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EXERCISE 1–1 The Roles of Managers and Management Accountants [LO1, LO2]

A number of terms that relate to organizations, the work of management, and the role of managerial accounting are listed below:

Choose the term or terms above that most appropriately complete the following statements:

1. A position on the organization chart that is directly related to achieving the basic objectives of an organization is called a __________ position.
2. When __________, managers oversee day-to-day activities and keep the organization functioning smoothly.
3. The plans of management are expressed formally in __________.
4. __________ 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.
5. A __________ position provides service or assistance to other parts of the organization and does not directly achieve the basic objectives of the organization.
6. The delegation of decision-making authority throughout an organization by allowing managers at various operating levels to make key decisions relating to their area of responsibility is called __________.
7. Managerial accounting places less emphasis on and more emphasis on __________ than financial accounting.
8. __________ is concerned with providing information for the use of those who are inside the organization, whereas __________ is concerned with providing information for the use of those who are outside the organization.
9. The accounting and other reports coming to management that are used in controlling the organization are called __________.
10. The manager in charge of the accounting department is generally known as the __________.
11. A detailed report to management comparing budgeted data with actual data for a specific time period is called a __________.
12. The __________ is the 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.

EXERCISE 1–2 The Business Environment [LO3]

A number of terms that relate to Just-In-Time, Total Quality Management, Process Reengineering, and Theory of Constraints are listed below:

Choose the term or terms above that most appropriately complete the following statements:

1. __________ is an incremental approach to improvement, whereas __________ tends to be a more radical approach that involves completely redesigning business processes.
2. A production system in which units are produced and materials are purchased only as needed to meet actual customer demand is called __________.
3. Increasing the rate of output of a __________ as the result of an improvement effort is unlikely to have much effect on profits.
4. __________ involves studying the business processes of companies that are considered among the best in the world at performing a particular task.
5. The activities involved in getting equipment ready to produce a different product are called a __________.
6. The Theory of Constraints suggests that improvement efforts should be focused on the company’s __________.
7. In Process Reengineering, two objectives are to simplify and to eliminate __________.
8. A __________ is any series of steps that are followed in order to carry out some task in a business.

EXERCISE 1–3 Ethics in Business [LO4] Mary Karston was hired by a popular fast-food restaurant as an order-taker and cashier. Shortly after taking the job, she was shocked to overhear an employee bragging to a friend about shortchanging customers. She confronted the employee who then snapped back: “Mind your own business. Besides, everyone does it and the customers never miss the money.” Mary didn’t know how to respond to this aggressive stance.

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What would be the practical consequences on the fast-food industry and on consumers if cashiers generally shortchanged customers at every opportunity?