(Test Bank) Horngren's Cost Accounting, A Managerial Emphasis, Canadian Edition

Datar,Rajan,Beaubien, 8

Business

Test Bank

8th Edition

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Test Bank for Horngren's Cost Accounting, A Managerial Emphasis, Canadian Edition, The downloadable file consists of 2177 pages, and the total size of the file is 12.02 MB. Purchase now only for highly discounted price.

Author(s): Datar, Rajan, Beaubien

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Test Bank for Horngren's Cost Accounting, A Managerial Emphasis, 8th Canadian Edition, 8e Srikant Datar, Madhav Rajan, Louis Beaubien Cost Accounting: A Managerial Emphasis - Cdn. Ed., 8e (Horngren) Chapter 1 The Accountant's Vital Role in Decision Maki ng 1 Explain how management accounting data are essential to the process of rational operating and strategic decision making. 1) Ma nagement accounting is guided by generally accepted accounting principles. Answer: FALSE Diff: 1 Type: TF CPA Compe tencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -1 2) Managerial accounting and cost accounting both measure and report financial and non -financial information relating to the cost of acquiring or utilizing resources. Answer: TRUE Diff: 1 Type: TF CPA Competencies : Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems used and the rol e they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Re membering Objective: LO 1 -1 3) Cost accounting provides information for both management and financial accounting. Answer: TRUE Diff: 1 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates th e types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -1 4) Management accountants are required to follow the gener ally accepted accounting principles that are used for external financial reporting when preparing reports for internal users. Answer: FALSE Diff: 2 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 E valuates the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -1 5) Managers typically receive reports on cost p lanning and controls that should be considered for internal use only. Answer: TRUE Diff: 2 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems used and the ro le they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -1 6) There are three (3) basic business strategies: low cost, premium products, and customer satisfaction. Answer: FALSE Diff: 1 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evalu ates the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and priva cy issues related to information technology Skill: Remembering Objective: LO 1 -1 7) Companies with a strategy of low prices compete on their ability to offer unique new products or services that are priced higher than their competition. Answer: FALSE Diff: 1 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -1 8) Cost management involves long -term and short -term decisions that attempt to increase value for customers and lower costs of products or services. Answer: TRUE Diff: 1 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems use d and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technolo gy Skill: Remembering Objective: LO 1 -1 9) The key to a company's success is always to be the low cost producer in a particular indu stry. Answer: FALSE Explanation: The low cost producer in a particular industry will not necessarily be successful. Diff: 2 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Understanding Objective: LO 1 -1 10) Companies generally follow one of two basic strategies: 1) prov iding a quality product or service at low prices, or 2) offering a unique product or service often priced higher than com peting products. Answer: TRUE Diff: 2 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requiremen ts, 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identifies e thical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -1 11) The Global Reporting Initiative (GRI) is a nonprofit organization established to develop guidelines so that reporting on economic, environmental and soc ial performance by all organizations is as routine and comparable as financial reporting. Answer: TRUE Diff: 2 Type: TF CPA Compe tencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information sys tems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -1 12) Corporate social responsibility is now mandatory for all publicly traded compani es in Canada. Answer: FALSE Explanation: Corporate social responsibility (CSR) is the voluntary integration of social and environment al concerns into business decisions. Diff: 2 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management inf ormation requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identif ies ethical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -1 13) In what way do managers benefit from the use of a management information system? A) Data can be entered at numerous input terminals within the orga nization. B) The managers would not be completely responsible for the information that is entered into the database syste m. C) The managers could combine or adjust data to answer the questions from particular internal and external users. D) The managers do not benefit, as the information requires technical expertise to retrieve. E) Managers can store old documents in hard co py. Answer: C Diff: 2 Type: MC CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evalua tes the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privac y issues related to information technology Skill: Understanding Objective: LO 1 -1 14) Financial accounting is concerned primarily wi th A) cost planning and cost controls. B) external reporting to investors, government authorities, etc. C) profitability analysis. D) providing information for strategic and tactical decisions. E) providing analysis to facilitate long term decision making. Answer: B Diff: 1 Type: MC CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy i ssues related to information technology Skill: Remembering Objective: LO 1 -1 15) The text identifies six ways to class ify the major differences between management and financial accounting. The "managers of the organization" is an example of which of the following classes of differences? A) purpose of information B) primary users C) focus and emphasis D) rules of measureme nt and reporting E) time span and type of reports Answer: B Diff: 1 Type: MC CPA Competencies: Chapter 1 - 3.1.1 Evaluates mana gement information requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an orga nization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -1 16) Th e text identifies six ways to classify the major differences between Management and Financial Accounting. The statement " Varies from hourly to 15 to 20 years" is an example of which of the following classes of differences? A) purpose of information B) prim ary users C) focus and emphasis D) rules of measurement and reporting E) time span and type of reports Answer: E Diff: 1 Type: MC CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of infor mation systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to in formation technology Skill: Remembering Objective: LO 1 -1 17) The text identifies six ways to classify the major differences between Management and Financial Accounting. The statement "Past oriented (reports on 2011 performance prepared in 2012)" is an example of which of the following classes? A) purpose of information B) primary users C) focus and emphasis D) rules of measurement and reporting E) time span and type of reports Answer: C Diff: 1 Type: MC CPA Competencies: Chapter 1 - 3.1.1 Evalua tes management information requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organizati on, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -1 18) The text identifies six ways to classify the major differences between Management and Financial Accounting. The statement "Commun icate organization's financial position to external users" is an example of which of the following classes? A) purpose of information B) primary users C) focus and emphasis D) rules of measurement and reporting E) time span and type of reports Answer: A Diff: 1 Type: MC CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluate s the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -1 19) Which of the following is something management acco untants should do to satisfy their users? A) provide specialized information that given users can use B) consider only financial measur es C) focus exclusively on internal users D) follow generally accepted accounting principles E) focus on planning more th an control Answer: A Diff: 2 Type: MC CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Understanding Objective: LO 1 -1 20) "Cost management" describes A) the acti ons by managers to increase value for customers while continuously reducing and controlling costs. B) the identification of excessive costs in the production process. C) the satisfaction of customers' needs. D) actions by managers to satisfy customers whil e maintaining current cost levels. E) ensuring all costs remains constant. Answer: A Diff: 2 Type: MC CPA Competenc ies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -1 21) Do you agree that prior management decisions affect cost management? A) Yes. Managers should alway s follow prior management decisions, for example, in the determination of the EOQ. B) No. Managers should ignore prior ma nagement decisions. C) Yes. Managers should always strive to lower the costs incurred last year, as their number 1 priority. D) Yes. Th e only prior management decisions that can affect cost management going forward, are concerned with employee wages. All o ther decisions can be changed. E) Yes. Prior management decisions can affect any area of the business operations, and commit the organi zation to the subsequent or continued incurrence of costs in such areas as material handling, and plant construction, for example. Answer: E Diff: 2 Type: MC CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Understanding Objective: LO 1 -1 22) Management accounting A) helps creditors evaluate the company's performance. B) helps managers make decisions. C) is useful for external and internal users. D) creates technical reports that require external audit for verification. E) is the same as cost accounting. Answer: B Diff: 2 Type: MC CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of in formation systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information t echnology Skill: Remembering Objective: LO 1 -1 23) Enterprise Resource Planning software (ERP) A) integrates data and provide managers with reports that highlight the interdependence of different business activities. B) facilitates "Easy Reporting for P roposals." C) provides financial reports for each separate enterprise in a conglomerate. D) is used only by plant manager s to create "Exceptional Reports for Production." E) is free software downloaded over the Internet. Answer: A Diff: 1 Type: MC CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of informat ion systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technol ogy Skill: Remembering Objective: LO 1 -1 24) Management accounting A) measures, analyzes, and reports financial and n onfinancial information to internal managers. B) provides information about the company as a whole. C) reports information that has oc curred in the past that is verifiable and reliable. D) provides information that is generally available only on a quarter ly or annual basis. E) must follow generally accepted accounting principles. Answer: A Diff: 2 Type: MC CPA Competencies: Chapt er 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems used and t he role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Rememberin g Objective: LO 1 -1 25) Financial accounting A) focuses on the future and includes activities such as preparing next ye ar's operating budget. B) must comply with IFRS/ASPE. C) reports include detailed information on the various operating segments of the business such as product lines or departments. D) is prepared for the use of department heads and other employees. E) is primarily concerned with profitability analysis. Answer: B Diff: 2 Type: MC CPA Competencies: Chapter 1 - 3.1.1 Evaluates manag ement information requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organ ization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Understanding Objective: LO 1 -1 26) A n Enterprise Resource Planning System can best be described as A) a collection of programs that use a variety of unconne cted databases. B) a single database that collects data and feeds it into applications that support each of the company's business acti vities, such as purchases, production, distribution, and sales. C) a database that is primarily used by a purchasing depa rtment to determine the correct amount of a particular supply item to purchase. D) a sophisticated means of linking two or more compani es to facilitate their planning processes. E) exception reporting system for plant managers. Answer: B Diff: 1 Type : MC CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information sys tems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Understanding Objective: LO 1 -1 27) The approaches and activities of managers in short -run and long -run planning a nd control decisions that increase value for customers and lower costs of products and services are known as A) value ch ain management. B) enterprise resource planning. C) cost management. D) customer value management. E) management information system . Answer: C Diff: 1 Type: MC CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -1 28) Strategy specifies A) how an organi zation matches its own capabilities with the opportunities in the marketplace. B) standard procedures to ensure quality products. C) in cremental changes for improved performance. D) the demand created for products and services. E) that a company's financia l procedures are in compliance with IFRS/ASPE. Answer: A Diff: 2 Type: MC CPA Competencies: Chapter 1 - 3.1.1 Evaluates managem ent information requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organiz ation, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -1 29) In de signing strategy, a company must match the opportunities and threats in the marketplace with A) those of the CFO (Chief F inancial Officer). B) its resources and capabilities. C) branding opportunities. D) capabilities of current suppliers. E) its competit ors. Answer: B Diff: 2 Type: MC CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements , 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and priva cy issues related to information technology Skill: Remembering Objective: LO 1 -1 30) Which of the following statements refers to management accounting information? A) There are no regulations governing the reports. B) The reports are generally delayed and historical. C) The audience tends to be stockholders, creditors, and tax authorities. D) It primarily measures and records business transactions. E) The reports are audited so can be used in confidence by potential investors. Answer: A Diff: 2 Type: MC CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the type s of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to inform ation technology Skill: Understanding Objective: LO 1 -1 31) The people who rely most exclusively on the information in a company's audited financial statements are A) senior management. B) the accounting staff. C) auditors. D) operating managers. E) sha reholders. Answer: E Diff: 2 Type: MC CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requir ements, 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Understanding Objective: LO 1 -1 32) Describe management accou nting and financial accounting. Answer: Management accounting provides information to internal decision makers of the business such as top executives, managers, sales representatives, and production supervisors. Its purpose is to help managers predict an d evaluate future results. Reports are generated often and usually broken down into smaller reporting divisions such as department or p roduct line. There are no rules to be complied with since these reports are for internal use only. Management accounting embraces more extensively such topics as the development and implementation of strategies and policies, budgeting, special studies and forecasts, influence on employee behaviour, and nonfinancial as well as financial information. Financial accounting, by contrast, provides information to external decision makers such as investors and creditors. Its purpose is to present a fair picture of the financial condition of the company. Reports are generated quarterly or annually and report on the company as a whole . The financial statements must comply with IFRS/ASPE. A CPA audits, or verifies, that the IFRS/ASPE are being followed. Diff: 2 Type: ES CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types o f information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to informati on technology Skill: Remembering Objective: LO 1 -1 33) Generally, companies follow one of two broad strategies: offer ing a quality product at a low price, or offering a unique product or service priced higher than the competition. Assume you are openin g a small food outlet across the street from your campus. How might that business be operated under each of the two broad strategies? Consider the following specific operational areas: a. target customers b. products offered c. product pricing d. location choice e. advertising content f. advertising media Answer: The purpose of this question is to explore some of the diffe rences in business operations as a result of a broad strategic choice. Answers will differ from student to student, but you should see some specific themes. Operational Area Low Price Strategy Differential Strategy Target customers Target customers migh t be students on a tight budget. Target customers might be more wealthy students, faculty, or perhaps neighbours who live nearby. Prod ucts offered Few products, heavy emphasis on tight cost control, probably set up as a high volume operation. High qualit y products, probably a reasonable choice, restaurant might have a lot of ambience. Product pricing Priced at or lower than the compet ition in the area. Higher priced products. Location choice Convenient to the target customers. Not as convenient, perha ps in a higher -end shopping or entertainment area. Customers might seek out the high quality and be willing to travel a bit for it. Advertising content Advertising would emphasize the low price of the products offered. Advertising would emphasize quality or ambience. Advertising media Media that would be looked at by the target customers, such as student newspapers. Media that would b e looked at by the target customer, local magazines and newspapers. Diff: 3 Type: ES CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Understanding Objective: LO 1 -1 34) Generally, companies follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition. Is it possible to follow a strategy that is "in the midd le"? Answer: There is some dispute about the correct answer to this question. Some will argue that it is not good for companies to ge t "caught in the middle" because the customer might get confused as to whether or not the company is competing on price o r is trying to make some other appeal. If the customer is confused about how the company is giving them value, they might perceive they are getting no value and abandon the product to a competitor with a clearer customer value proposition. The other side o f the argument is that cost management is a necessary part of any strategy and even if the company chooses to pursue a differential str ategy, management of the company should always be seeking ways to manage costs and increase customer value simultaneously regardless of their strategy. The student should be able to articulate one or the other arguments coherently. Diff: 2 Type: ES CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of informa tion systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information techno logy Skill: Understanding Objective: LO 1 -1 35) What competitive advantage could a company obtain from a successful co st management program? Answer: There are three broad outcomes from a successful cost management program: 1) costs are reduced with no loss in customer value. In this scenario, a company might gain a competitive advantage by lowering its price with no los s in profit, or maintain the same price and increase profit; 2) customer value is increased with no change in costs. This scenario migh t increase customer satisfaction resulting in increased customer loyalty and perhaps increase the overall demand for the product; 3) customer value might be increased while costs are reduced simultaneously. This scenario would result in the benefits descri bed in both 1) and 2). Also, a reduction in cost may outweigh the potential loss in revenue from delivering less value to the customer. Diff: 2 Type: ES CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evalua tes the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privac y issues related to information technology Skill: Understanding Objective: LO 1 -1 2 Explain how business functions help management accountants organize accounting information. 1) In the value chain, research and development generates and experiments with new ideas related to new products. Answer: TRUE Diff: 1 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organizatio n, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -2 2) The value chain includes the following functions: research and development; design of products, services, or processes; production; marketing; distribution; customer service; and management satisfaction. Answer: FALSE Explanation: Does not include management satis faction. Diff: 2 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issu es related to information technology Skill: Remembering Objective: LO 1 -2 3) In the value chain, research and developm ent is the detailed planning and engineering of products, services, or processes. Answer: FALSE Explanation: R & D involves generatin g and experimenting with ideas related to new products, services, or processes. Diff: 1 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems used and the role t hey play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Remem bering Objective: LO 1 -2 4) Value chain and supply chain are two terms describing the same set of business functions. Answer: FALSE Explanation: Supply chain refers to the flow of goods, services, and information. Value chain refers to value added activ ities. Diff: 1 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -2 5) Sub -contracting a business function can be part of supply chain management. Answer: TRUE Diff: 1 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management informat ion requirements, 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identifies e thical and privacy issues related to information technology Skill: Understanding Objective: LO 1 -2 6) TQM is a method for improving quality. Answer: TRUE Diff: 1 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requi rements, 3.1.2 Evaluates the types of information systems used and the role they play in an organization, 3.1.4 Identif ies ethical and privacy issues related to information technology Skill: Remembering Objective: LO 1 -2 7) Key success factors such as quality, time, and the provision of innovative products and services, must be executed well to achieve corporate perform ance. Answer: TRUE Diff: 1 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 E valuates the types of information systems used and the role they play in an organization, 3.1.4 Identifies ethical and p rivacy issues related to information technology Skill: Remembering Objective: LO 1 -2 8) The supply chain refers to the sequence of bu siness functions in which customer usefulness is added to products or services. Answer: FALSE Explanation: The value c hain refers to the sequence of business functions in which customer usefulness is added to products or services. Diff: 2 Type: TF CPA Competencies: Chapter 1 - 3.1.1 Evaluates management information requirements, 3.1.2 Evaluates the types of inform ation systems used and the role they play in an organization, 3.1.4 Identifies ethical and privacy issues related to information techn ology Skill: Remembering Objective: LO 1 -2