,Chapter 1: The role of accounting information in management decision
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making
True/false questions ma
1. A vision statement is a theoretical description of what an organisation should become.
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*a. True ma
b. False
ma
Correct answer: a
ma ma
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisat
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ion
2. An organisational vision is a short-term plan for maximising financial results.
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a. True
*b. False ma
Correct answer: b
ma ma
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisa
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tion
3. Most organisations have one stakeholder.
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a. True
*b. False ma
Correct answer: b
ma ma
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisat
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ion
4. Organisational core competencies unrelated to the organisational vision.
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a. True
*b. False ma
Correct answer: b
ma ma
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisat
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ion
1.2
,5. Organisational strategies are the tactics that managers use to take advantage of cor
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e competencies while working towards the organisational vision.
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*a. True ma
b. False
ma
Correct answer: a ma ma
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisat
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ion
6. Most organisations have databases that contain information collected formally o
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r informally from internal sources only.
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a. True
*b. False
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Correct answer: b ma ma
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisat
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ion
7. Desirable employee behaviour can be motivated by tying employee performanc
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e evaluation and pay to long-term or short-term results.
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*a. True ma
b. False
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Correct answer: a ma ma
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisat
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ion
8. Organisational information systems only collect accounting information.
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a. True
*b. False ma
Correct answer: b ma ma
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
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in management decision making
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1.3
, 9. Cost accounting information is used for both management accounting and financia
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l accounting activities.
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*a. True ma
b. False
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Correct answer: a ma ma
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
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in management decision making
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10. Management accounting is the process of gathering, summarising and reportin
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g financial and non-financial information used internally to make decisions.
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*a. True ma
b. False
ma
Correct answer: a ma ma
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
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in management decision making
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11. Intellectual capital is a type of financial resource that is captured by the organisation’
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s information system.
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a. True
*b. False ma
Correct answer: b ma ma
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
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in management decision making
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12. It is easy to differentiate between internal and external reports.
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a. True
*b. False ma
Correct answer: b ma ma
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
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in management decision making
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1.4
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making
True/false questions ma
1. A vision statement is a theoretical description of what an organisation should become.
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*a. True ma
b. False
ma
Correct answer: a
ma ma
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisat
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ion
2. An organisational vision is a short-term plan for maximising financial results.
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a. True
*b. False ma
Correct answer: b
ma ma
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisa
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tion
3. Most organisations have one stakeholder.
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a. True
*b. False ma
Correct answer: b
ma ma
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisat
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ion
4. Organisational core competencies unrelated to the organisational vision.
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a. True
*b. False ma
Correct answer: b
ma ma
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisat
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ion
1.2
,5. Organisational strategies are the tactics that managers use to take advantage of cor
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e competencies while working towards the organisational vision.
ma ma ma ma ma ma ma
*a. True ma
b. False
ma
Correct answer: a ma ma
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisat
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ion
6. Most organisations have databases that contain information collected formally o
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r informally from internal sources only.
ma ma ma ma ma
a. True
*b. False
ma
Correct answer: b ma ma
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisat
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ion
7. Desirable employee behaviour can be motivated by tying employee performanc
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e evaluation and pay to long-term or short-term results.
ma ma ma ma ma ma ma ma
*a. True ma
b. False
ma
Correct answer: a ma ma
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisat
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ion
8. Organisational information systems only collect accounting information.
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a. True
*b. False ma
Correct answer: b ma ma
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
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in management decision making
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1.3
, 9. Cost accounting information is used for both management accounting and financia
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l accounting activities.
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*a. True ma
b. False
ma
Correct answer: a ma ma
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
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in management decision making
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10. Management accounting is the process of gathering, summarising and reportin
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g financial and non-financial information used internally to make decisions.
ma ma ma ma ma ma ma ma ma
*a. True ma
b. False
ma
Correct answer: a ma ma
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
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in management decision making
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11. Intellectual capital is a type of financial resource that is captured by the organisation’
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s information system.
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a. True
*b. False ma
Correct answer: b ma ma
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
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in management decision making
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12. It is easy to differentiate between internal and external reports.
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a. True
*b. False ma
Correct answer: b ma ma
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
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in management decision making
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1.4
