Test Bank for Solutions for Managerial Accounting, 18th
Edition by Ray Garrison| Questions & Correct Answers
|100% Verified |Latest Update 2025/2026.
Question: Management Functions in Managerial Accounting - Correct Planning.
Directing.
Controlling
Question: Managerial accounting - Correct A field of accounting that provides economic and
financial information for managers and other internal users.
Question: Activity-based costing (ABC) - Correct A method of allocating overhead based on
each product's use of activities in making the product.
Question: Balanced scorecard - Correct A performance-measurement approach that uses both
financial and nonfinancial measures, tied to company objectives, to evaluate a company's operations
in an integrated fashion.
Question: Board of directors - Correct The group of officials elected by the stockholders of a
corporation to formulate operating policies and select officers who will manage the company.
Question: Chief executive officer (CEO) - Correct Corporate officer who has overall
responsibility for managing the business and delegates responsibilities to other corporate officers.
Question: Chief financial officer (CFO) - Correct Corporate officer who is responsible for all of
the accounting and finance issues of the company.
Question: Controller - Correct Financial officer responsible for a company's accounting
records, system of internal control, and preparation of financial statements, tax returns, and internal
reports.
1|Page
,What is managerial accounting? - Correct The provision of accounting information for a
company's internal users
Question: Setting objectives and identifying methods to achieve those objectives is called - Correct
planning
Question: The process of choosing among competitive alternatives is called - Correct decision
making
Question: Which of the following is a characteristic of managerial accounting? - Correct There
is an internal focus
Subjective information may be used
There is an emphasis on the future
It is broad based and multidisciplinary
Question: An effective managerial accounting system should track information about an organizations
activities in which of the following areas? - Correct Development
Marketing
Production
Design
Question: In terms of strategic positioning, which two general strategies may be chosen by a
company? - Correct Cost leadership and product differentiation
Question: What is not a common form of certification for managerial accountants? - Correct
certificate in external auditing
Question: The chief accounting officer for a firm is the - Correct Controller
2|Page
, Question: What is typically found in a corporation's code of ethics? - Correct Compliance with
the rule of law
Integrity
Honesty
Competence
Question: Accumulating costs means that - Correct costs must be measured and tracked
Question: Product (or manufacturing) costs consist of - Correct prime costs and manufacturing
overhead
Question: Which of the following is an indirect cost? - Correct The cost of restriping a the
parking lot at a perfume factory
Question: Bobby Dee's is an owner operated company that details automobiles. Bobby Dee's is
which of the following? - Correct Service Firm
Question: Kellogg's makes a variety of breakfast cereal. Kellogg's is which of the following? - Correct
Manufacturing
Question: Target is which of the following? - Correct Retailer (only sells, doesn't make
anything)
Question: Stone Inc. is a company that purchases goods from overseas and resells them to gift
shops in the United States. Stone Inc. is which of the following? - Correct Wholesaler
Question: Which of the following is a period expense? - Correct CEO Salary
3|Page
Edition by Ray Garrison| Questions & Correct Answers
|100% Verified |Latest Update 2025/2026.
Question: Management Functions in Managerial Accounting - Correct Planning.
Directing.
Controlling
Question: Managerial accounting - Correct A field of accounting that provides economic and
financial information for managers and other internal users.
Question: Activity-based costing (ABC) - Correct A method of allocating overhead based on
each product's use of activities in making the product.
Question: Balanced scorecard - Correct A performance-measurement approach that uses both
financial and nonfinancial measures, tied to company objectives, to evaluate a company's operations
in an integrated fashion.
Question: Board of directors - Correct The group of officials elected by the stockholders of a
corporation to formulate operating policies and select officers who will manage the company.
Question: Chief executive officer (CEO) - Correct Corporate officer who has overall
responsibility for managing the business and delegates responsibilities to other corporate officers.
Question: Chief financial officer (CFO) - Correct Corporate officer who is responsible for all of
the accounting and finance issues of the company.
Question: Controller - Correct Financial officer responsible for a company's accounting
records, system of internal control, and preparation of financial statements, tax returns, and internal
reports.
1|Page
,What is managerial accounting? - Correct The provision of accounting information for a
company's internal users
Question: Setting objectives and identifying methods to achieve those objectives is called - Correct
planning
Question: The process of choosing among competitive alternatives is called - Correct decision
making
Question: Which of the following is a characteristic of managerial accounting? - Correct There
is an internal focus
Subjective information may be used
There is an emphasis on the future
It is broad based and multidisciplinary
Question: An effective managerial accounting system should track information about an organizations
activities in which of the following areas? - Correct Development
Marketing
Production
Design
Question: In terms of strategic positioning, which two general strategies may be chosen by a
company? - Correct Cost leadership and product differentiation
Question: What is not a common form of certification for managerial accountants? - Correct
certificate in external auditing
Question: The chief accounting officer for a firm is the - Correct Controller
2|Page
, Question: What is typically found in a corporation's code of ethics? - Correct Compliance with
the rule of law
Integrity
Honesty
Competence
Question: Accumulating costs means that - Correct costs must be measured and tracked
Question: Product (or manufacturing) costs consist of - Correct prime costs and manufacturing
overhead
Question: Which of the following is an indirect cost? - Correct The cost of restriping a the
parking lot at a perfume factory
Question: Bobby Dee's is an owner operated company that details automobiles. Bobby Dee's is
which of the following? - Correct Service Firm
Question: Kellogg's makes a variety of breakfast cereal. Kellogg's is which of the following? - Correct
Manufacturing
Question: Target is which of the following? - Correct Retailer (only sells, doesn't make
anything)
Question: Stone Inc. is a company that purchases goods from overseas and resells them to gift
shops in the United States. Stone Inc. is which of the following? - Correct Wholesaler
Question: Which of the following is a period expense? - Correct CEO Salary
3|Page
