TEST BANK Managerial Accounting The Cornerstone of Business Decision Making, 8th Edition by Maryanne Mowen and Hansen all chapters 1-15

Test Bank for Managerial Accounting: The Cornerstone of Business Decision Making
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8e Mowen fs fs




Chap 01_8e_Mowen
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Indicate whether the statement is true or false.
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fs 1. A cost accountant would normally occupy a staff position within an organization.
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True
False

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

f s 3. Management accounting information is used only by manufacturing organizations.
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True
False

f s 4. Positions that have direct responsibility for the basic objectives of an organization are referred to as line positions.
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True
False

f s 5. Virtually all managerial accounting practices were developed to assist managers in maximizing profits.
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True
False

f s 6. Managerial accounting is designed primarily for internal users.
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True
False

f s 7. Managerial accounting information is not important for not-for-profit organizations.
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True
False

f s 8. Time is not a crucial element in all phases of the value chain.
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True
False

fs 9. Activity-based costing is a less detailed approach to determining the cost of goods and services than traditional
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cost accounting.
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True
False

fs 10. Amelia compared the budgeted spending on labor and materials used in production to the actual spending on labor
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and materials used in production. Labor spending was higher than expected. Amelia emailed Robbie to discuss
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this outcome. This is a managerial accounting-oriented issue.
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True
False



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,Name: Class: Date:

Chap 01_8e_Mowen
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fs 11. The purpose of the Certificate in Public Accounting is to provide minimal professional qualification for external
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auditors.fs




True
False

f s 12. Excellent customer service is an example of a value-added activity.
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True
False

f s 13. GAAP governs financial accounting.
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True
False

f s 14. Managerial accounting emphasizes the future.
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True
False

fs 15. The value chain is the set of activities required to design, develop, produce, market, and deliver products and
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services to customers.
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True
False

f s 16. The belief that each member of a group bears no responsibility for the well-being of other members is a common
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principle underlying all ethical systems.
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True
False

f s 17. The process of choosing among competing alternatives is called decision making.
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True
False

fs 18. The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred
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to as decision making.
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True
False

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




Purchasing manager fs




General manager fs




Cost accountant fs




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,Name: Class: Date:

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f s 20. The standards of ethical conduct for managerial accountants include:
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caring for others, intuition, and respect for others.
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pursuit of excellence, credibility, and immediacy. fs fs fs fs fs




confidentiality, confidence, integrity, and observance. fs fs fs fs




competence, confidentiality, integrity, and credibility. fs fs fs fs




f s 21. Investigating production variances and adjusting the production process are examples of:
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planning.
controlling.
decision making. fs




All of these are correct.
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fs 22. Which of the following statements is true of total quality management?
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It is a management philosophy in which manufacturers strive to create an environment that will enable
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workers to manufacture zero-defect products.
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It has replaced the acceptable quality attitudes of the past.
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It emphasizes the elimination of waste.
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All of these are correct.
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f s 23. Activity-based costing:
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strives to create an environment that will enable workers to manufacture zero-defect products.
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is the process of choosing among competing alternatives.
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was established in response to financial scandals.
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emphasizes the cost of tasks required to produce a product or offer a service.
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f s 24. Accountants that have a Certificate in Public Accounting (CPA):
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are the only accountants permitted to serve as external auditors.
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must pass a national examination and be licensed by the state in which they practice.
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are responsible for assuring the reliability of a firm's financial statements.
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All of these are correct.fs fs fs fs




fs 25. Which of the following statements is true of profit maximization?
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Profit maximization is achieved by considering the financial measures focused only on efficiency.
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Profit maximization is an objective of financial accounting but not managerial accounting.
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Profit maximization should be achieved through legal and ethical means.
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Profit maximization results in maximum cost to and maximum production by a company.
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f s 26. The controller of an organization participates in:
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planning.
controlling.
decision making. fs




All of these are correct
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, Name: Class: Date:

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f s 27. In the United States, individuals who provide assurance service are designated as:
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Certified Public Accountants. fs fs




Certified Financial Accountants. fs fs




Chartered Accountants. fs




Certified Management Accountants. fs fs




f s 28. Which of the following members of an organization would normally hold a staff position?
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Head of security fs fs




Accounting manager fs




Customer service executive fs fs




All of these are correct.
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f s 29. Which of the following areas is not emphasized by the Certified Management Accountant (CMA) examination?
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External auditing and internal control fs fs fs fs




Management reporting, analysis, and behavioral issues fs fs fs fs fs




Decision analysis and information systems fs fs fs fs




Economics, finance, and management fs fs fs




fs 30. Which of the following is not an objective of managerial accounting?
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To produce information for external users, including investors, creditors, customers, suppliers, and
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government agencies
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To provide information for planning an organization’s actions
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To provide information for evaluating and continuously improving an organization’s actions
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To provide information for effective decision making by the management of a company
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f s 31. Managerial accounting reports are prepared:
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to provide creditors with information useful in making credit decisions.
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to meet the needs of decision makers within a firm.
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to present historical information.
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All of these are correct.
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f s 32. Which of the following would occupy a line position in a hospital?
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Cafeteria manager fs




Hospital administrator fs




Chief of surgery fs fs




None of these are correct. fs fs fs fs




fs 33. Which of the following statements is true of financial accounting?
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Financial accounting is directed toward external users.fs fs fs fs fs fs




Financial accounting is subject to externally imposed rules.
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Financial accounting provides information that can be objectively verified and audited.
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All of these are correct.
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