FINAL Noreen2eExam01

8/10/2019 FINAL Noreen2eExam01

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NOREEN MANAGERIAL ACCOUNTING FOR MANAGERS 2EPractice Exam Chapter 1

Print these pages. Answer each of the following questions, explaining your answers or showing your work, as appropriate, and then compare your solutions to those provided at the end of the practice exam.

1. Indicate beside each statement below whether it is True (T) or False (F):a. _____ The focal point of a companys strategy should be its target

customers. b. _____ If an organization delegates decision making authority throughout theorganization it is said to be a centralized organization.c. _____ Informal as well as formal relationshi!s within an organization are usually

de!icted on an organization chart.d. _____ "ersons directly in#ol#ed in achie#ing the basic ob$ecti#es of the organizationha#e line !ositions while !ersons indirectly in#ol#ed in achie#ing those basic ob$ecti#es arein staff !ositions.e. _____ The %hief Financial &fficer (%F&) may ha#e both the controller and the treasurer re!orting to him or her.

'. For each of the following indicate whether the descri!tion most closely relates to theconce!ts of ean Thinking odel ( T ) *i+ *igma (**) or the Theory of %onstraints(T&%):

(LTM) (SS) (TOC)

Focusing your e ort on the weakest link will bringthe biggest bene t

%ommon framework is known as, -I% which stands for,efine easure -nalyzeIm!ro#e and %ontrol

Fi#e ste! management a!!roachthat organizes resources aroundthe flow of business !rocesses

Based on the insight that e ectively managingthe

constraint is a key tosuccess

The bottleneck in thesystem is


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determined by the stepthat has the smallest capacityinimizes in#entories"ulls units through the business

!rocesses in res!onse tocustomer orders

"rocess im!ro#ement method thatrelies on customer feedbackand fact based data gatheringand analysis techni/ues to dri#e

!rocess im!ro#ement*tri#es to continuously !ursue

!erfection in the business !rocess

0. Indicate beside each statement below whether it is True (T) or False (F):

a. _____ nter!rise 2isk anagement ( 2 ) is a conce!t whereby organizations considerthe needs of all stakeholders when making decisions. 2 e+tends beyond legal com!lianceto include #oluntary to include #oluntary actions that satisfy stakeholder e+!ectations.

b. _____ any com!anies ha#e ado!ted formal ethical codes of conduct.c. _____ To resol#e an ethical conflict a management accountant should consider discussing the issue with his or her immediate su!er#isor e#en if it a!!ears that thesu!er#isor is in#ol#ed.d. _____ The I -3s *tatement of thical "rofessional "ractice consists of two !arts:general guidelines for ethical beha#ior and what should be done if an indi#idual findse#idence of ethical misconduct.e. ______ 4here cross border acti#ities are in#ol#ed the International Federation of-ccountants (IF-%) ethical re/uirements must be followed if they are stricter than the ethicalre/uirements of the country in which the work is being !erformed.f. ______ ffecti#e enter!rise risk management enhances stockholders3 confidence that acom!any is being run in the interests of to! managers.


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NOREEN MANAGERIAL ACCOUNTING FOR MANAGERS 2EPractice Exam Chapter 1

1. Solution (Learning Objective 1):a. True

b. False5 delegation of authority would be considered a decentralized organization.c. False5 formal relationshi!s only are ty!ically included.d. Truee. True

'. Solution (Learning Objective 2):

(LTM) (SS) (TOC)Focusing your e ort on the weakest link will bring

the biggest bene t

6

%ommon framework is known as, -I% which stands for,efine easure -nalyzeIm!ro#e and %ontrol

6

Fi#e ste! management a!!roachthat organizes resources aroundthe flow of business !rocesses

6

Based on the insight that e ectively managingthe

constraint is a key tosuccess

6

The bottleneck in thesystem is

determined by the stepthat has the smallest capacity

6

inimizes in#entories 6"ulls units through the business

!rocesses in res!onse tocustomer orders

6

"rocess im!ro#ement method thatrelies on customer feedbackand fact based data gatheringand analysis techni/ues to dri#e

!rocess im!ro#ement

6


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*tri#es to continuously !ursue !erfection in the business !rocess

6

0. Solution (Learning Objective 3):a. False. %or!orate social res!onsibility (%*2) is a conce!t whereby organizations consider

the needs of all stakeholders when making decisions. %*2 e+tends beyond legalcom!liance to include #oluntary actions that satisfy stakeholder e+!ectations.

b. Truec. False. To resol#e an ethical conflict a management accountant should consider

discussing the issue with his or her immediate su!er#isor except when it a!!ears that thesu!er#isor is in#ol#ed.

d. Truee. Truef. False. ffecti#e cor!orate go#ernance enhances stockholders3 confidence that a com!any

is being run in their best interests rather than in the interests of to! managers.

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