ACC 350 Week 2 Quiz 1

1) Management accounting ________.
2) Managers use management accounting information to ________.
3) Financial accounting ________.
4) The primary user of financial accounting information is a ________.
5) The primary user of management accounting information is a(n) ________.
6) Financial accounting provides the primary source of information for ________.
7) Which of the following is true of management accounting information?
8) Which of the following statements refers to management accounting information?
9) Which of the following groups would be least likely to receive detailed management accounting reports?
10) Management accounting information typically includes ________.
11) Cost accounting ________.
12) Which of the following differentiates cost accounting and financial accounting?
13) Which of the following is true of financial accounting information?
14) A data warehouse or infobarn ________.
15) Which of the following is true of cost accounting?
16) Which of the following deals with management accounting?
17) Financial accounting is concerned primarily with ________.
18) Financial accounting provides a historical perspective, whereas management accounting emphasizes ________.
19) An Enterprise Resource Planning System can best be described as ________.
20) The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as ________.
21) Financial accounting information focuses on internal reporting.
22) Cost accounting provides information for both management accounting and financial accounting professionals.
23) Management accounting information and reports do not have to follow set principles or rules such as
24) Management accounting ensures communication of an organization’s financial position to investors, banks, and regulators.
25) The balance sheet, income statement, and statement of cash flows are used for financial accounting, and also for management accounting.
26) Financial accounting is broader in scope than management accounting.
27) Cost accounting measures and reports short-term, long-term, financial, and non financial information.
28) Cost accounting is the process of measuring, analyzing, and reporting financial and nonfinancial information related to the costs of acquiring or using resources in an organization.
29) Management accounting has to strictly follow the rules of generally accepted accounting principles for the purposes of measurement and reporting.
30) For management accounting, internal measurement and reporting are based on cost-benefit analysis.
31) An Enterprise Resource Planning (ERP) System is a single database that collects data and feeds into applications that support each of the company’s business activities, such as purchases, production, distribution, and sales.
32) Financial accounting provides an organization’s past-oriented information such as the previous years’ financial statements.
33) Cost management not only helps reducing costs but also improving customer satisfaction and the quality of a firm’s products.
34) For each report listed below, identify whether the major purpose of the report is for (1) routine internal reporting, (2) nonroutine internal reporting, or for (3) external reporting to investors and other outside parties.

35) Describe management accounting and financial accounting.
36) Cost accounting provides information for both management accounting and financial accounting professionals. Explain.
37) Is it possible to have an active cost management program without an Enterprise Resource Planning (ERP) System?
38) What competitive advantage could a company obtain from a successful cost management program?

39) Which of the following statements concerning an organization’s strategy is true?
40) Strategy specifies ________.
41) Which of the following is not a concern for management accountants in formulating a strategy?
42) Strategy is formulated ________.
43) In designing strategy, a company must match its opportunities in the marketplace with ________.
44) Which of the following statements about customer value is true?
45) A company’s strategy specifies how an organization matches its capabilities with the opportunities in the marketplace.
46) The two broad strategies that companies follow are cost leadership strategy and product differentiation strategy.
47) The best-designed strategies are valuable whether or not they are effectively implemented.
48) The key to a company’s success is creating value for customers while differentiating itself from its competitors.
49) The key to a company’s success is always to be the low cost producer in a particular industry.
50) Management accountants work closely with managers in various departments to formulate strategies by providing information about the sources of competitive advantage.
51) Management accountants should have little or no role in deciding on a company’s strategy.
52) Companies can decide on an appropriate strategy based strictly on internally available information.
53) Strategic financial management describes cost management that specifically focuses on strategic issues.
54) Identifying a company’s most important customers helps to formulate a strategy.
55) The best-designed strategies and the best-developed capabilities are useless unless they are effectively executed.
56) Describe the major differences between management accounting and financial accounting for the following:
1. Primary users
2. Focus and emphasis
3. Rules of measurement and reporting

57) What is strategy? Briefly describe the two broad types of strategies that companies may choose to pursue.
58) Briefly describe the list of items that managers undertake to formulate strategies.
59) Generally, companies follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition. Assume you are opening a small food outlet across the street from your campus. How might that business be operated under each of the two broad strategies? Consider the following specific operational areas:

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