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Pick the best answer: Question 1 Management accounting Answer 1. provides object

ID: 2381294 • Letter: P

Question

Pick the best answer:

Question 1

Management accounting

Answer

1. provides objective financial information

must adhere to GAAP

3. has no mandatory rules

4. none of the other statements are true

Question 2

Activity-based costing

Answer

1. is a traditional costing method

2. encourages process value analysis

3. always results in a lower cost assigned to goods or services

4. all of these

Question 3

The controller of an organization participates in

Answer

1. planning

controlling

3. decision making

4. all of these

Question 4

The objective of profit maximization

Answer

1. should be the only goal of an organization

2. is an objective of Financial accounting but not Management accounting

3. should be achieved through legal and ethical means

should outweigh the goal of product quality

Question 5

Which of the following areas is not emphasized on the CMA examination?

Answer

1. external auditing and business law

economics, finance, and management

3. decision analysis and information systems

4. financial accounting and reporting

Question 6

An indirect cost

Answer

can be easily and accurately traced to a cost object.

is hard to trace.

should never be assigned to a cost object.

do none of these.

Question 7

Which of the following is an example of an intangible product?

Answer

hamburgers

computers

automobiles

dental care

Management accounting

Answer

1. provides objective financial information

2.

must adhere to GAAP

3. has no mandatory rules

4. none of the other statements are true

Explanation / Answer

1. 3 2. 2 3. 4 4. 3 5.1. 6. 2 7 4