Managerial Accounting: Tools for Business Decision-Making 6th Canadian Edition by Jerry J. Weygandt

c) Unethical behaviour rarely causes a decline in investor confidence.
d) Unethical actions are reasonable in an environment wherein unreasonable budgets and targets have been set.
 
 
46. The production manager at ABC Inc. is responsible for formulating the budget for his department. He will be evaluated on his ability to control costs. After considerable thought, he arrives at his best estimate of costs, and then adds a further 10% to the projections. Chances are he has inflated the cost projections because
a) that is the way it has always been done.
b) conservative accounting practise requires that he not under report expenses.
c) by overestimating expenses, it will make it easier for him to come in under budget and receive a favourable evaluation.
d) none of the above.
 
 
47. In Canada, which of the following professional accounting organizations play an important role in promoting high standards of ethics in the accounting profession?
a) Chartered Professional Accountants of Canada (CPA Canada)
b) The Financial Planning Standards Council (FPSC)
c) The Canadian Institute of Financial Planning (CIFP)
d) all of the above
 
 
48. The Ontario Securities Commission introduced regulations governing the composition and duties of audit committees, as well as their members’ behaviour. The new rules
a) are as robust as parallel rules required by the U.S. Sarbanes-Oxley Act.
b) were adopted by all provincial and territorial securities regulators, except for British Columbia’s.
c) were introduced in conjunction with the Canadian Securities Administrators.
d) all of the above.
 
 
49. A company acting ethically must adapt its external reports to any changes required
a) instantly.
b) as it is appropriate for its business cycle.
c) as stipulated by the CPA Canada handbook and GAAP.
d) if they are considered pertinent to its business activities.
 
 
50. A company acting ethically must adapt its internal reports to any changes required
a) instantly.
b) as it is appropriate for its business cycle.
c) as stipulated by the CPA Canada handbook and GAAP.
d) if they are considered pertinent to its business activities.
 
 
51. A recent survey of fraud by international accounting firm KPMG reported
a) reported a 13% decrease in instances of corporate fraud compared with five years earlier.
b) that employee fraud (such things as expense account abuse, payroll fraud, and theft of assets) represents 60% of all instances of fraud.
c) financial reporting fraud (the intentional misstatement of financial reports) was the least costly to companies.
d) business scandals with large investment losses and few employee layoffs.
 
52. The accounting professional bodies each have professional codes of ethical conduct. The code covers
a) competence, ethical behaviour, objectivity, confidentiality.
b) integrity, credibility, competence, and confidentiality.
c) competence, objectivity, credibility, integrity.
d) credibility, integrity, confidentiality, objectivity.
 
 
53. Data visualizations   
a) refer to the use of software to analyze data.
b) do not help managers in acquiring an understanding of the relationships between variables.
c) is the use of techniques to analyze data to make informed decisions.
d) help managers in acquiring an understanding of business trends.
 
54. The value chain
a) is affected by technology through business-to-business on the Internet.
b) refers to all the activities associated with providing a product with the exception of research and development.
c) has not been enhanced by computerization and automation.
d) refers to all the activities associated with providing a service with the exception of sales and marketing.
 
 
55. Lean manufacturing
a) is being used less often by manufacturing firms.
b) is in contrast to traditional mass-production operations.
c) is apt to be used by firms that use large amounts of direct labour to produce their products.
d) sets out to minimize rather than eliminate waste.
 
 
56. Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?
a) theory of constraints
b) just-in-time inventory
c) activity-based costing
d) total-quality management
 
 
57. Which one of the following is not a main component of the value chain sequence?
a) ERP
b) sales and marketing
c) production
d) customer relations
 
 
58. What is one primary benefit of an enterprise resource planning (ERP) system?