Management_accounting_6th_canadian_edition___test_bank

,ManagementpAccounting,pCdn.p6ep(Horngren/Sundem/Stratton/Beaulieu)p
Chapterp 1p Managementp Accountingp andp Managementp Decisions

1) Bothpinternalpmanagerspandpexternalppartiespusepaccountingpinformation
.pAnswer:pTRUE
Diff:p 2 Type:p TF
PagepRef:p16pObjective:p8

2) Internalpaccountingpreportspmustpfollowpgenerallypacceptedpaccountingpprinciplespandpaccountpfo
rpassetspatphistoricalpcost.
Answer:p FALSE
Diff:p 2 Type:p TF
PagepRef:p16pObjective:p8

3) Organizationspthatpdopnotpmakeporpsellptangiblepgoodsparepcalledpserviceporganization
s.pAnswer:pTRUE
Diff:p 1 Type:p TF
PagepRef:p7pObjective:p 3

4) Thepcost-
benefitpbalancepispthepprimarypconsiderationpinpchoosingpamongpaccountingpsystemspandpmethods.
Answer:p TRUE
Diff:p 1 Type:p TF
PagepRef:p2pObjective:p 3

5) Planningprefersptopsettingpobjectives,pimplementingpplans,pandpevaluatingpobjectives
.pAnswer:p FALSE
Diff:p 1 Type:p TF
PagepRef:p3pObjective:p 2

6) Apbudgetpispapquantitativepexpressionpofpapplanpofpaction
.pAnswer:p TRUE
Diff:p 1 Type:p TF
PagepRef:p2pObjective:p 3

7) Managementpbypexceptionpinvolvespapdetailedpanalysispofpallpdeviationspfrompplannedpperformanc
epregardlesspofpthepamount.
Answer:p FALSE
Diff:p 1 Type:p TF
PagepRef:p2pObjective:p 3

8) Salespgrowthpoccurspinpthepmaturepmarketpstagepofpproductplifepcycl
e.pAnswer:pFALSE
Diff:p 1 Type:p TF
PagepRef:p9pObjective:p 4




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©p 2012p Pearsonp Canadap Inc
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,9) Linepauthoritypispauthoritypexertedpdownwardpoverpsubordinates
.pAnswer:pTRUE
Diff:p 1 Type:p TF
PagepRef:p12pObjective:p5

10) Linep departmentsp supportp orp servicep staffp departments
.pAnswer:p FALSE
Diff:p 1 Type:p TF
PagepRef:p12pObjective:p5

11) AccordingptopthepFinancialpExecutivespInstitute,pthepcontroller'spfunctionpisptopobtainpbothpshort-
termpandplong-termploans.
Answer:p FALSE
Diff:p1 Type:p TF PagepRef:p14

12) ThepCMApprogrampfocusesponpmanagementpaccountingpandpitsprolepinpCanadianpbusines
s.pAnswer:pTRUE
Diff:p 1 Type:p TF
PagepRef:p16pObjective:p8

13) Thepfactorspcausingpchangespinpmanagementpaccountingptodaypincludepincreasedpglobalpcompetition
,ptechnologicalpadvancespandpincreasedpproductionpbypCanadianpcompanies.
Answer:p FALSE
Diff:p 1 Type:p TF
PagepRef:p16pObjective:p8

14) Thep essencep ofp thep just-in-
timep philosophyp isp top eliminatep waste.pAnswer:pTRUE
Diff:p 1 Type:p TF
PagepRef:p16pObjective:p8

15) ThepSocietypofpManagementpAccountantspofpCanadap(SMAC)phaspdevelopedpstandardspofpethicalpco
nductpforpmanagementpaccountants,pwhichpincludepstandardspofpcompetence,pconfidentiality,pintegritypa
ndpobjectivity.
Answer:p TRUE
Diff:p 1 Type:p TF
PagepRef:p20pObjective:p9

16) Apsurveypofpmanagerspselectedpwhichpofpthepfollowingpbusinesspareaspaspthepmostpcommonpstartin
g-ppointpforpfuturepmanagers?
A) Accounting.
B) Finance.
C) Legalpenvironmentpofpbusiness.
D) Computerspinpbusiness
.pAnswer:p A
Diff:p 1 Type:p MC
PagepRef:p2pObjective:p1

17) Managementp accountingp refersp top accountingp informationp developedp for
A) shareholders.
B) governmentalp authorities.
C) managerspwithinpanporganization.
D) loanpofficers.
pAnswer:p C

Diff:p1 Type:p MC PagepRef:p16
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, Objective:p 8

18) p
ispapformalpmechanismpforpgathering,porganizing,pandpcommunicatingpinformationpaboutpanporganiza
tion'spactivities.
A) Anpaccountingpsystem
B) Scorekeeping
C) Managementp accounting
D) Attentionpdirecting
pAnswer:p A

Diff:p 1 Type:p MC
PagepRef:p3pObjective:p2

19) p refersptopaccountingpinformationpdevelopedpforpuserspwithinpanporganization.
A) Anpaccountingpsystem
B) Scorekeeping
C) Managementp accounting
D) Financialpaccounting
pAnswer:p C

Diff:p 1 Type:p MC
PagepRef:p3pObjective:p2

20) p ispthepaccumulationpandpclassificationpofpdata.
A) Anpaccountingpsystem
B) Scorekeeping
C) Managementp accounting
D) Attentionpdirecting
pAnswer:p B

Diff:p 1 Type:p MC
PagepRef:p3pObjective:p2

21) p
meanspreportingpandpinterpretingpinformationpthatphelpspmanagersptopfocusponpoperatingpproblem
s,pimperfections,pinefficiencies,pandpopportunities.
A) Scorekeeping
B) Attentionpdirecting
C) Problem-solving
D) Nonep ofp thep abov
epAnswer:p B
Diff:p 1 Type:p MC
PagepRef:p3pObjective:p2




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©p 2012p Pearsonp Canadap Inc
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