TESTcBANKcChapterc1c ManagerialcAccountingcandcthecBusinessc
Environment
True/FalsecQuestions
1. Althoughcfinancialcandcmanagerialcaccountingcdiffercincmanycways,ctheycarecsim
ilarcincthatcbothcrelyconcthecsamecunderlyingcfinancialcdata.
Answer:cTruec Level:cMediumc LO:c1
2. Managerialcaccountingciscacbranchcofcfinancialcaccountingcandcservescessential
lycthecsamecpurposescascfinancialcaccounting.
Answer:cFalsec Level:cMediumc LO:c1
3. Managerialcaccountingcplacescgreatercemphasisconcthecfuturecthancfi
nancialcaccounting,cwhichciscprimarilycconcernedcwithcthecpast.
Answer:cTruec Level:cEasycccLO:c1
4. Managerialcaccountingciscnotcneededcincacnon-profitcorcgovernmentalcorganization.
Answer:cFalsec Level:cEasycccLO:c1
5. Whenccarryingcoutctheircplanningcactivities,cmanagerscselectcaccoursecofcacti
oncandcspecifychowcthecactioncwillcbecimplemented.
Answer:cTruec Level:cEasycccLO:c2
6. Whenccarryingcoutctheircplanningcactivities,cmanagerscobtaincfeedbackctocensur
ecthatcthecplanciscactuallyccarriedcoutcandciscappropriatelycmodifiedcasccircumst
ancescchange.
Garrison,cManagerialcAccounting,c12thcEditio 3
n
,Chapterc1c ManagerialcAccountingcandcthecBusinesscEnvironment
Answer:cFalsec Level:cMediumc LO:c2
7. Theccontrollercoccupiescaclinecpositioncincancorganization.
Answer:cFalsec Level:cEasycccLO:c2
8. Decentralizationcmeanscthecdelegationcofcdecision-
makingcauthoritycthroughoutcancorganizationcbycallowingcmanagerscatcvariousc
operatingclevelsctocmakeckeycdecisionscrelatingctoctheircowncareacofcresponsibi
lity.
Answer:cTruec Level:cEasycccLO:c2
4 Garrison,cManagerialcAccounting,c12thcEditio
n
,TESTcBANKcChapterc1c ManagerialcAccountingcandcthecBusinessc
Environment
9. Acfirm'scorganizationcchartcwillcnormallycshowcbothcthecformalcandcinformalcli
nescofcreportingcandccommunication.
Answer:cFalsec Level:cEasycccLO:c2
10. ThecChiefcFinancialcOfficercofcancorganizationciscresponsiblecforcensuringctha
tclinecoperationscruncsmoothly.
Answer:cFalsec Level:cMediumc LO:c2
11. Traditionally,ccompanieschavecmaintainedclargecamountscofcrawcmaterials,cworkc
incprocess,candcfinishedcgoodscinventoriesctocactcascbufferscsocthatcoperationscc
ancproceedcsmoothlycevencifctherecarecunanticipatedcdisruptions.
Answer:cTruec Level:cMediumc LO:c3
12. ProcesscReengineeringciscgenerallycconsideredctocbecacmorecradicalcappro
achctocimprovementcthancTotalcQualitycManagement.
Answer:cTruec Level:cEasycccLO:c3
13. ProcesscReengineeringcemphasizescacteamcapproachcinvolvingcfront-
linecworkers,cwhereascTotalcQualitycManagementciscusuallycimplementedcusing
coutsidecspecialistscandciscimposedcfromcabove.
Answer:cFalsec Level:cMediumc LO:c3
14. Ifcethicalcstandardscwerecnotcgenerallycfollowed,conecofcthecresultscwouldcpro
bablycbecfewercgoodscandcservicescavailablecincthecmarketplace.
Garrison,cManagerialcAccounting,c12thcEditio 5
n
, Chapterc1c ManagerialcAccountingcandcthecBusinesscEnvironment
Answer:cTruec Level:cMediumc LO:c4
15. ThecStandardscofcEthicalcConductcforcManagementcAccountantscpromulgatedcby
cthecInstitutecofcManagementcAccountantscspecificallycstatecthatcmanagementc
accountants'csolecethicalcresponsibilitycisctocnotcbreakcanyclaws.
Answer:cFalsec Level:cEasycccLO:c4
6 Garrison,cManagerialcAccounting,c12thcEditio
n
Environment
True/FalsecQuestions
1. Althoughcfinancialcandcmanagerialcaccountingcdiffercincmanycways,ctheycarecsim
ilarcincthatcbothcrelyconcthecsamecunderlyingcfinancialcdata.
Answer:cTruec Level:cMediumc LO:c1
2. Managerialcaccountingciscacbranchcofcfinancialcaccountingcandcservescessential
lycthecsamecpurposescascfinancialcaccounting.
Answer:cFalsec Level:cMediumc LO:c1
3. Managerialcaccountingcplacescgreatercemphasisconcthecfuturecthancfi
nancialcaccounting,cwhichciscprimarilycconcernedcwithcthecpast.
Answer:cTruec Level:cEasycccLO:c1
4. Managerialcaccountingciscnotcneededcincacnon-profitcorcgovernmentalcorganization.
Answer:cFalsec Level:cEasycccLO:c1
5. Whenccarryingcoutctheircplanningcactivities,cmanagerscselectcaccoursecofcacti
oncandcspecifychowcthecactioncwillcbecimplemented.
Answer:cTruec Level:cEasycccLO:c2
6. Whenccarryingcoutctheircplanningcactivities,cmanagerscobtaincfeedbackctocensur
ecthatcthecplanciscactuallyccarriedcoutcandciscappropriatelycmodifiedcasccircumst
ancescchange.
Garrison,cManagerialcAccounting,c12thcEditio 3
n
,Chapterc1c ManagerialcAccountingcandcthecBusinesscEnvironment
Answer:cFalsec Level:cMediumc LO:c2
7. Theccontrollercoccupiescaclinecpositioncincancorganization.
Answer:cFalsec Level:cEasycccLO:c2
8. Decentralizationcmeanscthecdelegationcofcdecision-
makingcauthoritycthroughoutcancorganizationcbycallowingcmanagerscatcvariousc
operatingclevelsctocmakeckeycdecisionscrelatingctoctheircowncareacofcresponsibi
lity.
Answer:cTruec Level:cEasycccLO:c2
4 Garrison,cManagerialcAccounting,c12thcEditio
n
,TESTcBANKcChapterc1c ManagerialcAccountingcandcthecBusinessc
Environment
9. Acfirm'scorganizationcchartcwillcnormallycshowcbothcthecformalcandcinformalcli
nescofcreportingcandccommunication.
Answer:cFalsec Level:cEasycccLO:c2
10. ThecChiefcFinancialcOfficercofcancorganizationciscresponsiblecforcensuringctha
tclinecoperationscruncsmoothly.
Answer:cFalsec Level:cMediumc LO:c2
11. Traditionally,ccompanieschavecmaintainedclargecamountscofcrawcmaterials,cworkc
incprocess,candcfinishedcgoodscinventoriesctocactcascbufferscsocthatcoperationscc
ancproceedcsmoothlycevencifctherecarecunanticipatedcdisruptions.
Answer:cTruec Level:cMediumc LO:c3
12. ProcesscReengineeringciscgenerallycconsideredctocbecacmorecradicalcappro
achctocimprovementcthancTotalcQualitycManagement.
Answer:cTruec Level:cEasycccLO:c3
13. ProcesscReengineeringcemphasizescacteamcapproachcinvolvingcfront-
linecworkers,cwhereascTotalcQualitycManagementciscusuallycimplementedcusing
coutsidecspecialistscandciscimposedcfromcabove.
Answer:cFalsec Level:cMediumc LO:c3
14. Ifcethicalcstandardscwerecnotcgenerallycfollowed,conecofcthecresultscwouldcpro
bablycbecfewercgoodscandcservicescavailablecincthecmarketplace.
Garrison,cManagerialcAccounting,c12thcEditio 5
n
, Chapterc1c ManagerialcAccountingcandcthecBusinesscEnvironment
Answer:cTruec Level:cMediumc LO:c4
15. ThecStandardscofcEthicalcConductcforcManagementcAccountantscpromulgatedcby
cthecInstitutecofcManagementcAccountantscspecificallycstatecthatcmanagementc
accountants'csolecethicalcresponsibilitycisctocnotcbreakcanyclaws.
Answer:cFalsec Level:cEasycccLO:c4
6 Garrison,cManagerialcAccounting,c12thcEditio
n
