Test Bank For Managerial A
f f f f
ccounting 12thEditionByGa
f f f f
rrison, Complete Study Guid
f f f
e, Chapter 1-17
f f
,Chapter 1 Managerial Accounting and the Business Environment
f f f f f f f
True/FalsefQuestions
1. Althoughffinancialfandfmanagerialfaccountingfdifferfinfmanyfways,ftheyfarefsimilarfinftha
tfbothfrelyfonfthefsamefunderlyingffinancialfdata.
Answer:fTruef Level:fMediumf LO:f1
2. Managerialfaccountingfisfafbranchfofffinancialfaccountingfandfservesfessentiallyfthefsa
mefpurposesfasffinancialfaccounting.
Answer:fFalsef Level:fMediumf LO:f1
3. Managerialfaccountingfplacesfgreaterfemphasisfonftheffuturefthanffinancialfac
counting,fwhichfisfprimarilyfconcernedfwithfthefpast.
Answer:fTruef Level:fEasyf LO:f1
4. Managerialfaccountingfisfnotfneededfinfafnon-profitforfgovernmentalforganization.
Answer:fFalsef Level:fEasyf LO:f1
5. Whenfcarryingfoutftheirfplanningfactivities,fmanagersfselectfafcoursefoffactionfandfspe
cifyfhowfthefactionfwillfbefimplemented.
Answer:fTruef Level:fEasyf LO:f2
6. Whenfcarryingfoutftheirfplanningfactivities,fmanagersfobtainffeedbackftofensurefthatfthef
planfisfactuallyfcarriedfoutfandfisfappropriatelyfmodifiedfasfcircumstancesfchange.
Answer:fFalsef Level:fMediumf LO:f2
7. Thefcontrollerfoccupiesfaflinefpositionfinfanforganization.
Answer:fFalsef Level:fEasyf LO:f2
8. Decentralizationfmeansfthefdelegationfoffdecision-
makingfauthorityfthroughoutfanforganizationfbyfallowingfmanagersfatfvariousfoperatin
gflevelsftofmakefkeyfdecisionsfrelatingftoftheirfownfareafoffresponsibility.
Answer:fTruef Level:fEasyf LO:f2
3
,Chapter 1 Managerial Accounting and the Business Environment
f f f f f f f
9. Affirm'sforganizationfchartfwillfnormallyfshowfbothfthefformalfandfinformalflinesfoffrep
ortingfandfcommunication.
Answer:fFalsef Level:fEasyf LO:f2
10. ThefChieffFinancialfOfficerfoffanforganizationfisfresponsiblefforfensuringfthatflinefop
erationsfrunfsmoothly.
Answer:fFalsef Level:fMediumf LO:f2
11. Traditionally,fcompaniesfhavefmaintainedflargefamountsfoffrawfmaterials,fworkfinfproce
ss,fandffinishedfgoodsfinventoriesftofactfasfbuffersfsofthatfoperationsfcanfproceedfsmoothly
fevenfifftherefarefunanticipatedfdisruptions.
Answer:fTruef Level:fMediumf LO:f3
12. ProcessfReengineeringfisfgenerallyfconsideredftofbefafmorefradicalfapproachftofim
provementfthanfTotalfQualityfManagement.
Answer:fTruef Level:fEasyf LO:f3
13. ProcessfReengineeringfemphasizesfafteamfapproachfinvolvingffront-
linefworkers,fwhereasfTotalfQualityfManagementfisfusuallyfimplementedfusingfoutside
fspecialistsfandfisfimposedffromfabove.
Answer:fFalsef Level:fMediumf LO:f3
14. Iffethicalfstandardsfwerefnotfgenerallyffollowed,fonefoffthefresultsfwouldfprobablyfbeffew
erfgoodsfandfservicesfavailablefinfthefmarketplace.
Answer:fTruef Level:fMediumf LO:f4
15. ThefStandardsfoffEthicalfConductfforfManagementfAccountantsfpromulgatedfbyfthefIns
titutefoffManagementfAccountantsfspecificallyfstatefthatfmanagementfaccountants'fsolefe
thicalfresponsibilityfisftofnotfbreakfanyflaws.
Answer:fFalsef Level:fEasyf LO:f4
4
, Chapter 1 Managerial Accounting and the Business Environment
f f f f f f f
MultiplefChoicefQuestions
16. Managementfaccountingffocusesfprimarilyfonfprovidingfdataffor:
A) internalfusesfbyfmanagers.
B) externalfusesfbyfstockholdersfandfcreditors.
C) externalfusesfbyfthefInternalfRevenuefService.
D) externalfusesfbyfthefSecuritiesfandfExchangefCommission.
Answer:fAf Level:fEasyf LO:f1
17. Managerialfaccounting:
A) isfmoreffutureforientedfthanffinancialfaccounting.
B) tendsftofsummarizefinformationfmorefthanffinancialfaccounting
C) isfprimarilyfconcernedfwithfprovidingfinformationftofexternalfusers.
D) isfmorefconcernedfwithfprecisionfthanftimeliness.
Answer:fAf Level:fEasyf LO:f1
18. Comparedftoffinancialfaccounting,fmanagerialfaccountingfplacesfmorefemphasisfon:
A) thefflexibilityfoffinformation.
B) thefprecisionfoffinformation.
C) theftimelinessfoffinformation.
D) bothfAfandfCfabove.
Answer:fDf Level:fEasyf LO:f1
19. Theffunctionfoffmanagementfthatfcomparesfplannedfresultsftofactualfresultsfisfknownfas:
A) planning.
B) directingfandfmotivating.
C) controlling.
D) decisionfmaking.
Answer:fCf Level:fEasyf LO:f2
20. Whichfofftheffunctionsfoffmanagementfinvolvesfoverseeingfday-to-dayfactivities?
A) Planning
B) Directingfandfmotivating
C) Controlling
D) Decisionfmaking
Answer:fBf Level:fEasyf LO:f2
5
f f f f
ccounting 12thEditionByGa
f f f f
rrison, Complete Study Guid
f f f
e, Chapter 1-17
f f
,Chapter 1 Managerial Accounting and the Business Environment
f f f f f f f
True/FalsefQuestions
1. Althoughffinancialfandfmanagerialfaccountingfdifferfinfmanyfways,ftheyfarefsimilarfinftha
tfbothfrelyfonfthefsamefunderlyingffinancialfdata.
Answer:fTruef Level:fMediumf LO:f1
2. Managerialfaccountingfisfafbranchfofffinancialfaccountingfandfservesfessentiallyfthefsa
mefpurposesfasffinancialfaccounting.
Answer:fFalsef Level:fMediumf LO:f1
3. Managerialfaccountingfplacesfgreaterfemphasisfonftheffuturefthanffinancialfac
counting,fwhichfisfprimarilyfconcernedfwithfthefpast.
Answer:fTruef Level:fEasyf LO:f1
4. Managerialfaccountingfisfnotfneededfinfafnon-profitforfgovernmentalforganization.
Answer:fFalsef Level:fEasyf LO:f1
5. Whenfcarryingfoutftheirfplanningfactivities,fmanagersfselectfafcoursefoffactionfandfspe
cifyfhowfthefactionfwillfbefimplemented.
Answer:fTruef Level:fEasyf LO:f2
6. Whenfcarryingfoutftheirfplanningfactivities,fmanagersfobtainffeedbackftofensurefthatfthef
planfisfactuallyfcarriedfoutfandfisfappropriatelyfmodifiedfasfcircumstancesfchange.
Answer:fFalsef Level:fMediumf LO:f2
7. Thefcontrollerfoccupiesfaflinefpositionfinfanforganization.
Answer:fFalsef Level:fEasyf LO:f2
8. Decentralizationfmeansfthefdelegationfoffdecision-
makingfauthorityfthroughoutfanforganizationfbyfallowingfmanagersfatfvariousfoperatin
gflevelsftofmakefkeyfdecisionsfrelatingftoftheirfownfareafoffresponsibility.
Answer:fTruef Level:fEasyf LO:f2
3
,Chapter 1 Managerial Accounting and the Business Environment
f f f f f f f
9. Affirm'sforganizationfchartfwillfnormallyfshowfbothfthefformalfandfinformalflinesfoffrep
ortingfandfcommunication.
Answer:fFalsef Level:fEasyf LO:f2
10. ThefChieffFinancialfOfficerfoffanforganizationfisfresponsiblefforfensuringfthatflinefop
erationsfrunfsmoothly.
Answer:fFalsef Level:fMediumf LO:f2
11. Traditionally,fcompaniesfhavefmaintainedflargefamountsfoffrawfmaterials,fworkfinfproce
ss,fandffinishedfgoodsfinventoriesftofactfasfbuffersfsofthatfoperationsfcanfproceedfsmoothly
fevenfifftherefarefunanticipatedfdisruptions.
Answer:fTruef Level:fMediumf LO:f3
12. ProcessfReengineeringfisfgenerallyfconsideredftofbefafmorefradicalfapproachftofim
provementfthanfTotalfQualityfManagement.
Answer:fTruef Level:fEasyf LO:f3
13. ProcessfReengineeringfemphasizesfafteamfapproachfinvolvingffront-
linefworkers,fwhereasfTotalfQualityfManagementfisfusuallyfimplementedfusingfoutside
fspecialistsfandfisfimposedffromfabove.
Answer:fFalsef Level:fMediumf LO:f3
14. Iffethicalfstandardsfwerefnotfgenerallyffollowed,fonefoffthefresultsfwouldfprobablyfbeffew
erfgoodsfandfservicesfavailablefinfthefmarketplace.
Answer:fTruef Level:fMediumf LO:f4
15. ThefStandardsfoffEthicalfConductfforfManagementfAccountantsfpromulgatedfbyfthefIns
titutefoffManagementfAccountantsfspecificallyfstatefthatfmanagementfaccountants'fsolefe
thicalfresponsibilityfisftofnotfbreakfanyflaws.
Answer:fFalsef Level:fEasyf LO:f4
4
, Chapter 1 Managerial Accounting and the Business Environment
f f f f f f f
MultiplefChoicefQuestions
16. Managementfaccountingffocusesfprimarilyfonfprovidingfdataffor:
A) internalfusesfbyfmanagers.
B) externalfusesfbyfstockholdersfandfcreditors.
C) externalfusesfbyfthefInternalfRevenuefService.
D) externalfusesfbyfthefSecuritiesfandfExchangefCommission.
Answer:fAf Level:fEasyf LO:f1
17. Managerialfaccounting:
A) isfmoreffutureforientedfthanffinancialfaccounting.
B) tendsftofsummarizefinformationfmorefthanffinancialfaccounting
C) isfprimarilyfconcernedfwithfprovidingfinformationftofexternalfusers.
D) isfmorefconcernedfwithfprecisionfthanftimeliness.
Answer:fAf Level:fEasyf LO:f1
18. Comparedftoffinancialfaccounting,fmanagerialfaccountingfplacesfmorefemphasisfon:
A) thefflexibilityfoffinformation.
B) thefprecisionfoffinformation.
C) theftimelinessfoffinformation.
D) bothfAfandfCfabove.
Answer:fDf Level:fEasyf LO:f1
19. Theffunctionfoffmanagementfthatfcomparesfplannedfresultsftofactualfresultsfisfknownfas:
A) planning.
B) directingfandfmotivating.
C) controlling.
D) decisionfmaking.
Answer:fCf Level:fEasyf LO:f2
20. Whichfofftheffunctionsfoffmanagementfinvolvesfoverseeingfday-to-dayfactivities?
A) Planning
B) Directingfandfmotivating
C) Controlling
D) Decisionfmaking
Answer:fBf Level:fEasyf LO:f2
5
