Test Bank For
Managerial Accounting The Cornerstone of Business Decision Making 9th Edition by Maryanne M.
Mowen, Don R. Hansen, Dan L. Heitger Copyright 2026
Chapter 1-14
Ch01 - Introduction to Managerial Accounting
True / False
1. The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as
decision making.
a. True
b. False
ANSWER: False
RATIONALE: The managerial activity of monitoring a plan's implementation and taking corrective action as
needed is referred to as controlling.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: FN-Decision Modeling
United States - AK - IMA: Decision Analysis
KEYWORDS: Bloom's: Remember
2. The process of choosing among competing alternatives is called decision making.
a. True
b. False
ANSWER: True
RATIONALE: The process of choosing among competing alternatives is called decision making.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: FN-Decision Modeling
United States - AK - IMA: Decision Analysis
KEYWORDS: Bloom's: Remember
3. Managerial accounting information is not important for not-for-profit organizations.
a. True
b. False
ANSWER: False
RATIONALE: Managerial accounting information is important for all types of organizations.
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,POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
4. Management accounting information is used only by manufacturing organizations.
a. True
b. False
ANSWER: False
RATIONALE: Management accounting information is used by all manufacturing, merchandising, and
service organizations.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
5. Managerial accounting is designed primarily for internal users.
a. True
b. False
ANSWER: True
RATIONALE: Managerial accounting is the provision of accounting information for a company’s internal
users.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
6. Managerial accounting emphasizes the future.
a. True
b. False
ANSWER: True
RATIONALE: Although managerial accounting records and reports events that have already occurred, it
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, strongly emphasizes providing information about future events.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
financial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
7. GAAP governs financial accounting.
a. True
b. False
ANSWER: True
RATIONALE: Financial accounting is subject to externally imposed rules (e.g., GAAP and SEC
regulations).
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
financial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-02-GAAP
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Reporting
KEYWORDS: Bloom's: Remember
8. The value chain is the set of activities required to design, develop, produce, market, and deliver products and services to
customers.
a. True
b. False
ANSWER: True
RATIONALE: The value chain is the set of activities required to design, develop, produce, market, and
deliver products and services, as well as provide support services to customers.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Remember
9. Time is not a crucial element in all phases of the value chain.
a. True
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, b. False
ANSWER: False
RATIONALE: Time is a crucial element in all phases of the value chain.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Understand
10. Activity-based costing is a less detailed approach to determining the cost of goods and services than traditional cost
accounting.
a. True
b. False
ANSWER: False
RATIONALE: Activity-based costing is a more detailed approach to determining the cost of goods and
services.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-27 - Managerial Accounting Features/Costs
United States - AK - AICPA: FN-Measurement
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
11. Excellent customer service is an example of a value-added activity.
a. True
b. False
ANSWER: True
RATIONALE: Excellent customer service is an example of a value-added activity.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Understand
12. A cost accountant would normally occupy a staff position within an organization.
a. True
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Managerial Accounting The Cornerstone of Business Decision Making 9th Edition by Maryanne M.
Mowen, Don R. Hansen, Dan L. Heitger Copyright 2026
Chapter 1-14
Ch01 - Introduction to Managerial Accounting
True / False
1. The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as
decision making.
a. True
b. False
ANSWER: False
RATIONALE: The managerial activity of monitoring a plan's implementation and taking corrective action as
needed is referred to as controlling.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: FN-Decision Modeling
United States - AK - IMA: Decision Analysis
KEYWORDS: Bloom's: Remember
2. The process of choosing among competing alternatives is called decision making.
a. True
b. False
ANSWER: True
RATIONALE: The process of choosing among competing alternatives is called decision making.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: FN-Decision Modeling
United States - AK - IMA: Decision Analysis
KEYWORDS: Bloom's: Remember
3. Managerial accounting information is not important for not-for-profit organizations.
a. True
b. False
ANSWER: False
RATIONALE: Managerial accounting information is important for all types of organizations.
Copyright Cengage Learning. Powered by Cognero. Page 1
,POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
4. Management accounting information is used only by manufacturing organizations.
a. True
b. False
ANSWER: False
RATIONALE: Management accounting information is used by all manufacturing, merchandising, and
service organizations.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
5. Managerial accounting is designed primarily for internal users.
a. True
b. False
ANSWER: True
RATIONALE: Managerial accounting is the provision of accounting information for a company’s internal
users.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
6. Managerial accounting emphasizes the future.
a. True
b. False
ANSWER: True
RATIONALE: Although managerial accounting records and reports events that have already occurred, it
Copyright Cengage Learning. Powered by Cognero. Page 2
, strongly emphasizes providing information about future events.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
financial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
7. GAAP governs financial accounting.
a. True
b. False
ANSWER: True
RATIONALE: Financial accounting is subject to externally imposed rules (e.g., GAAP and SEC
regulations).
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
financial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-02-GAAP
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Reporting
KEYWORDS: Bloom's: Remember
8. The value chain is the set of activities required to design, develop, produce, market, and deliver products and services to
customers.
a. True
b. False
ANSWER: True
RATIONALE: The value chain is the set of activities required to design, develop, produce, market, and
deliver products and services, as well as provide support services to customers.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Remember
9. Time is not a crucial element in all phases of the value chain.
a. True
Copyright Cengage Learning. Powered by Cognero. Page 3
, b. False
ANSWER: False
RATIONALE: Time is a crucial element in all phases of the value chain.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Understand
10. Activity-based costing is a less detailed approach to determining the cost of goods and services than traditional cost
accounting.
a. True
b. False
ANSWER: False
RATIONALE: Activity-based costing is a more detailed approach to determining the cost of goods and
services.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-27 - Managerial Accounting Features/Costs
United States - AK - AICPA: FN-Measurement
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
11. Excellent customer service is an example of a value-added activity.
a. True
b. False
ANSWER: True
RATIONALE: Excellent customer service is an example of a value-added activity.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Understand
12. A cost accountant would normally occupy a staff position within an organization.
a. True
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