,Chapter 1: The role of accounting information in management decision ma
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king
True/false questions st
1. A vision statement is a theoretical description of what an organisation should become.
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*a. True st
b. False
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Correct answer: a
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
2. An organisational vision is a short-term plan for maximising financial results.
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a. True
*b. False st
Correct answer: b
st st
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
3. Most organisations have one stakeholder.
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a. True
*b. False st
Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
4. Organisational core competencies unrelated to the organisational vision.
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a. True
*b. False st
Correct answer: b
st st
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
1.2
,5. Organisational strategies are the tactics that managers use to take advantage of core c
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ompetencies while working towards the organisational vision.
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*a. True st
b. False
st
Correct answer: a
st st
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
6. Most organisations have databases that contain information collected formally or i
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nformally from internal sources only.
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a. True
*b. False
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Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
7. Desirable employee behaviour can be motivated by tying employee performance
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evaluation and pay to long-term or short-term results.
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*a. True st
b. False
st
Correct answer: a
st st
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
8. Organisational information systems only collect accounting information.
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a. True
*b. False st
Correct answer: b
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making
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1.3
, 9. Cost accounting information is used for both management accounting and financial
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accounting activities. st
*a. True st
b. False
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Correct answer: a
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making
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10. Management accounting is the process of gathering, summarising and reporting f
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inancial and non-financial information used internally to make decisions.
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*a. True st
b. False
st
Correct answer: a
st st
Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making
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11. Intellectual capital is a type of financial resource that is captured by the organisation’s i
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nformation system. st
a. True
*b. False st
Correct answer: b
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making
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12. It is easy to differentiate between internal and external reports.
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a. True
*b. False st
Correct answer: b
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making
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1.4
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king
True/false questions st
1. A vision statement is a theoretical description of what an organisation should become.
st st st st st st st st st st st st
*a. True st
b. False
st
Correct answer: a
st st
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
st st st st st st st st st st st st st
n
2. An organisational vision is a short-term plan for maximising financial results.
st st st st st st st st st st
a. True
*b. False st
Correct answer: b
st st
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
st st st st st st st st st st st st st
n
3. Most organisations have one stakeholder.
st st st st
a. True
*b. False st
Correct answer: b
st st
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
st st st st st st st st st st st st st
n
4. Organisational core competencies unrelated to the organisational vision.
st st st st st st st
a. True
*b. False st
Correct answer: b
st st
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
1.2
,5. Organisational strategies are the tactics that managers use to take advantage of core c
st st st st st st st st st st st st st
ompetencies while working towards the organisational vision.
st st st st st st
*a. True st
b. False
st
Correct answer: a
st st
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
st st st st st st st st st st st st st
n
6. Most organisations have databases that contain information collected formally or i
st st st st st st st st st st
nformally from internal sources only.
st st st st
a. True
*b. False
st
Correct answer: b
st st
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
st st st st st st st st st st st st st
n
7. Desirable employee behaviour can be motivated by tying employee performance
st st st st st st st st st st
evaluation and pay to long-term or short-term results.
st st st st st st st
*a. True st
b. False
st
Correct answer: a
st st
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
st st st st st st st st st st st st st
n
8. Organisational information systems only collect accounting information.
st st st st st st
a. True
*b. False st
Correct answer: b
st st
Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making
st st st
1.3
, 9. Cost accounting information is used for both management accounting and financial
st st st st st st st st st st st
accounting activities. st
*a. True st
b. False
st
Correct answer: a
st st
Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
st st st st st st st st st st st st st
management decision making
st st st
10. Management accounting is the process of gathering, summarising and reporting f
st st st st st st st st st st
inancial and non-financial information used internally to make decisions.
st st st st st st st st
*a. True st
b. False
st
Correct answer: a
st st
Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
st st st st st st st st st st st st st
management decision making
st st st
11. Intellectual capital is a type of financial resource that is captured by the organisation’s i
st st st st st st st st st st st st st st
nformation system. st
a. True
*b. False st
Correct answer: b
st st
Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
st st st st st st st st st st st st st
management decision making
st st st
12. It is easy to differentiate between internal and external reports.
st st st st st st st st st
a. True
*b. False st
Correct answer: b
st st
Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making
st st st
1.4
