Test Bank Managerial Accounting 7th Edition by Karen W. Braun || All Chapters ( 1-15 ) || Latest & Updated Version 2024 A+

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Managerial Accounting, 7e (Braun et al.)
Chapter 1 Introduction to Managerial Accounting

1.1 Identify managers' three primary responsibilities

1) Evaluating operations by comparing actual results to budgeted results is a part of the controlling
responsibility of management.
Answer: TRUE
Diff: 1
LO: 1-1
EOC: QC1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.

2) Controlling means overseeing the companyʹs day-to-day operations.
Answer: FALSE
Diff: 1
LO: 1-1
EOC: QC1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.

3) The purpose of managerial accounting is to gather, summarize, and report the cost and revenue data
relevant to each decision that is made.
Answer: TRUE
Diff: 1
LO: 1-1
EOC: QC1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.

4) Budgeting is the process of evaluating the results of business operations against a plan and then
making adjustments to that plan.
Answer: FALSE
Diff: 1
LO: 1-1
EOC: QC1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.




1

, 5) Planning, directing, and controlling are a managerʹs three primary decision-making responsibilities.
Answer: TRUE
Diff: 1
LO: 1-1
EOC: QC1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.

6) Directing means setting goals and objectives for the company and determining how to achieve them.
Answer: FALSE
Diff: 1
LO: 1-1
EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.

7) Budgets are the quantitative expression of managementʹs plans.
Answer: TRUE
Diff: 1
LO: 1-1
EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.

8) ________ gathers, summarizes, and reports on the financial impact of changes to business operations.
A) Managerial accounting
B) Planning
C) Directing
D) Controlling
Answer: A
Diff: 2
LO: 1-1
EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.




2