TEST BANK
Financial and Managerial Accounting: Managerial Chapters, 7th Edition
(Miller-Nobles) Chapter 1-11
,Chapter M:1Introduction to Managerial Accounting ........................................................................... 3
Chapter M:2Job Order Costing .............................................................................................................141
Chapter M:3Process Costing .................................................................................................................285
Chapter M:5Cost-Volume-Profit Analysis ..........................................................................................541
Chapter M:7Master Budgets .................................................................................................................803
Chapter M:8Flexible Budgets and Standard Cost Systems .............................................................. 951
Chapter M:9Responsibility Accounting and Performance Evaluation ........................................ 1152
Chapter M:10Short-Term Business Decisions .................................................................................. 1256
,Chapter M:1Introduction to Managerial Accounting
Learning Objective M:1-1
1) Managerial accounting focuses on providing information for internal planning and control.
ANSWER: TRUE
Diff: 1
LO: M:1-1
AACSB: Application of knowledge
AICPA Functional: Reporting
PE Question Type: Concept
H2: Why Is Managerial Accounting Important? (H1)
2) Financial accounting prepares reports for internal purposes, whereas managerial accounting provides
information to external stakeholders.
ANSWER: FALSE
Explanation: The reverse is true. Financial accounting serves external stakeholder information needswhile
managerial accounting serves the needs of managers and internal staff.
Diff: 1
LO: M:1-1
AACSB: Application of knowledge
AICPA Functional: Reporting
PE Question Type: Concept
H2: Why Is Managerial Accounting Important? (H1)
3) Financial statements prepared for investors and creditors often include forward-looking information
because they make decisions based on a company's future prospects.
ANSWER: FALSE
Explanation: Financial statements provide mostly historical information; relevant and faithfullyrepresentative
information and focused on the past.
Diff: 1
LO: M:1-1
AACSB: Application of knowledge
AICPA Functional: Reporting
PE Question Type: Concept
H2: Why Is Managerial Accounting Important? (H1)
, 4) Managerial accounting reporting by a public firm is required to follow the rules of GAAP.
ANSWER: FALSE
Explanation: Managerial accounting information is not guided by GAAP but rather by the concept of
usefulness to management for decision making purposes.
Diff: 1
LO: M:1-1
AACSB: Application of knowledge
AICPA Functional: Reporting
PE Question Type: Concept
Financial and Managerial Accounting: Managerial Chapters, 7th Edition
(Miller-Nobles) Chapter 1-11
,Chapter M:1Introduction to Managerial Accounting ........................................................................... 3
Chapter M:2Job Order Costing .............................................................................................................141
Chapter M:3Process Costing .................................................................................................................285
Chapter M:5Cost-Volume-Profit Analysis ..........................................................................................541
Chapter M:7Master Budgets .................................................................................................................803
Chapter M:8Flexible Budgets and Standard Cost Systems .............................................................. 951
Chapter M:9Responsibility Accounting and Performance Evaluation ........................................ 1152
Chapter M:10Short-Term Business Decisions .................................................................................. 1256
,Chapter M:1Introduction to Managerial Accounting
Learning Objective M:1-1
1) Managerial accounting focuses on providing information for internal planning and control.
ANSWER: TRUE
Diff: 1
LO: M:1-1
AACSB: Application of knowledge
AICPA Functional: Reporting
PE Question Type: Concept
H2: Why Is Managerial Accounting Important? (H1)
2) Financial accounting prepares reports for internal purposes, whereas managerial accounting provides
information to external stakeholders.
ANSWER: FALSE
Explanation: The reverse is true. Financial accounting serves external stakeholder information needswhile
managerial accounting serves the needs of managers and internal staff.
Diff: 1
LO: M:1-1
AACSB: Application of knowledge
AICPA Functional: Reporting
PE Question Type: Concept
H2: Why Is Managerial Accounting Important? (H1)
3) Financial statements prepared for investors and creditors often include forward-looking information
because they make decisions based on a company's future prospects.
ANSWER: FALSE
Explanation: Financial statements provide mostly historical information; relevant and faithfullyrepresentative
information and focused on the past.
Diff: 1
LO: M:1-1
AACSB: Application of knowledge
AICPA Functional: Reporting
PE Question Type: Concept
H2: Why Is Managerial Accounting Important? (H1)
, 4) Managerial accounting reporting by a public firm is required to follow the rules of GAAP.
ANSWER: FALSE
Explanation: Managerial accounting information is not guided by GAAP but rather by the concept of
usefulness to management for decision making purposes.
Diff: 1
LO: M:1-1
AACSB: Application of knowledge
AICPA Functional: Reporting
PE Question Type: Concept
