TEST BANK
Accounting for Decision Making and Control, | 10th Edition
by Jerold Zimmerman
SC
O
R
EG
U
ID
ES
, Table of Content
Ch. 1 Introduction
Ch. 2 The Nature of Costs
Ch. 3 Opportunity Cost of Capital and Capital Budgeting
Ch. 4 Organizational Architecture
SC
Ch. 5 Responsibility Accounting and Transfer Pricing
Ch. 6 Budgeting
Ch. 7 Cost Allocation: Theory
O
Ch. 8 Cost Allocation: Practices
Ch. 9 Absorption Cost Systems
R
Ch. 10 Criticisms of Absorption Cost Systems: Incentive to Overproduce
EG
Ch. 11 Criticisms of Absorption Cost Systems: Inaccurate Product Costs
Ch. 12 Standard Costs: Direct Labor and Materials
Ch. 13 Overhead and Marketing Variances
U
Ch. 14 Management Accounting in a Changing Environment
ID
ES
, Chapter 01 Test Bank – Static Key
Multiple Choice Questions
1. The firm's information system:
A. is always a single integrated system
B. includes only financial information
SC
C. may include other information such as customer satisfaction surveys, in addition to financial information
D. is less important as a firm grows in size
E. none of the above
The firm's information system includes many kinds of financial and non-financial information.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
O
Accessibility: Screen Reader Compatible
AICPA: BB Industry
AICPA: FN Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
R
Topic: Managerial Accounting: Decision Making and Control
2. Identify all the correct statements:
EG
A. Managers naturally seek to maximize shareholders' wealth
B. Managers act in their own interests, and so there is no way to align their interests with those of the owners
C. To motivate managers in non-profit firms, no employee incentives are needed
D. To align the interests of managers and owners, owners must design systems to monitor and reward management behavior that
increases the firm's profits
E. none of the above
To minimize conflicts between the economic interests of managers and owners, the owners need both systems to monitor the
U
manager's performance and systems of rewards or incentives.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
ID
AICPA: BB Industry
AICPA: FN Decision Making
AICPA: FN Risk Analysis
Blooms: Remember
Difficulty: 1 Easy
Topic: Management Accountant's Role in the Organization
ES
Topic: Managerial Accounting: Decision Making and Control
3-1
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, 3. An internal accounting system should:
A. provide information to enable costs to be minimized
B. provide financial accounting data for external reporting purposes
C. provide management accounting information for decision-making
D. provide data for tax purposes
E. all of the above
A well designed internal accounting system should provide data for external purposes, such as financial reporting and tax, as
well as internal purposes such as cost control, assessing performance and determining rewards. It is economically inefficient to
SC
maintain multiple accounting systems.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
O
Topic: Design and Use of Cost Systems
4. Economic Darwinism:
A. explains why firms persist in inefficient behavior
R
B. explains why some inefficient accounting practices persist
C. explains why marmots eat bears
D. explains why bears eat marmots
EG
E. none of the above
Inefficient accounting systems may continue to exist either because they have proved better than other systems or because better
systems have not been yet discovered.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
AICPA: BB Marketing
U
AICPA: FN Risk Analysis
Blooms: Remember
Difficulty: 1 Easy
Topic: Marmots and Grizzly Bears
ID
ES
3-2
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Accounting for Decision Making and Control, | 10th Edition
by Jerold Zimmerman
SC
O
R
EG
U
ID
ES
, Table of Content
Ch. 1 Introduction
Ch. 2 The Nature of Costs
Ch. 3 Opportunity Cost of Capital and Capital Budgeting
Ch. 4 Organizational Architecture
SC
Ch. 5 Responsibility Accounting and Transfer Pricing
Ch. 6 Budgeting
Ch. 7 Cost Allocation: Theory
O
Ch. 8 Cost Allocation: Practices
Ch. 9 Absorption Cost Systems
R
Ch. 10 Criticisms of Absorption Cost Systems: Incentive to Overproduce
EG
Ch. 11 Criticisms of Absorption Cost Systems: Inaccurate Product Costs
Ch. 12 Standard Costs: Direct Labor and Materials
Ch. 13 Overhead and Marketing Variances
U
Ch. 14 Management Accounting in a Changing Environment
ID
ES
, Chapter 01 Test Bank – Static Key
Multiple Choice Questions
1. The firm's information system:
A. is always a single integrated system
B. includes only financial information
SC
C. may include other information such as customer satisfaction surveys, in addition to financial information
D. is less important as a firm grows in size
E. none of the above
The firm's information system includes many kinds of financial and non-financial information.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
O
Accessibility: Screen Reader Compatible
AICPA: BB Industry
AICPA: FN Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
R
Topic: Managerial Accounting: Decision Making and Control
2. Identify all the correct statements:
EG
A. Managers naturally seek to maximize shareholders' wealth
B. Managers act in their own interests, and so there is no way to align their interests with those of the owners
C. To motivate managers in non-profit firms, no employee incentives are needed
D. To align the interests of managers and owners, owners must design systems to monitor and reward management behavior that
increases the firm's profits
E. none of the above
To minimize conflicts between the economic interests of managers and owners, the owners need both systems to monitor the
U
manager's performance and systems of rewards or incentives.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
ID
AICPA: BB Industry
AICPA: FN Decision Making
AICPA: FN Risk Analysis
Blooms: Remember
Difficulty: 1 Easy
Topic: Management Accountant's Role in the Organization
ES
Topic: Managerial Accounting: Decision Making and Control
3-1
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, 3. An internal accounting system should:
A. provide information to enable costs to be minimized
B. provide financial accounting data for external reporting purposes
C. provide management accounting information for decision-making
D. provide data for tax purposes
E. all of the above
A well designed internal accounting system should provide data for external purposes, such as financial reporting and tax, as
well as internal purposes such as cost control, assessing performance and determining rewards. It is economically inefficient to
SC
maintain multiple accounting systems.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
O
Topic: Design and Use of Cost Systems
4. Economic Darwinism:
A. explains why firms persist in inefficient behavior
R
B. explains why some inefficient accounting practices persist
C. explains why marmots eat bears
D. explains why bears eat marmots
EG
E. none of the above
Inefficient accounting systems may continue to exist either because they have proved better than other systems or because better
systems have not been yet discovered.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
AICPA: BB Marketing
U
AICPA: FN Risk Analysis
Blooms: Remember
Difficulty: 1 Easy
Topic: Marmots and Grizzly Bears
ID
ES
3-2
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
