Test Bank for Managerial Accounting: The Cornerstone of Business Decision Making8e M
l l l l l l l l l l l l
owen
Chapl 01_8e_Mowen
Indicatel whetherl thel statementl isl truel orl false.
l l 1.lAlcostlaccountantlwouldlnormallyloccupylalstafflpositionlwithinlanlorganization.
a. True
b. False
l
2.lThelfourlemphasizedlareasloflthelCMAlexaminationlreflectlthelneedsloflmanageriallaccountinglandlhighlig
l
htlthatlmanageriallaccountinglhaslmoreloflanlinterdisciplinarylflavorlthanlotherlareasloflaccounting.
a. True
b. False
l l 3.lManagementlaccountinglinformationlislusedlonlylbylmanufacturinglorganizations.
a. True
b. False
l l 4.lPositionslthatlhaveldirectlresponsibilitylforlthelbasiclobjectivesloflanlorganizationlarelreferredltolasllinelpositions.
a. True
b. False
l l 5.lVirtuallylalllmanageriallaccountinglpracticeslwereldevelopedltolassistlmanagerslinlmaximizinglprofits.
a. True
b. False
l l 6.lManageriallaccountinglisldesignedlprimarilylforlinternallusers.
a. True
b. False
l l 7.lManageriallaccountinglinformationlislnotlimportantlforlnot-for-profitlorganizations.
a. True
b. False
l l 8.lTimelislnotlalcruciallelementlinlalllphasesloflthelvaluelchain.
a. True
b. False
l l 9.lActivity-
basedlcostinglislallessldetailedlapproachltoldetermininglthelcostloflgoodslandlserviceslthanltraditionallcostlaccountin
g.
a. True
b. False
l
10.lAmelialcomparedlthelbudgetedlspendinglonllaborlandlmaterialslusedlinlproductionltolthelactuallspendinglonlla
l
borlandlmaterialslusedlinlproduction.lLaborlspendinglwaslhigherlthanlexpected.lAmelialemailedlRobbieltoldiscusslth
isloutcome.lThislislalmanageriallaccounting-orientedlissue.
a. True
b. False
Pagel1
,Name: Class: Date:l
Chapl 01_8e_Mowen
l
l11.lThelpurposeloflthelCertificatelinlPubliclAccountinglisltolprovidelminimallprofessionallqualificationlforlexter
nallauditors.
a. True
b. False
l l 12.lExcellentlcustomerlservicelislanlexampleloflalvalue-addedlactivity.
a. True
b. False
l l 13.lGAAPlgovernslfinanciallaccounting.
a. True
b. False
l l 14.lManageriallaccountinglemphasizeslthelfuture.
a. True
b. False
l
l 15.lThelvaluelchainlislthelsetloflactivitieslrequiredltoldesign,ldevelop,lproduce,lmarket,landldeliverlproductsla
ndlservicesltolcustomers.
a. True
b. False
l l 16.lThelbelieflthatleachlmemberloflalgrouplbearslnolresponsibilitylforlthelwell-
beingloflotherlmemberslislalcommonlprinciplelunderlyinglalllethicallsystems.
a. True
b. False
l l 17.lThelprocessloflchoosinglamonglcompetinglalternativeslislcalledldecisionlmaking.
a. True
b. False
l
l 18.lThelmanageriallactivityloflmonitoringlalplan'slimplementationlandltakinglcorrectivelactionlaslneededlislrefer
redltolasldecisionlmaking.
a. True
b. False
Indicatel thel answerl choicel thatl bestl completesl thel statementl orl answersl thel question.
l l 19.lWhichloflthelfollowinglwouldlnormallylholdlallinelposition?
a. Staffl accountant
b. Purchasinglmanager
c. Generallmanager
d. Costlaccountant
Pagel2
,Name: Class: Date:l
Chapl 01_8e_Mowen
l l 20.lThelstandardsloflethicallconductlforlmanageriallaccountantslinclude:
a. caringlforlothers,lintuition,landlrespectlforlothers.
b. pursuitloflexcellence,lcredibility,landlimmediacy.
c. confidentiality,lconfidence,lintegrity,landlobservance.
d. competence,lconfidentiality,lintegrity,landlcredibility.
l l 21.lInvestigatinglproductionlvarianceslandladjustinglthelproductionlprocesslarelexampleslof:
a. planning.
b. controlling.
c. decisionlmaking.
d. Alllofl theselarelcorrect.
l l 22.lWhichloflthelfollowinglstatementslisltruelofltotallqualitylmanagement?
a. Itlislalmanagementlphilosophylinlwhichlmanufacturerslstriveltolcreatelanlenvironmentlthatlwilllenablelwor
kersltolmanufacturelzero-defectlproducts.
b. Itlhaslreplacedlthelacceptablelqualitylattitudesloflthelpast.
c. Itlemphasizesltheleliminationloflwaste.
d. Alllofl theselarelcorrect.
l l 23.lActivity-basedlcosting:
a. strivesltolcreatelanlenvironmentlthatlwilllenablelworkersltolmanufacturelzero-defectlproducts.
b. islthelprocessloflchoosinglamonglcompetinglalternatives.
c. waslestablishedlinlresponseltolfinanciallscandals.
d. emphasizeslthelcostlofltaskslrequiredltolproducelalproductlorlofferlalservice.
l l 24.lAccountantslthatlhavelalCertificatelinlPubliclAccountingl(CPA):
a. arelthelonlylaccountantslpermittedltolservelaslexternallauditors.
b. mustlpasslalnationallexaminationlandlbellicensedlbylthelstatelinlwhichltheylpractice.
c. arelresponsiblelforlassuringlthelreliabilityloflalfirm'slfinanciallstatements.
d. Alllofl theselarelcorrect.
l l 25.lWhichloflthelfollowinglstatementslisltrueloflprofitlmaximization?
a. Profitlmaximizationlislachievedlbylconsideringlthelfinanciallmeasureslfocusedlonlylonlefficiency.
b. Profitlmaximizationlislanlobjectiveloflfinanciallaccountinglbutlnotlmanageriallaccounting.
c. Profitlmaximizationlshouldlbelachievedlthroughllegallandlethicallmeans.
d. Profitlmaximizationlresultslinlmaximumlcostltolandlmaximumlproductionlbylalcompany.
l l 26.lThelcontrollerloflanlorganizationlparticipateslin:
a. planning.
b. controlling.
c. decisionlmaking.
d. Alllofltheselarelcorrect
Pagel3
, Name: Class: Date:l
Chapl 01_8e_Mowen
l l 27.lInlthelUnitedlStates,lindividualslwholprovidelassurancelservicelareldesignatedlas:
a. CertifiedlPubliclAccountants.
b. CertifiedlFinanciallAccountants.
c. Charteredl Accountants.
d. CertifiedlManagementlAccountants.
l l 28.lWhichloflthelfollowinglmembersloflanlorganizationlwouldlnormallylholdlalstafflposition?
a. Headloflsecurity
b. Accountinglmanager
c. Customerlservicelexecutive
d. Alllofl theselarelcorrect.
l l 29.lWhichloflthelfollowinglareaslislnotlemphasizedlbylthelCertifiedlManagementlAccountantl(CMA)lexamination?
a. Externallauditinglandlinternallcontrol
b. Managementlreporting,lanalysis,landlbehaviorallissues
c. Decisionlanalysislandlinformationlsystems
d. Economics,lfinance,landlmanagement
l l 30.lWhichloflthelfollowinglislnotlanlobjectiveloflmanageriallaccounting?
a. Tolproducelinformationlforlexternallusers,lincludinglinvestors,lcreditors,lcustomers,lsuppliers,landlgo
vernmentlagencies
b. Tolprovidelinformationlforlplanninglanlorganization’slactions
c. Tolprovidelinformationlforlevaluatinglandlcontinuouslylimprovinglanlorganization’slactions
d. Tolprovidelinformationlforleffectiveldecisionlmakinglbylthelmanagementloflalcompany
l l 31.lManageriallaccountinglreportslarelprepared:
a. tolprovidelcreditorslwithlinformationlusefullinlmakinglcreditldecisions.
b. tolmeetlthelneedslofldecisionlmakerslwithinlalfirm.
c. tolpresentlhistoricallinformation.
d. Alllofl theselarelcorrect.
l l 32.lWhichloflthelfollowinglwouldloccupylallinelpositionlinlalhospital?
a. Cafeterial manager
b. Hospitalladministrator
c. Chiefloflsurgery
d. Nonel ofl thesel arel correct.
l l 33.lWhichloflthelfollowinglstatementslisltrueloflfinanciallaccounting?
a. Financiallaccountinglisldirectedltowardlexternallusers.
b. Financiallaccountinglislsubjectltolexternallylimposedlrules.
c. Financiallaccountinglprovideslinformationlthatlcanlbelobjectivelylverifiedlandlaudited.
d. Alllofl theselarelcorrect.
Pagel4
l l l l l l l l l l l l
owen
Chapl 01_8e_Mowen
Indicatel whetherl thel statementl isl truel orl false.
l l 1.lAlcostlaccountantlwouldlnormallyloccupylalstafflpositionlwithinlanlorganization.
a. True
b. False
l
2.lThelfourlemphasizedlareasloflthelCMAlexaminationlreflectlthelneedsloflmanageriallaccountinglandlhighlig
l
htlthatlmanageriallaccountinglhaslmoreloflanlinterdisciplinarylflavorlthanlotherlareasloflaccounting.
a. True
b. False
l l 3.lManagementlaccountinglinformationlislusedlonlylbylmanufacturinglorganizations.
a. True
b. False
l l 4.lPositionslthatlhaveldirectlresponsibilitylforlthelbasiclobjectivesloflanlorganizationlarelreferredltolasllinelpositions.
a. True
b. False
l l 5.lVirtuallylalllmanageriallaccountinglpracticeslwereldevelopedltolassistlmanagerslinlmaximizinglprofits.
a. True
b. False
l l 6.lManageriallaccountinglisldesignedlprimarilylforlinternallusers.
a. True
b. False
l l 7.lManageriallaccountinglinformationlislnotlimportantlforlnot-for-profitlorganizations.
a. True
b. False
l l 8.lTimelislnotlalcruciallelementlinlalllphasesloflthelvaluelchain.
a. True
b. False
l l 9.lActivity-
basedlcostinglislallessldetailedlapproachltoldetermininglthelcostloflgoodslandlserviceslthanltraditionallcostlaccountin
g.
a. True
b. False
l
10.lAmelialcomparedlthelbudgetedlspendinglonllaborlandlmaterialslusedlinlproductionltolthelactuallspendinglonlla
l
borlandlmaterialslusedlinlproduction.lLaborlspendinglwaslhigherlthanlexpected.lAmelialemailedlRobbieltoldiscusslth
isloutcome.lThislislalmanageriallaccounting-orientedlissue.
a. True
b. False
Pagel1
,Name: Class: Date:l
Chapl 01_8e_Mowen
l
l11.lThelpurposeloflthelCertificatelinlPubliclAccountinglisltolprovidelminimallprofessionallqualificationlforlexter
nallauditors.
a. True
b. False
l l 12.lExcellentlcustomerlservicelislanlexampleloflalvalue-addedlactivity.
a. True
b. False
l l 13.lGAAPlgovernslfinanciallaccounting.
a. True
b. False
l l 14.lManageriallaccountinglemphasizeslthelfuture.
a. True
b. False
l
l 15.lThelvaluelchainlislthelsetloflactivitieslrequiredltoldesign,ldevelop,lproduce,lmarket,landldeliverlproductsla
ndlservicesltolcustomers.
a. True
b. False
l l 16.lThelbelieflthatleachlmemberloflalgrouplbearslnolresponsibilitylforlthelwell-
beingloflotherlmemberslislalcommonlprinciplelunderlyinglalllethicallsystems.
a. True
b. False
l l 17.lThelprocessloflchoosinglamonglcompetinglalternativeslislcalledldecisionlmaking.
a. True
b. False
l
l 18.lThelmanageriallactivityloflmonitoringlalplan'slimplementationlandltakinglcorrectivelactionlaslneededlislrefer
redltolasldecisionlmaking.
a. True
b. False
Indicatel thel answerl choicel thatl bestl completesl thel statementl orl answersl thel question.
l l 19.lWhichloflthelfollowinglwouldlnormallylholdlallinelposition?
a. Staffl accountant
b. Purchasinglmanager
c. Generallmanager
d. Costlaccountant
Pagel2
,Name: Class: Date:l
Chapl 01_8e_Mowen
l l 20.lThelstandardsloflethicallconductlforlmanageriallaccountantslinclude:
a. caringlforlothers,lintuition,landlrespectlforlothers.
b. pursuitloflexcellence,lcredibility,landlimmediacy.
c. confidentiality,lconfidence,lintegrity,landlobservance.
d. competence,lconfidentiality,lintegrity,landlcredibility.
l l 21.lInvestigatinglproductionlvarianceslandladjustinglthelproductionlprocesslarelexampleslof:
a. planning.
b. controlling.
c. decisionlmaking.
d. Alllofl theselarelcorrect.
l l 22.lWhichloflthelfollowinglstatementslisltruelofltotallqualitylmanagement?
a. Itlislalmanagementlphilosophylinlwhichlmanufacturerslstriveltolcreatelanlenvironmentlthatlwilllenablelwor
kersltolmanufacturelzero-defectlproducts.
b. Itlhaslreplacedlthelacceptablelqualitylattitudesloflthelpast.
c. Itlemphasizesltheleliminationloflwaste.
d. Alllofl theselarelcorrect.
l l 23.lActivity-basedlcosting:
a. strivesltolcreatelanlenvironmentlthatlwilllenablelworkersltolmanufacturelzero-defectlproducts.
b. islthelprocessloflchoosinglamonglcompetinglalternatives.
c. waslestablishedlinlresponseltolfinanciallscandals.
d. emphasizeslthelcostlofltaskslrequiredltolproducelalproductlorlofferlalservice.
l l 24.lAccountantslthatlhavelalCertificatelinlPubliclAccountingl(CPA):
a. arelthelonlylaccountantslpermittedltolservelaslexternallauditors.
b. mustlpasslalnationallexaminationlandlbellicensedlbylthelstatelinlwhichltheylpractice.
c. arelresponsiblelforlassuringlthelreliabilityloflalfirm'slfinanciallstatements.
d. Alllofl theselarelcorrect.
l l 25.lWhichloflthelfollowinglstatementslisltrueloflprofitlmaximization?
a. Profitlmaximizationlislachievedlbylconsideringlthelfinanciallmeasureslfocusedlonlylonlefficiency.
b. Profitlmaximizationlislanlobjectiveloflfinanciallaccountinglbutlnotlmanageriallaccounting.
c. Profitlmaximizationlshouldlbelachievedlthroughllegallandlethicallmeans.
d. Profitlmaximizationlresultslinlmaximumlcostltolandlmaximumlproductionlbylalcompany.
l l 26.lThelcontrollerloflanlorganizationlparticipateslin:
a. planning.
b. controlling.
c. decisionlmaking.
d. Alllofltheselarelcorrect
Pagel3
, Name: Class: Date:l
Chapl 01_8e_Mowen
l l 27.lInlthelUnitedlStates,lindividualslwholprovidelassurancelservicelareldesignatedlas:
a. CertifiedlPubliclAccountants.
b. CertifiedlFinanciallAccountants.
c. Charteredl Accountants.
d. CertifiedlManagementlAccountants.
l l 28.lWhichloflthelfollowinglmembersloflanlorganizationlwouldlnormallylholdlalstafflposition?
a. Headloflsecurity
b. Accountinglmanager
c. Customerlservicelexecutive
d. Alllofl theselarelcorrect.
l l 29.lWhichloflthelfollowinglareaslislnotlemphasizedlbylthelCertifiedlManagementlAccountantl(CMA)lexamination?
a. Externallauditinglandlinternallcontrol
b. Managementlreporting,lanalysis,landlbehaviorallissues
c. Decisionlanalysislandlinformationlsystems
d. Economics,lfinance,landlmanagement
l l 30.lWhichloflthelfollowinglislnotlanlobjectiveloflmanageriallaccounting?
a. Tolproducelinformationlforlexternallusers,lincludinglinvestors,lcreditors,lcustomers,lsuppliers,landlgo
vernmentlagencies
b. Tolprovidelinformationlforlplanninglanlorganization’slactions
c. Tolprovidelinformationlforlevaluatinglandlcontinuouslylimprovinglanlorganization’slactions
d. Tolprovidelinformationlforleffectiveldecisionlmakinglbylthelmanagementloflalcompany
l l 31.lManageriallaccountinglreportslarelprepared:
a. tolprovidelcreditorslwithlinformationlusefullinlmakinglcreditldecisions.
b. tolmeetlthelneedslofldecisionlmakerslwithinlalfirm.
c. tolpresentlhistoricallinformation.
d. Alllofl theselarelcorrect.
l l 32.lWhichloflthelfollowinglwouldloccupylallinelpositionlinlalhospital?
a. Cafeterial manager
b. Hospitalladministrator
c. Chiefloflsurgery
d. Nonel ofl thesel arel correct.
l l 33.lWhichloflthelfollowinglstatementslisltrueloflfinanciallaccounting?
a. Financiallaccountinglisldirectedltowardlexternallusers.
b. Financiallaccountinglislsubjectltolexternallylimposedlrules.
c. Financiallaccountinglprovideslinformationlthatlcanlbelobjectivelylverifiedlandlaudited.
d. Alllofl theselarelcorrect.
Pagel4
