test bank of managerial accounting, Ex
h h h h h
ercises for Managerial Economics
h h h
test bank of managerial
h h h h
accounting
Managerialh Economicsh
AlhAkhawaynh Universityh
860hpag.
Documenthsharedhon h www.docsity.comh Downlo
adedhby: hwambui-kamau h()
,Chapter 1 Managerial Accounting and the Business Environment
h h h h h h h
True/FalsehQuestions
1. Althoughhfinancialhandhmanagerialhaccountinghdifferhinhmanyhways,htheyharehsimilarhinht
hathbothhrelyhonhthehsamehunderlyinghfinancialhdata.
Answer:hTrueh Level:hMediumh LO:h1
2. Managerialhaccountinghishahbranchhofhfinancialhaccountinghandhserveshessentiallyhthehs
amehpurposeshashfinancialhaccounting.
Answer:hFalseh Level:hMediumh LO:h1
3. Managerialhaccountinghplaceshgreaterhemphasishonhthehfuturehthanhfinancialh
accounting,hwhichhishprimarilyhconcernedhwithhthehpast.
Answer:hTrueh Level:hEasyhhhLO:h1
4. Managerialhaccountinghishnothneededhinhahnon-profithorhgovernmentalhorganization.
Answer:hFalseh Level:hEasyhhhLO:h1
5. Whenhcarryinghouththeirhplanninghactivities,hmanagershselecthahcoursehofhactionhandhs
pecifyhhowhthehactionhwillhbehimplemented.
Answer:hTrueh Level:hEasyhhhLO:h2
6. Whenhcarryinghouththeirhplanninghactivities,hmanagershobtainhfeedbackhtohensurehthathth
ehplanhishactuallyhcarriedhouthandhishappropriatelyhmodifiedhashcircumstanceshchange.
Answer:hFalseh Level:hMediumh LO:h2
7. Thehcontrollerhoccupieshahlinehpositionhinhanhorganization.
Answer:hFalseh Level:hEasyhhhLO:h2
8. Decentralizationhmeanshthehdelegationhofhdecision-
makinghauthorityhthroughouthanhorganizationhbyhallowinghmanagershathvarioushoperati
nghlevelshtohmakehkeyhdecisionshrelatinghtohtheirhownhareahofhresponsibility.
Answer:hTrueh Level:hEasyhhhLO:h2
Garrison,hManagerialhAccounting,h12thhEdition 3
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Downloadedhby:hwambui-
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,Chapter 1 Managerial Accounting and the Business Environment
h h h h h h h
9. Ahfirm'shorganizationhcharthwillhnormallyhshowhbothhthehformalhandhinformalhlineshofhr
eportinghandhcommunication.
Answer:hFalseh Level:hEasyhhhLO:h2
10. ThehChiefhFinancialhOfficerhofhanhorganizationhishresponsiblehforhensuringhthathlineh
operationshrunhsmoothly.
Answer:hFalseh Level:hMediumh LO:h2
11. Traditionally,hcompanieshhavehmaintainedhlargehamountshofhrawhmaterials,hworkhinhproc
ess,handhfinishedhgoodshinventorieshtohacthashbuffershsohthathoperationshcanhproceedhsmoo
thlyhevenhifhthereharehunanticipatedhdisruptions.
Answer:hTrueh Level:hMediumh LO:h3
12. ProcesshReengineeringhishgenerallyhconsideredhtohbehahmorehradicalhapproachhtohi
mprovemenththanhTotalhQualityhManagement.
Answer:hTrueh Level:hEasyhhhLO:h3
13. ProcesshReengineeringhemphasizeshahteamhapproachhinvolvinghfront-
linehworkers,hwhereashTotalhQualityhManagementhishusuallyhimplementedhusinghoutsi
dehspecialistshandhishimposedhfromhabove.
Answer:hFalseh Level:hMediumh LO:h3
14. Ifhethicalhstandardshwerehnothgenerallyhfollowed,honehofhthehresultshwouldhprobablyhbehf
ewerhgoodshandhserviceshavailablehinhthehmarketplace.
Answer:hTrueh Level:hMediumh LO:h4
15. ThehStandardshofhEthicalhConducthforhManagementhAccountantshpromulgatedhbyhthehI
nstitutehofhManagementhAccountantshspecificallyhstatehthathmanagementhaccountants'hs
olehethicalhresponsibilityhishtohnothbreakhanyhlaws.
Answer:hFalseh Level:hEasyhhhLO:h4
4 Garrison,hManagerialhAccounting,h12thhEdition
Documenthsharedhonhwww.docsity.com
Downloadedhby:hwambui-
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, Chapter 1 Managerial Accounting and the Business Environment
h h h h h h h
MultiplehChoicehQuestions
16. Managementhaccountinghfocuseshprimarilyhonhprovidinghdatahfor:
A) internalhuseshbyhmanagers.
B) externalhuseshbyhstockholdershandhcreditors.
C) externalhuseshbyhthehInternalhRevenuehService.
D) externalhuseshbyhthehSecuritieshandhExchangehCommission.
Answer:hAh Level:hEasyhhhLO:h1
17. Managerialhaccounting:
A) ishmorehfuturehorientedhthanhfinancialhaccounting.
B) tendshtohsummarizehinformationhmorehthanhfinancialhaccounting
C) ishprimarilyhconcernedhwithhprovidinghinformationhtohexternalhusers.
D) ishmorehconcernedhwithhprecisionhthanhtimeliness.
Answer:hAh Level:hEasyhhhLO:h1
18. Comparedhtohfinancialhaccounting,hmanagerialhaccountinghplaceshmorehemphasishon:
A) thehflexibilityhofhinformation.
B) thehprecisionhofhinformation.
C) thehtimelinesshofhinformation.
D) bothhAhandhChabove.
Answer:hDh Level:hEasyhhhLO:h1
19. Thehfunctionhofhmanagemenththathcompareshplannedhresultshtohactualhresultshishknownha
s:
A) planning.
B) directinghandhmotivating.
C) controlling.
D) decisionhmaking.
Answer:hCh Level:hEasyhhhLO:h2
20. Whichhofhthehfunctionshofhmanagementhinvolveshoverseeinghday-to-dayhactivities?
A) Planning
B) Directinghandhmotivating
C) Controlling
D) Decisionhmaking
Answer:hBh Level:hEasyhhhLO:h2
Garrison,hManagerialhAccounting,h12thhEdition 5
Documenthsharedhonhwww.docsity.com
Downloadedhby:hwambui-
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h h h h h
ercises for Managerial Economics
h h h
test bank of managerial
h h h h
accounting
Managerialh Economicsh
AlhAkhawaynh Universityh
860hpag.
Documenthsharedhon h www.docsity.comh Downlo
adedhby: hwambui-kamau h()
,Chapter 1 Managerial Accounting and the Business Environment
h h h h h h h
True/FalsehQuestions
1. Althoughhfinancialhandhmanagerialhaccountinghdifferhinhmanyhways,htheyharehsimilarhinht
hathbothhrelyhonhthehsamehunderlyinghfinancialhdata.
Answer:hTrueh Level:hMediumh LO:h1
2. Managerialhaccountinghishahbranchhofhfinancialhaccountinghandhserveshessentiallyhthehs
amehpurposeshashfinancialhaccounting.
Answer:hFalseh Level:hMediumh LO:h1
3. Managerialhaccountinghplaceshgreaterhemphasishonhthehfuturehthanhfinancialh
accounting,hwhichhishprimarilyhconcernedhwithhthehpast.
Answer:hTrueh Level:hEasyhhhLO:h1
4. Managerialhaccountinghishnothneededhinhahnon-profithorhgovernmentalhorganization.
Answer:hFalseh Level:hEasyhhhLO:h1
5. Whenhcarryinghouththeirhplanninghactivities,hmanagershselecthahcoursehofhactionhandhs
pecifyhhowhthehactionhwillhbehimplemented.
Answer:hTrueh Level:hEasyhhhLO:h2
6. Whenhcarryinghouththeirhplanninghactivities,hmanagershobtainhfeedbackhtohensurehthathth
ehplanhishactuallyhcarriedhouthandhishappropriatelyhmodifiedhashcircumstanceshchange.
Answer:hFalseh Level:hMediumh LO:h2
7. Thehcontrollerhoccupieshahlinehpositionhinhanhorganization.
Answer:hFalseh Level:hEasyhhhLO:h2
8. Decentralizationhmeanshthehdelegationhofhdecision-
makinghauthorityhthroughouthanhorganizationhbyhallowinghmanagershathvarioushoperati
nghlevelshtohmakehkeyhdecisionshrelatinghtohtheirhownhareahofhresponsibility.
Answer:hTrueh Level:hEasyhhhLO:h2
Garrison,hManagerialhAccounting,h12thhEdition 3
Documenthsharedhonhwww.docsity.com
Downloadedhby:hwambui-
kamauh()
,Chapter 1 Managerial Accounting and the Business Environment
h h h h h h h
9. Ahfirm'shorganizationhcharthwillhnormallyhshowhbothhthehformalhandhinformalhlineshofhr
eportinghandhcommunication.
Answer:hFalseh Level:hEasyhhhLO:h2
10. ThehChiefhFinancialhOfficerhofhanhorganizationhishresponsiblehforhensuringhthathlineh
operationshrunhsmoothly.
Answer:hFalseh Level:hMediumh LO:h2
11. Traditionally,hcompanieshhavehmaintainedhlargehamountshofhrawhmaterials,hworkhinhproc
ess,handhfinishedhgoodshinventorieshtohacthashbuffershsohthathoperationshcanhproceedhsmoo
thlyhevenhifhthereharehunanticipatedhdisruptions.
Answer:hTrueh Level:hMediumh LO:h3
12. ProcesshReengineeringhishgenerallyhconsideredhtohbehahmorehradicalhapproachhtohi
mprovemenththanhTotalhQualityhManagement.
Answer:hTrueh Level:hEasyhhhLO:h3
13. ProcesshReengineeringhemphasizeshahteamhapproachhinvolvinghfront-
linehworkers,hwhereashTotalhQualityhManagementhishusuallyhimplementedhusinghoutsi
dehspecialistshandhishimposedhfromhabove.
Answer:hFalseh Level:hMediumh LO:h3
14. Ifhethicalhstandardshwerehnothgenerallyhfollowed,honehofhthehresultshwouldhprobablyhbehf
ewerhgoodshandhserviceshavailablehinhthehmarketplace.
Answer:hTrueh Level:hMediumh LO:h4
15. ThehStandardshofhEthicalhConducthforhManagementhAccountantshpromulgatedhbyhthehI
nstitutehofhManagementhAccountantshspecificallyhstatehthathmanagementhaccountants'hs
olehethicalhresponsibilityhishtohnothbreakhanyhlaws.
Answer:hFalseh Level:hEasyhhhLO:h4
4 Garrison,hManagerialhAccounting,h12thhEdition
Documenthsharedhonhwww.docsity.com
Downloadedhby:hwambui-
kamauh()
, Chapter 1 Managerial Accounting and the Business Environment
h h h h h h h
MultiplehChoicehQuestions
16. Managementhaccountinghfocuseshprimarilyhonhprovidinghdatahfor:
A) internalhuseshbyhmanagers.
B) externalhuseshbyhstockholdershandhcreditors.
C) externalhuseshbyhthehInternalhRevenuehService.
D) externalhuseshbyhthehSecuritieshandhExchangehCommission.
Answer:hAh Level:hEasyhhhLO:h1
17. Managerialhaccounting:
A) ishmorehfuturehorientedhthanhfinancialhaccounting.
B) tendshtohsummarizehinformationhmorehthanhfinancialhaccounting
C) ishprimarilyhconcernedhwithhprovidinghinformationhtohexternalhusers.
D) ishmorehconcernedhwithhprecisionhthanhtimeliness.
Answer:hAh Level:hEasyhhhLO:h1
18. Comparedhtohfinancialhaccounting,hmanagerialhaccountinghplaceshmorehemphasishon:
A) thehflexibilityhofhinformation.
B) thehprecisionhofhinformation.
C) thehtimelinesshofhinformation.
D) bothhAhandhChabove.
Answer:hDh Level:hEasyhhhLO:h1
19. Thehfunctionhofhmanagemenththathcompareshplannedhresultshtohactualhresultshishknownha
s:
A) planning.
B) directinghandhmotivating.
C) controlling.
D) decisionhmaking.
Answer:hCh Level:hEasyhhhLO:h2
20. Whichhofhthehfunctionshofhmanagementhinvolveshoverseeinghday-to-dayhactivities?
A) Planning
B) Directinghandhmotivating
C) Controlling
D) Decisionhmaking
Answer:hBh Level:hEasyhhhLO:h2
Garrison,hManagerialhAccounting,h12thhEdition 5
Documenthsharedhonhwww.docsity.com
Downloadedhby:hwambui-
kamauh()
