MANAGEMENT ACCOUNTING

1. This consists of identifying alternatives, selecting from among the alternatives the one that is best for the organization, and specifying what actions will be taken to implement the chosen alternative.a. Controllingb. Planningc. Directingd. Motivating

2. A detailed report to management comparing budgeted data to actual data for a specific time period is called:a. Budgetb. Planning reportc. Performance reportd. Controllers report

3. A member of the top management team who is responsible for providing timely and relevant data to support planning and control activities and for preparing financial statements for external users.a. Chief Financial Officerb. Controllerc. Management Accountantd. Treasurer

4. Managerial accounting place less emphasis on _________ and more emphasis on _________ than financial accounting.a. Planning; nonmonetary datab. Budges; estimated datac. Precision; nonmonetary datad. Estimates; actual data

5. This involves studying the business processes of companies that are considered among the best in the world in performing a particular taska. Business processb. Benchmarkingc. Nonconstraintd. Total quality management

6. A production system in which units are produced and materials are purchased only as needed to meet actual customer demand is called:a. Process reengineeringb. Total quality managementc. Benchmarkingd. Just-in-time

7. Any series of steps that are followed in order to carry out some task in a businessa. Business processb. Plan-do-check-act-cyclec. Value-added activitiesd. Non-value-added activities

8. In Process reengineering, two objectives are to simplify and to eliminate:a. Value-added activitiesb. Non-value-added activitiesc. Constraintd. Non-constraint

9. Anything that prevents an organization or individual from getting more of what it wants:a. Value-added activitiesb. Non-value-added activitiesc. Constraintd. Non-constraint

10. 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.a. Decentralizationb. Benchmarkingc. Planningd. Control

11. The delegation of decision-making authority throughout an organization by providing managers at various operating levels with the authority to make key decisions relating to their area of responsibility.a. Decentralizationb. Assignmentc. Monitoringd. Control

12. The manager in charge of the accounting department in an organizationa. Chief Financial Officerb. Treasurerc. Controllerd. Vice-President Finance

13. The phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making.a. Financial accountingb. Managerial accountingc. Cost accountingd. Corporate accounting

14. A visual diagram of a firms organization structure that depicts formal lines of reporting, communication and responsibility between managersa. Performance reportb. Budgetc. Cycle diagramd. Organization chart

15. An approach to improvement that involves completely redesigning business process in order to eliminate unnecessary steps, reduce errors and reduce costs.a. Total quality managementb. Process reengineeringc. Life-cycle costingd. Theory of constraints

16. An approach to continuous improvement that focuses on customers and using teams of front-line workers to systematically identify and solve problems.a. Process reengineeringb. Theory of constraintsc. Just-in-timed. Total quality management

17. A traditional quality control process in manufacturing consists of mass inspection of goods only at the end of a production process. A major deficiency of the traditional control process is that:a. It is expensive to do the inspections at the end of the processb. It is not possible to rework defective itemsc. It is not 100% effectived. It does not focus on improving the entire production process

18. The most important component of quality control is:a. Ensuring goods and services conform to the design specificationsb. Satisfying upper managementc. Conforming with ISO-9000 specificationsd. Determining the appropriate timing of inspections

19. Management of a company is attempting to build a reputation as a world-class manufacturer of quality products. Which of the following measures would not be used by the firm to measure quality?a. The percentage of shipments returned by customers because of poor qualityb. The number of parts shipped per dayc. The number of defective parts per milliond. The percentage of products passing quality test the first time

20. The Code of Ethics for Management Accountants requires a financial manager/management accountant to follow the established policies of the organization when faced with an ethical conflict. If these policies do not resolve the conflict, the financial manager/management accountant should:a. Consult the board of directors immediatelyb. Discuss the problem with the immediate superior if (s)he is involved in the conflictc. Communicate the problem to the authorities outside the organizationd. Contact the next higher managerial level if initial presentation to the immediate superior does not resolve the conflict

Problem Solving

1. On December 31, 2014, the balance sheet of SG Co. disclosed total assets of P8,000,000, current liabilities of P1,500,000 and long-term debt of P2,400,000. Ordinary shares outstanding amounted to 500,000 shares. The retained earnings account indicated a deficit balance of P2,000,000. SGs book value per ordinary share as of December 31, 2014 is: __________

2. The per share market price of Canon Co. shares on January 1, 2014 was P60 and on December 31, 2014 was P72. Net income for 2014 was P48,000. Dividends to the preference shareholders for the year totalled P12,000 and dividends of P2.50 per share were paid on the 6,000 ordinary shares outstanding during the year. The price earnings ratio for CanonCo. at year end was: __________

3. The total assets in the Hard Co. on December 31, 2013 were P2.3 million and on December 31, 2014 were P2.5 million. Income after taxes for 2014 was P188,000. Dividends for 2014 totaled P75,000, interest expenses totalled P70,000 and the tax rate was 30%. The return on total assets for 2014 (rounded to the nearest tenth of a percentage point) is:_______

For nos. 4-10, refer to the problem:Complete the balance sheet of Haki Co. based on the following financial data:Net sales.P 750,000Total assets turnover3.00 timesFixed assets turnover5.00 timesAccounts receivable turnover18.75 timesQuick ratio..2.00 times

Haki Company

Balance Sheet

Cash(4.) Accounts payable(9.)

Accounts receivable(5.) Long-term debt100,000

Inventories(6.) Ordinary share capital75,000

Net fixed assets(7.) Retained earnings50,000

Total assets(8.)Total liabilities and shareholders equity(10.)