ACG 2071 Exam 1 Questions and Answers Already Passed Latest 2025
Manager's 3 primary responsibilities - Answers planning, directing, controlling
cross-functional teams - Answers teams of employees that represent various functions of the company
such as research and development, production, marketing, etc.
planning - Answers setting goals and objectives for the company and determining how to achieve them
directing - Answers overseeing day-to-day operations
controlling - Answers evaluating results and making adjustments
management accountants have become more like.... - Answers internal consultants and business
advisors
IMA - Answers Institute of Management Associates, issues the CMA
AICPA - Answers American Institute of CPA's
CIMA - Answers Charted Institute of Management Accountants
CGMA - Answers Charted Global Management Accountant Certification
4 ethical standards of MA's - Answers maintain professional competence, preserve confidentiality,
uphold their integrity, perform duties with credibility
Sarbanes-Oxley Act - Answers 2002, enacted as a result of scandals: enhances internal
control/regulations, established new regulatory requirements for firms and their independent auditors,
tax services can be provided by the same company if approved by the audit board, audit company must
rotate off every 5 years and undergo checks
Frank-Dodd Act - Answers 2010, "clawback rule", firms must recover all incentive compensation paid to
any current/former executive if the compensation wouldn't have been paid under correct financial
documents
IFRS - Answers International Financial Reporting Standards
XBRL - Answers enables companies to release info that can be quickly/easily read. standard coding
system "tags" data so computers can read it
triple bottom line/three pillars - Answers people, profit, planet
IIRC - Answers International Integrated Reporting Committee
Integrated reporting - Answers communication about value creation over time
US companies have shifted to be ____companies - Answers service companies
, ERP - Answers Enterprise Resource Planning, used by large companies to integrate the company's
functions, departments, and data
lean thinking - Answers philosophy and business strategy of operating without waste
JIT - Answers just-in-time
throughput time - Answers time between buying raw materials and selling finished products
ISO 9000:2008 - Answers Companies can become ISO 9001:2008 certified by complying with the ISO
standards and undergoing extensive audits, the certification gives companies a competitive advantage in
the global market
largest sector of US economy= - Answers service companies
three types of inventory - Answers raw, WIP, FG
Elements of the value chain - Answers R&D, Design, Production, Marketing, Distribution, Customer
Service
cost object - Answers anything for which managers want a separate measure of cost (ex. individual
units, different models, etc.)
direct cost - Answers a cost that can be traced back to the cost object
indirect cost - Answers a cost that relates to the cost object, but can't be traced back, allocated
assign.... - Answers direct and indirect
trace - Answers direct
allocate - Answers indirect
total cost - Answers the cost of all resources used throughout the value chain
Is total cost used for inventory or COGS? - Answers no
IPC - Answers Inventoriable Product Costs, incurred during production stage, reported as an asset
(inventory)
period costs - Answers all other parts of the value chain, except production
COGS is reported on the - Answers Income statement
Inventory is reported on the - Answers Balance Sheet
Merchandising company IPC's - Answers cost of buying goods from suppliers and costs to ship them and
get it ready for sale
Manager's 3 primary responsibilities - Answers planning, directing, controlling
cross-functional teams - Answers teams of employees that represent various functions of the company
such as research and development, production, marketing, etc.
planning - Answers setting goals and objectives for the company and determining how to achieve them
directing - Answers overseeing day-to-day operations
controlling - Answers evaluating results and making adjustments
management accountants have become more like.... - Answers internal consultants and business
advisors
IMA - Answers Institute of Management Associates, issues the CMA
AICPA - Answers American Institute of CPA's
CIMA - Answers Charted Institute of Management Accountants
CGMA - Answers Charted Global Management Accountant Certification
4 ethical standards of MA's - Answers maintain professional competence, preserve confidentiality,
uphold their integrity, perform duties with credibility
Sarbanes-Oxley Act - Answers 2002, enacted as a result of scandals: enhances internal
control/regulations, established new regulatory requirements for firms and their independent auditors,
tax services can be provided by the same company if approved by the audit board, audit company must
rotate off every 5 years and undergo checks
Frank-Dodd Act - Answers 2010, "clawback rule", firms must recover all incentive compensation paid to
any current/former executive if the compensation wouldn't have been paid under correct financial
documents
IFRS - Answers International Financial Reporting Standards
XBRL - Answers enables companies to release info that can be quickly/easily read. standard coding
system "tags" data so computers can read it
triple bottom line/three pillars - Answers people, profit, planet
IIRC - Answers International Integrated Reporting Committee
Integrated reporting - Answers communication about value creation over time
US companies have shifted to be ____companies - Answers service companies
, ERP - Answers Enterprise Resource Planning, used by large companies to integrate the company's
functions, departments, and data
lean thinking - Answers philosophy and business strategy of operating without waste
JIT - Answers just-in-time
throughput time - Answers time between buying raw materials and selling finished products
ISO 9000:2008 - Answers Companies can become ISO 9001:2008 certified by complying with the ISO
standards and undergoing extensive audits, the certification gives companies a competitive advantage in
the global market
largest sector of US economy= - Answers service companies
three types of inventory - Answers raw, WIP, FG
Elements of the value chain - Answers R&D, Design, Production, Marketing, Distribution, Customer
Service
cost object - Answers anything for which managers want a separate measure of cost (ex. individual
units, different models, etc.)
direct cost - Answers a cost that can be traced back to the cost object
indirect cost - Answers a cost that relates to the cost object, but can't be traced back, allocated
assign.... - Answers direct and indirect
trace - Answers direct
allocate - Answers indirect
total cost - Answers the cost of all resources used throughout the value chain
Is total cost used for inventory or COGS? - Answers no
IPC - Answers Inventoriable Product Costs, incurred during production stage, reported as an asset
(inventory)
period costs - Answers all other parts of the value chain, except production
COGS is reported on the - Answers Income statement
Inventory is reported on the - Answers Balance Sheet
Merchandising company IPC's - Answers cost of buying goods from suppliers and costs to ship them and
get it ready for sale
