Test Bank for Management Accounting, 6th Canadian Edition by Anthony A. Atkinson | 9780131732810 | (Full test bank, 100% Verified Answers)| Rationales | LATEST

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,Management aAccounting, aCdn. a6e a(Horngren/Sundem/Stratton/Beaulieu)
aChapter a 1 a a Management a Accounting a and a Management a Decisions




1) Both ainternal amanagers aand aexternal aparties ause aaccounting
ainformation. aAnswer: a TRUE

Diff: a2 Type: aTF Page aRef: a16
aObjective: a 8



2) Internal aaccounting areports amust afollow agenerally aaccepted aaccounting aprinciples aand aaccount
afor aassets aat ahistorical acost.

Answer: a FALSE
Diff: a2 Type: aTF Page aRef: a16
aObjective: a 8



3) Organizations athat ado anot amake aor asell atangible agoods aare acalled aservice
aorganizations. aAnswer: a TRUE

Diff: a1 Type: aTF Page aRef: a7
aObjective: a 3



4) The acost-benefit abalance ais athe aprimary aconsideration ain achoosing aamong aaccounting asystems
aand amethods.

Answer: a TRUE
Diff: a1 Type: aTF Page aRef: a2
aObjective: a 3



5) Planning arefers ato asetting aobjectives, aimplementing aplans, aand aevaluating
aobjectives. aAnswer: a FALSE

Diff: a1 Type: aTF Page aRef: a3
aObjective: a 2



6) A abudget ais aa aquantitative aexpression aof aa aplan aof
aaction. aAnswer: a TRUE

Diff: a1 Type: aTF Page aRef: a2
aObjective: a 3



7) Management aby aexception ainvolves aa adetailed aanalysis aof aall adeviations afrom aplanned
aperformance aregardless aof athe aamount.

Answer: a FALSE
Diff: a1 Type: aTF Page aRef: a2
aObjective: a 3



8) Sales agrowth aoccurs ain athe amature amarket astage aof aproduct alife
acycle. aAnswer: a FALSE

Diff: a1 Type: aTF Page aRef: a9
aObjective: a 4




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© 2012 Pearson Canada Inc.

,9) Line aauthority ais aauthority aexerted adownward aover
asubordinates. aAnswer: a TRUE

Diff: a1 Type: aTF Page aRef: a12
aObjective: a 5



10) Line adepartments asupport aor aservice astaff
adepartments. aAnswer: a FALSE

Diff: a1 Type: aTF Page aRef: a12
aObjective: a 5



11) According ato athe aFinancial aExecutives aInstitute, athe acontroller's afunction ais ato aobtain aboth ashort-
term aand along-term aloans.
Answer: a FALSE
Diff: a1 Type: aTF Page aRef: a14

12) The aCMA aprogram afocuses aon amanagement aaccounting aand aits arole ain aCanadian
abusiness. aAnswer: a TRUE

Diff: a1 Type: aTF Page aRef: a16
aObjective: a 8



13) The afactors acausing achanges ain amanagement aaccounting atoday ainclude aincreased aglobal
acompetition, atechnological aadvances aand aincreased aproduction aby aCanadian acompanies.

Answer: a FALSE
Diff: a1 Type: aTF Page aRef: a16
aObjective: a 8



14) The aessence aof athe ajust-in-time aphilosophy ais ato aeliminate
awaste. aAnswer: a TRUE

Diff: a1 Type: aTF Page aRef: a16
aObjective: a 8



15) The aSociety aof aManagement aAccountants aof aCanada a(SMAC) ahas adeveloped astandards aof aethical
aconduct afor amanagement aaccountants, awhich ainclude astandards aof acompetence, aconfidentiality,

aintegrity aand aobjectivity.

Answer: a TRUE
Diff: a1 Type: aTF Page aRef: a20
aObjective: a 9



16) A asurvey aof amanagers aselected awhich aof athe afollowing abusiness aareas aas athe amost acommon
astarting- apoint afor afuture amanagers?

A) Accounting.
B) Finance.
C) Legal aenvironment aof abusiness.
D) Computers ain abusiness.
aAnswer: a A

Diff: a1 Type: aMC Page aRef: a2
aObjective: a 1



17) Management aaccounting arefers ato aaccounting ainformation adeveloped afor
A) shareholders.
B) governmental a authorities.
C) managers awithin aan aorganization.
D) loan aofficers.
aAnswer: a C

Diff: a1 Type: aMC Page aRef: a16
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, Objective: a 8

18) is aa aformal amechanism afor agathering, aorganizing, aand acommunicating ainformation aabout
aan aorganization's aactivities.

A) An aaccounting asystem
B) Scorekeeping
C) Management aaccounting
D) Attention adirecting
aAnswer: a A

Diff: a1 Type: aMC Page aRef: a3
aObjective: a 2



19) refers ato aaccounting ainformation adeveloped afor ausers awithin aan aorganization.
A) An aaccounting asystem
B) Scorekeeping
C) Management aaccounting
D) Financial aaccounting
aAnswer: a C

Diff: a1 Type: aMC Page aRef: a3
aObjective: a 2



20) is athe aaccumulation aand aclassification aof adata.
A) An aaccounting asystem
B) Scorekeeping
C) Management aaccounting
D) Attention adirecting
aAnswer: a B

Diff: a1 Type: aMC Page aRef: a3
aObjective: a 2



21) means areporting aand ainterpreting ainformation athat ahelps amanagers ato afocus aon
aoperating aproblems, aimperfections, ainefficiencies, aand aopportunities.

A) Scorekeeping
B) Attention adirecting
C) Problem-solving
D) None aof athe aabove
aAnswer: a B

Diff: a1 Type: aMC Page aRef: a3
aObjective: a 2




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