TEST BANK
MANAGERIAL ACCOUNTING
5TH CANADIAN EDITION
CHAPTER NO. 01: INTRODUCTION TO MANAGERIAL ACCOUNTING
1.1 Identify managers' four primary responsibilities.
1) Controlling means overseeing the company's day-to-day operations.
Answer: FALSE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
2) Managerial accounting gathers, summarizes, and reports the cost and revenue data
relevant to decisions.
Answer: TRUE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
3) Managerial accounting focuses on providing shareholders and creditors with the
information they need to make investment and lending decisions.
Answer: FALSE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
4) Managerial accounting focuses on providing internal management with the
,information it needs to run an organization efficiently and effectively.
Answer: FALSE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
5) Evaluating the results of business operations against a plan and then making
adjustments to that plan is called budgeting.
Answer: FALSE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
6) The four primary responsibilities of managers are planning, budgeting, controlling,
and decision making.
Answer: FALSE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
7) Managerial accounting develops reports that help internal parties effectively and
efficiently run the company.
Answer: TRUE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
8) Directing means overseeing the day to day operations of an organization.
,Answer: TRUE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
9) Budgets are the quantitative expression of management's plans.
Answer: TRUE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
10) Making adjustments to keep the company moving forward is related to the
management responsibility of controlling.
Answer: TRUE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
11) Planning involves which of the following activities?
A) Setting goals and objectives for the company
B) Overseeing the company's day-to-day operations
C) Evaluating the results of operations
D) Getting feedback on results
Answer: A
Diff: 2
LO: 1-1
Bloom's Taxonomy: Understand
, 12) When management compares the budget to actual results, which of the following is
being fulfilled?
A) Directing
B) Controlling
C) Decision-making
D) Planning
Answer: B
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
13) Which of the following management responsibilities are being fulfilled when
management uses feedback to take corrective action on the budgets?
A) Directing and planning
B) Planning and decision-making
C) Controlling and decision-making
D) Planning and controlling
Answer: C
Diff: 2
LO: 1-1
Bloom's Taxonomy: Remember
14) Which one of the following manager responsibilities encompasses the other three?
A) Decision-making
B) Feedback
C) Planning
D) Controlling
Answer: A
MANAGERIAL ACCOUNTING
5TH CANADIAN EDITION
CHAPTER NO. 01: INTRODUCTION TO MANAGERIAL ACCOUNTING
1.1 Identify managers' four primary responsibilities.
1) Controlling means overseeing the company's day-to-day operations.
Answer: FALSE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
2) Managerial accounting gathers, summarizes, and reports the cost and revenue data
relevant to decisions.
Answer: TRUE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
3) Managerial accounting focuses on providing shareholders and creditors with the
information they need to make investment and lending decisions.
Answer: FALSE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
4) Managerial accounting focuses on providing internal management with the
,information it needs to run an organization efficiently and effectively.
Answer: FALSE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
5) Evaluating the results of business operations against a plan and then making
adjustments to that plan is called budgeting.
Answer: FALSE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
6) The four primary responsibilities of managers are planning, budgeting, controlling,
and decision making.
Answer: FALSE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
7) Managerial accounting develops reports that help internal parties effectively and
efficiently run the company.
Answer: TRUE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
8) Directing means overseeing the day to day operations of an organization.
,Answer: TRUE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
9) Budgets are the quantitative expression of management's plans.
Answer: TRUE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
10) Making adjustments to keep the company moving forward is related to the
management responsibility of controlling.
Answer: TRUE
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
11) Planning involves which of the following activities?
A) Setting goals and objectives for the company
B) Overseeing the company's day-to-day operations
C) Evaluating the results of operations
D) Getting feedback on results
Answer: A
Diff: 2
LO: 1-1
Bloom's Taxonomy: Understand
, 12) When management compares the budget to actual results, which of the following is
being fulfilled?
A) Directing
B) Controlling
C) Decision-making
D) Planning
Answer: B
Diff: 1
LO: 1-1
Bloom's Taxonomy: Remember
13) Which of the following management responsibilities are being fulfilled when
management uses feedback to take corrective action on the budgets?
A) Directing and planning
B) Planning and decision-making
C) Controlling and decision-making
D) Planning and controlling
Answer: C
Diff: 2
LO: 1-1
Bloom's Taxonomy: Remember
14) Which one of the following manager responsibilities encompasses the other three?
A) Decision-making
B) Feedback
C) Planning
D) Controlling
Answer: A
