Professional Documents
Culture Documents
True/False Questions
Answer: True AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA
FN: Measurement LO: 1 Level: Medium
Answer: True AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA
FN: Decision Making, Measurement LO: 1 Level: Easy
4. When carrying out their directing and motivating activities, managers mobilize the
organization's human and other resources so that the organization's plans are carried
out.
5. When carrying out planning activities, managers rely on feedback to ensure that the
plan is actually carried out and is appropriately modified as circumstances change.
6. When carrying out their directing and motivating activities, managers select a course
of action and specify how the action will be implemented.
7. Persons occupying staff positions provide support and assistance to other parts of the
organization.
10. The controller's position in a retail company is considered a line position rather than a
staff position.
11. The Chief Financial Officer of an organization should present facts and refrain from
offering advice and personal opinion.
Answer: True AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA
FN: Decision Making LO: 2 Level: Easy
Answer: True AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN:
Decision Making LO: 2 Level: Easy
15. Customer value propositions tend to fall into three broad categories--customer
intimacy, operational excellence, and product leadership.
Answer: True AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN:
Decision Making LO: 2 Level: Easy
16. Companies that adopt a customer intimacy strategy are in essence saying to their target
customers, “The reason you should choose us is because we understand and respond to
your individual needs better than our competitors.”
Answer: True AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN:
Decision Making LO: 2 Level: Easy
17. Companies that choose an operational excellence strategy are in essence saying to
their customers, “Choose us rather than our competitors because we strive for zero
defects.”
Answer: False AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN:
Decision Making LO: 2 Level: Medium
18. A value chain consists of the major business functions that add value to the company's
products and services.
19. Efforts designed to increase the rate of output should generally be applied to the
workstation that is the constraint.
20. The lean thinking model is a five step management approach that organizes resources
such as people and machines around the flow of business processes and that pulls units
through theses processes in response to customer orders.
21. Supply chain management involves acquiring and bringing inside the company all of
the processes that bring value to customers.
22. An enterprise system integrates data across an organization into a single software
system that enables all employees to have simultaneous access to a common set of
data.
23. Corporate governance is the legal framework that allows managers to control and
direct lower-level workers on the job.
24. The Sarbanes-Oxley Act of 2002 was intended to protect the interests of those who
invest in publicly traded companies by improving the reliability and accuracy of
corporate financial reports and disclosures.
Answer: True AACSB: Reflective Thinking AICPA BB: Legal AICPA FN:
Measurement LO: 3 Level: Easy
Answer: True AACSB: Ethics AICPA BB: Critical Thinking AICPA FN: Decision
Making LO: 4 Level: Easy
28. The phase of accounting concerned with providing information to managers for use in
planning and controlling operations and in decision making is called:
A) throughput time.
B) managerial accounting.
C) financial accounting.
D) controlling.
30. For a manufacturing company, what type of position (line or staff) is each of the
following?
33. Which of the following is NOT one of the three major customer value propositions
discussed in the text?
A) customer intimacy
B) discount pricing
C) operational excellence
D) product leadership
34. Which of the following is NOT one of the five steps in the lean thinking model
discussed in the text?
A) Continuously pursue perfection in the business process.
B) Identify value in specific products/services.
C) Implement an enterprise system.
D) Create a pull system that responds to customer orders.
35. One consequence of a change from a push to a properly implemented pull production
system can be:
A) an increase in work in process inventories.
B) an extremely difficult cultural change due to enforced idleness when demand falls
below production capacity.
C) an increased mismatch between what is produced and what is demanded by
customers.
D) an increase in raw materials inventories.
36. All of the following are characteristics of a pull production system EXCEPT:
A) Inventories are reduced to a minimum by purchasing raw materials and producing
units only as needed to meet consumer demand.
B) Raw materials are released to production far in advance of being needed to ensure
no interruptions in work flows due to shortages of raw materials.
C) Products are completed just in time to be shipped to customers.
D) Manufactured parts are completed just in time to be assembled into products.
37. The five step framework used to guide Six Sigma improvement efforts includes all of
the following EXCEPT:
A) Analyze.
B) Control.
C) Digitize.
D) Measure.
38. The Sarbanes-Oxley Act of 2002 contains all of the following provisions EXCEPT:
A) The audit committee of the board of directors of a company must hire,
compensate, and terminate the public accounting firm that audits the company's
financial reports.
B) Financial statements must be audited once every three years by the Government
Accounting Office.
C) Both the CEO and CFO must certify in writing that their company's financial
statements and accompanying disclosures fairly represent the results of operations.
D) A company's annual report must contain an internal control report.
Answer: C AACSB: Ethics AICPA BB: Critical Thinking AICPA FN: Decision
Making LO: 4 Level: Hard
40. Which of the following is NOT one of the Institute of Management Accountants' five
Standards of Ethical Conduct?
A) Competence
B) Confidentiality
C) Independence
D) Integrity
Answer: C AACSB: Ethics AICPA BB: Critical Thinking AICPA FN: Decision
Making LO: 4 Level: Medium