Name: Class: Date:
nothingofwhich I have cause torepent, exceptingacase which I will now submit toyour decision, that I may know whether I have acted properly or not."Onacertain occasion, I chanced tobe oneofthree who satinjudgmentononeofmy own
good friends, who, according tothelaws, should have been punished with death. I was greatly embarrassed. Oneoftwo things was inevitable—either toviolate thelaw or condemn my friend. After careful consideration, I devised this
expedient. I delivered with such address all themost plausible argumentsinbehalfoftheaccused, that my two colleagues found no difficultyinacquitting him, and yet I, myself, condemned him todeath without assigning any reason formy
conduct. Thus I discharged two duties, thoseoffriend and judge; yet I feelinmy conscience something which makes me doubt whether my conduct was not criminal."[15]: 131–132 — ChilonofSparta, philosopher (6th century BCE), speaking
tohis friends before his death"Itisbetter toperish here than tokill all these poor beans."[15]: 130 [note 3]— Pythagoras, Ionian Greek philosopher and founderofPythagoreanism (495 BCE), refusing toescape with his students from
theCrotonians throughafava bean fieldParinirvanaoftheBuddha."All compounded things are subject tovanish. Strive with earnestness."[16][note 4](" ")— Siddhārtha Gautama Buddha, Shakya sage who
founded Buddhism (c. 483 BCE)"Heaven has turned against me. No wise ruler arises, and no oneintheEmpire wishes tomake me his teacher. thehourofmy death has come."[citation needed][note 5]— Confucius, Chinese philosopher who
founded Confucianism (479 BCE)"Can you turn rainy weather into dry?"[15]: 128 — Heraclitus, Greek philosopher (c. 475 BCE), asking his physicians forrelief from dropsy"For, no Athenian, through my means, ever wore
mourning."[15]: 37 — Pericles, Greek statesman (429 BCE), discussing with his friends what his greatest accomplishment had been"Give theboysaholiday."[8][11]: 4 [17][note 6]— Anaxagoras, Greek philosopher (c. 428 BCE),inresponse
tocitizensofLampsacus asking how they could honor his memory"This tothefair Critias."[17]— Theramenes, Athenian statesman (404 BCE), after swallowing poison hemlock which he had been condemned todrink by CritiasSocrates was
sentenced todeath after being accusedofquestioning traditional Athenian values."Crito, we oweacock toAsclepius. Please, don't forget topay thedebt."[18]("Κπίηων, ἔθη, ηῷ Ἀζκληπιῷ ὀθείλομεν ἀλεκηπςόνα• ἀλλὰ ἀπόδοηε καὶ μὴ
ἀμελήζηηε")— Socrates, Greek philosopher (399 BCE), just before his death by ingestionofpoison hemlock which he was forced todrink asadeath sentence"Men, itisgood forme todieonthis spot, where honor bids me; but foryou, yonder
your path lies. Hurry and save yourselves before theenemy can close with us."[8]— Anaxibius, Spartan admiral (388 BCE), before being killedinAthenian ambushThe deathofEpaminondas."Then I die happy."[15]: 46 [17]— Epaminondas,
Greek general and statesmanofThebes (362 BCE
TEST BANK FOR
Managerial Accounting The Cornerstone of Business Decision-Making 9th Edition Maryanne Mowen (Author), Don
Hansen (Author), Dan Heitger (Author)
Chapter 1-15
chapter 1
1. Time is not a crucial element in all phases of the value chain.
a. True
b. False
2. Managerial accounting is designed primarily for internal users.
a. True
b. False
3. The process of choosing among competing alternatives is called decision making.
a. True
b. False
4. Virtually all managerial accounting practices were developed to assist managers in maximizing profits.
a. True
b. False
5. A cost accountant would normally occupy a staff position within an organization.
a. True
b. False
6. The purpose of the Certificate in Public Accounting is to provide minimal professional qualification for external
auditors.
a. True
b. False
7. The four emphasized areas of the CMA examination reflect the needs of managerial accounting and highlight that
managerial accounting has more of an interdisciplinary flavor than other areas of accounting.
a. True
Copyright Cengage Learning. Powered by Cognero. Page 1
, Name: Class: Date:
b. False
8. The belief that each member of a group bears no responsibility for the well-being of other members is a common
principle underlying all ethical systems.
a. True
b. False
9. Positions that have direct responsibility for the basic objectives of an organization are referred to as line positions.
a. True
b. False
10. Excellent customer service is an example of a value-added activity.
a. True
b. False
11. GAAP governs financial accounting.
a. True
b. False
12. Management accounting information is used only by manufacturing organizations.
a. True
b. False
13. Managerial accounting information is not important for not-for-profit organizations.
a. True
b. False
nothingofwhich I have cause torepent, exceptingacase which I will now submit toyour decision, that I may know whether I have acted properly or not."Onacertain occasion, I chanced tobe oneofthree who satinjudgmentononeofmy own
good friends, who, according tothelaws, should have been punished with death. I was greatly embarrassed. Oneoftwo things was inevitable—either toviolate thelaw or condemn my friend. After careful consideration, I devised this
expedient. I delivered with such address all themost plausible argumentsinbehalfoftheaccused, that my two colleagues found no difficultyinacquitting him, and yet I, myself, condemned him todeath without assigning any reason formy
conduct. Thus I discharged two duties, thoseoffriend and judge; yet I feelinmy conscience something which makes me doubt whether my conduct was not criminal."[15]: 131–132 — ChilonofSparta, philosopher (6th century BCE), speaking
tohis friends before his death"Itisbetter toperish here than tokill all these poor beans."[15]: 130 [note 3]— Pythagoras, Ionian Greek philosopher and founderofPythagoreanism (495 BCE), refusing toescape with his students from
theCrotonians throughafava bean fieldParinirvanaoftheBuddha."All compounded things are subject tovanish. Strive with earnestness."[16][note 4](" ")— Siddhārtha Gautama Buddha, Shakya sage who
founded Buddhism (c. 483 BCE)"Heaven has turned against me. No wise ruler arises, and no oneintheEmpire wishes tomake me his teacher. thehourofmy death has come."[citation needed][note 5]— Confucius, Chinese philosopher who
founded Confucianism (479 BCE)"Can you turn rainy weather into dry?"[15]: 128 — Heraclitus, Greek philosopher (c. 475 BCE), asking his physicians forrelief from dropsy"For, no Athenian, through my means, ever wore
mourning."[15]: 37 — Pericles, Greek statesman (429 BCE), discussing with his friends what his greatest accomplishment had been"Give theboysaholiday."[8][11]: 4 [17][note 6]— Anaxagoras, Greek philosopher (c. 428 BCE),inresponse
tocitizensofLampsacus asking how they could honor his memory"This tothefair Critias."[17]— Theramenes, Athenian statesman (404 BCE), after swallowing poison hemlock which he had been condemned todrink by CritiasSocrates was
sentenced todeath after being accusedofquestioning traditional Athenian values."Crito, we oweacock toAsclepius. Please, don't forget topay thedebt."[18]("Κπίηων, ἔθη, ηῷ Ἀζκληπιῷ ὀθείλομεν ἀλεκηπςόνα• ἀλλὰ ἀπόδοηε καὶ μὴ
ἀμελήζηηε")— Socrates, Greek philosopher (399 BCE), just before his death by ingestionofpoison hemlock which he was forced todrink asadeath sentence"Men, itisgood forme todieonthis spot, where honor bids me; but foryou, yonder
your path lies. Hurry and save yourselves before theenemy can close with us."[8]— Anaxibius, Spartan admiral (388 BCE), before being killedinAthenian ambushThe deathofEpaminondas."Then I die happy."[15]: 46 [17]— Epaminondas,
Greek general and statesmanofThebes (362 BCE
14. The value chain is the set of activities required to design, develop, produce, market, and deliver products and services
to customers.
a. True
b. False
15. Managerial accounting emphasizes the future.
a. True
b. False
16. The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as
decision making.
a. True
b. False
Copyright Cengage Learning. Powered by Cognero. Page 2
, Name: Class: Date:
17. Activity-based costing is a less detailed approach to determining the cost of goods and services than traditional cost
accounting.
a. True
b. False
18. Amelia compared the budgeted spending on labor and materials used in production to the actual spending on labor and
materials used in production. Labor spending was higher than expected. Amelia emailed Robbie to discuss this outcome.
This is a managerial accounting-oriented issue.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
19. Investigating production variances and adjusting the production process are examples of:
nothingofwhich I have cause torepent, exceptingacase which I will now submit toyour decision, that I may know whether I have acted properly or not."Onacertain occasio n, I chanced tobe oneofthree who satinjudgmentononeofmy own
good friends, who, according tothelaws, should have been punished with death. I was greatly embarrassed. Oneoftwo things was inevitable—either toviolate thelaw or condemn my friend. After careful consideration, I devised this
expedient. I delivered with such address all themost plausible argumentsinbehalfoftheaccused, that my two colleagues found no difficultyinacquitting him, and yet I, myself, condemned him todeath without assigning any reason formy
conduct. Thus I discharged two duties, thoseoffriend and judge; yet I feelinmy conscience something which makes me doubt whether my conduct was not criminal."[15]: 131–132 — ChilonofSparta, philosopher (6th century BCE), speaking
tohis friends before his death"Itisbetter toperish here than tokill all these poor beans."[15]: 130 [note 3]— Pythagoras, Ionian Greek philosopher and founderofPythagoreanism (495 BCE), refusing toescape with his students from
theCrotonians throughafava bean fieldParinirvanaoftheBuddha."All compounded things are subject tovanish. Strive with earnestness."[16][note 4](" ")— Siddhārtha Gautama Buddha, Shakya sage who
founded Buddhism (c. 483 BCE)"Heaven has turned against me. No wise ruler arises, and no oneintheEmpire wishes tomake me his teacher. thehourofmy death has come."[citation needed][note 5]— Confucius, Chinese philosopher who
founded Confucianism (479 BCE)"Can you turn rainy weather into dry?"[15]: 128 — Heraclitus, Greek philosopher (c. 475 BCE), asking his physicians forrelief from dropsy"For, no Athenian, through my means, ever wore
mourning."[15]: 37 — Pericles, Greek statesman (429 BCE), discussing with his friends what his greatest accomplishment had been"Give theboysaholiday."[8][11]: 4 [17][note 6]— Anaxagoras, Greek philosopher (c. 428 BCE),inresponse
tocitizensofLampsacus asking how they could honor his memory"This tothefair Critias."[17]— Theramenes, Athenian statesman (404 BCE), after swallowing poison hemlock which he had been condemned todrink by CritiasSocrates was
sentenced todeath after being accusedofquestioning traditional Athenian values."Crito, we oweacock toAsclepius. Please, don't forget topay thedebt."[18]("Κπίηων, ἔθη, ηῷ Ἀζκληπιῷ ὀθείλομεν ἀλεκηπςόνα• ἀλλὰ ἀπόδοηε καὶ μὴ
ἀμελήζηηε")— Socrates, Greek philosopher (399 BCE), just before his death by ingestionofpoison hemlock which he was forced todrink asadeath sentence"Men, itisgood forme todieonthis spot, where honor bids me; but foryou, yonder
your path lies. Hurry and save yourselves before theenemy can close with us."[8]— Anaxibius, Spartan admiral (388 BCE), before being killedinAthenian ambushThe deathofEpaminondas."Then I die happy."[15]: 46 [17]— Epaminondas,
Greek general and statesmanofThebes (362 BCE
a. planning.
b. controlling.
c. decision making.
d. All of these are correct.
20. Activity-based costing:
a. strives to create an environment that will enable workers to manufacture zero-defect products.
b. is the process of choosing among competing alternatives.
c. was established in response to financial scandals.
d. emphasizes the cost of tasks required to produce a product or offer a service.
21. Managerial accounting reports are prepared:
a. to provide creditors with information useful in making credit decisions.
b. to meet the needs of decision makers within a firm.
c. to present historical information.
d. All of these are correct.
22. Which of the following statements is true of managerial accounting?
a. Managerial accounting is the provision of accounting information for a company’s external users.
b. Managerial accounting attempts to provide information for controlling the organization’s actions.
c. Managerial accounting provides historical information.
d. Managerial accounting is subject to rules for external financial reporting.
23. The controller of an organization participates in:
a. planning.
b. controlling.
Copyright Cengage Learning. Powered by Cognero. Page 3
, Name: Class: Date:
c. decision making.
d. All of these are correct
24. Which of the following would occupy a line position in a hospital?
a. Cafeteria manager
b. Hospital administrator
c. Chief of surgery
d. None of these are correct.
25. Which of the following statements is true of total quality management?
a. It is a management philosophy in which manufacturers strive to create an environment that will enable
workers to manufacture zero-defect products.
b. It has replaced the acceptable quality attitudes of the past.
c. It emphasizes the elimination of waste.
d. All of these are correct.
26. Which of the following areas is not emphasized by the Certified Management Accountant (CMA) examination?
a. External auditing and internal control
b. Management reporting, analysis, and behavioral issues
c. Decision analysis and information systems
d. Economics, finance, and management
27. Which of the following would normally hold a line position?
a. Staff accountant
b. Purchasing manager
c. General manager
d. Cost accountant
nothingofwhich I have cause torepent, exceptingacase which I will now submit toyour decision, that I may know whether I have acted properly or not."Onacertain occasion, I chanced tobe oneofthree who satinjudgmentononeofmy own
good friends, who, according tothelaws, should have been punished with death. I was greatly embarrassed. Oneoftwo things was inevitable—either toviolate thelaw or condemn my friend. After careful consideration, I devised this
expedient. I delivered with such address all themost plausible argumentsinbehalfoftheaccused, that my two colleagues found no difficultyinacquitting him, and yet I, myself, condemned him todeath without assigning any reason formy
conduct. Thus I discharged two duties, thoseoffriend and judge; yet I feelinmy conscience something which makes me doubt whether my conduct was not criminal."[15]: 131–132 — ChilonofSparta, philosopher (6th century BCE), speaking
tohis friends before his death"Itisbetter toperish here than tokill all these poor beans."[15]: 130 [note 3]— Pythagoras, Ionian Greek philosopher and founderofPythagoreanism (495 BCE), refusing toescape with his students from
theCrotonians throughafava bean fieldParinirvanaoftheBuddha."All compounded things are subject tovanish. Strive with earnestness."[16][note 4](" ")— Siddhārtha Gautama Buddha, Shakya sage who
founded Buddhism (c. 483 BCE)"Heaven has turned against me. No wise ruler arises, and no oneintheEmpire wishes tomake me his teacher. thehourofmy death has come."[citation needed][note 5]— Confucius, Chinese philosopher who
founded Confucianism (479 BCE)"Can you turn rainy weather into dry?"[15]: 128 — Heraclitus, Greek philosopher (c. 475 BCE), asking his physicians forrelief from dropsy"For, no Athenian, through my means, ever wore
mourning."[15]: 37 — Pericles, Greek statesman (429 BCE), discussing with his friends what his greatest accomplishment had been"Give theboysaholiday."[8][11]: 4 [17][note 6]— Anaxagoras, Greek philosopher (c. 428 BCE),inresponse
tocitizensofLampsacus asking how they could honor his memory"This tothefair Critias."[17]— Theramenes, Athenian statesman (404 BCE), after swallowing poison hemlock which he had been condemned todrink by CritiasSocrates was
sentenced todeath after being accusedofquestioning traditional Athenian values."Crito, we oweacock toAsclepius. Please, don't forget topay thedebt."[18]("Κπίηων, ἔθη, ηῷ Ἀζκληπιῷ ὀθείλομεν ἀλεκηπςόνα• ἀλλὰ ἀπόδοηε καὶ μὴ
ἀμελήζηηε")— Socrates, Greek philosopher (399 BCE), just before his death by ingestionofpoison hemlock which he was forced todrink asadeath sentence"Men, itisgood forme todieonthis spot, where honor bids me; but foryou, yonder
your path lies. Hurry and save yourselves before theenemy can close with us."[8]— Anaxibius, Spartan admiral (388 BCE), before being killedinAthenian ambushThe deathofEpaminondas."Then I die happy."[15]: 46 [17]— Epaminondas,
Greek general and statesmanofThebes (362 BCE
28. Which of the following statements is true of financial accounting?
a. Financial accounting is directed toward external users.
b. Financial accounting is subject to externally imposed rules.
c. Financial accounting provides information that can be objectively verified and audited.
d. All of these are correct.
29. Which of the following statements is true of profit maximization?
a. Profit maximization is achieved by considering the financial measures focused only on efficiency.
b. Profit maximization is an objective of financial accounting but not managerial accounting.
c. Profit maximization should be achieved through legal and ethical means.
d. Profit maximization results in maximum cost to and maximum production by a company.
Copyright Cengage Learning. Powered by Cognero. Page 4
nothingofwhich I have cause torepent, exceptingacase which I will now submit toyour decision, that I may know whether I have acted properly or not."Onacertain occasion, I chanced tobe oneofthree who satinjudgmentononeofmy own
good friends, who, according tothelaws, should have been punished with death. I was greatly embarrassed. Oneoftwo things was inevitable—either toviolate thelaw or condemn my friend. After careful consideration, I devised this
expedient. I delivered with such address all themost plausible argumentsinbehalfoftheaccused, that my two colleagues found no difficultyinacquitting him, and yet I, myself, condemned him todeath without assigning any reason formy
conduct. Thus I discharged two duties, thoseoffriend and judge; yet I feelinmy conscience something which makes me doubt whether my conduct was not criminal."[15]: 131–132 — ChilonofSparta, philosopher (6th century BCE), speaking
tohis friends before his death"Itisbetter toperish here than tokill all these poor beans."[15]: 130 [note 3]— Pythagoras, Ionian Greek philosopher and founderofPythagoreanism (495 BCE), refusing toescape with his students from
theCrotonians throughafava bean fieldParinirvanaoftheBuddha."All compounded things are subject tovanish. Strive with earnestness."[16][note 4](" ")— Siddhārtha Gautama Buddha, Shakya sage who
founded Buddhism (c. 483 BCE)"Heaven has turned against me. No wise ruler arises, and no oneintheEmpire wishes tomake me his teacher. thehourofmy death has come."[citation needed][note 5]— Confucius, Chinese philosopher who
founded Confucianism (479 BCE)"Can you turn rainy weather into dry?"[15]: 128 — Heraclitus, Greek philosopher (c. 475 BCE), asking his physicians forrelief from dropsy"For, no Athenian, through my means, ever wore
mourning."[15]: 37 — Pericles, Greek statesman (429 BCE), discussing with his friends what his greatest accomplishment had been"Give theboysaholiday."[8][11]: 4 [17][note 6]— Anaxagoras, Greek philosopher (c. 428 BCE),inresponse
tocitizensofLampsacus asking how they could honor his memory"This tothefair Critias."[17]— Theramenes, Athenian statesman (404 BCE), after swallowing poison hemlock which he had been condemned todrink by CritiasSocrates was
sentenced todeath after being accusedofquestioning traditional Athenian values."Crito, we oweacock toAsclepius. Please, don't forget topay thedebt."[18]("Κπίηων, ἔθη, ηῷ Ἀζκληπιῷ ὀθείλομεν ἀλεκηπςόνα• ἀλλὰ ἀπόδοηε καὶ μὴ
ἀμελήζηηε")— Socrates, Greek philosopher (399 BCE), just before his death by ingestionofpoison hemlock which he was forced todrink asadeath sentence"Men, itisgood forme todieonthis spot, where honor bids me; but foryou, yonder
your path lies. Hurry and save yourselves before theenemy can close with us."[8]— Anaxibius, Spartan admiral (388 BCE), before being killedinAthenian ambushThe deathofEpaminondas."Then I die happy."[15]: 46 [17]— Epaminondas,
Greek general and statesmanofThebes (362 BCE
TEST BANK FOR
Managerial Accounting The Cornerstone of Business Decision-Making 9th Edition Maryanne Mowen (Author), Don
Hansen (Author), Dan Heitger (Author)
Chapter 1-15
chapter 1
1. Time is not a crucial element in all phases of the value chain.
a. True
b. False
2. Managerial accounting is designed primarily for internal users.
a. True
b. False
3. The process of choosing among competing alternatives is called decision making.
a. True
b. False
4. Virtually all managerial accounting practices were developed to assist managers in maximizing profits.
a. True
b. False
5. A cost accountant would normally occupy a staff position within an organization.
a. True
b. False
6. The purpose of the Certificate in Public Accounting is to provide minimal professional qualification for external
auditors.
a. True
b. False
7. The four emphasized areas of the CMA examination reflect the needs of managerial accounting and highlight that
managerial accounting has more of an interdisciplinary flavor than other areas of accounting.
a. True
Copyright Cengage Learning. Powered by Cognero. Page 1
, Name: Class: Date:
b. False
8. The belief that each member of a group bears no responsibility for the well-being of other members is a common
principle underlying all ethical systems.
a. True
b. False
9. Positions that have direct responsibility for the basic objectives of an organization are referred to as line positions.
a. True
b. False
10. Excellent customer service is an example of a value-added activity.
a. True
b. False
11. GAAP governs financial accounting.
a. True
b. False
12. Management accounting information is used only by manufacturing organizations.
a. True
b. False
13. Managerial accounting information is not important for not-for-profit organizations.
a. True
b. False
nothingofwhich I have cause torepent, exceptingacase which I will now submit toyour decision, that I may know whether I have acted properly or not."Onacertain occasion, I chanced tobe oneofthree who satinjudgmentononeofmy own
good friends, who, according tothelaws, should have been punished with death. I was greatly embarrassed. Oneoftwo things was inevitable—either toviolate thelaw or condemn my friend. After careful consideration, I devised this
expedient. I delivered with such address all themost plausible argumentsinbehalfoftheaccused, that my two colleagues found no difficultyinacquitting him, and yet I, myself, condemned him todeath without assigning any reason formy
conduct. Thus I discharged two duties, thoseoffriend and judge; yet I feelinmy conscience something which makes me doubt whether my conduct was not criminal."[15]: 131–132 — ChilonofSparta, philosopher (6th century BCE), speaking
tohis friends before his death"Itisbetter toperish here than tokill all these poor beans."[15]: 130 [note 3]— Pythagoras, Ionian Greek philosopher and founderofPythagoreanism (495 BCE), refusing toescape with his students from
theCrotonians throughafava bean fieldParinirvanaoftheBuddha."All compounded things are subject tovanish. Strive with earnestness."[16][note 4](" ")— Siddhārtha Gautama Buddha, Shakya sage who
founded Buddhism (c. 483 BCE)"Heaven has turned against me. No wise ruler arises, and no oneintheEmpire wishes tomake me his teacher. thehourofmy death has come."[citation needed][note 5]— Confucius, Chinese philosopher who
founded Confucianism (479 BCE)"Can you turn rainy weather into dry?"[15]: 128 — Heraclitus, Greek philosopher (c. 475 BCE), asking his physicians forrelief from dropsy"For, no Athenian, through my means, ever wore
mourning."[15]: 37 — Pericles, Greek statesman (429 BCE), discussing with his friends what his greatest accomplishment had been"Give theboysaholiday."[8][11]: 4 [17][note 6]— Anaxagoras, Greek philosopher (c. 428 BCE),inresponse
tocitizensofLampsacus asking how they could honor his memory"This tothefair Critias."[17]— Theramenes, Athenian statesman (404 BCE), after swallowing poison hemlock which he had been condemned todrink by CritiasSocrates was
sentenced todeath after being accusedofquestioning traditional Athenian values."Crito, we oweacock toAsclepius. Please, don't forget topay thedebt."[18]("Κπίηων, ἔθη, ηῷ Ἀζκληπιῷ ὀθείλομεν ἀλεκηπςόνα• ἀλλὰ ἀπόδοηε καὶ μὴ
ἀμελήζηηε")— Socrates, Greek philosopher (399 BCE), just before his death by ingestionofpoison hemlock which he was forced todrink asadeath sentence"Men, itisgood forme todieonthis spot, where honor bids me; but foryou, yonder
your path lies. Hurry and save yourselves before theenemy can close with us."[8]— Anaxibius, Spartan admiral (388 BCE), before being killedinAthenian ambushThe deathofEpaminondas."Then I die happy."[15]: 46 [17]— Epaminondas,
Greek general and statesmanofThebes (362 BCE
14. The value chain is the set of activities required to design, develop, produce, market, and deliver products and services
to customers.
a. True
b. False
15. Managerial accounting emphasizes the future.
a. True
b. False
16. The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as
decision making.
a. True
b. False
Copyright Cengage Learning. Powered by Cognero. Page 2
, Name: Class: Date:
17. Activity-based costing is a less detailed approach to determining the cost of goods and services than traditional cost
accounting.
a. True
b. False
18. Amelia compared the budgeted spending on labor and materials used in production to the actual spending on labor and
materials used in production. Labor spending was higher than expected. Amelia emailed Robbie to discuss this outcome.
This is a managerial accounting-oriented issue.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
19. Investigating production variances and adjusting the production process are examples of:
nothingofwhich I have cause torepent, exceptingacase which I will now submit toyour decision, that I may know whether I have acted properly or not."Onacertain occasio n, I chanced tobe oneofthree who satinjudgmentononeofmy own
good friends, who, according tothelaws, should have been punished with death. I was greatly embarrassed. Oneoftwo things was inevitable—either toviolate thelaw or condemn my friend. After careful consideration, I devised this
expedient. I delivered with such address all themost plausible argumentsinbehalfoftheaccused, that my two colleagues found no difficultyinacquitting him, and yet I, myself, condemned him todeath without assigning any reason formy
conduct. Thus I discharged two duties, thoseoffriend and judge; yet I feelinmy conscience something which makes me doubt whether my conduct was not criminal."[15]: 131–132 — ChilonofSparta, philosopher (6th century BCE), speaking
tohis friends before his death"Itisbetter toperish here than tokill all these poor beans."[15]: 130 [note 3]— Pythagoras, Ionian Greek philosopher and founderofPythagoreanism (495 BCE), refusing toescape with his students from
theCrotonians throughafava bean fieldParinirvanaoftheBuddha."All compounded things are subject tovanish. Strive with earnestness."[16][note 4](" ")— Siddhārtha Gautama Buddha, Shakya sage who
founded Buddhism (c. 483 BCE)"Heaven has turned against me. No wise ruler arises, and no oneintheEmpire wishes tomake me his teacher. thehourofmy death has come."[citation needed][note 5]— Confucius, Chinese philosopher who
founded Confucianism (479 BCE)"Can you turn rainy weather into dry?"[15]: 128 — Heraclitus, Greek philosopher (c. 475 BCE), asking his physicians forrelief from dropsy"For, no Athenian, through my means, ever wore
mourning."[15]: 37 — Pericles, Greek statesman (429 BCE), discussing with his friends what his greatest accomplishment had been"Give theboysaholiday."[8][11]: 4 [17][note 6]— Anaxagoras, Greek philosopher (c. 428 BCE),inresponse
tocitizensofLampsacus asking how they could honor his memory"This tothefair Critias."[17]— Theramenes, Athenian statesman (404 BCE), after swallowing poison hemlock which he had been condemned todrink by CritiasSocrates was
sentenced todeath after being accusedofquestioning traditional Athenian values."Crito, we oweacock toAsclepius. Please, don't forget topay thedebt."[18]("Κπίηων, ἔθη, ηῷ Ἀζκληπιῷ ὀθείλομεν ἀλεκηπςόνα• ἀλλὰ ἀπόδοηε καὶ μὴ
ἀμελήζηηε")— Socrates, Greek philosopher (399 BCE), just before his death by ingestionofpoison hemlock which he was forced todrink asadeath sentence"Men, itisgood forme todieonthis spot, where honor bids me; but foryou, yonder
your path lies. Hurry and save yourselves before theenemy can close with us."[8]— Anaxibius, Spartan admiral (388 BCE), before being killedinAthenian ambushThe deathofEpaminondas."Then I die happy."[15]: 46 [17]— Epaminondas,
Greek general and statesmanofThebes (362 BCE
a. planning.
b. controlling.
c. decision making.
d. All of these are correct.
20. Activity-based costing:
a. strives to create an environment that will enable workers to manufacture zero-defect products.
b. is the process of choosing among competing alternatives.
c. was established in response to financial scandals.
d. emphasizes the cost of tasks required to produce a product or offer a service.
21. Managerial accounting reports are prepared:
a. to provide creditors with information useful in making credit decisions.
b. to meet the needs of decision makers within a firm.
c. to present historical information.
d. All of these are correct.
22. Which of the following statements is true of managerial accounting?
a. Managerial accounting is the provision of accounting information for a company’s external users.
b. Managerial accounting attempts to provide information for controlling the organization’s actions.
c. Managerial accounting provides historical information.
d. Managerial accounting is subject to rules for external financial reporting.
23. The controller of an organization participates in:
a. planning.
b. controlling.
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, Name: Class: Date:
c. decision making.
d. All of these are correct
24. Which of the following would occupy a line position in a hospital?
a. Cafeteria manager
b. Hospital administrator
c. Chief of surgery
d. None of these are correct.
25. Which of the following statements is true of total quality management?
a. It is a management philosophy in which manufacturers strive to create an environment that will enable
workers to manufacture zero-defect products.
b. It has replaced the acceptable quality attitudes of the past.
c. It emphasizes the elimination of waste.
d. All of these are correct.
26. Which of the following areas is not emphasized by the Certified Management Accountant (CMA) examination?
a. External auditing and internal control
b. Management reporting, analysis, and behavioral issues
c. Decision analysis and information systems
d. Economics, finance, and management
27. Which of the following would normally hold a line position?
a. Staff accountant
b. Purchasing manager
c. General manager
d. Cost accountant
nothingofwhich I have cause torepent, exceptingacase which I will now submit toyour decision, that I may know whether I have acted properly or not."Onacertain occasion, I chanced tobe oneofthree who satinjudgmentononeofmy own
good friends, who, according tothelaws, should have been punished with death. I was greatly embarrassed. Oneoftwo things was inevitable—either toviolate thelaw or condemn my friend. After careful consideration, I devised this
expedient. I delivered with such address all themost plausible argumentsinbehalfoftheaccused, that my two colleagues found no difficultyinacquitting him, and yet I, myself, condemned him todeath without assigning any reason formy
conduct. Thus I discharged two duties, thoseoffriend and judge; yet I feelinmy conscience something which makes me doubt whether my conduct was not criminal."[15]: 131–132 — ChilonofSparta, philosopher (6th century BCE), speaking
tohis friends before his death"Itisbetter toperish here than tokill all these poor beans."[15]: 130 [note 3]— Pythagoras, Ionian Greek philosopher and founderofPythagoreanism (495 BCE), refusing toescape with his students from
theCrotonians throughafava bean fieldParinirvanaoftheBuddha."All compounded things are subject tovanish. Strive with earnestness."[16][note 4](" ")— Siddhārtha Gautama Buddha, Shakya sage who
founded Buddhism (c. 483 BCE)"Heaven has turned against me. No wise ruler arises, and no oneintheEmpire wishes tomake me his teacher. thehourofmy death has come."[citation needed][note 5]— Confucius, Chinese philosopher who
founded Confucianism (479 BCE)"Can you turn rainy weather into dry?"[15]: 128 — Heraclitus, Greek philosopher (c. 475 BCE), asking his physicians forrelief from dropsy"For, no Athenian, through my means, ever wore
mourning."[15]: 37 — Pericles, Greek statesman (429 BCE), discussing with his friends what his greatest accomplishment had been"Give theboysaholiday."[8][11]: 4 [17][note 6]— Anaxagoras, Greek philosopher (c. 428 BCE),inresponse
tocitizensofLampsacus asking how they could honor his memory"This tothefair Critias."[17]— Theramenes, Athenian statesman (404 BCE), after swallowing poison hemlock which he had been condemned todrink by CritiasSocrates was
sentenced todeath after being accusedofquestioning traditional Athenian values."Crito, we oweacock toAsclepius. Please, don't forget topay thedebt."[18]("Κπίηων, ἔθη, ηῷ Ἀζκληπιῷ ὀθείλομεν ἀλεκηπςόνα• ἀλλὰ ἀπόδοηε καὶ μὴ
ἀμελήζηηε")— Socrates, Greek philosopher (399 BCE), just before his death by ingestionofpoison hemlock which he was forced todrink asadeath sentence"Men, itisgood forme todieonthis spot, where honor bids me; but foryou, yonder
your path lies. Hurry and save yourselves before theenemy can close with us."[8]— Anaxibius, Spartan admiral (388 BCE), before being killedinAthenian ambushThe deathofEpaminondas."Then I die happy."[15]: 46 [17]— Epaminondas,
Greek general and statesmanofThebes (362 BCE
28. Which of the following statements is true of financial accounting?
a. Financial accounting is directed toward external users.
b. Financial accounting is subject to externally imposed rules.
c. Financial accounting provides information that can be objectively verified and audited.
d. All of these are correct.
29. Which of the following statements is true of profit maximization?
a. Profit maximization is achieved by considering the financial measures focused only on efficiency.
b. Profit maximization is an objective of financial accounting but not managerial accounting.
c. Profit maximization should be achieved through legal and ethical means.
d. Profit maximization results in maximum cost to and maximum production by a company.
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