18 Questions
What is the primary purpose of a financial accounting system?
Satisfy financial reporting needs of external users
Which system is concerned with assigning costs to individual products and services as specified by management?
Cost management system
What does the operational control system provide to managers?
Feedback on performance
In the context of cost management, what has the growth of the service industry resulted in?
More demand for cost information
How does global competition impact the need for cost information in organizations?
Increases demand for both cost and accurate information
What differentiates a cost accounting system from an operational control system within cost management?
Assigning costs to products and services
What is the main responsibility of a Certified Public Accountant (CPA)?
Providing assurance concerning the reliability of financial statements
Which of the following is NOT a standard of ethical conduct for management accountants?
Transparency
What is the focus of a Certified Internal Auditor (CIA)?
Recognizing competency in internal auditing
In the context of decision making, what is the process of choosing among competing alternatives based on provided information?
Decision Making
What is the main purpose of the Certified Managerial Accountant (CMA) certification?
Establishing management accounting as a recognized discipline
What does the term 'cost' encompass in organizational activities?
Resources associated with an activity
What is the focus of an activity-based cost management system?
Tracing costs over allocation
Which type of cost is constant within the relevant range as the level of the activity driver varies?
Fixed costs
What does the term 'relevant range' refer to in cost behavior analysis?
The span of activity over which a certain cost behavior holds true
How are unit fixed costs affected as the level of the activity driver changes?
They remain constant
Which type of costs vary in direct proportion to changes in an activity driver?
Variable costs
What is the main emphasis of a functional-based cost management system?
Assigning costs to organizational units as cost objects
Test your knowledge on strategic management, decision-making, and ethical conduct in a dynamic business environment. Learn about ways to increase efficiency, reduce waste, improve quality, reduce costs, and make informed decisions. Explore the benefits of ethical behavior in organizations.
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