Solutions for Managerial Accounting, 1st edition by Jennifer Cainas.pdf

Test Bank for Managerial Accounting, 1st Edition by Jennifer Cainas
n n n n n n n n n




All Chapters
n

ManagerialnAccounting,n1en(Cainas,nPope,nJoszi)
Chaptern1 ManagerialnAccounting:nAnnInformationnSystem

LearningnObjectiven1.1

1) Financialnaccountingnemphasizesnrelevant,ndetailedninformationnthatnmaynbenusedntonforecastnf
uturenperformance.
Answer:n FALSEnObje
ctive:n 1
AACSB:n n Applicationnofnknowledge

2) Managerialnaccountingnrequiresnaccountantsntonfollowngenerallynacceptednaccountingn
principlesn(GAAP)nwhennproducingnoperationalnreports.
Answer:n FALSEnObje
ctive:n 1
AACSB:n n Applicationnofnknowledge

3) ThenannualntaxnreturnnfilednwithnthenInternalnRevenuenServicen(IRS)nisnannexamplenofnanreportng
eneratednfromnanfinancialnaccountingnsystem.
Answer:n TRUEnObject
ive:n 1
AACSB:n n Applicationnofnknowledge

4) Thennumbernofndefectivenmaterialsnreceivednfromnvendorsncouldnbendirectlynreportednforn
managerialnaccountingnbutnnotnfinancialnaccounting.
Answer:n TRUEnObject
ive:n 1
AACSB:n n Reflectiventhinking

5) Financialnaccountingnandnmanagerialnaccountingndifferninnthat:
A) financialnreportingnisnfocusednonnforecastednfuturenperformance.
B) managerialnaccountingnreportingnrequirementsnarenbasednonnthenneedsnofnmanagement.
C) managerialnaccountingninformationnisnprimarilynusednbynindividualsnexternalntonthenbusiness.
D) financialnreportingnprovidesnrelevantnandndetailedninformation.n
Answer:n B
Objective:n n 1
AACSB:n n Applicationnofnknowledge

6) Thenobjectivenofnfinancialnaccountingnisnto:
A) providensummarizednreportsntonexternalnstakeholdersnforndecisionnmaking.
B) providendetailedninformationntonoperationalnandnupper-levelnmanagersnforndecisionnmaking.
C) generatenreportsnthatnmeetnthenneedsnofnmanagement.
D) emphasizencurrent,nrelevantnperformance.n
Answer:n A
Objective:n n 1
AACSB:n n Applicationnofnknowledge


1

,7) Anreportndetailingnthennumbernofnon-
timendeliveriesnbyngeographicnareanisnmostnlikelynusednbyna(n):
A) investor.
B) upper-levelnmanager.
C) vendor.
D) operationsnmanager.
Answer:n n D
Objective:n n 1
AACSB:n n Reflectiventhinking

8) Anstaffnaccountantnisnprovidednwithninformationnaboutnthenprojectednprofitabilitynofnanc
ompany'snthreenproductnlinesnfornthenupcomingnyear.

WhatnisnNOTnanreasonnthisnrepresentsnanmanagerialnreport?
A) Theninformationnwasnprovidedntonannexternalnuser.
B) Thenreport'snfocusnisnonnforecastednfuturenperformance.
C) Theninformationnisndetailed.
D) Thendatanisnrelatedntonbothnfinancialnandnoperationalnfunctions.n
Answer:n A
Objective:n n 1
AACSB:n n Reflectiventhinking

9) Whichnofnthenfollowingnusesnmanagerialnaccountingninformation?
A) Cityngovernmentsnandnuniversities.
B) AnnInternationalnconsultingnfirm.
C) Small,nindividuallynownednbusiness.
D) Allnofnthenabove.n
Answer:n DnObjecti
ve:n 1
AACSB:n Reflectiventhinkingn

LearningnObjectiven1.2

1) Planningnisnanmorenimportantnfunctionnthanncontrolnbecausenitnisndonenfirst.n
Answer:n FALSE
Objective:n n 2
AACSB:n n Reflectiventhinking

2) Identifynthenappropriatenorderninnwhichnthenspecifiednmanagerialnfunctionsnshouldnben
performed.
A) Implementingn&nControlling;nPlanning;nDecisionnMaking
B) DecisionnMaking;nImplementingn&nControlling;nPlanning
C) Planning;nImplementingn&nControlling;nDecisionnMaking
D) Implementingn&nControlling;nDecisionnMaking;nPlanningn
Answer:n C
Objective:n n 2
AACSB:n n Applicationnofnknowledge

2

,3) Decreasingncostsnbyn5%nthisnyearnisnannexamplenofnanlong-
termngoal.nAnswer:n FALSE
Objective:n n 2
AACSB:n n Applicationnofnknowledge

4) WhichnisnNOTnannexamplenofnannactivitynperformedninnthenplanningnstage?
A) Comparenthenresultsnofncurrentnyearnactivitiesnagainstnthenplannandninvestigatenallnsignificantnd
eviations.
B) Reviewnhistoricalnsalesndatanfornthenbusinessnandnitsncompetitors.
C) Considernnewnproductsnunderndevelopment.
D) Obtainncertainneconomicnandnindustryndatantonunderstandnthencurrentnmarketplacenconditions.n
Answer:n A
Objective:n n 2
AACSB:n n Reflectiventhinking

5) Controlninvolvesncomparingnthencompany'snplann(budget)ntonthenactualnresultsnachievednandni
nvestigatingnunusualndifferences.
Answer:n TRUEnObject
ive:n 2
AACSB:n n Applicationnofnknowledge

6) Operationalndecisionsnrelatentonwhichnmarkets,ncustomers,nservices,nornproductsntonprovide.n
Answer:n FALSE
Objective:n n 2
AACSB:n n Applicationnofnknowledge

7) Thencurrentnchallengenwithnobtainingndatanforndecisionnmakingnisnidentifyingnbothnrelevantnandnu
sefulndata.
Answer:n TRUEnObject
ive:n 2
AACSB:n n Applicationnofnknowledge

8) Informationnmustnbenpresentedninnthenformnofnanreportntonbenusefulnforndecisionnmaking.n
Answer:n FALSE
Objective:n n 2
AACSB:n n Applicationnofnknowledge

9) PlanningnisntonsettingngoalsnandnobjectivesnasnDecisionnMakingnisnto:
A) turningnanbusinessnplannintonaction.
B) selectingnancoursenofnactionnfornthenbusiness.
C) monitoringnactualnresultsnagainstnthenplan.
D) identifyingnanstrategicnvisionnfornthenbusiness.n
Answer:n B
Objective:n n 2
AACSB:n n Applicationnofnknowledge


3

, LearningnObjectiven1.3

1) Theninformationnneedsnofnoperationsnandnupper-
levelnmanagementnarenthensame.nAnswer:n FALSE
Objective:n n 3
AACSB:n n Applicationnofnknowledge

2) Examplesnofndailynreportsnreceivednbynoperationsnmanagersninclude:npaymentsnreceivednbync
ustomers,nnumbernofnon-timendeliveries,nandncustomernsatisfactionnsurveys.
Answer:n TRUEnObject
ive:n 3
AACSB:n n Reflectiventhinking

3) Upper-
levelnmanagersnarenton"whonarenmynbiggestncompetitors?"nasnoperationsnmanagersnarento:
A) "arenmynemployeesnperformingnefficientlynandneffectively?"
B) "donwenrequirenfundingnfornupcomingnwarehousenupgrades?"
C) "shouldnInprovidenadditionalnservicesntoncustomers?"
D) "whatnisnmyntargetnmarket?"n
Answer:n A
Objective:n n 3
AACSB:n Reflectiventhinkingn

LearningnObjectiven1.4

1) Managersnusenmanagerialnaccountingninformationntoncreatenvaluenfornplanningnandncontroln
decisionsnbutnnotnfornproductncostingnandnnon-routinendecisions.
Answer:n FALSEnObje
ctive:n 4
AACSB:n n Applicationnofnknowledge

2) Planningnandncontrolndecisionsnshouldnincludenanalysisnofnbothnfinancialnandnnon-
financialninformation.
Answer:n TRUEnObject
ive:n 4
AACSB:n n Applicationnofnknowledge

3) Identifynthencharacteristicsnofninformationnnecessarynfornsuccessfulndecisionnmaking.
A) Nonfinancial,nhistorical,nandnconservative.
B) Historical,nconservative,nandnuseful.
C) Timely,nrelevant,nandnuseful.
D) Relevant,nprospective,nandnqualitative.n
Answer:n C
Objective:n n 4
AACSB:n n Reflectiventhinking



4