Test Bank - Managerial Accounting Creating Value in a Dynamic Business Environment,16th Edition by Ronald, All Chapters 1-17 Complete Guide A+

Chapter 1 Managerial Accounting and the Business Environment
g g g g g g g




True/FalsegQuestions

1. Althoughgfinancialgandgmanagerialgaccountinggdiffergingmanygways,gtheygaregsimilargingt
hatgbothgrelygongthegsamegunderlyinggfinancialgdata.

Answer:gTrueg g Level:gMediumg g LO:g1

2. Managerialgaccountinggisgagbranchgofgfinancialgaccountinggandgservesgessentiallygthegs
amegpurposesgasgfinancialgaccounting.

Answer:gFalseg g Level:gMediumg g LO:g1

3. Managerialgaccountinggplacesggreatergemphasisgongthegfuturegthangfinancialg
accounting,gwhichgisgprimarilygconcernedgwithgthegpast.

Answer:gTrueg g Level:gEasyg g LO:g1

4. Managerialgaccountinggisgnotgneededgingagnon-profitgorggovernmentalgorganization.

Answer:gFalseg g Level:gEasyg g LO:g1

5. Whengcarryinggoutgtheirgplanninggactivities,gmanagersgselectgagcoursegofgactiongandgs
pecifyghowgthegactiongwillgbegimplemented.

Answer:gTrueg g Level:gEasyg g LO:g2

6. Whengcarryinggoutgtheirgplanninggactivities,gmanagersgobtaingfeedbackgtogensuregthatgth
egplangisgactuallygcarriedgoutgandgisgappropriatelygmodifiedgasgcircumstancesgchange.

Answer:gFalseg g Level:gMediumg g LO:g2

7. Thegcontrollergoccupiesgaglinegpositiongingangorganization.

Answer:gFalseg g Level:gEasyg g LO:g2

8. Decentralizationgmeansgthegdelegationgofgdecision-
makinggauthoritygthroughoutgangorganizationgbygallowinggmanagersgatgvariousgoperati
ngglevelsgtogmakegkeygdecisionsgrelatinggtogtheirgowngareagofgresponsibility.

Answer:gTrueg g Level:gEasyg g LO:g2




Garrison,gManagerialgAccounting,g12thgEdition 3

,Chapter 1 Managerial Accounting and the Business Environment
g g g g g g g




9. Agfirm'sgorganizationgchartgwillgnormallygshowgbothgthegformalgandginformalglinesgofgr
eportinggandgcommunication.

Answer:gFalseg g Level:gEasyg g LO:g2

10. ThegChiefgFinancialgOfficergofgangorganizationgisgresponsiblegforgensuringgthatglinego
perationsgrungsmoothly.

Answer:gFalseg g Level:gMediumg g LO:g2

11. Traditionally,gcompaniesghavegmaintainedglargegamountsgofgrawgmaterials,gworkgingproc
ess,gandgfinishedggoodsginventoriesgtogactgasgbuffersgsogthatgoperationsgcangproceedgsmoo
thlygevengifgtheregaregunanticipatedgdisruptions.

Answer:gTrueg g Level:gMediumg g LO:g3

12. ProcessgReengineeringgisggenerallygconsideredgtogbegagmoregradicalgapproachgtogi
mprovementgthangTotalgQualitygManagement.

Answer:gTrueg g Level:gEasyg g LO:g3

13. ProcessgReengineeringgemphasizesgagteamgapproachginvolvinggfront-
linegworkers,gwhereasgTotalgQualitygManagementgisgusuallygimplementedgusinggoutsi
degspecialistsgandgisgimposedgfromgabove.

Answer:gFalseg g Level:gMediumg g LO:g3

14. Ifgethicalgstandardsgweregnotggenerallygfollowed,gonegofgthegresultsgwouldgprobablygbegf
ewerggoodsgandgservicesgavailablegingthegmarketplace.

Answer:gTrueg g Level:gMediumg g LO:g4

15. ThegStandardsgofgEthicalgConductgforgManagementgAccountantsgpromulgatedgbygthegI
nstitutegofgManagementgAccountantsgspecificallygstategthatgmanagementgaccountants'gs
olegethicalgresponsibilitygisgtognotgbreakganyglaws.

Answer:gFalseg g Level:gEasyg g LO:g4




4 Garrison,gManagerialgAccounting,g12thgEdition

,Chapter 1 Managerial Accounting and the Business Environment
g g g g g g g




MultiplegChoicegQuestions

16. Managementgaccountinggfocusesgprimarilygongprovidinggdatagfor:
A) internalgusesgbygmanagers.
B) externalgusesgbygstockholdersgandgcreditors.
C) externalgusesgbygthegInternalgRevenuegService.
D) externalgusesgbygthegSecuritiesgandgExchangegCommission.

Answer:gAg g Level:gEasyg g LO:g1

17. Managerialgaccounting:
A) isgmoregfuturegorientedgthangfinancialgaccounting.
B) tendsgtogsummarizeginformationgmoregthangfinancialgaccounting
C) isgprimarilygconcernedgwithgprovidingginformationgtogexternalgusers.
D) isgmoregconcernedgwithgprecisiongthangtimeliness.

Answer:gAg g Level:gEasyg g LO:g1

18. Comparedgtogfinancialgaccounting,gmanagerialgaccountinggplacesgmoregemphasisgon:
A) thegflexibilitygofginformation.
B) thegprecisiongofginformation.
C) thegtimelinessgofginformation.
D) bothgAgandgCgabove.

Answer:gDg g Level:gEasyg g LO:g1

19. Thegfunctiongofgmanagementgthatgcomparesgplannedgresultsgtogactualgresultsgisgknownga
s:
A) planning.
B) directinggandgmotivating.
C) controlling.
D) decisiongmaking.

Answer:gCg g Level:gEasyg g LO:g2

20. Whichgofgthegfunctionsgofgmanagementginvolvesgoverseeinggday-to-daygactivities?
A) Planning
B) Directinggandgmotivating
C) Controlling
D) Decisiongmaking

Answer:gBg g Level:gEasyg g LO:g2



Garrison,gManagerialgAccounting,g12thgEdition 5

, Chapter 1 Managerial Accounting and the Business Environment
g g g g g g g




21. Whichgofgthegfollowinggisgnotgonegofgthegthreegbasicgactivitiesgofgagmanager?
A) Planning
B) Controlling
C) Directinggandgmotivating
D) Compilinggmanagementgaccountinggreportsg

Answer:gDg Level:gEasyg LO:g2

22. Thegdelegationgofgdecisiongmakinggtoglowerglevelsgingangorganizationgisgknowngas:
A) thegplanninggandgcontrolgcycle.
B) controlling.
C) decentralization.
D) nonegofgthese.

Answer:gCg g Level:gEasyg g LO:g2

23. Whichgofgthegfollowinggstatementsgaregfalsegconcerningglinegandgstaffgfunctions?

I. Personsgoccupyinggstaffgfunctionsghavegauthoritygovergpersonsgoccupyingglinegf
unctions.
II. Bothglinegandgstaffgfunctionsgaregdepictedgongthegorganizationgchart.
III. Linegfunctionsgaregdirectlygrelatedgtogthegbasicgobjectivesgofgangorganization.

A) OnlygI
B) OnlygII
C) OnlygIgandgII
D) I,gII,gandgIII

Answer:gAg g Level:gMediumg g LO:g2

24. Whichgofgfollowinggwouldgnormallygbegfoundgongagmanufacturinggcompany'sg
organizationgchart?
A) theglayoutgofgthegfactorygassemblyglines
B) aglistgofgthegmaterialsgneededgtogproducegeachgofgthegcompany'sgproducts
C) theginformalglinesgofgreportinggandgcommunication
D) nonegofgthegabove

Answer:gDg g Level:gEasyg g LO:g2




6 Garrison,gManagerialgAccounting,g12thgEdition