Test Bank for Managerial Accounting: The Cornerstone of Business Decision Making, 8th Edition by Mowen

TEST BANK
Managerial Accounting: The Cornerstone of Business Decision Making,

8th Edition, Mowen, Hansen, Heitger Chapters 1 - 15




Page 1
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,Table of Contents ty ty




WHY Is Managerial Accounting Important?
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1. Introduction to Managerial Accounting.
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2. Basic Managerial Accounting Concepts.
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WHAT Is Managerial Accounting?
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3. Cost Behavior, Cost Forecasting, and Segmented Income Statements.
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WHERE Does Managerial Accounting Come From?
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4. Job-Order Costing and Normal Cost (Overhead Application).
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5. Activity-Based Costing and Management
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6. Process Costing.
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HOW Is Managerial Accounting USED for Decision Making?
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7. Cost-Volume-Profit Analysis.
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8. Tactical Decision Making and Relevant Costing.
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9. Profit Planning and Flexible Budgets.
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10. Standard Costing and Variance Analysis.
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11. Performance Evaluation and Decentralization.
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12. Capital Investment Decisions.
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13. Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, I
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nternational Issues, Enterprise Risk Management, The Managerial Accountant in Forensic/Frau
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d Accounting
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14. Statement of Cash Flows.
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15. Financial Statement Analysis.
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Page 2
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,Chap 01_8e_Mowen
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Answers at the end of each chapterty ty ty ty ty ty




Indicate whether the statement is true or false.
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ty t y 1. A cost accountant would normally occupy a staff position within an organization.
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a. True
b. False

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2. The four emphasized areas of the CMA examination reflect the needs of managerial accounting and highli
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ght that managerial accounting has more of an interdisciplinary flavor than other areas of accounting.
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a. True
b. False

ty t y 3. Management accounting information is used only by manufacturing organizations.
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a. True
b. False

ty t y 4. Positions that have direct responsibility for the basic objectives of an organization are referred to as line positions.
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a. True
b. False

ty t y 5. Virtually all managerial accounting practices were developed to assist managers in maximizing profits.
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a. True
b. False

ty t y 6. Managerial accounting is designed primarily for internal users.
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a. True
b. False

ty t y 7. Managerial accounting information is not important for not-for-profit organizations.
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a. True
b. False

ty t y 8. Time is not a crucial element in all phases of the value chain.
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a. True
b. False

ty t y 9. Activity-
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based costing is a less detailed approach to determining the cost of goods and services than traditionalcost accounti
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ng.
a. True
b. False
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10. Amelia compared the budgeted spending on labor and materials used in production to the actual spending on l
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abor and materials used in production. Labor spending was higher than expected. Amelia emailed Robbie to discus
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s this outcome. This is a managerial accounting-oriented issue.
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a. True
b. False


Page 3ty

, Name: Class: Date: ty




Chap 01_8e_Mowe
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n
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11. The purpose of the Certificate in Public Accounting is to provide minimal professional qualification for extern
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alauditors.
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a. True
b. False

ty t y 12. Excellent customer service is an example of a value-added activity.
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a. True
b. False

ty t y 13. GAAP governs financial accounting.
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a. True
b. False

ty t y 14. Managerial accounting emphasizes the future.
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a. True
b. False
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15. The value chain is the set of activities required to design, develop, produce, market, and deliver products
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andservices to customers.
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a. True
b. False

ty t y 16. The belief that each member of a group bears no responsibility for the well-
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being of other members is a commonprinciple underlying all ethical systems.
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a. True
b. False

ty t y 17. The process of choosing among competing alternatives is called decision making.
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a. True
b. False
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18. The managerial activity of monitoring a plan's implementation and taking corrective action as needed is refe
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rredto as decision making.
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a. True
b. False

Indicate the answer choice that best completes the statement or answers the question.
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ty t y 19. Which of the following would normally hold a line position?
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a. Staff accountant ty




b. Purchasing manager ty




c. General manager ty




d. Cost accountant ty




Pagety


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