Test Bank for Introduction To Managerial Accounting, 6th Canadian Edition by Brewer, Garrison

Chapter 01 - An Introduction to Managerial Accounting


Chapter 01
An Introduction to Managerial Accounting




True / False Questions



1. Managers carry out three major activities: planning, implementation, and control.
TRUE


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Understand the basics of managerial accounting.
Topic: 01-02 Strategy
Topic: 01-03 Planning
Topic: 01-04 Implementation
Topic: 01-05 Control



2. The theory of constraint (TOC) framework focuses on effectively managing constraints as
the key to success.
TRUE


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 Understand the role of globalization and the lean business model in influencing managerial accounting.
Topic: 01-24 The Theory of Constraints



3. Managerial Accounting reports are prepared for external users while Financial Accounting
reports are prepared for internal users.
FALSE


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Understand the basics of managerial accounting.
Topic: 01-06 Financial and Managerial Accounting
Topic: 01-07 For the Managers




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, Chapter 01 - An Introduction to Managerial Accounting



4. Merchandising firms largely refer to retail and wholesale outlets that buy goods from
suppliers and resell them to customers.
TRUE


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Understand the basics of managerial accounting.
Topic: 01-01 The Management Cycle and the Need for Managerial Accounting Information



5. Merchandising and manufacturing firms generate revenue by selling products.
TRUE


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Understand the basics of managerial accounting.
Topic: 01-01 The Management Cycle and the Need for Managerial Accounting Information



6. Service firms do not sell any products but generate revenues by offering one or more types
of services.
TRUE


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Understand the basics of managerial accounting.
Topic: 01-01 The Management Cycle and the Need for Managerial Accounting Information



7. Managers assign tasks to employees, arbitrate disputes, answer questions, solve on the spot
problems, and make many decisions that affect customers and employees, which in turn, will
likely influence future financial and nonfinancial performance.
TRUE


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-01 Understand the basics of managerial accounting.
Topic: 01-04 Implementation




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