APM Class Notes 1B
Quiz by Stanford C Allen
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- Q1
Burns and Scapens suggested that the accountant roles will change in all the following ways EXCEPT?
The management accountant's new role is being a hybrid accountant, where the focus is primarily on business support and financial control
Accountants has become independent from operational managers in order to allow them to objectively judge and report their accounting information to senior management
The management accountant has become more of a generalist within the business providing an internal consulting service for managers
The management accountant has become more of an internal consultant advising different managers rather than working as a specialist within the finance department
120s - Q2
The three drivers of change in management accounting, identified by Burns and Scapens are all the following EXCEPT:
Competition
Technology
Environment
Management Structure
120s - Q3
Which of Burns and Scapens change factors does this describe: Significant change has occurred in the quality and quantity of information technology as a result, data usage is not just to prepare financial reports for management, however, systems, such as the ERPS, allow users across the organisation to input data and run reports giving the type of analysis once only available within the finance function. As a result, the management accountant now acts as another user of the system.
Enterprise Resource Planning Systems
Competition
Technology
Management structure
120s - Q4
Which of Burns and Scapens change factors does this describe: Responsibility for decision-making has often moved from functional department heads to the cross‑functional team leaders. These leaders will be making budgeting decisions and producing pricing and profit forecasts with the assistance of the hybrid accountant. The hybrid accountant will link the teams with strategic decision-making helping to ensure that there is effective, autonomous team management which is aligned with the strategic objectives of the whole business.
Political
Technology
Competition
Management structure
120s - Q5
Which of Burns and Scapens change factors does this describe: The need to catch up with competitors is one of the main objectives of the IT changes. The more traditional accountant’s focus had often been short term but this is changing with the use of more long-term measures of performance.
Management structure
Technology
Competition
Strategic planning
120s - Q6
Which of the following statements is NOT related to Integrated Reporting?
This information aim is to get the right things to the right place at the right time, the first time, while minimizing waste and being open to change
There are six capitals involved in value creation including traditional financial and manufacturing capitals but also including human, intellectual, natural (environmental) and social and relational capitals
Its aim is to communicate how an organisation’s strategy, governance, performance and prospects in terms of its external environment, create value for its stakeholders in the short, medium and long term.
Integrated reporting has a focus on opportunities and risk, how resources are allocated and performance both recent historic and expected in the future.
120s - Q7
For Integrated Reporting <IR>, management accounts in preparing these reports will need to be
Focus on key areas of performance
Forward looking (not just historical),
State the significance of the figures on strategy
Provide non-financial information
Show long-term consequences of decisions
Continuously updated by adding a further accounting period when the earliest accounting period has expired
120s - Q8
The introduction of IR could have the following benefits for an organisation EXCEPT?
Reduce duplication of information and ensure consistency of messaging
Align and simplify internal and external reporting – for consistency and efficiency
Streamline performance reporting & improve efficiencies in the company, using data sets in different ways
Budgetary control or variance analysis reports
120s - Q9
A decision maker who makes decisions using the maximin criterion would be classified as:
Risk neutral
Risk spreading
Risk seeking
Risk averse
120s - Q10
A decision maker who makes decisions using the minimax regret criterion would be classified as:
Risk seeking
Risk doubtful
Risk neutral
Risk averse
120s - Q11
A decision maker using the maximax decision criterion will:
Assume that he/she will regret not having selected another option and will therefore minimise the possible regret under this assumption.
Assume that uncertainty can be ignored and will select the option with the highest expected value.
Assume that the best outcome will occur and will select the option that will give the highest return from the best outcome possible under each option.
Assume that the worst outcome will occur and will select the option that will give the highest return from the worst outcome possible under each option.
120s - Q12
“Decision rules based on expected values assume that the decision maker is risk neutral”. Select ALL Statements below that backs up this position:
Users sort answers between categoriesSorting120s - Q13
All of the following is true of risk neutral and expected values EXCEPT:
The ‘expected value’ rule calculates the average return that will be made if a decision is repeated again and again.
Expected values produces a weighted average by weighting each of the possible outcomes with their relative probability of occurring.
A risk neutral person neither seeks risk or avoids it; they are happy to accept an average outcome
The expected value rule is best in situations where decisions only occur once, even though the actual outcome is unlikely to be close to the long run average.
120s - Q14
_______________ relates to the variability of outcomes, the probabilities of which are known, or can be estimated. SELECT from the entries below the concept that the statement describes
Uncertainty
Possibility
Risk
Outlook
120s - Q15
______________ occurs where the outcomes and their probabilities are unknown.
SELECT from the entries below the concept that the statement describes:
Uncertainty
Chance
Risk
Outlook
120s