TEST BANK SOLUTIONS MANUAL FOR MANAGERIAL ACCOUNTING: CREATING VALUE IN A DYNAMIC BUSINESS ENVIRONMENT, 12TH EDITION, RONALD HILTON, DAVID PLATT

TEST BANK SOLUTIONS MANUAL FOR MANAGERIAL ACCOUNTING: CREATING VALUE IN A DYNAMIC BUSINESS ENVIRONMENT, 12TH EDITION, RONALD HILTON, DAVID PLATT Chapter 1 The Changing Role of Managerial Accounting in a Dynamic Business Environment Answer Key True / False Questions 1. Two things that all organizations have in common are a set of goals and information needed by managers. TRUE AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Feedback True: Correct! All organizations have a set of goals and managers need information to accomplish these goals. Feedback False: It is true that all organizations have a set of goals and managers need information to accomplish these goals. 2. The role of managerial accounting in organizations is the same as it has been over many years. FALSE AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Feedback True: The role of managerial accounting has been changing in recent years. Feedback False: Correct! The role of managerial accounting has been changing in recent years. 3. Controlling involves the coordination of daily business functions within an organization. FALSE AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-02 Feedback True: This is actually the definition for directing operational activities, which is a managerial activity. Feedback False: Correct! This is actually the definition for directing operational activities, which is a managerial activity. 4. Decision making requires managers to choose among the available alternatives. TRUE AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-02 Feedback True: Correct! This is the correct definition for decision making. Feedback False: This is the correct definition for decision making. 5. The balanced scorecard is an important managerial accounting tool for short-run competitiveness. FALSE AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-03 Feedback True: The balanced scorecard is an important managerial accounting tool for long- run competitiveness. Feedback False: Correct! The balanced scorecard is an important managerial accounting tool for long-run competitiveness. 6. In most situations, managerial accounting reports solve decision problems. FALSE AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-03 Feedback True: Managerial accounting reports rarely solve a decision problem; instead they direct attention to issues. Feedback False: Correct! Managerial accounting reports rarely solve a decision problem; instead they direct attention to issues. 7. Middle-level managers would likely be considered internal users of accounting information rather than external users. TRUE AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Reporting Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-03 Feedback True: Correct! Middle-level managers are generally considered internal users of accounting information. Feedback False: Middle-level managers are generally considered internal users of accounting information. 8. Measuring the performance of managers and subunits is not an objective of managerial accounting. FALSE AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Research Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Feedback True: In fact, measuring the performance of managers and subunits is an objective of managerial accounting.. Feedback False: Correct! In fact, measuring the performance of managers and subunits is an objective of managerial accounting. 9. The nature of managerial accounting reports is to focus on the enterprise in its entirety. FALSE AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Research Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Feedback True: The nature of financial accounting rather than managerial accounting reports is to focus on the enterprise in its entirety. Feedback False: Correct! The nature of financial accounting rather than managerial accounting reports is to focus on the enterprise in its entirety. 10. Line positions are indirectly involved in operational activities. FALSE AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Research Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-05 Feedback True: Managers in line positions are directly involved in the provision of goods or services. Feedback False: Correct! Managers in line positions are directly involved in the provision of goods or services.