Republic of the Philippines

BATANGAS STATE UNIVERSITY

The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

Name:______________________________________ Section: ___________________

Directions: Write the Capital letter of the BEST answer before the number.

1. What are the roles of management accountant?

A. Provide budgeting information and accounting reports
B. Assist departments in achieving the organization objectives by assigning the appropriate costs
C. Responsible for carrying out the task of helping the management in making decision for
production and process
D. All of the above

2. Management accounting is an integral part of the management process. As such, it provides

essential information for the following objectives except
A. Maintaining the current level of resources utilization as well as internal and external
communication
B. Planning strategies and controlling current activities of the organization
C. Measuring and evaluating performances
D. Enhancing objectivity in decision-making

3. The following is the objective of cost accounting except.

A. Ascertainment of cost B. Decision making C. Planning and controlling cost D.
Observations

4. What type of users does managerial accounting focus on?

A. Lenders B. Company management C. Potential Investors D. Current Investors

5. Cost accounting is…

A. the recording of all the costs incurred in a business C. the recording of all the
expenses incurred in a business
B. the recording of all the direct costs incurred in a business D. the recording of all the
revenue incurred in a business

6. The management accountants in an organization probably report directly to the

A. controller B. chief executive officer (CEO). C. chief financial officer (CFO). D.
treasurer

7. As business increases in complexity, the function of controllership has attained top level
recognition in the corporate arena. Many areas related to finance and accounting have been
identified with controllership. One area that violates basic internal control when assigned to
controllership function is
A. Credit collection. B. Internal auditing C. Long-range financial planning D. Taxation

8. Which of the following is not a controller’s functions

A. Planning and control B. Protection of assets C. Interpretation and reporting of FS D.
Arranging short-term financing

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

9 The IMA’s Statement of Ethical Professional Practice incorporates all of the following
tenants of ethical behavior except which?
A. Compassion B. Competence C. Confidentiality D. Credibility

10. A managerial accountant who prepares clear reports and recommendations after analyzing
relevant facts is exercising which of the following standards?
A. integrity B. competence C. confidentiality D. credibility

11. Which ethical standard is violated by an accountant who accepts a gift from a client
A. integrity B. competence C. confidentiality D. credibility

12. Which ethical standard is violated when an accountant uses information from financial
statement he is preparing to advise a relative of stock purchase
A. integrity B. competence C. confidentiality D. credibility

13. According to the IMA, what is the first step in appropriately handling an ethical conflict at work
A. Meeting with attorney B. Talking to supervisor C. Discussing it with an IMA counselor D.
Approaching the offending party

14. The professional certification most relevant for managerial accountants is the
A. CMA B. CPA C. CSA D. MAS

15. Which of the following statements relating to Standards of Ethical Conduct for Management
Accountants is correct?
A. A management accountant should refuse all gifts and hospitality offered by one of the
company’s suppliers
B. A management accountant should inform his superiors regarding the confidentiality of
information acquired in the course of their work and monitor their activities to assure the
maintenance of that confidentiality
C. A management accountant should prepare complete and clear reports and recommendations
before appropriate analyses of relevant and reliable information
D. Management accountants have a responsibility to disclose fully all relevant
information that could reasonably be expected to influence an intended user’s
understanding of the reports, comments, and recommendations presented

16. Which of the following correctly outlines external factors that have led to changes in the
contemporary business environment and management accounting?
A. The increasing trend towards outsourcing non-essential activities and the rapid developments in
information and communications technology.
B. The emergence of a small companies that have global reach and the increasing and
broader focus from stakeholders on corporate accountability.
C. Global economic events such as the global financial crisis and changing organizational
structures resulting in the removal of layers of middle management.

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

D. Growth in the number of employees working from virtual offices and the changing
organizational structures resulting in the removal of layers of middle management.

17. A leadership plan that achieves a specific set of goals or objectives is called?
A. Business plan B. Business strategy C. Business challenge D. Business goal

18. What is a global business environment?

A. Includes the factors outside the country the business operates in.
B. Includes the climate, business policies, business facilities, business regulations and
rules, logistics, political setup, style of governance, culture, traditions, belief system,
economic, etc. of the country the business operates in
C. The ups and downs of the company
D. The guidelines a company must follow

19. Which of the following is an example of competitive advantage?

A. Buying an iphone SE instead of iphone 6 C. Buying Burger King instead of Mcdonalds
B. Updating Windows 7 to Windows 10 D. Buying Michael Kors crossbody bag
instead of Koke tote bag.

20. Which of the following statements combine to form a valid definition of lean manufacturing?
Lean manufacturing…
A. is a rigidly defined set of steps to follow C. focuses on reducing waste
B. identify and eliminate bottlenecks D. focuses on automation of production

21. The primary aim of strategic management at the business level is

A. achieving competitive advantage(s) C. maximizing risk-return trade-offs through
diversification
B. achieving a low-cost position D. maximizing differentiation of products and/or
services

22. A cost leader's basis for competitive advantage is

A. using an everyday low pricing strategy to gain the biggest market share
B. bigger profit margins than rival firms.
C. high buyer switching costs because of the company's differentiated product offering
D. meaningfully lower overall costs than competitors

23. Which of the following is a disadvantage of a cost leadership strategy

A. The strategy is too easily imitated.
B. Cost differences increase as the market matures.
C. It attempts to stay ahead of the competition may lead to gold plating
D. Producers are more able to withstand increases in suppliers' cost

24. A broad differentiation strategy

A. is an attractive competitive approach whenever buyers' needs and preferences are too diverse
to be satisfied by a product that is essentially identical from seller to seller

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

B. can produce sustainable competitive advantage if the differentiating features possess strong
buyer appeal and can't be copied or easily matched by rivals
C. can produce sustainable competitive advantage if the differentiating features possess
strong buyer appeal and can't be copied or easily matched by rivals; plus is an attractive
competitive approach whenever buyers' needs and preferences are too diverse to be
satisfied by a product that is essentially identical from seller to seller
D. works best when the basis for differentiation is superior performance features and buyer
switching costs are low

25. Which of the following are good examples of firms that follows the strategy of differentiation
based on prestige or brand image
A. North Face and Loblaws B. Lexus and President's Choice C. 3M and Cirque du Soleil D.
BMW, Roots, and Holt Renfrew

26. Which of the following is not the features of contemporary business environment?
A. High volume, long production runs, significant levels of in-process and finished
inventory
B. Low volume, short production runs, focus on reducing inventories and other non-value-added
activities and costs
C. Quality, functionally customer satisfaction
D. Goal of zero defects

27. It is the threat of loss of assets, earnings potential or managerial control as a result of political
actions by the host country
A. cultural issues B. Social behavior C. political risks D. individual
behavior

28. A focused differentiation strategy aims at securing competitive advantage by

A. providing buyers in the target market niche with the best performance features at the best
price.
B. offering buyers in the target market niche a product which they perceive is uniquely
well suited to their tastes and preferences
C. catering to buyers looking for a medium-quality product at an average price
D. developing unique product attributes

29. When a company wants to align performance with their goals and objectives, they often use
what
A. Strategic goal setting B. Balanced marketing C. Balanced scorecard D.
Objective scorecard

30. How does one explain a value chain

A. A series of steps that include understanding what customer wants and creating
solutions for those wants
B. A line of exclusive jewelry that is private labeled by celebrity designers
C. The process of creating the best product for the lowest prices

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

D. A budgetary method to manage money and get the greatest value for the money.

31.Activity-based costing:
A. Uses a plant-wide overhead rate to assign overhead C. Is not expensive to implement
B. Typically applies overhead costs using direct labor-hours D. Uses multiple activity rates

32. What is definition of Activity-Based Costing (ABC)

A. a costing method that assigns overhead and indirect costs to related products and
services
B. system that records, researches, and analyzes activities that lead to costs for a company
C. a system for determining the profitability of every aspect of a business so that its strengths can
be enhanced and its weaknesses can either be improved or eliminated altogether
D. an aggregate of all the costs associated with performing a particular business task, such as
making a particular product or provide a service

33. Benchmarking allows managers to

A. determine who in the industry performs similar processes most effectively
B. determine the processes that have high value to-cost relationship
C. compare certain internal processes, services and activities to those of other companies
in order to identify strengths and weaknesses
D. reproduce another company’s product design and manufacturing processes to eliminate
competitive advantage

34. An approach to developing new ways to perform existing activities is called

A. process value analysis B. re-engineering C. caveat analysis D. benchmarking

35. Process Reengineering includes all of the following steps except

A. constructing a diagram flowcharting the current process C. redesigning the process
B. elimination of non-value-added activities D. elimination of all
constraints

36. A company has a bottleneck operation that slows production. Which of the following tools or
approaches could the firm use to determine the most cost-effective ways to eliminate this
problem?
A. Linear programming B. Theory of constraints C. Decision-tree diagrams D. Strategic path
analysis (SPA)

37. Which of the following reflects the correct order in a value-chain

A. Research & Development, Design, Production RDP C. Design, Research & Development,
Production
B. Distribution, Customer Service, Marketing D. Distribution, Marketing, Research
& Development

38. The linked set of activities that increases the usefulness (or value) of the products or services
of an organization is the

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

A. Direct chain B. Indirect chain C. Value chain D. variable chain

39. After careful planning, Jammu Manufacturing Corporation has decided to switch to a just-in-
time inventory system. At the beginning of this switch, Jammu has 30 units of product in
inventory. Jammu has 2,000 labor hours available in the first month of this switch. These hours
could produce 500 units of product. Customer demand for this first month is 400 units. If just-in-
time principles are correctly followed, how many units should Jammu plan to produce in the first
month of the switch?
A. 370 B. 400 C. 430 D. 470

40. Which of the following are two generic strategies that a company can use?
A. price recovery and growth C. product differentiation and cost leadership
B. growth and product differentiation D. cost leadership and price recovery

41. The performance measurement tool generally associated with the display of information
evaluating multiple dimensions of business outcomes is referred to as the
A. Balanced scorecard B. Return on Investment C. Kaizen D. Market value added

42. An objective of activity-based management is to?

A. eliminate the majority of centralized activities in organization
B. reduce or eliminate non-value-added activities incurred to make product
C. institute responsibility accounting system in decentralized organizations
D. all of the above

43. Business Intelligence (BI) is broad category of application programs which includes?
A. Decision support B. correlation analysis C. data mining D. all of the above

44. An understanding of life-cycle costs can lead to

A. Additional costs during manufacturing cycle C. costs effective product designs that
are easier to service
B. Less need for evaluation of the competition D. Mutually beneficial relationships between
buyers and sellers

45. Target costing is

A. is used for short-term pricing decisions C. estimates are based on customer’s
perceived value of the product
B. is one form of cost-based pricing D. relevant costs are all variable costs

46. To design costs out of product is a goal of

A. cost-plus pricing B. target costing C. Kaizen costing D. Life cycle costing

47. TQM and ISO focuses on

A. customer B. supplier C. employees D. all of the above

48. ______ is the formal arrangement of jobs within the an organization.

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

A. departmentalization B. organizational design C. Organizational structure D. Work

specialization

49. What is the point around which all else is planned in target costing?
A. a specific price point B. design C. low price D. latest technology

50. The focus of Life Cycle Costing is to?

A. Estimate installation cost C. Consider installation costs when planning the project costs
B. Consider operations and maintenance costs in making project decisions D.
Estimate the cost of operations and maintenance

51. ________ is the process by which a firm manages the formulation and implementation of its
strategy.
A. Total Quality Management B. Strategic management C. Strategy
implementation D. mission

52. Cost management uses the expertise of the management accountant to

A. Improve quality and reduce cost C. Implement a strategy of customer
value and shareholder value
B. Implement a strategy of cost leadership or differentiation D. Improve business processes
and lean operation

53. Which of the following s the correct sequence in which cost management information is
developed and used. BeDIKD
A. Business event, data, information, analysis, decisions C. Business event, information,
analysis, knowledge, decisions
B. Business event, data, analysis, information, decisions D. Business event, data,
information, knowledge, decisions

54. Which step is the most important step in the decision-making process?
A. Identifying the decision needs to be made C. Analyzing the situation
B. Reviewing the decision which was made D. Making the decision

55. What are key parts of an activity that need to be completed well in order to meet the goals of
the project?
A. control performance B. critical success factors C. Quality success factors D.
Quality performance

56. Why is making good decisions an important skill for managers and business owners?
A. It can lead to more consistent and successful results C. It helps them have more control
and power over their employees
B. It is a much easier approach than relying on gut feelings and luck D. All of the answers
are correct

57. Which of the following is one of the steps in the decision-making process?

Leading Innovations, Transforming Lives, Building the Nation

 Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph

College of Accountancy, Business, Economics and International Hospitality Management

A. Clarify the question B. Gather information and option C. Act on the final decision
D. all of the above

58. In order to create a cost advantage, the cost of acquiring low-cost productive inputs must be
_____ the cost savings generated by these factors.
A. greater than B. less than C. equal to D. greater than or equal to

59. A firm that chooses a ____focuses on gaining advantages by reducing its costs below all of its
competitors.
A. diversification strategy B. Corporate strategy C. Product differentiation D. Cost-
leadership strategy

60 Firms pursuing a differentiations strategy primary seek to

A. Keep their cost structures lower than that of the cost leader
B. Reduce the value gap to gain a competitive advantage.
C. Provide products that are a direct imitation of the competitors' products
D. Create higher customer perceived value than the value that competitors create.

Bonus Question: A global network connecting millions of computer?

a. website b. Browser c. Internet d. electronic commerce

Leading Innovations, Transforming Lives, Building the Nation