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

a) It reduces inventory levels.
b) It permits companies to be more streamlined in production.
c) It replaces research and development in a company.
d) It requires an increased emphasis on product quality.
 
 
59. One of the advantages of a just-in-time inventory system is that it reduces inventory quantities. Why is this considered to be a benefit?
a) Carrying inventory incurs storage costs, hence reducing inventory quantities reduces costs.
b) Carrying large inventory raises the risk that customers will want an item that you do not have.
c) Carrying large inventory reduces the risk that customers will want an item that you do not have.
d) none of the above
 
 
60. What is “balanced” in the balanced scorecard approach?
a) the number of products produced
b) the emphasis on financial and non-financial performance measurements
c) the amount of costs allocated to products
d) the number of defects found on each product
 
 
61. For what purpose is the theory of constraints used?
a) to reduce product defects
b) to balance performance measurement
c) to identify and manage constraints that bottleneck operations
d) to reduce inventory levels
 
 
62. In Canada the three different professional accounting designations that merged into CPA Canada are
a) CPA, CA, CMA.
b) CMA, CGA, CPA.
c) CA, CMA, CGA.
d) MA, CPA, CA.
 
 
63. Which of the following is a reason for the reorganization of the three accounting bodies in Canada into one, CPA Canada?
a) There was conflict within the standard setting process between the three accounting bodies.
b) Extensive competition between the three organizations was causing friction.
c) The reorganization was mandated by the Canadian government.
d) A larger unified profession would mean a more prominent and cohesive Canadian presence internationally.
 
 
64. Choose the correct statement.
a) CGA stands for Certified Generic Accountant.
b) CMA stands for Certified Managing Accountant.
c) CA stands for Chartered Accountant.
d) CPA stands for Certified Professional Accountant.
 
 
65. Which of the following statements is true?
a) In recent decades, the Canadian economy in general has shifted toward an emphasis on providing services rather than goods. This trend has reduced the importance of managerial accounting.
b) In recent decades, the Canadian economy in general has shifted toward an emphasis on providing goods rather than services. This trend has reduced the importance of managerial accounting.
c) In recent decades, the Canadian economy in general has shifted toward an emphasis on providing services rather than goods. This trend has not reduced the importance of managerial accounting.
d) In recent decades, the Canadian economy in general has shifted toward an emphasis on providing goods rather than services. This trend has not reduced the importance of managerial accounting.
 
 
66. Which of the following is an accounting question a service company may face?
a) whether to purchase new equipment
b) how much to charge for various services
c) how efficient and productive individual staff members are
d) all of the above
 
 
67. For a manufacturing company, the activities in the value chain would not include
a) research and development.
b) purchase of raw materials.
c) customer relations.
d) performance evaluation.
 
 
68. What term describes all activities associated with providing a product or service?
a) the manufacturing chain
b) the product chain
c) the supply chain
d) the value chain
 
 
69. How do most companies manage their value chain?
a) by using activity-based costing
b) by creating enterprise resource planning systems
c) using an action plan
d) using total-quality management systems
 
 
70. How have many companies significantly lowered inventory levels and costs?
a) They use activity-based costing.
b) They utilize an enterprise resource planning system.
c) They have a just-in-time method.
d) They focus on a total-quality management system.
 
 
71. Some companies implement systems to reduce defects in finished products with the goal of achieving zero defects. What are these systems called?
a) activity-based costing systems
b) enterprise resource planning systems
c) value chain systems
d) total-quality management systems
 
 
72. In order to obtain more accurate product costs, how do many companies allocate overhead?
a) By using activity-based costing.