Chapter 1 Managerial Accounting and the Business Environment
MANAGERIAL ACCOUNTING 12TH EDITION(COURSE: COST
ACCOUNTING THEORY AND PRACTICE)
BY GARRISON , NOREEN , BREWER THE BEST UPDATE AVAILABLE A+
Garrison, Managerial Accounting, 12th Edition 3
, Chapter 1 Managerial Accounting and the Business Environment
TABLE OF CONTENTS
Chapter 1: Managerial Accounting and the Business and Environment
Chapter 2: Cost Terms, Concepts, and Classifications
Chapter 3: Systems Design: Job-Order Costing
Chapter 4: Systems Design: Process Costing
Chapter 5: Cost Behavior: Analysis and Use
Chapter 6: Cost-Volume-Profit Relationships
Chapter 7: Variable Costing: A Tool for Management
Chapter 8: Activity-Based Costing
Chapter 9: Profit Planning
Chapter 10: Standard Costs and the Balanced Scorecard
Chapter 11: Flexible Budgets and Overhead Analysis
Chapter 12: Segment Reporting and Decentralization
Chapter 13: Relevant Costs for Decision Making
Chapter 14: Capital Budgeting Decisions
Chapter 15: “How Well Am I Doing?” Statement of Cash Flows
Chapter 16: “How Well Am I Doing?” Financial Statement Analysis
Appendix A: Pricing Products and Services
Appendix B: Profitability Analysis
4 Garrison, Managerial Accounting, 12th Edition
,Chapter 1 Managerial Accounting and the Business Environment
True/False Questions
1. Although Financial And Managerial Accounting Differ In Many Ways, They Are Similar
In That Both Rely On The Same Underlying Financial Data.
ANSWER: True L e v e l : Medium LO: 1
2. Managerial Accounting Is A Branch Of Financial Accounting And Serves Essentially
The Same Purposes As Financial Accounting.
ANSWER: False L e v e l : Medium LO: 1
3. Managerial Accounting Places Greater Emphasis On The Future Than
Financial Accounting, Which Is Primarily Concerned With The Past.
ANSWER: True L e v e l : Easy LO: 1
4. Managerial Accounting Is Not Needed In A Non-Profit Or Governmental Organization.
ANSWER: False L e v e l : Easy LO: 1
5. When Carrying Out Their Planning Activities, Managers Select A Course Of Action
And Specify How The Action Will Be Implemented.
ANSWER: True L e v e l : Easy LO: 2
6. When Carrying Out Their Planning Activities, Managers Obtain Feedback To Ensure
That The Plan Is Actually Carried Out And Is Appropriately Modified As Circumstances
Change.
ANSWER: False Level: Medium LO: 2
7. The Controller Occupies A Line Position In An Organization.
ANSWER: False Level: Easy LO: 2
8. Decentralization Means The Delegation Of Decision-Making Authority Throughout
An Organization By Allowing Managers At Various Operating Levels To Make Key
Decisions Relating To Their Own Area Of Responsibility.
ANSWER: True Level: Easy LO: 2
Garrison, Managerial Accounting, 12th Edition 5
, Chapter 1 Managerial Accounting and the Business Environment
9. A Firm's Organization Chart Will Normally Show Both The Formal And Informal
Lines Of Reporting And Communication.
ANSWER: False Level: Easy LO: 2
10. The Chief Financial Officer Of An Organization Is Responsible For Ensuring That
Line Operations Run Smoothly.
ANSWER: False Level: Medium LO: 2
11. Traditionally, Companies Have Maintained Large Amounts Of Raw Materials, Work In
Process, And Finished Goods Inventories To Act As Buffers So That Operations Can
Proceed Smoothly Even If There Are Unanticipated Disruptions.
ANSWER: True Level: Medium LO: 3
12. Process Reengineering Is Generally Considered To Be A More Radical
Approach To Improvement Than Total Quality Management.
ANSWER: True Level: Easy LO: 3
13. Process Reengineering Emphasizes A Team Approach Involving Front-Line Workers,
Whereas Total Quality Management Is Usually Implemented Using Outside
Specialists And Is Imposed From Above.
ANSWER: False Level: Medium LO: 3
14. If Ethical Standards Were Not Generally Followed, One Of The Results Would
Probably Be Fewer Goods And Services Available In The Marketplace.
ANSWER: True Level: Medium LO: 4
15. The Standards Of Ethical Conduct For Management Accountants Promulgated By
The Institute Of Management Accountants Specifically State That Management
Accountants' Sole Ethical Responsibility Is To Not Break Any Laws.
ANSWER: False Level: Easy LO: 4
6 Garrison, Managerial Accounting, 12th Edition
MANAGERIAL ACCOUNTING 12TH EDITION(COURSE: COST
ACCOUNTING THEORY AND PRACTICE)
BY GARRISON , NOREEN , BREWER THE BEST UPDATE AVAILABLE A+
Garrison, Managerial Accounting, 12th Edition 3
, Chapter 1 Managerial Accounting and the Business Environment
TABLE OF CONTENTS
Chapter 1: Managerial Accounting and the Business and Environment
Chapter 2: Cost Terms, Concepts, and Classifications
Chapter 3: Systems Design: Job-Order Costing
Chapter 4: Systems Design: Process Costing
Chapter 5: Cost Behavior: Analysis and Use
Chapter 6: Cost-Volume-Profit Relationships
Chapter 7: Variable Costing: A Tool for Management
Chapter 8: Activity-Based Costing
Chapter 9: Profit Planning
Chapter 10: Standard Costs and the Balanced Scorecard
Chapter 11: Flexible Budgets and Overhead Analysis
Chapter 12: Segment Reporting and Decentralization
Chapter 13: Relevant Costs for Decision Making
Chapter 14: Capital Budgeting Decisions
Chapter 15: “How Well Am I Doing?” Statement of Cash Flows
Chapter 16: “How Well Am I Doing?” Financial Statement Analysis
Appendix A: Pricing Products and Services
Appendix B: Profitability Analysis
4 Garrison, Managerial Accounting, 12th Edition
,Chapter 1 Managerial Accounting and the Business Environment
True/False Questions
1. Although Financial And Managerial Accounting Differ In Many Ways, They Are Similar
In That Both Rely On The Same Underlying Financial Data.
ANSWER: True L e v e l : Medium LO: 1
2. Managerial Accounting Is A Branch Of Financial Accounting And Serves Essentially
The Same Purposes As Financial Accounting.
ANSWER: False L e v e l : Medium LO: 1
3. Managerial Accounting Places Greater Emphasis On The Future Than
Financial Accounting, Which Is Primarily Concerned With The Past.
ANSWER: True L e v e l : Easy LO: 1
4. Managerial Accounting Is Not Needed In A Non-Profit Or Governmental Organization.
ANSWER: False L e v e l : Easy LO: 1
5. When Carrying Out Their Planning Activities, Managers Select A Course Of Action
And Specify How The Action Will Be Implemented.
ANSWER: True L e v e l : Easy LO: 2
6. When Carrying Out Their Planning Activities, Managers Obtain Feedback To Ensure
That The Plan Is Actually Carried Out And Is Appropriately Modified As Circumstances
Change.
ANSWER: False Level: Medium LO: 2
7. The Controller Occupies A Line Position In An Organization.
ANSWER: False Level: Easy LO: 2
8. Decentralization Means The Delegation Of Decision-Making Authority Throughout
An Organization By Allowing Managers At Various Operating Levels To Make Key
Decisions Relating To Their Own Area Of Responsibility.
ANSWER: True Level: Easy LO: 2
Garrison, Managerial Accounting, 12th Edition 5
, Chapter 1 Managerial Accounting and the Business Environment
9. A Firm's Organization Chart Will Normally Show Both The Formal And Informal
Lines Of Reporting And Communication.
ANSWER: False Level: Easy LO: 2
10. The Chief Financial Officer Of An Organization Is Responsible For Ensuring That
Line Operations Run Smoothly.
ANSWER: False Level: Medium LO: 2
11. Traditionally, Companies Have Maintained Large Amounts Of Raw Materials, Work In
Process, And Finished Goods Inventories To Act As Buffers So That Operations Can
Proceed Smoothly Even If There Are Unanticipated Disruptions.
ANSWER: True Level: Medium LO: 3
12. Process Reengineering Is Generally Considered To Be A More Radical
Approach To Improvement Than Total Quality Management.
ANSWER: True Level: Easy LO: 3
13. Process Reengineering Emphasizes A Team Approach Involving Front-Line Workers,
Whereas Total Quality Management Is Usually Implemented Using Outside
Specialists And Is Imposed From Above.
ANSWER: False Level: Medium LO: 3
14. If Ethical Standards Were Not Generally Followed, One Of The Results Would
Probably Be Fewer Goods And Services Available In The Marketplace.
ANSWER: True Level: Medium LO: 4
15. The Standards Of Ethical Conduct For Management Accountants Promulgated By
The Institute Of Management Accountants Specifically State That Management
Accountants' Sole Ethical Responsibility Is To Not Break Any Laws.
ANSWER: False Level: Easy LO: 4
6 Garrison, Managerial Accounting, 12th Edition
