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1. Incremental analysis involves calculating the difference in revenue and difference in costs between alternatives.
2. The actions of a manager are influenced by the performance measures that are used to evaluate the manager.
3. In general, having a single performance measure by which managers are evaluated will lead to financial success for a company.
4. A good single measure of performance for a sales force would be the ratio of sales to new customers to total sales.
5. Costs that do not increase or decrease due to a special order are never considered incremental costs for the special order decision.
6. The current business era is referred to as the information age.
7. Advances in technology make it easier for potential buyers to compare prices globally.
8. The value chain includes the company and its suppliers and customers.
9. Businesses sometimes share sales databases with suppliers so suppliers can respond more quickly.
10. Enterprise resource planning systems focus on automating customer service and support.
11. Enterprise resource planning systems (ERP) often support accounting, human resources, and e-commerce, in addition to production.
12. Supply chain management systems (SCM) allow suppliers some access to a company s databases so goods can more profitably be delivered to a company s customers.
13. Customer Relationship Management Systems (CRM) automate customer service and support.
14. A Customer Relationship Management System (CRM) might allow a customer to track his/her package as it is being shipped across the country.
15. Dell Computer s web site that lets you keep track of your order being built on a daily basis is an example of ERP (Enterprise Resource Planning).
16. All ethical dilemmas have a single correct solution.
17. When making ethical choices, one question you should ask yourself is: Which alternative will do the most good or the least harm
18. The Institute of Management Accountants is primarily responsible for determining GAAP.
19. The Sarbanes-Oxley Act requires that companies provide relevant managerial accounting information to decision-makers.
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20. In most organizations, the treasurer is the top managerial accountant.
21. The treasurer usually reports to the controller.
22. The treasurer is responsible for preparing reports for planning and evaluating company activities.
23. The controller has custody of cash and funds invested in marketable securities.
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