TEST BANK FOR Managerial Accounting 4th Edition by Charles E. Davis , Elizabeth Davis ISBN:978-1119577669 ALL CHAPTERS COVERED YOUR ULTIMATE GUIDE 100% VERIFIED A+ GRADE ASSURED!!!!!!NEW LATEST UPDATE!!!!!!

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TEST BANK
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Managerial Accounting 4th Edition
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By Charles Davis Elizabeth Davis Chapter 1 - 13
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Table Of Contents
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1. Accounting as a Tool for Management
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2.Cost Behavior and Cost Estimation
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3. Cost-Volume-Profit Analysis and Pricing Decisions
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4. Product Costs and Job Order Costing
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5. Planning and Forecasting
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5A: Planning and Forecasting in a Retail Setting* (online only)
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6. Performance Evaluation: Variance Analysis
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7. Activity-Based Costing and Activity-Based Management
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8. Using Accounting Information to Make Managerial Decisions
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9. Capital Budgeting
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10. Decentralization and Performance Evaluation
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11. Performance Evaluation Revisited: A Balanced Approach
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12. Financial Statement Analysis
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13. Statement of Cash Flows
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Chapter 1 HJ


Accounting as a Tool for Management HJ HJ HJ HJ HJ




CHAPTER LEARNING OBJECTIVES
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1. Define managerial accounting (Unit 1.1)
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ThereHJareHJseveralHJformalHJdefinitionsHJofHJmanagerialHJaccounting.HJAHJsimpleHJoneHJis
HJ“theH
JgenerationHJofHJrelevantHJinformationHJtoHJsupportHJmanagement’sHJdecision-

makingHJactivities.”
2. Describe the differences between managerial and financial accounti
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ng(Unit 1.1)
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ManagerialHJaccounting’sHJprimaryHJusersHJareHJmanagersHJandHJdecisionHJmakersHJwithinHJan
HJorganization,HJwhereasHJfinancialHJaccountingHJisHJaimedHJprimarilyHJatHJexternalHJusers.HJUnl

ikeHJGAAPHJthatHJguidesHJfinancialHJaccounting,HJthereHJareHJnoHJmandatedHJrulesHJinHJmanager
ialHJaccounting.HJManagerialHJaccountingHJreportsHJfocusHJonHJoperatingHJsegments,HJwhileHJfi
nancialHJaccountingHJstatementsHJreportHJresultsHJforHJtheHJorganizationHJasHJaHJwhole.HJManag
erialHJaccountingHJisHJconcernedHJmoreHJwithHJprojectingHJfutureHJresultsHJthanHJreportingHJpas
tHJresults.HJManagerialHJinformationHJisHJpreparedHJtoHJtakeHJadvantageHJofHJaHJwindowHJofHJop
portunity,HJevenHJifHJsomeHJaccuracyHJmustHJbeHJsacrificed.HJFinancialHJaccountingHJinformatio
nHJisHJbalancedHJtoHJtheHJpennyHJandHJisHJdeliveredHJafterHJtheHJendHJofHJtheHJaccountingHJperiod.
3. List and describe the four functions of managers (Unit 1.1)
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PlanningHJmeansHJsettingHJaHJdirectionHJforHJtheHJorganization.HJLong-
term,HJorHJstrategicHJplanningHJprovidesHJdirectionHJforHJaHJfive-HJtoHJten-yearHJperiod.HJShort-
termHJorHJoperationalHJplanningHJprovidesHJmoreHJdetailedHJguidanceHJforHJtheHJcomingHJyear;H
JitHJtranslatesHJtheHJcompany’sHJstrategyHJintoHJactionHJsteps.HJControllingHJisHJtheHJmonitoringH

JofHJday-to-

dayHJoperationsHJtoHJidentifyHJanyHJproblemsHJthatHJrequireHJcorrectiveHJaction.HJEvaluatingHJis
HJtheHJprocessHJofHJcomparingHJaHJparticularHJperiod’sHJactualHJresultsHJtoHJplannedHJresults,HJfo

rHJtheHJpurposeHJofHJassessingHJmanagerialHJperformance.HJDecisionHJmakingHJmeansHJchoosin
gHJbetweenHJalternativeHJcoursesHJofHJaction.
4. Explain how the selection of a particular business strategy determines
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theinformation that managers need to run an organization effectively (
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Unit 1.2) HJ


ToHJrunHJaHJbusinessHJeffectively,HJmanagersHJneedHJinformationHJthatHJshowsHJhowHJwellHJ
operationsHJareHJmeetingHJtheHJorganization’sHJstrategicHJgoals.HJForHJinstance,HJifHJtheHJor
ganization’sHJstrategyHJisHJtoHJbeHJaHJlow-
costHJproducer,HJinformationHJaboutHJproductHJcostsHJandHJcostHJvariancesHJwillHJbeHJmoreHJ
usefulHJtoHJmanagersHJthanHJinformationHJaboutHJresearchHJandHJdevelopment.

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5. Discuss the importance of ethical behavior in managerial accounting (U
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nit1.3)
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EthicalHJbehaviorHJmeansHJknowingHJrightHJfromHJwrongHJandHJthenHJdoingHJtheHJrightHJthing.HJ
ManyHJcompaniesHJandHJmostHJprofessionalHJorganizationsHJhaveHJcodesHJofHJconductHJtoHJgui
deHJemployees’HJactions.HJActingHJunethicallyHJcanHJleadHJtoHJillegalHJactivityHJandHJultimatelyH
JtoHJtheHJdestruction HJofHJtheHJfirm.HJFurthermore,HJresearchHJhasHJshownHJthatHJaHJpublicHJco

mmitmentHJtoHJethicalHJbehaviorHJcanHJleadHJtoHJsuperiorHJfinancialHJperformance.