Garrison Managerial Accounting 12th Edition Test Bank – Chapters 1-4 Practice Questions & Answers

ChapterV1V ManagerialVAccountingVandVtheVBusinessVEnvironme
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True/FalseVQuestions

1. AlthoughVfinancialVandVmanagerialVaccountingVdifferVinVmanyVways,VtheyVareVsi
milarVinVthatVbothVrelyVonVtheVsameVunderlyingVfinancialVdata.

Answer:VTrueV V Level:VMediumV V LO:V1

2. ManagerialVaccountingVisVaVbranchVofVfinancialVaccountingVandVservesVessential
lyVtheVsameVpurposesVasVfinancialVaccounting.

Answer:VFalseV V Level:VMediumV V LO:V1

3. ManagerialVaccountingVplacesVgreaterVemphasisVonVtheVfutureVthanVfina
ncialVaccounting,VwhichVisVprimarilyVconcernedVwithVtheVpast.

Answer:VTrueV V Level:VEasyV V LO:V1

4. ManagerialVaccountingVisVnotVneededVinVaVnon-profitVorVgovernmentalVorganization.

Answer:VFalseV V Level:VEasyV V LO:V1

5. WhenVcarryingVoutVtheirVplanningVactivities,VmanagersVselectVaVcourseVofVacti
onVandVspecifyVhowVtheVactionVwillVbeVimplemented.

Answer:VTrueV V Level:VEasyV V LO:V2

6. WhenVcarryingVoutVtheirVplanningVactivities,VmanagersVobtainVfeedbackVtoVensure
VthatVtheVplanVisVactuallyVcarriedVoutVandVisVappropriatelyVmodifiedVasVcircumsta
ncesVchange.

Answer:VFalseV V Level:VMediumV V LO:V2

7. TheVcontrollerVoccupiesVaVlineVpositionVinVanVorganization.

Answer:VFalseV V Level:VEasyV V LO:V2

8. DecentralizationVmeansVtheVdelegationVofVdecision-
makingVauthorityVthroughoutVanVorganizationVbyVallowingVmanagersVatVvariousV
operatingVlevelsVtoVmakeVkeyVdecisionsVrelatingVtoVtheirVownVareaVofVresponsibi
lity.

Answer:VTrueV V Level:VEasyV V LO:V2



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9. AVfirm'sVorganizationVchartVwillVnormallyVshowVbothVtheVformalVandVinformalVl
inesVofVreportingVandVcommunication.

Answer:VFalseV V Level:VEasyV V LO:V2

10. TheVChiefVFinancialVOfficerVofVanVorganizationVisVresponsibleVforVensuringVth
atVlineVoperationsVrunVsmoothly.

Answer:VFalseV V Level:VMediumV V LO:V2

11. Traditionally,VcompaniesVhaveVmaintainedVlargeVamountsVofVrawVmaterials,VworkV
inVprocess,VandVfinishedVgoodsVinventoriesVtoVactVasVbuffersVsoVthatVoperationsVca
nVproceedVsmoothlyVevenVifVthereVareVunanticipatedVdisruptions.

Answer:VTrueV V Level:VMediumV V LO:V3

12. ProcessVReengineeringVisVgenerallyVconsideredVtoVbeVaVmoreVradicalVappro
achVtoVimprovementVthanVTotalVQualityVManagement.

Answer:VTrueV V Level:VEasyV V LO:V3

13. ProcessVReengineeringVemphasizesVaVteamVapproachVinvolvingVfront-
lineVworkers,VwhereasVTotalVQualityVManagementVisVusuallyVimplementedVusing
VoutsideVspecialistsVandVisVimposedVfromVabove.


Answer:VFalseV V Level:VMediumV V LO:V3

14. IfVethicalVstandardsVwereVnotVgenerallyVfollowed,VoneVofVtheVresultsVwouldVprob
ablyVbeVfewerVgoodsVandVservicesVavailableVinVtheVmarketplace.

Answer:VTrueV V Level:VMediumV V LO:V4

15. TheVStandardsVofVEthicalVConductVforVManagementVAccountantsVpromulgatedVb
yVtheVInstituteVofVManagementVAccountantsVspecificallyVstateVthatVmanagementVa
ccountants'VsoleVethicalVresponsibilityVisVtoVnotVbreakVanyVlaws.

Answer:VFalseV V Level:VEasyV V LO:V4




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,ChapterV1V ManagerialVAccountingVandVtheVBusinessVEnvironme
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MultipleVChoiceVQuestions

16. ManagementVaccountingVfocusesVprimarilyVonVprovidingVdataVfor:
A) internalVusesVbyVmanagers.
B) externalVusesVbyVstockholdersVandVcreditors.
C) externalVusesVbyVtheVInternalVRevenueVService.
D) externalVusesVbyVtheVSecuritiesVandVExchangeVCommission.

Answer:VAV V Level:VEasyV V LO:V1

17. ManagerialVaccounting:
A) isVmoreVfutureVorientedVthanVfinancialVaccounting.
B) tendsVtoVsummarizeVinformationVmoreVthanVfinancialVaccounting
C) isVprimarilyVconcernedVwithVprovidingVinformationVtoVexternalVusers.
D) isVmoreVconcernedVwithVprecisionVthanVtimeliness.

Answer:VAV V Level:VEasyV V LO:V1

18. ComparedVtoVfinancialVaccounting,VmanagerialVaccountingVplacesVmoreVemphasisVon:
A) theVflexibilityVofVinformation.
B) theVprecisionVofVinformation.
C) theVtimelinessVofVinformation.
D) bothVAVandVCVabove.

Answer:VDV V Level:VEasyV V LO:V1

19. TheVfunctionVofVmanagementVthatVcomparesVplannedVresultsVtoVactualVresultsVisV
knownVas:
A) planning.
B) directingVandVmotivating.
C) controlling.
D) decisionVmaking.

Answer:VCV V Level:VEasyV V LO:V2

20. WhichVofVtheVfunctionsVofVmanagementVinvolvesVoverseeingVday-to-dayVactivities?
A) Planning
B) DirectingVandVmotivating
C) Controlling
D) DecisionVmaking

Answer:VBV V Level:VEasyV V LO:V2



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21. WhichVofVtheVfollowingVisVnotVoneVofVtheVthreeVbasicVactivitiesVofVaVmanager?
A) Planning
B) Controlling
C) DirectingVandVmotivating
D) CompilingVmanagementVaccountingVrepor

tsVAnswer:VDV Level:VEasyV LO:V2

22. TheVdelegationVofVdecisionVmakingVtoVlowerVlevelsVinVanVorganizationVisVknownVas:
A) theVplanningVandVcontrolVcycle.
B) controlling.
C) decentralization.
D) noneVofVthese.

Answer:VCV V Level:VEasyV V LO:V2

23. WhichVofVtheVfollowingVstatementsVareVfalseVconcerningVlineVandVstaffVfunctions?

I. PersonsVoccupyingVstaffVfunctionsVhaveVauthorityVoverVpersonsVoccupying
VlineVfunctions.
II. BothVlineVandVstaffVfunctionsVareVdepictedVonVtheVorganizationVchart.
III. LineVfunctionsVareVdirectlyVrelatedVtoVtheVbasicVobjectivesVofVanVorganization.

A) OnlyVI
B) OnlyVII
C) OnlyVIVandVII
D) I,VII,VandVIII

Answer:VAV V Level:VMediumV V LO:V2

24. WhichVofVfollowingVwouldVnormallyVbeVfoundVonVaVmanufacturingVcom
pany'sVorganizationVchart?
A) theVlayoutVofVtheVfactoryVassemblyVlines
B) aVlistVofVtheVmaterialsVneededVtoVproduceVeachVofVtheVcompany'sVproducts
C) theVinformalVlinesVofVreportingVandVcommunication
D) noneVofVtheVabove

Answer:VDV V Level:VEasyV V LO:V2




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