TEST BANK FOR MANAGERIAL ACCOUNTING.

TEST BANK FOR MANAGERIAL ACCOUNTING


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




True/FalseAQuestions

1. AlthoughAfinancialAandAmanagerialAaccountingAdifferAinAmanyAways,AtheyAareAsimilarAi
nAthatAbothArelyAonAtheAsameAunderlyingAfinancialAdata.

Answer:ATrueA A Level:AMediumA A LO:A1

2. ManagerialAaccountingAisAaAbranchAofAfinancialAaccountingAandAservesAessentiallyAth
eAsameApurposesAasAfinancialAaccounting.

Answer:AFalseA A Level:AMediumA A LO:A1

3. ManagerialAaccountingAplacesAgreaterAemphasisAonAtheAfutureAthanAfinanci
alAaccounting,AwhichAisAprimarilyAconcernedAwithAtheApast.

Answer:ATrueA A Level:AEasyA A LO:A1

4. ManagerialAaccountingAisAnotAneededAinAaAnon-profitAorAgovernmentalAorganization.

Answer:AFalseA A Level:AEasyA A LO:A1

5. WhenAcarryingAoutAtheirAplanningAactivities,AmanagersAselectAaAcourseAofAactionAan
dAspecifyAhowAtheAactionAwillAbeAimplemented.

Answer:ATrueA A Level:AEasyA A LO:A2

6. WhenAcarryingAoutAtheirAplanningAactivities,AmanagersAobtainAfeedbackAtoAensureAthat
AtheAplanAisAactuallyAcarriedAoutAandAisAappropriatelyAmodifiedAasAcircumstancesAchan

ge.

Answer:AFalseA A Level:AMediumA A LO:A2

7. TheAcontrollerAoccupiesAaAlineApositionAinAanAorganization.

Answer:AFalseA A Level:AEasyA A LO:A2

8. DecentralizationAmeansAtheAdelegationAofAdecision-
makingAauthorityAthroughoutAanAorganizationAbyAallowingAmanagersAatAvariousAoper
atingAlevelsAtoAmakeAkeyAdecisionsArelatingAtoAtheirAownAareaAofAresponsibility.

Answer:ATrueA A Level:AEasyA A LO:A2




Garrison,AManagerialAAccounting,A12thAEdition 3

,Chapter 1 Managerial Accounting and the Business Environment
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9. AAfirm'sAorganizationAchartAwillAnormallyAshowAbothAtheAformalAandAinformalAlinesA
ofAreportingAandAcommunication.

Answer:AFalseA A Level:AEasyA A LO:A2

10. TheAChiefAFinancialAOfficerAofAanAorganizationAisAresponsibleAforAensuringAthatAlin
eAoperationsArunAsmoothly.

Answer:AFalseA A Level:AMediumA A LO:A2

11. Traditionally,AcompaniesAhaveAmaintainedAlargeAamountsAofArawAmaterials,AworkAinApr
ocess,AandAfinishedAgoodsAinventoriesAtoAactAasAbuffersAsoAthatAoperationsAcanAproceedA
smoothlyAevenAifAthereAareAunanticipatedAdisruptions.

Answer:ATrueA A Level:AMediumA A LO:A3

12. ProcessAReengineeringAisAgenerallyAconsideredAtoAbeAaAmoreAradicalAapproachAt
oAimprovementAthanATotalAQualityAManagement.

Answer:ATrueA A Level:AEasyA A LO:A3

13. ProcessAReengineeringAemphasizesAaAteamAapproachAinvolvingAfront-
lineAworkers,AwhereasATotalAQualityAManagementAisAusuallyAimplementedAusingAout
sideAspecialistsAandAisAimposedAfromAabove.

Answer:AFalseA A Level:AMediumA A LO:A3

14. IfAethicalAstandardsAwereAnotAgenerallyAfollowed,AoneAofAtheAresultsAwouldAprobablyA
beAfewerAgoodsAandAservicesAavailableAinAtheAmarketplace.

Answer:ATrueA A Level:AMediumA A LO:A4

15. TheAStandardsAofAEthicalAConductAforAManagementAAccountantsApromulgatedAbyAthe
AInstituteAofAManagement AAccountantsAspecificallyAstateAthatAmanagementAaccountant

s'AsoleAethicalAresponsibilityAisAtoAnotAbreakAanyAlaws.

Answer:AFalseA A Level:AEasyA A LO:A4




4 Garrison,AManagerialAAccounting,A12thAEdition

, TEST BANK FOR MANAGERIAL ACCOUNTING


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




MultipleAChoiceAQuestions

16. ManagementAaccountingAfocusesAprimarilyAonAprovidingAdataAfor:
A) internalAusesAbyAmanagers.
B) externalAusesAbyAstockholdersAandAcreditors.
C) externalAusesAbyAtheAInternalARevenueAService.
D) externalAusesAbyAtheASecuritiesAandAExchangeACommission.

Answer:AAA A Level:AEasyA A LO:A1

17. ManagerialAaccounting:
A) isAmoreAfutureAorientedAthanAfinancialAaccounting.
B) tendsAtoAsummarizeAinformationAmoreAthanAfinancialAaccounting
C) isAprimarilyAconcernedAwithAprovidingAinformationAtoAexternalAusers.
D) isAmoreAconcernedAwithAprecisionAthanAtimeliness.

Answer:AAA A Level:AEasyA A LO:A1

18. ComparedAtoAfinancialAaccounting,AmanagerialAaccountingAplacesAmoreAemphasisAon:
A) theAflexibilityAofAinformation.
B) theAprecisionAofAinformation.
C) theAtimelinessAofAinformation.
D) bothAAAandACAabove.

Answer:ADA A Level:AEasyA A LO:A1

19. TheAfunctionAofAmanagementAthatAcomparesAplannedAresultsAtoAactualAresultsAisAknow
nAas:
A) planning.
B) directingAandAmotivating.
C) controlling.
D) decisionAmaking.

Answer:ACA A Level:AEasyA A LO:A2

20. WhichAofAtheAfunctionsAofAmanagementAinvolvesAoverseeingAday-to-dayAactivities?
A) Planning
B) DirectingAandAmotivating
C) Controlling
D) DecisionAmaking

Answer:ABA A Level:AEasyA A LO:A2



Garrison,AManagerialAAccounting,A12thAEdition 5

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




21. WhichAofAtheAfollowingAisAnotAoneAofAtheAthreeAbasicAactivitiesAofAaAmanager?
A) Planning
B) Controlling
C) DirectingAandAmotivating
D) CompilingAmanagementAaccountingAreports

AAnswer:ADA Level:AEasyA LO:A2

22. TheAdelegationAofAdecisionAmakingAtoAlowerAlevelsAinAanAorganizationAisAknownAas:
A) theAplanningAandAcontrolAcycle.
B) controlling.
C) decentralization.
D) noneAofAthese.

Answer:ACA A Level:AEasyA A LO:A2

23. WhichAofAtheAfollowingAstatementsAareAfalseAconcerningAlineAandAstaffAfunctions?

I. PersonsAoccupyingAstaffAfunctionsAhaveAauthorityAoverApersonsAoccupyingAlin
eAfunctions.
II. BothAlineAandAstaffAfunctionsAareAdepictedAonAtheAorganizationAchart.
III. LineAfunctionsAareAdirectlyArelatedAtoAtheAbasicAobjectivesAofAanAorganization.

A) OnlyAI
B) OnlyAII
C) OnlyAIAandAII
D) I,AII,AandAIII

Answer:AAA A Level:AMediumA A LO:A2

24. WhichAofAfollowingAwouldAnormallyAbeAfoundAonAaAmanufacturingAcompany'
sAorganizationAchart?
A) theAlayoutAofAtheAfactoryAassemblyAlines
B) aAlistAofAtheAmaterialsAneededAtoAproduceAeachAofAtheAcompany'sAproducts
C) theAinformalAlinesAofAreportingAandAcommunication
D) noneAofAtheAabove

Answer:ADA A Level:AEasyA A LO:A2




6 Garrison,AManagerialAAccounting,A12thAEdition