TEST BANK FOR Managerial Accounting 4th Edition by Charles E. Davis, Elizabeth Davis ISBN: 978-1119577669 COMPLETE GUIDE ALL CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!NEW LATEST UPDATE!!!GUARANTEED PASS!!!!

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TEST BANK
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Managerial Accounting 4th Edition
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By Charles Davis Elizabeth Davis Chapter 1 - 13
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Table Of ContentsX# X#




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 X#



Accounting as a Tool for Management X# X# X# X# X#




CHAPTER LEARNING OBJECTIVES X# X#




1. Define managerial accounting (Unit 1.1) X# X# X# X#


There are several formal definitions of managerial accounting. A simple one is “
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thegeneration of relevant information to support management’s decision-
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making activities.” X#



2. Describe the differences between managerial and financial accountin
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g(Unit 1.1)
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Managerial accounting’s primary users are managers and decision makers within an
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organization, whereas financial accounting is aimed primarily at external users. Unlik
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e GAAP that guides financial accounting, there are no mandated rules in managerial
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accounting. Managerial accounting reports focus on operating segments, while financ
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ialaccounting statements report results for the organization as a whole. Managerial a
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ccounting is concerned more with projecting future results than reporting past result
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s. Managerial information is prepared to take advantage of a window of opportunity,
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evenif some accuracy must be sacrificed. Financial accounting information is balance
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d to the penny and is delivered after the end of the accounting period.
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3. List and describe the four functions of managers (Unit 1.1)
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Planning means setting a direction for the organization. Long-
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term, or strategic planningprovides direction for a five- to ten-year period. Short-
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term or operational planning provides more detailed guidance for the coming year; i
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t translates the company’s strategy into action steps. Controlling is the monitoring of
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day-to-
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day operations to identify any problems that require corrective action. Evaluating is t
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he process of comparing a particular period’s actual results to planned results, for th
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e purpose of assessing managerial performance. Decision making means choosing be
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tween alternative courses of action.
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4. Explain how the selection of a particular business strategy determines t
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heinformation that managers need to run an organization effectively (U
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nit 1.2) X#


To run a business effectively, managers need information that shows how well op
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erations are meeting the organization’s strategic goals. For instance, if the organi
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zation’s strategy is to be a low- X# X# X# X# X# X#


cost producer, information about product costsand cost variances will be more us
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eful to managers than information about researchand development.
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5. Discuss the importance of ethical behavior in managerial accounting (Un
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it1.3)
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Ethical behavior means knowing right from wrong and then doing the right thing. M
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anycompanies and most professional organizations have codes of conduct to guide
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employees’ actions. Acting unethically can lead to illegal activity and ultimately to t
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he destruction of the firm. Furthermore, research has shown that a public commitm
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ent toethical behavior can lead to superior financial performance.
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