MOS Chapter 8

Question 1

Tort

Answer 1

A civil wrong (not a crime) that causes harm — person can sue for money damages.

Question 2

Negligence

Answer 2

Failing to act with reasonable care

Question 3

5 Elements of Negligence

Answer 3

Duty – defendant had a responsibility to act carefully.

Breach – they failed that duty.

Cause in fact – direct link between breach and harm.

Proximate cause – harm was a foreseeable result.

Damages – plaintiff actually suffered loss.

Question 4

Tortious interference

Answer 4

Persuading someone to break a contract

Question 5

Criminology

Answer 5

Study of crime & why people commit it

Question 6

Occupational Fraud

Answer 6

Using job for personal gain

Question 7

White-Collar Crime

Answer 7

Financial crimes by professionals

Question 8

Organizational Crime

Answer 8

Company commits illegal acts

Question 9

Organized Crime

Answer 9

Group-based criminal activity

Question 10

Managerial Accounting

Answer 10

Provides financial and nonfinancial information for internal users

Question 11

Purpose of managerial accounting

Answer 11

To support decision-making, performance evaluation, and strategic planning.

Question 12

Budgetary slack

Answer 12

Managers underestimate performance to look better later.

Question 13

Unrealistic goals

Answer 13

can push employees to cheat to meet targets

Question 14

Triple Bottom Line

Answer 14

people, planet, and profit

Question 15

CSR involves

Answer 15

Identifying what matters most (e.g., safety, pollution).

Measuring performance (e.g., accidents per 1,000 hours).

Ensuring reliable, verifiable results.

Question 16

Business Ethics

Answer 16

Acting responsibly & honestly in business

Question 17

SOX Act

Answer 17

Holds execs legally accountable for fraud

Question 18

CPAB (Canada)

Answer 18

Ensures audit transparency & accountability

Question 19

IMA/CPA Codes

Answer 19

Competence, Confidentiality, Integrity, Credibility

Question 20

CSR

Answer 20

Focus on people, planet, and profit

Question 21

Value chain

Answer 21

all activities from research → production → sales → service

Question 22

Global competition and deregulation force companies to

Answer 22

Focus on long-term strategy

Improve quality and reduce costs

Analyze internal (operations/resources) and external (competitors, economy, regulations) factors

Question 23

ERP (Enterprise Resource Planning)

Answer 23

Integrates all company data (HR, manufacturing, accounting).

Question 24

Computer-Integrated Manufacturing (CIM)

Answer 24

robots automate production → lower labour costs.

Question 25

B2B e-commerce

Answer 25

online networks connect suppliers & buyers directly, cutting intermediaries.

Question 26

5 Lean Principles

Answer 26

Value – What customers are willing to pay (target costing) Value Stream – Map entire product flow Flow – Keep production continuous Pull – Produce only when there’s demand Perfection – Continuous improvement

Question 27

Lean Manufacturing

Answer 27

Goal: eliminate waste, focus on customer needs, and produce efficiently.

Question 28

Balanced Scorecard

Answer 28

Combines financial + non-financial performance measures.

Question 29

Four Perspectives of Balanced Scorecard

Answer 29

Financial – profitability, return on assets Customer – satisfaction, loyalty Internal Processes – efficiency, defect reduction Learning & Growth – employee training, innovation

Question 30

Just-in-Time (JIT)

Answer 30

Reduces inventory and waste

Question 31

Total Quality Management (TQM)

Answer 31

Focus on zero defects and customer satisfaction

Question 32

Activity-Based Costing (ABC)

Answer 32

Accurate cost allocation

Question 33

Theory of Constraints (TOC)

Answer 33

Eliminates bottlenecks

Question 34

Lean Manufacturing

Answer 34

Eliminates waste and improves efficiency

Question 35

Balanced Scorecard

Answer 35

Combines financial + non-financial performance

Question 36

CPA Canada

Answer 36

Unified accounting profession