TEST BANK FOR
M M
Managerial Accounting 4th Edition by Charles E. Davis
M M M M M M M
Chapter 1 M
Accounting as a Tool for Management M M M M M
CHAPTER LEARNING OBJECTIVES
M M
1. Define managerial accounting (Unit 1.1)
M M M M
ThereMareMseveralMformalMdefinitionsMofMmanagerialMaccounting.MAMsimpleMoneMisM“theMg
enerationMofMrelevantMinformationMtoMsupportMmanagement’sMdecision-
makingMactivities.”
2. Describe the differences between managerial and financial accountin
M M M M M M M
g (Unit 1.1)
M M
ManagerialMaccounting’sMprimaryMusersMareMmanagersMandMdecisionMmakersMwithinManM
organization,MwhereasMfinancialMaccountingMisMaimedMprimarilyMatMexternalMusers.MUnlik
eMGAAPMthatMguidesMfinancialMaccounting,MthereMareMnoMmandatedMrulesMinMmanagerial
Maccounting.MManagerialMaccountingMreportsMfocusMonMoperatingMsegments,MwhileMfinan
cialMaccountingMstatementsMreportMresultsMforMtheMorganizationMasMaMwhole.MManageria
lMaccountingMisMconcernedMmoreMwithMprojectingMfutureMresultsMthanMreportingMpastMres
ults.MManagerialMinformationMisMpreparedMtoMtakeMadvantageMofMaMwindowMofMopportun
ity,MevenMifMsomeMaccuracyMmustMbeMsacrificed.MFinancialMaccountingMinformationMisMbal
ancedMtoMtheMpennyMandMisMdeliveredMafterMtheMendMofMtheMaccountingMperiod.
3. List and describe the four functions of managers (Unit 1.1)
M M M M M M M M M
PlanningMmeansMsettingMaMdirectionMforMtheMorganization.MLong-
term,MorMstrategicMplanningMprovidesMdirectionMforMaMfive-MtoMten-yearMperiod.MShort-
termMorMoperationalMplanningMprovidesMmoreMdetailedMguidanceMforMtheMcomingMyear;M
itMtranslatesMtheMcompany’sMstrategyMintoMactionMsteps.MControllingMisMtheMmonitoringM
ofMday-to-
dayMoperationsMtoMidentifyManyMproblemsMthatMrequireMcorrectiveMaction.MEvaluatingMisM
theMprocessMof
comparingMaMparticularMperiod’sMactualMresultsMtoMplannedMresults,MforMtheMpurposeMofM
assessingMmanagerialMperformance.MDecisionMmakingMmeansMchoosingMbetweenMaltern
ativeMcoursesMofMaction.
4. Explain how the selection of a particular business strategy determines t
M M M M M M M M M M
he information that managers need to run an organization effectively (
M M M M M M M M M M
Unit 1.2) M
ToMrunMaMbusinessMeffectively,MmanagersMneedMinformationMthatMshowsMhowMwell
operationsMareMmeetingMtheMorganization’sMstrategicMgoals.MForMinstance,MifMthe
organization’sMstrategyMisMtoMbeMaMlow-
costMproducer,MinformationMaboutMproductMcostsMandMcostMvariancesMwillMbeMmoreM
usefulMtoMmanagersMthanMinformationMaboutMresearchMandMdevelopment.
,5. Discuss the importance of ethical behavior in managerial accounting (U
M M M M M M M M M
nit 1.3)
M
EthicalMbehaviorMmeansMknowingMrightMfromMwrongMandMthenMdoingMtheMrightMthing.MM
anyMcompaniesMandMmostMprofessionalMorganizationsMhaveMcodesMofMconductMtoMguide
employees’Mactions.MActingMunethicallyMcanMleadMtoMillegalMactivityMandMultimatelyMtoMt
heMdestructionMofMtheMfirm.MFurthermore,MresearchMhasMshownMthatMaMpublicMcommitm
entMtoMethicalMbehaviorMcanMleadMtoMsuperiorMfinancialMperformance.
, TRUE-FALSE STATEMENTS
M
1. ManagementMaccountingMisMtheMgenerationMofMrelevantMinformationMandManalysisMprovidedMtoMext
ernalMusers.
Ans:MFalseM–
MManagementMaccountingMisMtheMgenerationMofMrelevantMinformationMandManalysisMtoMsupportMmanagers’Mdecision-
MmakingMactivities,MLO:M1,MBloom:MK,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MReporting
2. TheMAmericanMInstituteMofMCertifiedMPublicMAccountantsMisMtheMleadingMorganizationMforMmanage
mentMaccountantsMinMtheMUnitedMStates.
Ans:MFalseM–
MTheMInstituteMofMManagementMAccountantsM(IMA)MisMtheMleadingMorganizationMforMmanagementMaccountantsMinMtheMU
nitedMStates,MLO:M1,MBloom:MK,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MBusinessMOperations
3. TheMprimaryMusersMofMmanagerialMaccountingMinformationMareMmanagersMandMotherMinternalMdeci
sion-Mmakers.
Ans:MTrue,M LO:M2,MBloom:MK,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MReporting
4. ManagerialMaccountingMprovidesMreportsMandMinformationMforMaMrangeMofMdecisionMmakersMoutsi
deManMorganization.
Ans:MFalseM–
MManagerialMaccountingMprovidesMreportsMandMinformationMforMaMrangeMofMdecisionMmakersMwithinManMorganization,MLO:M2,
MBloom:MC,MUnit:M1-1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MReporting
5. ManagerialMaccountingMdiffersMfromMfinancialMaccountingMinMthatMmanagerialMaccountingMhasMn
oMcomparableMsetMofMrulesMgoverningMwhatMinformationMmustMbeMprovidedMtoMdecision-
makersMorMhowMthatMinformationMisMpresented.
Ans:MTrue,MLO:M2,MBloom:MC,MUnit:M1-
1,MDifficulty:MEasyMMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MReporting
6. ManagerialMaccountingMusesMhistoricalMinformation,MoftenMwithMtheMpurposeMofMcomparingMa
ctualMresultsMtoMbudgetedMresults.
Ans:MTrue,MLO:M2,MBloom:MK,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MReporting
7. DecisionMmakersMmightMhaveMaMlongMlistMofMinformationMtheyMwouldMfindMhelpful,MandMtheyMareMgenerally
notMwillingMtoMsacrificeMaccuracyMforMhavingMtheMinformationMquickly.
Ans:MFalseM–
MDecisionMmakersMmightMhaveMaMlongMlistMofMinformationMtheyMwouldMfindMhelpful.MButMsometimesMtheyMmightMneedMtoMs
acrificeMprecisionMforMtimeliness,MLO:M2,MBloom:MC,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MBusinessMOperations
8. ManagerialMaccountingMisMdesignedMtoMassistMmanagersMwithMfourMgeneralMactivities:Mplan
ning,Mcontrolling,Mevaluating,MandMdecisionMmaking.
Ans:MTrue,MLO:M3,MBloom:MK,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MBusinessMOperations
9. Long-termMplanningMisMoftenMreferredMtoMasMreporting.
Ans:MTrue,MLO:M3,MBloom:MK,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MBusinessMOperations
, 10. OneMpurposeMofMplanningMactivitiesMisMtoMmonitorMday-to-
dayMoperationsMtoMensureMthatMprocessesMareMoperatingMasMexpected.
Ans:MFalseM–MOneMpurposeMofMcontrollingMactivitiesMisMtoMmonitorMday-to-
dayMoperationsMtoMensureMthatMprocessesMareMoperatingMasMexpected,MLO:M3,MBloom:MC,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MBusinessMOperations
11. AllMotherMthingsMheldMequal,MtheMmoreMfrequentMtheMcontrollingMactivity,MtheMfasterManMout-of-
controlMprocessMcanMbeMcorrected.
Ans:MTrue,MLO:M3,MBloom:MC,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MReporting
12. TheMtaskMofMassessingMhowMwellMemployeesMhaveMperformedMrelativeMtoMexpectationsMisMaMcontr
ollingMactivity.
Ans:MFalseM–
MTheMtaskMofMaccessingMhowMwellMemployeesMhaveMperformedMrelativeMtoMexpectationsMisMconsideredManMevaluationMactiv
ity,MLO:M3,MBloom:MK,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalyticMAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MBusinessMOperations
13. PreparersMofMmanagerialMaccountingMinformationMareMgenerallyMnotMactiveMparticipantsMinMtheMdeci
sion-MmakingMprocess.
Ans:MFalseM–
MPreparersMofMmanagerialMaccountingMinformationMareMnoMlongerMsolelyMnumberMcrunchers,MbutMactiveMparticipantsMinMth
eMdecision-makingMprocess,MLO:M3,MBloom:MC,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MBusinessMOperations
14. ManagerialMaccountingMinformationMisMalwaysMpreparedMbyMtheMcontrollerMorMcostMaccountan
t.MAns:MFalseM–
MManagerialMaccountingMinformationMcanMbeMprovidedMbyMaMcontroller,MaMplantMaccountant,MaMcostMaccountant,MaMfi
nancialManalyst,MaMbudgetMorMcostManalyst,MaMgeneralMaccountant,MorMevenMaMchiefMfinancialMofficer,MLO:M3,MBloom:MC
,MUnitM1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MBusinessMOperations
15. ManagerialMaccountingMinformationMprovidesMfeedbackMaboutMhowMwellMtheMorganizatio
nMisMimplementingMitsMstrategyMandMachievingMitsMgoals.
Ans:MTrue,MLO:M4,MBloom:MK,MUnitM1-
2,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MStrategy
16. ForMtheMproductMdifferentiationMstrategy,McompaniesMwillMwantMinformationMonMquality,MsuchMasMd
efectMrates,MpercentageMofMon-timeMdeliveries,MandMcustomerMsatisfaction.
Ans:MTrue,MLO:M4,MBloom:MK,MUnitM1-
2,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MStrategy
17. IfMaMcompanyMfollowsMaMstrategyMofMproductMdifferentiation,MitMwillMseekMwaysMtoMsetMitsMproductsMapart
fromMcompetitors’MinMtermsMofMquality,MdesignMorMservice.
Ans:MTrue,MLO:M4,MBloom:MK,MUnitM1-
2,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MStrategy
18. AMcompanyMthatMfocusesMonMproductMdifferentiationMdoesMnotMneedMtoMmonitorMproductMcostsMbe
causeMifMtheMqualityMisMsufficient,McustomersMwillMpayMtheMprice.
Ans:MFalseM–
MAMcompanyMthatMfocusesMonMproductMdifferentiationMmustMmonitorMproductMcostsMbecauseMifMtooMmuchMcostMisMincurredM
forMquality,MtheMsalesMpriceMwillMbeMtooMhighMtoMbeMcompetitive,MLO:M4,MBloom:MC,MUnitM1-
2,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MStrategy
M M
Managerial Accounting 4th Edition by Charles E. Davis
M M M M M M M
Chapter 1 M
Accounting as a Tool for Management M M M M M
CHAPTER LEARNING OBJECTIVES
M M
1. Define managerial accounting (Unit 1.1)
M M M M
ThereMareMseveralMformalMdefinitionsMofMmanagerialMaccounting.MAMsimpleMoneMisM“theMg
enerationMofMrelevantMinformationMtoMsupportMmanagement’sMdecision-
makingMactivities.”
2. Describe the differences between managerial and financial accountin
M M M M M M M
g (Unit 1.1)
M M
ManagerialMaccounting’sMprimaryMusersMareMmanagersMandMdecisionMmakersMwithinManM
organization,MwhereasMfinancialMaccountingMisMaimedMprimarilyMatMexternalMusers.MUnlik
eMGAAPMthatMguidesMfinancialMaccounting,MthereMareMnoMmandatedMrulesMinMmanagerial
Maccounting.MManagerialMaccountingMreportsMfocusMonMoperatingMsegments,MwhileMfinan
cialMaccountingMstatementsMreportMresultsMforMtheMorganizationMasMaMwhole.MManageria
lMaccountingMisMconcernedMmoreMwithMprojectingMfutureMresultsMthanMreportingMpastMres
ults.MManagerialMinformationMisMpreparedMtoMtakeMadvantageMofMaMwindowMofMopportun
ity,MevenMifMsomeMaccuracyMmustMbeMsacrificed.MFinancialMaccountingMinformationMisMbal
ancedMtoMtheMpennyMandMisMdeliveredMafterMtheMendMofMtheMaccountingMperiod.
3. List and describe the four functions of managers (Unit 1.1)
M M M M M M M M M
PlanningMmeansMsettingMaMdirectionMforMtheMorganization.MLong-
term,MorMstrategicMplanningMprovidesMdirectionMforMaMfive-MtoMten-yearMperiod.MShort-
termMorMoperationalMplanningMprovidesMmoreMdetailedMguidanceMforMtheMcomingMyear;M
itMtranslatesMtheMcompany’sMstrategyMintoMactionMsteps.MControllingMisMtheMmonitoringM
ofMday-to-
dayMoperationsMtoMidentifyManyMproblemsMthatMrequireMcorrectiveMaction.MEvaluatingMisM
theMprocessMof
comparingMaMparticularMperiod’sMactualMresultsMtoMplannedMresults,MforMtheMpurposeMofM
assessingMmanagerialMperformance.MDecisionMmakingMmeansMchoosingMbetweenMaltern
ativeMcoursesMofMaction.
4. Explain how the selection of a particular business strategy determines t
M M M M M M M M M M
he information that managers need to run an organization effectively (
M M M M M M M M M M
Unit 1.2) M
ToMrunMaMbusinessMeffectively,MmanagersMneedMinformationMthatMshowsMhowMwell
operationsMareMmeetingMtheMorganization’sMstrategicMgoals.MForMinstance,MifMthe
organization’sMstrategyMisMtoMbeMaMlow-
costMproducer,MinformationMaboutMproductMcostsMandMcostMvariancesMwillMbeMmoreM
usefulMtoMmanagersMthanMinformationMaboutMresearchMandMdevelopment.
,5. Discuss the importance of ethical behavior in managerial accounting (U
M M M M M M M M M
nit 1.3)
M
EthicalMbehaviorMmeansMknowingMrightMfromMwrongMandMthenMdoingMtheMrightMthing.MM
anyMcompaniesMandMmostMprofessionalMorganizationsMhaveMcodesMofMconductMtoMguide
employees’Mactions.MActingMunethicallyMcanMleadMtoMillegalMactivityMandMultimatelyMtoMt
heMdestructionMofMtheMfirm.MFurthermore,MresearchMhasMshownMthatMaMpublicMcommitm
entMtoMethicalMbehaviorMcanMleadMtoMsuperiorMfinancialMperformance.
, TRUE-FALSE STATEMENTS
M
1. ManagementMaccountingMisMtheMgenerationMofMrelevantMinformationMandManalysisMprovidedMtoMext
ernalMusers.
Ans:MFalseM–
MManagementMaccountingMisMtheMgenerationMofMrelevantMinformationMandManalysisMtoMsupportMmanagers’Mdecision-
MmakingMactivities,MLO:M1,MBloom:MK,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MReporting
2. TheMAmericanMInstituteMofMCertifiedMPublicMAccountantsMisMtheMleadingMorganizationMforMmanage
mentMaccountantsMinMtheMUnitedMStates.
Ans:MFalseM–
MTheMInstituteMofMManagementMAccountantsM(IMA)MisMtheMleadingMorganizationMforMmanagementMaccountantsMinMtheMU
nitedMStates,MLO:M1,MBloom:MK,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MBusinessMOperations
3. TheMprimaryMusersMofMmanagerialMaccountingMinformationMareMmanagersMandMotherMinternalMdeci
sion-Mmakers.
Ans:MTrue,M LO:M2,MBloom:MK,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MReporting
4. ManagerialMaccountingMprovidesMreportsMandMinformationMforMaMrangeMofMdecisionMmakersMoutsi
deManMorganization.
Ans:MFalseM–
MManagerialMaccountingMprovidesMreportsMandMinformationMforMaMrangeMofMdecisionMmakersMwithinManMorganization,MLO:M2,
MBloom:MC,MUnit:M1-1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MReporting
5. ManagerialMaccountingMdiffersMfromMfinancialMaccountingMinMthatMmanagerialMaccountingMhasMn
oMcomparableMsetMofMrulesMgoverningMwhatMinformationMmustMbeMprovidedMtoMdecision-
makersMorMhowMthatMinformationMisMpresented.
Ans:MTrue,MLO:M2,MBloom:MC,MUnit:M1-
1,MDifficulty:MEasyMMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MReporting
6. ManagerialMaccountingMusesMhistoricalMinformation,MoftenMwithMtheMpurposeMofMcomparingMa
ctualMresultsMtoMbudgetedMresults.
Ans:MTrue,MLO:M2,MBloom:MK,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MReporting
7. DecisionMmakersMmightMhaveMaMlongMlistMofMinformationMtheyMwouldMfindMhelpful,MandMtheyMareMgenerally
notMwillingMtoMsacrificeMaccuracyMforMhavingMtheMinformationMquickly.
Ans:MFalseM–
MDecisionMmakersMmightMhaveMaMlongMlistMofMinformationMtheyMwouldMfindMhelpful.MButMsometimesMtheyMmightMneedMtoMs
acrificeMprecisionMforMtimeliness,MLO:M2,MBloom:MC,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MBusinessMOperations
8. ManagerialMaccountingMisMdesignedMtoMassistMmanagersMwithMfourMgeneralMactivities:Mplan
ning,Mcontrolling,Mevaluating,MandMdecisionMmaking.
Ans:MTrue,MLO:M3,MBloom:MK,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MBusinessMOperations
9. Long-termMplanningMisMoftenMreferredMtoMasMreporting.
Ans:MTrue,MLO:M3,MBloom:MK,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MBusinessMOperations
, 10. OneMpurposeMofMplanningMactivitiesMisMtoMmonitorMday-to-
dayMoperationsMtoMensureMthatMprocessesMareMoperatingMasMexpected.
Ans:MFalseM–MOneMpurposeMofMcontrollingMactivitiesMisMtoMmonitorMday-to-
dayMoperationsMtoMensureMthatMprocessesMareMoperatingMasMexpected,MLO:M3,MBloom:MC,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MBusinessMOperations
11. AllMotherMthingsMheldMequal,MtheMmoreMfrequentMtheMcontrollingMactivity,MtheMfasterManMout-of-
controlMprocessMcanMbeMcorrected.
Ans:MTrue,MLO:M3,MBloom:MC,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MReporting
12. TheMtaskMofMassessingMhowMwellMemployeesMhaveMperformedMrelativeMtoMexpectationsMisMaMcontr
ollingMactivity.
Ans:MFalseM–
MTheMtaskMofMaccessingMhowMwellMemployeesMhaveMperformedMrelativeMtoMexpectationsMisMconsideredManMevaluationMactiv
ity,MLO:M3,MBloom:MK,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalyticMAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MBusinessMOperations
13. PreparersMofMmanagerialMaccountingMinformationMareMgenerallyMnotMactiveMparticipantsMinMtheMdeci
sion-MmakingMprocess.
Ans:MFalseM–
MPreparersMofMmanagerialMaccountingMinformationMareMnoMlongerMsolelyMnumberMcrunchers,MbutMactiveMparticipantsMinMth
eMdecision-makingMprocess,MLO:M3,MBloom:MC,MUnit:M1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MBusinessMOperations
14. ManagerialMaccountingMinformationMisMalwaysMpreparedMbyMtheMcontrollerMorMcostMaccountan
t.MAns:MFalseM–
MManagerialMaccountingMinformationMcanMbeMprovidedMbyMaMcontroller,MaMplantMaccountant,MaMcostMaccountant,MaMfi
nancialManalyst,MaMbudgetMorMcostManalyst,MaMgeneralMaccountant,MorMevenMaMchiefMfinancialMofficer,MLO:M3,MBloom:MC
,MUnitM1-
1,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MBusinessMOperations
15. ManagerialMaccountingMinformationMprovidesMfeedbackMaboutMhowMwellMtheMorganizatio
nMisMimplementingMitsMstrategyMandMachievingMitsMgoals.
Ans:MTrue,MLO:M4,MBloom:MK,MUnitM1-
2,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MStrategy
16. ForMtheMproductMdifferentiationMstrategy,McompaniesMwillMwantMinformationMonMquality,MsuchMasMd
efectMrates,MpercentageMofMon-timeMdeliveries,MandMcustomerMsatisfaction.
Ans:MTrue,MLO:M4,MBloom:MK,MUnitM1-
2,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MStrategy
17. IfMaMcompanyMfollowsMaMstrategyMofMproductMdifferentiation,MitMwillMseekMwaysMtoMsetMitsMproductsMapart
fromMcompetitors’MinMtermsMofMquality,MdesignMorMservice.
Ans:MTrue,MLO:M4,MBloom:MK,MUnitM1-
2,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MStrategy
18. AMcompanyMthatMfocusesMonMproductMdifferentiationMdoesMnotMneedMtoMmonitorMproductMcostsMbe
causeMifMtheMqualityMisMsufficient,McustomersMwillMpayMtheMprice.
Ans:MFalseM–
MAMcompanyMthatMfocusesMonMproductMdifferentiationMmustMmonitorMproductMcostsMbecauseMifMtooMmuchMcostMisMincurredM
forMquality,MtheMsalesMpriceMwillMbeMtooMhighMtoMbeMcompetitive,MLO:M4,MBloom:MC,MUnitM1-
2,MDifficulty:MEasy,MMin:M1,MAACSB:MAnalytic,MAICPAMFN:MReporting,MAICPAMPC:MNone,MIMA:MStrategy
