TEST BANK Managerial Accounting, 4th Edition By Davis, Complete Chapters 1 To 13 Updated 2025 NEWEST VERSION.

1-1 Test gBank gfor gDavis g& gDavis, gManagerial gAccounting,
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TEST gBANK
Managerial gAccounting g4th gEdition g
By gCharles gDavis gElizabeth gDavis g g gChapter g1 g- g13

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Table Of Contents g g




1. Accounting as a Tool for Management
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2.Cost Behavior and Cost Estimation
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3. Cost-Volume-Profit Analysis and Pricing Decisions
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4. Product Costs and Job Order Costing
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5. Planning and Forecasting
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5A: Planning and Forecasting in a Retail Setting* (online only)
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6. Performance Evaluation: Variance Analysis
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7. Activity-Based Costing and Activity-Based Management
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8. Using Accounting Information to Make Managerial Decisions
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9. Capital Budgeting
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10. Decentralization and Performance Evaluation
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11. Performance Evaluation Revisited: A Balanced Approach
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12. Financial Statement Analysis
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13. Statement of Cash Flows
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Chapter 1 g


Accounting as a Tool for Management g g g g g




CHAPTER LEARNING OBJECTIVES
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1. Define managerial accounting (Unit 1.1)
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There gare gseveral gformal gdefinitions gof gmanagerial gaccounting. gA gsimple gone gis g“theggeneration gof
grelevant ginformation gto gsupport gmanagement’s gdecision-making gactivities.”


2. Describe the differences between managerial and financial accounting(Unit 1.1)
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Managerial gaccounting’s gprimary gusers gare gmanagers gand gdecision gmakers gwithin gan gorganization, gwhereas
gfinancial gaccounting gis gaimed gprimarily gat gexternal gusers. gUnlike gGAAP gthat gguides gfinancial gaccounting, gthere

gare gno gmandated grules gin gmanagerial gaccounting. gManagerial gaccounting greports gfocus gon goperating gsegments,

gwhile gfinancialgaccounting gstatements greport gresults gfor gthe gorganization gas ga gwhole. gManagerial gaccounting gis

gconcerned gmore gwith gprojecting gfuture gresults gthan greporting gpast gresults. gManagerial ginformation gis gprepared

gto gtake gadvantage gof ga gwindow gof gopportunity, gevengif gsome gaccuracy gmust gbe gsacrificed. gFinancial gaccounting

ginformation gis gbalanced gto gthe gpenny gand gis gdelivered gafter gthe gend gof gthe gaccounting gperiod.


3. List and describe the four functions of managers (Unit 1.1)
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Planning gmeans gsetting ga gdirection gfor gthe gorganization. gLong-term, gor gstrategic gplanninggprovides gdirection gfor
ga gfive- gto gten-year gperiod. gShort-term gor goperational gplanning gprovides gmore gdetailed gguidance gfor gthe gcoming

gyear; git gtranslates gthe gcompany’s gstrategy ginto gaction gsteps. gControlling gis gthe gmonitoring gof gday-to-day

goperations gto gidentify gany gproblems gthat grequire gcorrective gaction. gEvaluating gis gthe gprocess gof gcomparing ga

gparticular gperiod’s gactual gresults gto gplanned gresults, gfor gthe gpurpose gof gassessing gmanagerial gperformance.

gDecision gmaking gmeans gchoosing gbetween galternative gcourses gof gaction.


4. Explain how the selection of a particular business strategy determines theinformation
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that managers need to run an organization effectively (Unit 1.2)
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To grun ga gbusiness geffectively, gmanagers gneed ginformation gthat gshows ghow gwell goperations gare gmeeting gthe
gorganization’s gstrategic ggoals. gFor ginstance, gif gthe gorganization’s gstrategy gis gto gbe ga glow-cost gproducer,

ginformation gabout gproduct gcostsgand gcost gvariances gwill gbe gmore guseful gto gmanagers gthan ginformation

gabout gresearchgand gdevelopment.

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5. Discuss the importance of ethical behavior in managerial accounting (Unit1.3)
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Ethical gbehavior gmeans gknowing gright gfrom gwrong gand gthen gdoing gthe gright gthing. gManygcompanies gand gmost
gprofessional gorganizations ghave gcodes gof gconduct gto gguide gemployees’ gactions. gActing gunethically gcan glead gto

gillegal gactivity gand gultimately gto gthe gdestruction gof gthe gfirm. gFurthermore, gresearch ghas gshown gthat ga gpublic

gcommitment gtogethical gbehavior gcan glead gto gsuperior gfinancial gperformance.