Question

When designing an accounting information system, the cost to acquire additional information should be incurred ________.

A) at all times so the operating manager has more information to make decisions

B) when information overload does not occur

C) at all times because the benefit cannot be quantified

D) when the expected benefit of an improved decision exceeds the cost of the information

Answer:

Which of the following is a major factor causing changes in management accounting today?

A) additional value chain functions

B) small advances in technology

C) shift to manufacturing-based economy

D) increased global competition

Answer:

Which statement is FALSE concerning Enterprise Resource Planning (ERP) systems?

A) Accounting is one part of an ERP system.

B) Accountants must work with operating managers throughout the organization to ensure that the ERP system provides the financial information that managers need.

C) ERP systems support all functional areas of a company.

D) SAP is not a provider of ERP systems.

Answer:

Scott is a management accountant in a large company. Scott observed unethical behavior by a coworker who is also a management accountant. The coworker is a relative of the company's president and he always receives preferential treatment. Scott observed the coworker putting office supplies and small pieces of electronic equipment in his briefcase. The company does not have a code of ethics or a set of policies for ethical problems. According to the IMA, what course of action should Scott take?

A) He should report the observation to the police. The coworker is stealing from the company.

B) He should report the observation to his immediate supervisor.

C) He should report the observation to the Securities and Exchange Commission.

D) He should do nothing.

Answer:

Generally Accepted Accounting Principles are most closely connected to ________.

A) management accounting

B) financial accounting

C) internal auditing

D) management auditing

Answer 1

1. Answer is option D when the expected benefit of an improved decision exceeds the cost of the information. (It should be base on a cost benefit analysis)

2. Answer is option D increased global competition (the major factor causing changes in management accounting today is increasing world competition)

3. Answer is option C. Accountants must work with operating managers throughout the organization to ensure that the ERP system provides the financial information that managers need.

4. Answer is option B He should report the observation to his immediate supervisor. (the best course of action is to inform immediate supervisor regarding his observation)

5. Answer is option B financial accounting (GAAP is a common set of accounting principles, standards and procedures)