b. motivating.
c. organizing.
d. planning.
ANSWER: d
30. The monitoring of a plan's implementation is called
a. planning.
b. controlling.
c. decision-making.
d. budgeting.
ANSWER: b
31. Continuous improvement is NOT
a. critical in a dynamic environment.
b. important to finding and maintaining a competitive advantage.
c. an effort to find ways to increase overall efficiency, improve quality and reduce costs.
d. a responsibility of managers in world-class organizations.
ANSWER: b
32. Principles of personal ethical behaviour that are essential to an ethical life include
a. integrity.
b. respect for others.
c. accountability.
d. all of these.
ANSWER: d
33. Which one of the following statements about ethical behaviour is true?
a. Ethical behaviour is not guided by well-defined rules and is often subjective.
b. Ethical behaviour is best described as doing actions that are permitted by law.
c. Ethical behaviour always involves choosing between actions that are clearly right or wrong.
d. Ethical behaviour is best guided by a policy of placing corporate performance above individual ends.
ANSWER: a
34. In resolving an ethical conflict, which of the following would never be appropriate?
a. Discussing the matter with the chief executive officer
b. Discussing the matter with an external member of the board of directors
c. Taking the matter to the press where there is no legal requirement
d. Resigning from the position because of a conflict
ANSWER: c
35. Management accounting is concerned with which kind of decision?
a. Product costing and pricing
b. Continuous operational improvement
c. Financial control
d. All of the above
ANSWER: d
36. One advantage of employee empowerment is
a. it frees up some of the time of upper management for more strategic decision-making.
b. workers can improve production processes in a timely manner.
c. employees closest to the work can provide valuable input in increasing efficiency.
d. all of the above are advantages
ANSWER: d
37. The overall objective of accounting information systems is to
a. provide information to users.
b. manage the organization.
c. prepare financial reports.
d. report to the government.
ANSWER: a
38. Management accounting
a. provides a framework to evaluate information in light of an organization's goals.
b. provides relevant information to managers.
c. provides relevant information to meet specific needs of persons inside the organization.
d. all of the above
ANSWER: d
39. Financial accounting information is least useful in providing
a. information for stating corporate wide goals.
b. information for internal decision-makers.
c. periodic reports for shareholders.
d. aggregate information about an organization's assets, obligations and performance.
ANSWER: b
40. Management accounting is primarily concerned with
a. providing investors with useful information for valuing securities.
b. providing creditors information on the status of their loans.
c. providing managers with relevant information to help achieve organizational goals.
d. providing the relevant taxation authorities with information to determine the amount of taxes owed.
ANSWER: c
41. To compete on the basis of price, the seller must carefully manage
a. cost.
b. service.
c. quality.
d. none of the above.
ANSWER: a
42. World-class companies must continuously struggle to improve performance in the dimensions of
a. price/cost.
b. service.
c. quality.
d. all of the above.
ANSWER: d