TEST BANK FOR MANAGERIAL ACCOUNTING
Chapter 1 Managerial Accounting and the Business Environment
A A A A A A A
True/FalseAQuestions
1. AlthoughAfinancialAandAmanagerialAaccountingAdifferAinAmanyAways,AtheyAareAsimilarAi
nAthatAbothArelyAonAtheAsameAunderlyingAfinancialAdata.
Answer:ATrueA A Level:AMediumA A LO:A1
2. ManagerialAaccountingAisAaAbranchAofAfinancialAaccountingAandAservesAessentiallyAth
eAsameApurposesAasAfinancialAaccounting.
Answer:AFalseA A Level:AMediumA A LO:A1
3. ManagerialAaccountingAplacesAgreaterAemphasisAonAtheAfutureAthanAfinanci
alAaccounting,AwhichAisAprimarilyAconcernedAwithAtheApast.
Answer:ATrueA A Level:AEasyA A LO:A1
4. ManagerialAaccountingAisAnotAneededAinAaAnon-profitAorAgovernmentalAorganization.
Answer:AFalseA A Level:AEasyA A LO:A1
5. WhenAcarryingAoutAtheirAplanningAactivities,AmanagersAselectAaAcourseAofAactionAan
dAspecifyAhowAtheAactionAwillAbeAimplemented.
Answer:ATrueA A Level:AEasyA A LO:A2
6. WhenAcarryingAoutAtheirAplanningAactivities,AmanagersAobtainAfeedbackAtoAensureAthat
AtheAplanAisAactuallyAcarriedAoutAandAisAappropriatelyAmodifiedAasAcircumstancesAchan
ge.
Answer:AFalseA A Level:AMediumA A LO:A2
7. TheAcontrollerAoccupiesAaAlineApositionAinAanAorganization.
Answer:AFalseA A Level:AEasyA A LO:A2
8. DecentralizationAmeansAtheAdelegationAofAdecision-
makingAauthorityAthroughoutAanAorganizationAbyAallowingAmanagersAatAvariousAoper
atingAlevelsAtoAmakeAkeyAdecisionsArelatingAtoAtheirAownAareaAofAresponsibility.
Answer:ATrueA A Level:AEasyA A LO:A2
Garrison,AManagerialAAccounting,A12thAEdition 3
,Chapter 1 Managerial Accounting and the Business Environment
A A A A A A A
9. AAfirm'sAorganizationAchartAwillAnormallyAshowAbothAtheAformalAandAinformalAlinesA
ofAreportingAandAcommunication.
Answer:AFalseA A Level:AEasyA A LO:A2
10. TheAChiefAFinancialAOfficerAofAanAorganizationAisAresponsibleAforAensuringAthatAlin
eAoperationsArunAsmoothly.
Answer:AFalseA A Level:AMediumA A LO:A2
11. Traditionally,AcompaniesAhaveAmaintainedAlargeAamountsAofArawAmaterials,AworkAinApr
ocess,AandAfinishedAgoodsAinventoriesAtoAactAasAbuffersAsoAthatAoperationsAcanAproceedA
smoothlyAevenAifAthereAareAunanticipatedAdisruptions.
Answer:ATrueA A Level:AMediumA A LO:A3
12. ProcessAReengineeringAisAgenerallyAconsideredAtoAbeAaAmoreAradicalAapproachAt
oAimprovementAthanATotalAQualityAManagement.
Answer:ATrueA A Level:AEasyA A LO:A3
13. ProcessAReengineeringAemphasizesAaAteamAapproachAinvolvingAfront-
lineAworkers,AwhereasATotalAQualityAManagementAisAusuallyAimplementedAusingAout
sideAspecialistsAandAisAimposedAfromAabove.
Answer:AFalseA A Level:AMediumA A LO:A3
14. IfAethicalAstandardsAwereAnotAgenerallyAfollowed,AoneAofAtheAresultsAwouldAprobablyA
beAfewerAgoodsAandAservicesAavailableAinAtheAmarketplace.
Answer:ATrueA A Level:AMediumA A LO:A4
15. TheAStandardsAofAEthicalAConductAforAManagementAAccountantsApromulgatedAbyAthe
AInstituteAofAManagement AAccountantsAspecificallyAstateAthatAmanagementAaccountant
s'AsoleAethicalAresponsibilityAisAtoAnotAbreakAanyAlaws.
Answer:AFalseA A Level:AEasyA A LO:A4
4 Garrison,AManagerialAAccounting,A12thAEdition
, TEST BANK FOR MANAGERIAL ACCOUNTING
Chapter 1 Managerial Accounting and the Business Environment
A A A A A A A
MultipleAChoiceAQuestions
16. ManagementAaccountingAfocusesAprimarilyAonAprovidingAdataAfor:
A) internalAusesAbyAmanagers.
B) externalAusesAbyAstockholdersAandAcreditors.
C) externalAusesAbyAtheAInternalARevenueAService.
D) externalAusesAbyAtheASecuritiesAandAExchangeACommission.
Answer:AAA A Level:AEasyA A LO:A1
17. ManagerialAaccounting:
A) isAmoreAfutureAorientedAthanAfinancialAaccounting.
B) tendsAtoAsummarizeAinformationAmoreAthanAfinancialAaccounting
C) isAprimarilyAconcernedAwithAprovidingAinformationAtoAexternalAusers.
D) isAmoreAconcernedAwithAprecisionAthanAtimeliness.
Answer:AAA A Level:AEasyA A LO:A1
18. ComparedAtoAfinancialAaccounting,AmanagerialAaccountingAplacesAmoreAemphasisAon:
A) theAflexibilityAofAinformation.
B) theAprecisionAofAinformation.
C) theAtimelinessAofAinformation.
D) bothAAAandACAabove.
Answer:ADA A Level:AEasyA A LO:A1
19. TheAfunctionAofAmanagementAthatAcomparesAplannedAresultsAtoAactualAresultsAisAknow
nAas:
A) planning.
B) directingAandAmotivating.
C) controlling.
D) decisionAmaking.
Answer:ACA A Level:AEasyA A LO:A2
20. WhichAofAtheAfunctionsAofAmanagementAinvolvesAoverseeingAday-to-dayAactivities?
A) Planning
B) DirectingAandAmotivating
C) Controlling
D) DecisionAmaking
Answer:ABA A Level:AEasyA A LO:A2
Garrison,AManagerialAAccounting,A12thAEdition 5
, Chapter 1 Managerial Accounting and the Business Environment
A A A A A A A
21. WhichAofAtheAfollowingAisAnotAoneAofAtheAthreeAbasicAactivitiesAofAaAmanager?
A) Planning
B) Controlling
C) DirectingAandAmotivating
D) CompilingAmanagementAaccountingAreports
AAnswer:ADA Level:AEasyA LO:A2
22. TheAdelegationAofAdecisionAmakingAtoAlowerAlevelsAinAanAorganizationAisAknownAas:
A) theAplanningAandAcontrolAcycle.
B) controlling.
C) decentralization.
D) noneAofAthese.
Answer:ACA A Level:AEasyA A LO:A2
23. WhichAofAtheAfollowingAstatementsAareAfalseAconcerningAlineAandAstaffAfunctions?
I. PersonsAoccupyingAstaffAfunctionsAhaveAauthorityAoverApersonsAoccupyingAlin
eAfunctions.
II. BothAlineAandAstaffAfunctionsAareAdepictedAonAtheAorganizationAchart.
III. LineAfunctionsAareAdirectlyArelatedAtoAtheAbasicAobjectivesAofAanAorganization.
A) OnlyAI
B) OnlyAII
C) OnlyAIAandAII
D) I,AII,AandAIII
Answer:AAA A Level:AMediumA A LO:A2
24. WhichAofAfollowingAwouldAnormallyAbeAfoundAonAaAmanufacturingAcompany'
sAorganizationAchart?
A) theAlayoutAofAtheAfactoryAassemblyAlines
B) aAlistAofAtheAmaterialsAneededAtoAproduceAeachAofAtheAcompany'sAproducts
C) theAinformalAlinesAofAreportingAandAcommunication
D) noneAofAtheAabove
Answer:ADA A Level:AEasyA A LO:A2
6 Garrison,AManagerialAAccounting,A12thAEdition
Chapter 1 Managerial Accounting and the Business Environment
A A A A A A A
True/FalseAQuestions
1. AlthoughAfinancialAandAmanagerialAaccountingAdifferAinAmanyAways,AtheyAareAsimilarAi
nAthatAbothArelyAonAtheAsameAunderlyingAfinancialAdata.
Answer:ATrueA A Level:AMediumA A LO:A1
2. ManagerialAaccountingAisAaAbranchAofAfinancialAaccountingAandAservesAessentiallyAth
eAsameApurposesAasAfinancialAaccounting.
Answer:AFalseA A Level:AMediumA A LO:A1
3. ManagerialAaccountingAplacesAgreaterAemphasisAonAtheAfutureAthanAfinanci
alAaccounting,AwhichAisAprimarilyAconcernedAwithAtheApast.
Answer:ATrueA A Level:AEasyA A LO:A1
4. ManagerialAaccountingAisAnotAneededAinAaAnon-profitAorAgovernmentalAorganization.
Answer:AFalseA A Level:AEasyA A LO:A1
5. WhenAcarryingAoutAtheirAplanningAactivities,AmanagersAselectAaAcourseAofAactionAan
dAspecifyAhowAtheAactionAwillAbeAimplemented.
Answer:ATrueA A Level:AEasyA A LO:A2
6. WhenAcarryingAoutAtheirAplanningAactivities,AmanagersAobtainAfeedbackAtoAensureAthat
AtheAplanAisAactuallyAcarriedAoutAandAisAappropriatelyAmodifiedAasAcircumstancesAchan
ge.
Answer:AFalseA A Level:AMediumA A LO:A2
7. TheAcontrollerAoccupiesAaAlineApositionAinAanAorganization.
Answer:AFalseA A Level:AEasyA A LO:A2
8. DecentralizationAmeansAtheAdelegationAofAdecision-
makingAauthorityAthroughoutAanAorganizationAbyAallowingAmanagersAatAvariousAoper
atingAlevelsAtoAmakeAkeyAdecisionsArelatingAtoAtheirAownAareaAofAresponsibility.
Answer:ATrueA A Level:AEasyA A LO:A2
Garrison,AManagerialAAccounting,A12thAEdition 3
,Chapter 1 Managerial Accounting and the Business Environment
A A A A A A A
9. AAfirm'sAorganizationAchartAwillAnormallyAshowAbothAtheAformalAandAinformalAlinesA
ofAreportingAandAcommunication.
Answer:AFalseA A Level:AEasyA A LO:A2
10. TheAChiefAFinancialAOfficerAofAanAorganizationAisAresponsibleAforAensuringAthatAlin
eAoperationsArunAsmoothly.
Answer:AFalseA A Level:AMediumA A LO:A2
11. Traditionally,AcompaniesAhaveAmaintainedAlargeAamountsAofArawAmaterials,AworkAinApr
ocess,AandAfinishedAgoodsAinventoriesAtoAactAasAbuffersAsoAthatAoperationsAcanAproceedA
smoothlyAevenAifAthereAareAunanticipatedAdisruptions.
Answer:ATrueA A Level:AMediumA A LO:A3
12. ProcessAReengineeringAisAgenerallyAconsideredAtoAbeAaAmoreAradicalAapproachAt
oAimprovementAthanATotalAQualityAManagement.
Answer:ATrueA A Level:AEasyA A LO:A3
13. ProcessAReengineeringAemphasizesAaAteamAapproachAinvolvingAfront-
lineAworkers,AwhereasATotalAQualityAManagementAisAusuallyAimplementedAusingAout
sideAspecialistsAandAisAimposedAfromAabove.
Answer:AFalseA A Level:AMediumA A LO:A3
14. IfAethicalAstandardsAwereAnotAgenerallyAfollowed,AoneAofAtheAresultsAwouldAprobablyA
beAfewerAgoodsAandAservicesAavailableAinAtheAmarketplace.
Answer:ATrueA A Level:AMediumA A LO:A4
15. TheAStandardsAofAEthicalAConductAforAManagementAAccountantsApromulgatedAbyAthe
AInstituteAofAManagement AAccountantsAspecificallyAstateAthatAmanagementAaccountant
s'AsoleAethicalAresponsibilityAisAtoAnotAbreakAanyAlaws.
Answer:AFalseA A Level:AEasyA A LO:A4
4 Garrison,AManagerialAAccounting,A12thAEdition
, TEST BANK FOR MANAGERIAL ACCOUNTING
Chapter 1 Managerial Accounting and the Business Environment
A A A A A A A
MultipleAChoiceAQuestions
16. ManagementAaccountingAfocusesAprimarilyAonAprovidingAdataAfor:
A) internalAusesAbyAmanagers.
B) externalAusesAbyAstockholdersAandAcreditors.
C) externalAusesAbyAtheAInternalARevenueAService.
D) externalAusesAbyAtheASecuritiesAandAExchangeACommission.
Answer:AAA A Level:AEasyA A LO:A1
17. ManagerialAaccounting:
A) isAmoreAfutureAorientedAthanAfinancialAaccounting.
B) tendsAtoAsummarizeAinformationAmoreAthanAfinancialAaccounting
C) isAprimarilyAconcernedAwithAprovidingAinformationAtoAexternalAusers.
D) isAmoreAconcernedAwithAprecisionAthanAtimeliness.
Answer:AAA A Level:AEasyA A LO:A1
18. ComparedAtoAfinancialAaccounting,AmanagerialAaccountingAplacesAmoreAemphasisAon:
A) theAflexibilityAofAinformation.
B) theAprecisionAofAinformation.
C) theAtimelinessAofAinformation.
D) bothAAAandACAabove.
Answer:ADA A Level:AEasyA A LO:A1
19. TheAfunctionAofAmanagementAthatAcomparesAplannedAresultsAtoAactualAresultsAisAknow
nAas:
A) planning.
B) directingAandAmotivating.
C) controlling.
D) decisionAmaking.
Answer:ACA A Level:AEasyA A LO:A2
20. WhichAofAtheAfunctionsAofAmanagementAinvolvesAoverseeingAday-to-dayAactivities?
A) Planning
B) DirectingAandAmotivating
C) Controlling
D) DecisionAmaking
Answer:ABA A Level:AEasyA A LO:A2
Garrison,AManagerialAAccounting,A12thAEdition 5
, Chapter 1 Managerial Accounting and the Business Environment
A A A A A A A
21. WhichAofAtheAfollowingAisAnotAoneAofAtheAthreeAbasicAactivitiesAofAaAmanager?
A) Planning
B) Controlling
C) DirectingAandAmotivating
D) CompilingAmanagementAaccountingAreports
AAnswer:ADA Level:AEasyA LO:A2
22. TheAdelegationAofAdecisionAmakingAtoAlowerAlevelsAinAanAorganizationAisAknownAas:
A) theAplanningAandAcontrolAcycle.
B) controlling.
C) decentralization.
D) noneAofAthese.
Answer:ACA A Level:AEasyA A LO:A2
23. WhichAofAtheAfollowingAstatementsAareAfalseAconcerningAlineAandAstaffAfunctions?
I. PersonsAoccupyingAstaffAfunctionsAhaveAauthorityAoverApersonsAoccupyingAlin
eAfunctions.
II. BothAlineAandAstaffAfunctionsAareAdepictedAonAtheAorganizationAchart.
III. LineAfunctionsAareAdirectlyArelatedAtoAtheAbasicAobjectivesAofAanAorganization.
A) OnlyAI
B) OnlyAII
C) OnlyAIAandAII
D) I,AII,AandAIII
Answer:AAA A Level:AMediumA A LO:A2
24. WhichAofAfollowingAwouldAnormallyAbeAfoundAonAaAmanufacturingAcompany'
sAorganizationAchart?
A) theAlayoutAofAtheAfactoryAassemblyAlines
B) aAlistAofAtheAmaterialsAneededAtoAproduceAeachAofAtheAcompany'sAproducts
C) theAinformalAlinesAofAreportingAandAcommunication
D) noneAofAtheAabove
Answer:ADA A Level:AEasyA A LO:A2
6 Garrison,AManagerialAAccounting,A12thAEdition
