TEST BANK Managerial Accounting 4th Edition By Charles Davis Elizabeth Davis Chapter 1 -13

1-1 TestsBanksforsDaviss&sDavis,sManagerialsAccounting,s4/e



TEST BANK
Managerial Accounting 4th Edition
By Charles Davis Elizabeth Davis Chapter 1 - 13

, 1-2 TestsBanksforsDaviss&sDavis,sManagerialsAccounting,s4/e



Table Of Contents
s s




1. Accounting as a Tool for Management
s s s s s s




2.Cost Behavior and Cost Estimation
s s s s




3. Cost-Volume-Profit Analysis and Pricing Decisions
s s s s s




4. Product Costs and Job Order Costing
s s s s s s




5. Planning and Forecasting
s s s




5A: Planning and Forecasting in a Retail Setting* (online only)
s s s s s s s s s




6. Performance Evaluation: Variance Analysis
s s s s




7. Activity-Based Costing and Activity-Based Management
s s s s s




8. Using Accounting Information to Make Managerial Decisions
s s s s s s s




9. Capital Budgeting
s s




10. Decentralization and Performance Evaluation
s s s s




11. Performance Evaluation Revisited: A Balanced Approach
s s s s s s




12. Financial Statement Analysis
s s s




13. Statement of Cash Flows
s s s s s

,1-3 TestsBanksforsDaviss&sDavis,sManagerialsAccounting,s4/e


Chapter 1 s


Accounting as a Tool for Management
s s s s s




CHAPTER LEARNING OBJECTIVES
s s




1. Define managerial accounting (Unit 1.1)
s s s s


Theresaresseveralsformalsdefinitionssofsmanagerialsaccounting.sAssimplesonesiss“thesge
nerationsofsrelevantsinformationstossupportsmanagement’ssdecision-
makingsactivities.”
2. Describe the differences between managerial and financial accounting(
s s s s s s s s


Unit 1.1) s

Managerialsaccounting’ssprimarysuserssaresmanagerssandsdecisionsmakersswithinsansorgani
zation,swhereassfinancialsaccountingsissaimedsprimarilysatsexternalsusers.sUnlikesGAAPsthats
guidessfinancialsaccounting,stheresaresnosmandatedsrulessinsmanagerialsaccounting.sManag
erialsaccountingsreportssfocussonsoperatingssegments,swhilesfinancialsaccountingsstatemen
tssreportsresultssforsthesorganizationsassaswhole.sManagerialsaccountingsissconcernedsmores
withsprojectingsfuturesresultssthansreportingspastsresults.sManagerialsinformationsissprepar
edstostakesadvantagesofsaswindowsofsopportunity,sevensifssomesaccuracysmustsbessacrificed.s
Financialsaccountingsinformationsissbalancedstosthespennysandsissdeliveredsaftersthesendsofst
hesaccountingsperiod.
3. List and describe the four functions of managers (Unit 1.1)
s s s s s s s s s

Planningsmeansssettingsasdirectionsforsthesorganization.sLong-
term,sorsstrategicsplanningsprovidessdirectionsforsasfive-stosten-yearsperiod.sShort-
termsorsoperationalsplanningsprovidessmoresdetailedsguidancesforsthescomingsyear;sitstransl
atessthescompany’ssstrategysintosactionssteps.sControllingsissthesmonitoringsofsday-to-
daysoperationsstosidentifysanysproblemssthatsrequirescorrectivesaction.sEvaluatingsissthespro
cesssofscomparingsasparticularsperiod’ssactualsresultsstosplannedsresults,sforsthespurposesofs
assessingsmanagerialsperformance.sDecisionsmakingsmeansschoosingsbetweensalternatives
coursessofsaction.
4. Explain how the selection of a particular business strategy determines thein
s s s s s s s s s s s


formation that managers need to run an organization effectively (Unit 1.2)
s s s s s s s s s s


Tosrunsasbusinessseffectively,smanagerssneedsinformationsthatsshowsshowswellsoperatio
nssaresmeetingsthesorganization’ssstrategicsgoals.sForsinstance,sifsthesorganization’ssstra
tegysisstosbesaslow-
costsproducer,sinformationsaboutsproductscostssandscostsvariancesswillsbesmoresusefulst
osmanagerssthansinformationsaboutsresearchsandsdevelopment.

, 1-4 TestsBanksforsDaviss&sDavis,sManagerialsAccounting,s4/e


5. Discuss the importance of ethical behavior in managerial accounting (Unit1.
s s s s s s s s s s


3)
Ethicalsbehaviorsmeanssknowingsrightsfromswrongsandsthensdoingsthesrightsthing.sManysco
mpaniessandsmostsprofessionalsorganizationsshavescodessofsconductstosguidesemployees’s
actions.sActingsunethicallyscansleadstosillegalsactivitysandsultimatelystosthesdestructionsofst
hesfirm.sFurthermore,sresearchshassshownsthatsaspublicscommitmentstosethicalsbehaviorsca
nsleadstossuperiorsfinancialsperformance.