management_accounting_6th_canadian_edition___test_bank

,Management wRAccounting, wRCdn. wR6e
wR(Horngren/Sundem/Stratton/Beaulieu) w Chapter w R 1 w R Management
R

w R Accounting w R and w R Management w R Decisions




1) Both wRinternal wRmanagers wRand wRexternal wRparties wRuse wRaccounting
wRinformation.wRAnswer: wR TRUE

Diff: wR 2 Type: w R TF Page wRRef:
wR16wRObjective: wR 8



2) Internal wRaccounting wRreports wRmust wRfollow wRgenerally wRaccepted wRaccounting wRprinciples wRand
wRaccount wRforwRassets wRat wRhistorical wRcost.

Answer: w R FALSE
Diff: wR 2 Type: w R TF Page wRRef:
wR16wRObjective: wR 8



3) Organizations wRthat wRdo wRnot wRmake wRor wRsell wRtangible wRgoods wRare wRcalled wRservice
wRorganizations. wRAnswer: wR TRUE

Diff: wR 1 Type: w R TF Page wRRef:
wR7wRObjective: wR 3



4) The wRcost-benefit wRbalance wRis wRthe wRprimary wRconsideration wRin wRchoosing wRamong wRaccounting
wRsystems wRandwRmethods.

Answer: w R TRUE
Diff: wR 1 Type: w R TF Page wRRef:
wR2wRObjective: wR 3



5) Planning wRrefers wRto wRsetting wRobjectives, wRimplementing wRplans, wRand wRevaluating
wRobjectives.wRAnswer: wR FALSE

Diff: wR 1 Type: w R TF Page wRRef:
wR3wRObjective: wR 2



6) A wRbudget wRis wRa wRquantitative wRexpression wRof wRa wRplan
wRof wRaction.wRAnswer: w R TRUE

Diff: wR 1 Type: w R TF Page wRRef:
wR2wRObjective: wR 3



7) Management wRby wRexception wRinvolves wRa wRdetailed wRanalysis wRof wRall wRdeviations wRfrom wRplanned
wRperformancewRregardless wRof wRthe wRamount.

Answer: w R FALSE
Diff: wR 1 Type: w R TF Page wRRef:
wR2wRObjective: wR 3



8) Sales wRgrowth wRoccurs wRin wRthe wRmature wRmarket wRstage wRof wRproduct
wRlife wRcycle.wRAnswer: wR FALSE

Diff: wR 1 Type: w R TF Page wRRef:
wR9wRObjective: wR 4




1
© wR2012 wR Pearson
wR Canada wR Inc.

,9) Line wRauthority wRis wRauthority wRexerted wRdownward wRover
wRsubordinates. wRAnswer: wR TRUE

Diff: wR 1 Type: w R TF Page wRRef:
wR12wRObjective: wR 5



10) Line w R departments w R support w R or w R service w R staff
w R departments.wRAnswer: wR FALSE

Diff: wR 1 Type: w R TF Page wRRef:
wR12wRObjective: wR 5



11) According wRto wRthe wRFinancial wRExecutives wRInstitute, wRthe wRcontroller's wRfunction wRis wRto wRobtain
wRboth wRshort-termwRand wRlong-term wRloans.

Answer: w R FALSE
Diff: wR1 Type: w R TF Page wRRef: wR14

12) The wRCMA wRprogram wRfocuses wRon wRmanagement wRaccounting wRand wRits wRrole wRin
wRCanadian wRbusiness.wRAnswer: wR TRUE

Diff: wR 1 Type: w R TF Page wRRef:
wR16wRObjective: wR 8



13) The wRfactors wRcausing wRchanges wRin wRmanagement wRaccounting wRtoday wRinclude wRincreased wRglobal
wRcompetition,wRtechnological wRadvances wRand wRincreased wRproduction wRby wRCanadian wR companies.

Answer: w R FALSE
Diff: wR 1 Type: w R TF Page wRRef:
wR16wRObjective: wR 8



14) The w R essence w R of w R the w R just-in-time w R philosophy w R is w R to
w R eliminate w R waste.wRAnswer: wR TRUE

Diff: wR 1 Type: w R TF Page wRRef:
wR16wRObjective: wR 8



15) The wRSociety wRof wRManagement wRAccountants wRof wRCanada wR(SMAC) wRhas wRdeveloped wRstandards
wRof wRethical wRconduct wRfor wRmanagement wRaccountants, wRwhich wRinclude wRstandards wRof wRcompetence,

wRconfidentiality, wRintegritywRand wRobjectivity.

Answer: w R TRUE
Diff: wR 1 Type: w R TF Page wRRef:
wR20wRObjective: wR 9



16) A wRsurvey wRof wRmanagers wRselected wRwhich wRof wRthe wRfollowing wRbusiness wRareas wRas wRthe wRmost
wRcommon wRstarting-w point wRfor wRfuture wRmanagers?
R

A) Accounting.
B) Finance.
C) Legal wRenvironment wRof wRbusiness.
D) Computers wRin
wRbusiness.wRAnswer: w R A

Diff: wR 1 Type: w R MC Page wRRef:
wR2wRObjective: wR 1



17) Management w R accounting w R refers w R to w R accounting w R information w R developed w R for
A) shareholders.
B) governmental w R authorities.
C) managers wRwithin wRan wRorganization.
D) loan
wRofficers.

wRAnswer: w R C

2
© wR2012 wR Pearson
wR Canada wR Inc.

, Diff: wR1 Type: w R MC Page wRRef: wR16




3
© wR2012 wR Pearson
wR Canada wR Inc.