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The Management Accountant's Responsibility Under the Institute of Management Accountants

question 42

Multiple Choice

The management accountant's responsibility under the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice includes the responsibility to "mitigate actual conflicts of interest." This responsibility fits within which of the four standards in the IMA Statement?

Grasp the concept of equivalent units for materials and conversion costs.

Understand journal entries associated with process costing in multi-process production environments.

Understand the basics and application of predetermined overhead costs in management accounting.

Recognize the difference between standard and actual costs, and their relevance to budgeting and forecasting.

Definitions:

M'Naghten Rule

A legal standard used to evaluate the criminal responsibility of a defendant deemed to be mentally disturbed.

Not Guilty

A legal judgment that asserts the defendant has not been proven to commit the offense they were charged with beyond a reasonable doubt.

Insanity

A legal and psychological term referring to a mental illness of such a severe nature that a person cannot distinguish fantasy from reality, or is unable to conduct her/his affairs due to psychosis, or is subject to uncontrollable impulsive behavior.

Tarasoff Case

A landmark legal case in the United States that established mental health professionals have a duty to warn individuals who are being threatened with bodily harm by a patient.