Midterm Flashcards
(41 cards)
TFManagers everywhere carry out three major activities: planning, implementation, and control.
TRUE
TF The theory of constraint (TOC) framework focuses on effectively managing constraints as the key to success
TRUE
TF Managerial Accounting reports are prepared for external users while Financial Accounting reports are prepared for internal users.
FALSE
TF Merchandising firms largely refer to retail and wholesale outlets that buy goods from suppliers and resell them to customers.
TRUE
TF Merchandising and manufacturing firms generate revenue by selling products.
TRUE
TF Managers assign tasks to employees, arbitrate disputes, answer questions, solve on the spot problems, and make many decisions that affect customers and employees, which in turn, will likely influence future financial and nonfinancial performance
TRUE
TF Planning involves selecting a course of action and specifying how the action will be implemented.
TRUE
TF Control involves the process of instituting procedures and then obtaining feedback to ensure that all parts of the organization are functioning effectively and moving toward overall company goals.
TRUE
TF Strategy pertains to the general direction in which an organization plans to move to achieve its goals and objectives.
TRUE
TF Management accountants are not required to follow the generally accepted accounting principles that are used for external financial reporting when preparing reports for internal users.
TRUE
TF Management accounting information is primarily concerned with reports on the organization as a whole while financial accounting focuses more on the individual segments of the organization.
FALSE
TF The Code of Ethics for Professional Accountants established by the International Federation of Accountants governs only the activities of accountants in public practice.
FALSE
TF Planning includes identifying alternatives and then selecting the one that does the best job of furthering the organization’s objectives.
TRUE
TF eduction in tariffs, quotas, and other barriers to free trade; improvements in global transportation system; and increasing sophistication in international trade markets, are several factors that have led to an increase in worldwide competition in many industries.
TRUE
TF The PDCA Cycle is a system of continuous improvement in which a planning committee selects from a list of alternatives for improvement and moves to fully implement immediately the chosen improvement.
FALSE
TF Process reengineering diagrams a business process in detail, questions it, and then completely redesigns it to eliminate unnecessary steps, reduce opportunities for errors, and reduce costs
TRUE
TF The control phase includes analyzing actual results, comparing to the budget and identifying why differences occurred.
TRUE
TF The control phase includes preparing budgets for the upcoming period
FALSE
What are the 4 Building blocks of Analysis?
1 - Liquidity & Efficiency
- Solvency
- Profitability
- Market
In the 4 Building Blocks of Analysis, what does Liquidity and Efficiency Mean?
Ability to PAY OFF Short Term Obligations and EFFICIENTLY generate REVENUES
In the 4 Building Blocks of Analysis, what does SOLVENCY mean?
Ability to Generate FUTURE REVENUES and meet LONG TERM obligations
In the 4 Building Blocks of Analysis, what does PROFITABILITY mean?
Ability to provide financial rewards enough to attract and retain financing
In the 4 Building Blocks of Analysis, what does MARKET mean?
Do people want to buy this product? is there a market for it?
What are the 4 STANDARDS OF COMPARISON for Evaluating Company Performance YoY? IIIG
1 - INTRA Company
2 - INTER Company
3 - INDUSTRY
4. GUIDELINES (Rules of Thumb - when you set YOUR goals)
