TEST BANK
Managerial Accounting, | 4th edition
By Stacey Whitecotton, Robert Libby
SC
O
R
EG
U
ID
ES
, TABLE OF CONTENT
CHAPTER 1: Introduction to Managerial Accounting
CHAPTER 2: Job Order Costing
CHAPTER 3: Process Costing
CHAPTER 4: Activity-Based Costing and Cost Management
SC
CHAPTER 5: Cost Behavior
CHAPTER 6: Cost-Volume-Profit Analysis
CHAPTER 7: Incremental Analysis for Short-Term Decision Making
CHAPTER 8: Budgetary Planning
O
CHAPTER 9: Standard Costing and Variance Analysis
R
CHAPTER 10: Decentralized Performance Evaluation
CHAPTER 11: Capital Budgeting
EG
CHAPTER 12: Statement of Cash Flows
CHAPTER 13: Measuring and Evaluating Financial Performance
U
ID
ES
,Managerial Accounting, 4e (Whitecotton)
Chapter 1 Introduction to Managerial Accounting
1) Financial accounting information is generally used exclusively by internal parties such as
managers.
Answer: FALSE
Explanation: Financial accounting information is used by external parties; managerial
SC
accounting information is used by internal business owners and managers.
Difficulty: 1 Easy
Topic: Comparison of financial and managerial accounting
Learning Objective: 01-01 Describe the key differences between financial accounting and
managerial accounting.
Bloom's: Remember
AACSB: Analytical Thinking
O
Accessibility: Keyboard Navigation
2) Financial accounting information is reported for the company as a whole.
R
Answer: TRUE
Explanation: Financial accounting information is provided at the company-wide level.
Difficulty: 1 Easy
EG
Topic: Comparison of financial and managerial accounting
Learning Objective: 01-01 Describe the key differences between financial accounting and
managerial accounting.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
U
3) Managers must direct, lead and motivate during the implementation function.
Answer: TRUE
ID
Explanation: Directing/leading involves putting the plan into action, and motivating others to
work toward the plan's success, and it is a key part of putting a plan into action (implementation).
Difficulty: 1 Easy
Topic: Functions of Management
Learning Objective: 01-02 Describe how managerial accounting is used in different types of
ES
organizations to support the key functions of management.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
1
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
, 4) Managers of small, private corporations use managerial accounting information whereas
managers of large, public corporations use financial accounting information.
Answer: FALSE
Explanation: Managerial accounting information is used by managers in all types of
organizations: large and small, public and private, profit and nonprofit.
Difficulty: 1 Easy
Topic: Functions of Management
SC
Learning Objective: 01-02 Describe how managerial accounting is used in different types of
organizations to support the key functions of management.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) The Sarbanes-Oxley Act of 2002 places full responsibility on the board of directors for the
O
accuracy of the reporting system.
Answer: FALSE
R
Explanation: SOX places more responsibility on all managers (not just accountants) for the
accuracy of the reporting system. SOX also places additional responsibilities on the boards of
directors and external auditors to reduce the opportunity for errors and fraud.
Difficulty: 2 Medium
EG
Topic: Ethics and the Sarbanes-Oxley Act
Learning Objective: 01-03 Describe the importance of ethics, sustainability, and decision
analytics in managerial accounting.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
U
6) The Sarbanes-Oxley Act of 2002 focuses on three factors that affect the accounting reporting
environment: ethics, fraud, and managers.
ID
Answer: FALSE
Explanation: The Sarbanes-Oxley Act of 2002 focuses on three factors that affect the accounting
reporting environment: opportunity, incentives, and character.
Difficulty: 2 Medium
Topic: Ethics and the Sarbanes-Oxley Act
ES
Learning Objective: 01-03 Describe the importance of ethics, sustainability, and decision
analytics in managerial accounting.
Bloom's: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
2
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Managerial Accounting, | 4th edition
By Stacey Whitecotton, Robert Libby
SC
O
R
EG
U
ID
ES
, TABLE OF CONTENT
CHAPTER 1: Introduction to Managerial Accounting
CHAPTER 2: Job Order Costing
CHAPTER 3: Process Costing
CHAPTER 4: Activity-Based Costing and Cost Management
SC
CHAPTER 5: Cost Behavior
CHAPTER 6: Cost-Volume-Profit Analysis
CHAPTER 7: Incremental Analysis for Short-Term Decision Making
CHAPTER 8: Budgetary Planning
O
CHAPTER 9: Standard Costing and Variance Analysis
R
CHAPTER 10: Decentralized Performance Evaluation
CHAPTER 11: Capital Budgeting
EG
CHAPTER 12: Statement of Cash Flows
CHAPTER 13: Measuring and Evaluating Financial Performance
U
ID
ES
,Managerial Accounting, 4e (Whitecotton)
Chapter 1 Introduction to Managerial Accounting
1) Financial accounting information is generally used exclusively by internal parties such as
managers.
Answer: FALSE
Explanation: Financial accounting information is used by external parties; managerial
SC
accounting information is used by internal business owners and managers.
Difficulty: 1 Easy
Topic: Comparison of financial and managerial accounting
Learning Objective: 01-01 Describe the key differences between financial accounting and
managerial accounting.
Bloom's: Remember
AACSB: Analytical Thinking
O
Accessibility: Keyboard Navigation
2) Financial accounting information is reported for the company as a whole.
R
Answer: TRUE
Explanation: Financial accounting information is provided at the company-wide level.
Difficulty: 1 Easy
EG
Topic: Comparison of financial and managerial accounting
Learning Objective: 01-01 Describe the key differences between financial accounting and
managerial accounting.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
U
3) Managers must direct, lead and motivate during the implementation function.
Answer: TRUE
ID
Explanation: Directing/leading involves putting the plan into action, and motivating others to
work toward the plan's success, and it is a key part of putting a plan into action (implementation).
Difficulty: 1 Easy
Topic: Functions of Management
Learning Objective: 01-02 Describe how managerial accounting is used in different types of
ES
organizations to support the key functions of management.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
1
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
, 4) Managers of small, private corporations use managerial accounting information whereas
managers of large, public corporations use financial accounting information.
Answer: FALSE
Explanation: Managerial accounting information is used by managers in all types of
organizations: large and small, public and private, profit and nonprofit.
Difficulty: 1 Easy
Topic: Functions of Management
SC
Learning Objective: 01-02 Describe how managerial accounting is used in different types of
organizations to support the key functions of management.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) The Sarbanes-Oxley Act of 2002 places full responsibility on the board of directors for the
O
accuracy of the reporting system.
Answer: FALSE
R
Explanation: SOX places more responsibility on all managers (not just accountants) for the
accuracy of the reporting system. SOX also places additional responsibilities on the boards of
directors and external auditors to reduce the opportunity for errors and fraud.
Difficulty: 2 Medium
EG
Topic: Ethics and the Sarbanes-Oxley Act
Learning Objective: 01-03 Describe the importance of ethics, sustainability, and decision
analytics in managerial accounting.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
U
6) The Sarbanes-Oxley Act of 2002 focuses on three factors that affect the accounting reporting
environment: ethics, fraud, and managers.
ID
Answer: FALSE
Explanation: The Sarbanes-Oxley Act of 2002 focuses on three factors that affect the accounting
reporting environment: opportunity, incentives, and character.
Difficulty: 2 Medium
Topic: Ethics and the Sarbanes-Oxley Act
ES
Learning Objective: 01-03 Describe the importance of ethics, sustainability, and decision
analytics in managerial accounting.
Bloom's: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
2
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
