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ST TU
Accounting for
UV V
S
Decision Making and
Control, 10th Edition
IAIA
?_?_
TEST BANK
AAP
Jerold Zimmerman
PPPR
Comprehensive Test Bank for Instructors
ROOV
and Students
||| ||| || ||| || | || ||| | || ||| |
VE D
9781259969492
E
© Jerold Zimmerman. All rights reserved. Reproduction
D? ?
or distribution without permission is prohibited.
?
© MEDGEEK
,ST TU
TABLE OF CONTENTS
Test Bank – Accounting for Decision Making and Control (10th Edition)
Author: Jerold Zimmerman
UV V
S
ISBN: 9781259969492
PART I: FOUNDATIONS AND NATURE OF COSTS
Chapter 1: Introduction
Chapter 2: The Nature of Costs
Chapter 3: Opportunity Cost of Capital and Capital Budgeting
IAIA
PART II: ORGANIZATIONAL ARCHITECTURE AND CONTROL
Chapter 4: Organizational Architecture
?_?_
Chapter 5: Responsibility Accounting and Transfer Pricing
Chapter 6: Budgeting
PART III: COST ALLOCATION THEORY AND PRACTICE
Chapter 7: Cost Allocation: Theory
AAP
Chapter 8: Cost Allocation: Practices
Chapter 9: Absorption Cost Systems
Chapter 10: Criticisms of Absorption Cost Systems: Incentive to Overproduce
Chapter 11: Criticisms of Absorption Cost Systems: Inaccurate Product Costs
PPPR
PART IV: VARIANCE ANALYSIS AND STRATEGIC MANAGEMENT
Chapter 12: Standard Costs: Direct Labor and Materials
Chapter 13: Overhead and Marketing Variances
Chapter 14: Management Accounting in a Changing Environment
ROOV
VE D
E
D? ?
?
,ST TU Chapter 01 Test Bank – Static Key
Multiple Choice Questions
UV V
S
1. The firm's information system:
A. is always a single integrated system
B. includes only financial information
C. may include other information such as customer satisfaction surveys, in addition to financial information
D. is less important as a firm grows in size
E. none of the above
IAIA
The firm's information system includes many kinds of financial and non-financial information.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
?_?_
AICPA: BB Industry
AICPA: FN Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Managerial Accounting: Decision Making and Control
2. Identify all the correct statements:
AAP
A. Managers naturally seek to maximize shareholders' wealth
B. Managers act in their own interests, and so there is no way to align their interests with those of the owners
C. To motivate managers in non-profit firms, no employee incentives are needed
D. To align the interests of managers and owners, owners must design systems to monitor and reward management behavior that
increases the firm's profits
PPPR
E. none of the above
To minimize conflicts between the economic interests of managers and owners, the owners need both systems to monitor the
manager's performance and systems of rewards or incentives.
AACSB: Knowledge Application
ROOV
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
AICPA: BB Industry
AICPA: FN Decision Making
AICPA: FN Risk Analysis
Blooms: Remember
Difficulty: 1 Easy
Topic: Management Accountant's Role in the Organization
VE D
Topic: Managerial Accounting: Decision Making and Control
E
D? ?
?
3-1
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,ST TU 3. An internal accounting system should:
A. provide information to enable costs to be minimized
B. provide financial accounting data for external reporting purposes
C. provide management accounting information for decision-making
UV V D. provide data for tax purposes
S
E. all of the above
A well designed internal accounting system should provide data for external purposes, such as financial reporting and tax, as
well as internal purposes such as cost control, assessing performance and determining rewards. It is economically inefficient to
maintain multiple accounting systems.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
IAIA
Accessibility: Screen Reader Compatible
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Topic: Design and Use of Cost Systems
?_?_
4. Economic Darwinism:
A. explains why firms persist in inefficient behavior
B. explains why some inefficient accounting practices persist
C. explains why marmots eat bears
AAP
D. explains why bears eat marmots
E. none of the above
Inefficient accounting systems may continue to exist either because they have proved better than other systems or because better
systems have not been yet discovered.
PPPR
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
AICPA: BB Marketing
AICPA: FN Risk Analysis
Blooms: Remember
Difficulty: 1 Easy
ROOV
Topic: Marmots and Grizzly Bears
VE D
E
D? ?
?
3-2
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
ST TU
Accounting for
UV V
S
Decision Making and
Control, 10th Edition
IAIA
?_?_
TEST BANK
AAP
Jerold Zimmerman
PPPR
Comprehensive Test Bank for Instructors
ROOV
and Students
||| ||| || ||| || | || ||| | || ||| |
VE D
9781259969492
E
© Jerold Zimmerman. All rights reserved. Reproduction
D? ?
or distribution without permission is prohibited.
?
© MEDGEEK
,ST TU
TABLE OF CONTENTS
Test Bank – Accounting for Decision Making and Control (10th Edition)
Author: Jerold Zimmerman
UV V
S
ISBN: 9781259969492
PART I: FOUNDATIONS AND NATURE OF COSTS
Chapter 1: Introduction
Chapter 2: The Nature of Costs
Chapter 3: Opportunity Cost of Capital and Capital Budgeting
IAIA
PART II: ORGANIZATIONAL ARCHITECTURE AND CONTROL
Chapter 4: Organizational Architecture
?_?_
Chapter 5: Responsibility Accounting and Transfer Pricing
Chapter 6: Budgeting
PART III: COST ALLOCATION THEORY AND PRACTICE
Chapter 7: Cost Allocation: Theory
AAP
Chapter 8: Cost Allocation: Practices
Chapter 9: Absorption Cost Systems
Chapter 10: Criticisms of Absorption Cost Systems: Incentive to Overproduce
Chapter 11: Criticisms of Absorption Cost Systems: Inaccurate Product Costs
PPPR
PART IV: VARIANCE ANALYSIS AND STRATEGIC MANAGEMENT
Chapter 12: Standard Costs: Direct Labor and Materials
Chapter 13: Overhead and Marketing Variances
Chapter 14: Management Accounting in a Changing Environment
ROOV
VE D
E
D? ?
?
,ST TU Chapter 01 Test Bank – Static Key
Multiple Choice Questions
UV V
S
1. The firm's information system:
A. is always a single integrated system
B. includes only financial information
C. may include other information such as customer satisfaction surveys, in addition to financial information
D. is less important as a firm grows in size
E. none of the above
IAIA
The firm's information system includes many kinds of financial and non-financial information.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
?_?_
AICPA: BB Industry
AICPA: FN Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Managerial Accounting: Decision Making and Control
2. Identify all the correct statements:
AAP
A. Managers naturally seek to maximize shareholders' wealth
B. Managers act in their own interests, and so there is no way to align their interests with those of the owners
C. To motivate managers in non-profit firms, no employee incentives are needed
D. To align the interests of managers and owners, owners must design systems to monitor and reward management behavior that
increases the firm's profits
PPPR
E. none of the above
To minimize conflicts between the economic interests of managers and owners, the owners need both systems to monitor the
manager's performance and systems of rewards or incentives.
AACSB: Knowledge Application
ROOV
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
AICPA: BB Industry
AICPA: FN Decision Making
AICPA: FN Risk Analysis
Blooms: Remember
Difficulty: 1 Easy
Topic: Management Accountant's Role in the Organization
VE D
Topic: Managerial Accounting: Decision Making and Control
E
D? ?
?
3-1
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,ST TU 3. An internal accounting system should:
A. provide information to enable costs to be minimized
B. provide financial accounting data for external reporting purposes
C. provide management accounting information for decision-making
UV V D. provide data for tax purposes
S
E. all of the above
A well designed internal accounting system should provide data for external purposes, such as financial reporting and tax, as
well as internal purposes such as cost control, assessing performance and determining rewards. It is economically inefficient to
maintain multiple accounting systems.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
IAIA
Accessibility: Screen Reader Compatible
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Topic: Design and Use of Cost Systems
?_?_
4. Economic Darwinism:
A. explains why firms persist in inefficient behavior
B. explains why some inefficient accounting practices persist
C. explains why marmots eat bears
AAP
D. explains why bears eat marmots
E. none of the above
Inefficient accounting systems may continue to exist either because they have proved better than other systems or because better
systems have not been yet discovered.
PPPR
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
AICPA: BB Marketing
AICPA: FN Risk Analysis
Blooms: Remember
Difficulty: 1 Easy
ROOV
Topic: Marmots and Grizzly Bears
VE D
E
D? ?
?
3-2
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
