Test Bank Managerial Accounting 7th Edition
by Karen W. Braun All Chapters 1-15 Covered
, TABLE OF CONTENTS
1. Introduction to Managerial Accounting
2. Building Blocks of Managerial Accounting
3. Job Costing
4. Activity-Based Costing, Lean Operations, and the Costs of
Quality
5. Process Costing
6. Cost Behavior
7. Cost-Volume-Profit Analysis
8. Relevant Costs for Short-Term Decisions
9. The Comprehensive Budget
10. Performance Evaluation
11. Standard Costs and Variances
12. Capital Investment Decisions and the Time Value of Money
13. Statement of Cash Flows
14. Financial Statement Analysis
15. Sustainability
,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 anorganization.
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 anorganization.
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 anorganization.
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 anorganization.
, 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 anorganization.
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 anorganization.
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 anorganization.
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 anorganization.
by Karen W. Braun All Chapters 1-15 Covered
, TABLE OF CONTENTS
1. Introduction to Managerial Accounting
2. Building Blocks of Managerial Accounting
3. Job Costing
4. Activity-Based Costing, Lean Operations, and the Costs of
Quality
5. Process Costing
6. Cost Behavior
7. Cost-Volume-Profit Analysis
8. Relevant Costs for Short-Term Decisions
9. The Comprehensive Budget
10. Performance Evaluation
11. Standard Costs and Variances
12. Capital Investment Decisions and the Time Value of Money
13. Statement of Cash Flows
14. Financial Statement Analysis
15. Sustainability
,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 anorganization.
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 anorganization.
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 anorganization.
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 anorganization.
, 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 anorganization.
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 anorganization.
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 anorganization.
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 anorganization.
