Question

1. The management process is defined by a. Planning b. Controlling c. Decision making d. All of the above e. None of the above 2. The organization that controls the certification of management accountants is the a. FASB b. SEC c. IMA d. AICPA e. None of the above 3. One of the differences between managerial and financial accounting is a. Financial accounting is oriented towards internal users b. Managerial accounting has to follow GAAS c. Managerial accounting is oriented towards external users d. Financial accounting has to follow GAAP e. None of the above 4. From the Strategic Finance article, Darren Snellgrove works for a. Johnson & Johnson Innovation b. Exxon Development c. JCPenney Market Research d. J.D. Edwards e. None of the Above 5. Which of the following products would most likely use job-order costing instead of process costing? a. Motor oil b. Ice cream c. Mass-produced furniture d. Custom race cars e. None of the above 6. A management accountant must “Perform their professional duties in accordance with relevant laws, regulations and technical standards.” Under the Standards for Ethical Conduct, this falls under the category of a. Competence b. Confidentiality c. Integrity d. Credibility e. None of the above

Answer 1

1. The management process is the process of setting goals, planning, organising, making long term strategies, making policies, taking managerial decision for the purpose of achieving the organisation goal.

The answer to this question will be d. all of the above

2. The organisation that controls the certification of management accountants is the c. IMA (The Institute of Management Accountants)

FASB (Financial Accounting Standards Board) sets standards for establishing and improving GAAP.

SEC ( Securities and Exchange Commission) is established to protect investors in securities market.

AICPA (The American Institute of Certified Public Accountants) is for certification of certified public accountants.

3. One of the differences between managerial and financial accounting is d. Financial Accounting has to follow GAAP

Managerial Accounting is not required to follow GAAP or GAAS. The options a and c are wrong since Financial Accounting is oriented towards external users and managerial accounting is oriented towards internal users.

4. From the Strategic Finance article, Darren Snellgrove works for a. Johnson & Johnson Innovation.

He is the Chief Financial Officer of Janssen Global R&D.

5. Which of the following products would most likely use job order costing instead of process costing? d. Custom Race Cars

Job order costing method is used when unique products are to be produced in small quantities only against the customer's order and not to maintain stock.

Process Costing is the method used when products are to be produced in large quantities. Motor oil, Ice Cream, Mass produced furniture are produced in large quantities.

6. A management accountant must "perform their professional duties in accordance with relevant laws, regulations and technical standards." Under the Standards for ethical conduct, this falls under the category of a.Competence

Confidentiality- means information obtained to be kept confidential unless required by under any law.

Integrity- Eliminating conflict of interest and ensuring professional integrity above personal interests.

Credibility- Communicating all the required information that influences the interpretation of various reports.