stores, or what method would you
suggest Samsung use in selling its new TV?

11) The premier auto manufacturer BMW introduced a International, based in

new compact SUV (the X3) in an effort to grab a greater share Toronto. The vehicles
of the overall luxury car market. Because its own resources would be manufactured by
were pretty well tapped out by a large number of new vehicles Magma in an Austrian
BMW had already introduced, the automaker decided to have plant.
the new SUV built by the parts manufacturer Magma Required:

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 Comment on the strategic issues surrounding BMW's right decisions? Why or
introduction of the X3 and the use of Magma International to why not?
produce the vehicle. Do you think the company made the

12) The story of the telecom giant WorldCom came to a

sad turn in 2002 as the firm filed for bankruptcy, with some of
the managers facing criminal charges for fraud. In 2000 a
severe slump in the telecom business led to pressures within
WorldCom to reduce expenses and improve the financial
statements to meet investor expectations. On orders from top
managers, accountants within the firm created fraudulent
financial statements, ultimately resulting in an $11 billion
fraud. The fraud was detected as a result of an inquiry by the
SEC, which led an internal auditor within WorldCom to start
an investigation that uncovered the fraud in 2002. The
successor firm, MCI (which had previously merged with
WorldCom and is, since 2006, a part of Verizon), under the
leadership of new top management, formed the office of chief
ethics officer who had the responsibility for MCI's policy of
training all MCI's U.S.-based employees, an ethics hotline, an
ethics pledge signed by the firm's top 100 executives, and a
company code of ethics, among other responsibilities.
Required:
What should be the role of an ethics officer? To whom
should the ethics officer report within the organization? Do
you think MCI had a good plan for ensuring ethical behavior
within the firm? How would you change the MCI ethics
policy, if at all?

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13) Which of the following does not represent a main
focus of cost management information?

E) Internal audit
A) Strategic management. and control.
B) Performance measurement.
C) Planning and decision making.
D) Preparation of financial statements.

14) Strategic management can be defined as the

development of a sustainable:

E) Company
A) Chain of command. image.
B) Competitive position.
C) Cash flow.
D) Business entity.

15) Cost management has moved from a traditional role of

product costing and operational control to a broader strategic
focus, which places an emphasis on:

E) Independent
A) Competitive pricing. judgment.
B) Domestic marketing.
C) Short-term thinking.
D) Strategic thinking.

16) Cost management is used to analyze the cost report the many aspects of
consequences of different design choices and to measure and

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quality, including all of the following except:

D) The number of
A) Wasted labor or materials. service calls.
B) The nature of complaints, warranty costs, and E) Production
product recalls. breakdowns.
C) The short- and long-term goals of sustainability.

17) In a local factory, employees are rewarded for finding

new and better ways of changing the way they work. This
company is motivating its employees to use what
management technique?

E) Total Quality
A) Benchmarking. Management.
B) Activity-Based Costing.
C) Theory of Constraints.
D) Continuous Improvement.

18) A company's management accountant is trying to

improve the way costs are allocated within the company.
Currently, several corporate expenses are grouped together
and labeled "overhead." If the accountant wanted to use
activity-based costing (ABC) to help solve the problem, what
should she do?

D) She should
A) She should try to trace the departments' costs to
their cost objects, and then charge each department based on
those cost relationships.
B) She should research how the company's
competitors are allocating their costs, and then implement one
of those strategies.
C) She should look for bottlenecks within the
production process, and try to eliminate them, thus reducing
costs.

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examine the firm's value chain and apply target costing before
adopting activity-based costing (ABC)
E) She should identify and monitor the costs of a
product throughout its life cycle to see where the costs mostly
come from.

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19) The difference between wholesalers and retailers is:

D) Wholesalers
A) Wholesalers are merchandisers that sell directly to are merchandisers that sell
customers whereas retailers are merchandisers that sell to directly to customers
other merchandisers. whereas retailers are
B) Wholesalers are merchandisers that sell to other merchandisers that sell
merchandisers whereas retailers are merchandisers that sell directly to the government.
directly to consumers. E) There is no
C) Wholesalers are merchandisers that sell directly to difference between
the government whereas retailers are merchandisers that sell wholesalers and retailers.
to other merchandisers.

20) When managers produce value for the customer, their

orientation consists of all the following except:

D) State of the art

A) Quality. manufacturing facilities.
B) Timeliness of delivery. E) Service.
C) The ability to respond to the customer's desire for
specific features.

21) In which of the following situations would Theory of

Constraints be useful?

D) Long lines at
A) Firms that have just adopted lean manufacturing.

B) Balanced, fast movement of product through the

plant.
C) Management wants its products to have
competitive prices that earn a desired profit.

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checkout stands.
E) Competitors have started to focus on sustainability
and have found success in the public’s eyes.

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22) Target costing determines the desired cost for a
product upon the basis of a given competitive price such that
the product will:

D) Break even.
A) Earn at least a small profit. E) Sell the highest
B) Earn a desired profit. volume.
C) Earn the maximum profit.

23) Which of the following is not a consequence of a lack

of strategic information?

E) Choosing
A) Lack of clarity about direction and goals. products, markets, or
B) Failure to identify most profitable products, manufacturing processes
customers, and markets. inconsistent with strategic
C) Decisions based on quality financial information. goals.
D) Incorrect investment decisions.

24) The strategy map is a tool that is used:

company.
A) as one of the key aspects of the contemporary E) to implement
management environment. strategy.
B) to enhance the sustainability of the organization.
C) to link the perspectives of the balanced scorecard.
D) to organize the critical success factors of a

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25) Cost management information typically is the responsibility of the:

E) None of these
A) Chief Financial Officer. answers are correct.
B) Controller.
C) Treasurer.
D) Chief Information Officer.

26) Which of the following aspects of a company would

not be considered a critical success factor, for a company that
competes on differentiation?

with new, innovative

A) Cutting edge research and development. products.
B) Excellent customer service. E) A high level of
C) Award-winning product quality. production efficiency.
D) Continually beating competitors to the market

27) Target costing:

desired profit.
A) Determines cost based on an expected market E) Determines
demand for the product. cost based on a break-even
B) Determines cost based on a budget. formula.
C) Determines cost based on standard cost.
D) Determines cost based upon market price and

28) If a firm decided to reevaluate and reorganize the way would be using which of
it did business, in hopes of creating competitive advantage, by the following management
changing or removing employee positions, the company techniques?

D) Product
A) The value chain. reevaluation.
B) Business analytics. E) Life cycle
C) Business process improvement.

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costing.

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29) A consulting firm is trying to increase the long-term
strategic focus of its company reports. Therefore, the firm has
decided to use the balanced scorecard. What type of new
information, that the company currently does not use in its
financial reports, should the company now include?

D) Supplemental
A) Nonfinancial information, including customer accounting reports.
satisfaction, innovation, etc. E) Continuous
B) Additional financial information, such as improvement.
profitability measures and market value.
C) Product life cycle information.

30) If a firm goes through the process of making

improvements to its critical success factors based on the best
practices of other firms, it is using which business process?

E) Enterprise risk
A) The value chain management
B) Benchmarking
C) Total quality management
D) Lean Accounting

31) The Institute of Management Accountants' Statement

of Ethical Professional Practice for management accountants
includes the elements of:

C) Competence,
A) Competence, confidentiality, integrity, and confidentiality,
relevance. independence, and
B) Competence, confidentiality, integrity, and objectivity.
credibility. D) Competence,

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accuracy, integrity, and independence.
E) Competence, accuracy, integrity, and credibility.

32) The five steps of strategic decision-making include all

of the following except:

E) Provide an
A) Identify the alternative actions. ongoing evaluation of the
B) Gather and report accounting information. effectiveness of
C) Determine the strategic issues surrounding the implementation.
problem.
D) Choose and implement the desired alternative.

33) Which of the following is not considered part of the

Institute of Management Accountants' definition of
management accounting?

E) assisting
A) partnering in management decision making. management in the
B) devising planning and performance management formulation and
systems. implementation of an
C) analyzing data and providing information. organization's strategy.
D) providing expertise in financial reporting and
control.

34) Which of the following professional certificates is

considered to be the most relevant for dealing with cost
management issues?

monitored differently for

A) The Certified Public Accountant (CPA), which is each state in the U.S.

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 B) The Certificate in Management Accounting relevant, since all three
(CMA), which is administered through the Institute of require an exam, as well as
Management Accountants. specific background and
C) The Chartered Financial Analyst (CFA), since its experience requirements.
program focuses on the broadest range of topics and E) None of these
responsibilities for financial analysis. answers are correct.
D) The CPA, CMA, and CFA are viewed as equally

35) According to the Institute of Management

Accountants (IMA) Statement of Ethical Professional
Practice, what should a management accountant do if a
significant ethical situation can't be resolved?

with the immediate

A) The accountant should confront the guilty party supervisor.
and demand the unethical action be stopped. E) The accountant
B) The accountant should try to rationalize and should do what they think
understand the position of the other party. is best and move on.
C) The accountant should say nothing about the
matter until he or she has retired.
D) The accountant should first discuss the matter

36) Which of the following aspects of the contemporary

business environment involves using statistical methods such
as regression or correlation analysis to predict consumer
behavior, to measure customer satisfaction, or to develop
models for setting prices, among other uses?

D) Benchmarking
A) Business analytics E) Business
B) Target Costing Process Improvement
C) Life Cycle Costing

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37) Which of the following is not one of the stages of the development of cost
management systems?

other financial measures.

A) Cost management systems track key operating E) Cost
data and develop more accurate and relevant cost information management systems focus
for decision making. on external financial
B) Cost management systems are basic transaction reporting.
reporting systems.
C) Strategically relevant cost management
information is an integral part of the system.
D) Cost management systems focus on costs and

38) Which of the following is the primary user of

management accounting information regarding business
units?

E) None of these
A) Company management. answers are correct.
B) Investors.
C) Creditors.
D) Industry and governmental organizations.

39) Management accounting information plays a critical

role in all of the following management functions except:

E) Financial
A) Profit planning. reporting to the Securities
B) Managerial compensation. and Exchange Commission
C) Planning and decision making. (SEC).
D) Hiring a new Chief Information Officer (CIO).

40) Corporate management is required to identify and solve problems from a

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cross-functional view. Instead of viewing a problem as related simultaneously. This
to a specific business function, management solves these approach is called:
problems by combining skills from different functions

E) Multi-Tasking
A) Inclusive approach. Approach.
B) Integrative approach.
C) Intra-function approach.
D) Multilateral approach.

41) Which of the following is not included in cost

management information?

E) Nonfinancial
A) Information about productivity. information.
B) Financial information about costs and revenues.
C) Information about customer retention.
D) Information about a competitor’s market strategy.

42) Under the framework of Enterprise Risk Management

(ERM), risk is considered to include all of the following
except:

E) Financial risks
A) Safety risk due to high crime in the area. due to foreign currency
B) Hazards such as fire or flood. fluctuations, commodity
C) Operating risk related to customers, products, or price fluctuations, and
employees. changes in interest rates.
D) Strategic risk related to top management
decisions.

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43) Nonfinancial measures of operations include all the following except:

D) Market share.
A) Stock price. E) Growth
B) Product quality. opportunities.
C) Customer satisfaction.

44) Under the Sarbanes-Oxley Act of 2002, the Public

Company Accounting Oversight Board (PCAOB) established
rules relating to which of the following areas?

E) Audit quality,
A) Financial reporting. ethics, and independence.
B) Production quality control.
C) Executive compensation.
D) Hiring and firing practices.

45) With the enactment of the Sarbanes-Oxley Act of

2002, all public companies are now required by the Securities
and Exchange Commission (SEC) to disclose whether or not
the company has:

E) A certified
A) An audit committee. management accountant.
B) Human resources guidelines.
C) A code of ethics.
D) A management compensation plan.

46) The national sales manager for your company has planned for shipment until
pulled you aside and asked you to prepare a sales document the next fiscal year. What
(bill) for one of the company's largest clients before the end of should you do in this
the fiscal year which ends this month. This sales document situation?
will include items that have not yet been shipped and are not

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 the transaction cannot be
A) Bill the client as asked by the national sales recognized as a sale until
manager. the items are shipped.
B) Bill the client since this is consistent with past E) Bring up the
transactions near fiscal year-end. matter with the external
C) Contact the client and notify them that credit auditor.
terms are being extended on this invoice since the goods have
not been shipped.
D) Discuss this situation with your supervisor since

47) Which of the following is the most important function

of management?

E) Operational
A) Preparation of financial statements. control.
B) Strategic management.
C) Planning and decision making.
D) Management control.

48) The competitive strategy of cost leadership allows a

firm to outperform competitors by producing products or
services:

more expensive, or "the

A) With reduced quality standards, thus reducing cost leader".
overall costs. E) That are
B) In smaller operational units. heavily promoted and
C) At lower cost achieved by increased productivity. heavily warranted.
D) With attractive added features making the product

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 E) Marketed in
A) Always readily available. different ways to different
B) Price competitive. groups.
C) Produced at the lowest possible cost.
D) Unique in some important way in terms of
features, innovation, service or quality.

50) The competitive strategy of differentiation is

implemented by a firm's targeted, careful attention to a(n):

E) Financial goal
A) Specific feature of the product or service. decided upon by
B) High efficiency level of production. management.
C) Broad possible market.
D) Aggressive competitive pricing plan.

51) Which of the following is not included in the planning

and decision making function of management?

E) Deciding when
A) Budgeting. to begin development of a
B) Deciding when to lease or buy a facility. new product.
C) Monitoring the short-term operating performance.
D) Cash flow management.

52) With regards to a firms product line, a cost leadership

strategy would strive for _______ while a differentiation
strategy would strive for ________.

of the market
A) Wide variety; limited selection C) Limited
B) Broad cross section of the market; focused section selection; wide variety

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 D) Focused section of the market; broad cross section E) None of these
of the market answers are correct

53) A potential weakness of the cost leadership strategy is:

D) Increasing life
A) Cutting costs in a way that causes the firm to cycle costs.
grow too fast. E) Increasing
B) Deleting key features or reducing quality of prices temporarily to
products or services. undermine competition.
C) Lowering productivity to ensure lower costs.

54) Which of the following is not a benefit of using a lean

manufacturing system?

uninterrupted flow.
A) Lead times are reduced. E) Products, on
B) Average inventory is decreased. average, have less variety.
C) Productivity is improved.
D) Production operations are linked in a smooth,

55) Of the following, which aspect of a contemporary

management technique is a framework and process that
organizations use to manage the occurrence of possible events
that could negatively or positively affect the company's
competitiveness and success?

D) Enterprise
A) Total quality management
B) Lean accounting
C) The theory of constraints

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sustainability
E) Enterprise risk management

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56) Which of the following formulas best reflects target
costing?

D) Target cost =
A) Target cost = Firm-determined price less desired Market-determined price
profit. less desired revenue.
B) Target cost = Market-determined price less E) Target cost =
desired profit. Firm-determined price less
C) Target cost = Firm-determined price less desired market-determined price.
revenue.

57) A large company has recently been experiencing

larger than normal inventory levels. Management would like
to implement a theory of constraints system to help control
the company's inventories. Which of the following is not a
benefit associated with the theory of constraints?

D) Prompt
A) Speed of product development. delivery.
B) Existing problems such as bottlenecks are E) Better product
highlighted. design.
C) Reduced cycle time.

58) The Dodd-Frank Act (2010) includes a variety of new

regulations, including the creation of:

E) The Executive
A) The Cost Accounting Standards Board. Compensation Review
B) The Consumer Financial Protection Bureau. Board.
C) The Financial Services Industry Control
Commission.
D) The Wall Street Reform and Protection Board.

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59) Which of the following contemporary management
techniques requires a balancing of multiple environmental and
social goals?

E) Enterprise
A) Target costing. sustainability.
B) The theory of constraints.
C) Benchmarking.
D) Business process improvement.

60) The competitive strategy in which the firm succeeds

by producing at the lowest cost in the industry is termed:

E) Resource-
A) Differentiation. based strategy.
B) Cost advantage.
C) Price strategy.
D) Cost leadership.

61) The competitive strategy in which the firm succeeds

by developing and maintaining a unique value for the product,
as perceived by the customer, is termed:

D) Benchmarking.
A) Differentiation. E) Product
B) Specialization advantage. specialization.
C) Design strategy.

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62) What is one of the weaknesses of the differentiation strategy?

E) Consumers
A) Easy to undermine its strength by attempting to come to expect too high of
lower costs. quality from your
B) A lack of strategic information. company.
C) It undermines demand for the product.
D) It cuts out the need for a marketing department.

63) Due in part to increased global competitiveness and

changes in management techniques and processes, what has
changed about the role of the management accountant?

profitability, since product

A) Management accountants have started to place a life cycles have started
greater emphasis on financial information, in order to promote getting shorter.
continued growth in earnings. E) The role of
B) Rather than to focus on problems within functions management accountants
(such as a marketing problem or a production problem), has grown smaller as
management accountants are using a strategic approach to companies increase their
address problems in a cross-functional manner. global competitiveness.
C) Management accountants have developed a
variety of new techniques to measure functional area
performance.
D) There has been a renewed emphasis on short-term

64) In the current business environment, companies

cannot survive without a strategy. What exactly should an
effective strategy include?

C) A focus on
A) A set of plans for using resources to achieve long-term nonfinancial
sustainable goals. information that will
B) A focus on accurate financial data, thus allowing provide the company with
the firm to effectively compete in any environment. versatile management

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techniques capable of being used in a wide variety of E) A printed-out
situations. statement that every
D) A clear, concise mission statement, naming every member of the firm should
product and outlining the company's long-term goals of have at their desk.
success.

65) Which of the following is considered to be a

nonfinancial measure of success for customer satisfaction?

E) Increase in
A) Product Quality. stock price.
B) Innovation (number of new products).
C) On-time delivery.
D) Product yield and reduction in waste.

66) If a company is working on strategic positioning, what

best describes what the company is considering?

achieve a sustainable
A) How the firm is perceived by its external competitive advantage.
environment, its competitors, and its customers. E) None of these
B) Where the firm's physical plants, buildings, and answers are correct.
warehouses will be located.
C) The firm's position on important issues, such as
the environment and government regulations.
D) Which competitive strategy the firm will use to

67) A firm that has

traditionally succeeded on
the basis of its innovative
products and excellent
customer service has
started to place greater

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emphasis on reducing waste and providing its customers with accurately describes this
the lowest priced product. Which of the following most change of competitive
strategy?

E) Differentiation
A) Cost leadership to differentiation. to cost leadership.
B) A balanced strategy to cost leadership.
C) Differentiation to a balanced strategy.
D) Cost leadership to a balanced strategy.

68) Which of following statements is true concerning

strategy?

differentiation strategies is
A) Once a firm has chosen a strategy, it is unwise to likely to succeed only if it
change it, even though the company or business environment achieves one of the
might change. strategies very well.
B) If a company does decide to compete on more E) A strategy is
than one strategy, it must carefully execute both strategies to only helpful when you are
be successful. entering a new business
C) Since the business environment is always environment.
changing, rather than stick constantly with one strategy, firms
should pay close attention during times of change and adjust
their strategies accordingly.
D) A company following both cost leadership and

69) A strategy can be best defined as:

statements.
A) an effective use of the organization's resources. E) a mission
B) a plan for using a firm's resources to achieve statement that all
sustainable goals within a competitive environment. employees must memorize
C) a clear and detailed statement of an organization's to have success.
mission and vision.
D) a plan developing a firm's mission and vision

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70) Which of the following is a contemporary
management technique used by the management accountant
to identify and monitor the costs of a product throughout all
steps from product design to the finished product?

E) None of these
A) Enterprise risk management. answers are correct.
B) Target costing.
C) Life cycle costing.
D) Enterprise sustainability.

71) Which of the following is not among the management

accounting profession's response to changes in the
contemporary business environment?

improvement.
A) Introduction of the balanced scorecard. E) New forms of
B) Value chain analysis. management organization.
C) Advances in costing, including activity-based
costing.
D) The introduction of business process

72) Important changes in the contemporary business

environment include all of the following except:

E) Global
A) Management organizations. competition.
B) Climate change.
C) Information technology.
D) Customer expectations.

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73) Cost advantages usually result from:

E) A
A) Productivity in customer satisfaction. differentiation strategy.
B) Productivity in the hiring of new employees.
C) Productivity in distribution.
D) Using cheaper but lower quality materials.

74) Which of the following is not a way for a management

accountant to resolve an ethical conflict?

accountant's immediate
A) Bring the matter to the attention of the company's supervisor except when the
auditor. supervisor is involved.
B) Consult an attorney concerning the ethical E) Follow the
conflict. organization’s established
C) Initiate a confidential discussion on the Ethics policies on the resolution
helpline. of conflict.
D) Discuss the issue with the management

75) Which of the following is one of the two types of

organizations that influence the professional environment of
the management accountant?

from all other accountants.

A) One that oversees the hiring of management E) One that
accountants for public companies. promotes the
B) One that makes the management accountant’s professionalism and
reports publicly available. competence of
C) One that sets the rules for how to be a management accountants.
management accountant.
D) One that distinguishes management accountants

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76) Under a cost leadership strategy, the cost leader:

prices once loyalty has

A) Goes into segmented markets. been established.
B) Attracts a small but loyal portion of the market.
C) Has a small market share.
D) Has a large market share.
E) Attracts customers with low prices and then raises

77) The management accountant's responsibility under the

Institute of Management Accountants (IMA) Statement of
Ethical Professional Practice includes the responsibility to
"mitigate actual conflicts of interest." This responsibility fits
within which of the four standards in the IMA Statement?

D) Quality.
A) Communication. E) Confidentiality.
B) Integrity.
C) Honesty.

78) Communicating information fairly and objectively

falls under which standard in the Institute of Management
Accountants (IMA) Statement of Ethical Professional
Practice?

D) Credibility.
A) Objectivity. E) Confidentiality.
B) Integrity.
C) Competence.

79) The management accountant who planned to improve contemporary management

an organization's operations by developing models of techniques?
consumer behavior would be using which of the following

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 E) Focus on the
A) Target costing. customer.
B) Benchmarking.
C) Business analytics.
D) Lean accounting.

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Answer Key

Test name: chapter 1

13) E
14) B
15) D
16) C
17) D
18) A
19) B
20) D
21) D
22) B
23) C
24) C
25) B
26) E
27) D
28) C
29) A
30) B
31) B

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32) B
33) C
34) B
35) D
36) A
37) D
38) A
39) D
40) B
41) D
42) A
43) A
44) E
45) C
46) D
47) B
48) C
49) D
50) A
51) C
52) C

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53) B
54) E
55) E
56) B
57) E
58) B
59) E
60) D
61) A
62) A
63) B
64) A
65) C
66) D
67) E
68) D
69) B
70) C
71) E
72) B
73) C

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74) A
75) E
76) D
77) B
78) D
79) C

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