br
TesT Bank For br br
Managerial Accounting The Cornerstone of Business Decision Making 9th Edition by Maryanne M.
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Mowen, Don R. Hansen, Dan L. Heitger Copyright 2026
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Chapter 1-14 br
Ch01 - Introduction to Managerial Accounting
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True / False
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1. The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as
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decision making. br
a. Truebr
b. False
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ANSWER: False
RATIONALE: The managerial activity of monitoring a plan's implementation and taking corrective action as
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needed is referred to as controlling. br br br br br
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
br br br
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
br b r br br br br br br br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS:br United States - AK - ACBSP: APC-26 - Management Functions br br br br br br br br br
United States - AK - AICPA: FN-Decision Modeling br br br br br br br
United States - AK - IMA: Decision Analysis br br br br br br br
KEYWORDS: Bloom's: Remember br
2. The process of choosing among competing alternatives is called decision making.
br br br br br br br br br br br
a. Truebr
b. False
br
ANSWER: True
RATIONALE: The process of choosing among competing alternatives is called decision making. br br br br br br br br br br
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
br br br
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
br b r br br br br br br br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
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STATE STANDARDS:br United States - AK - ACBSP: APC-26 - Management Functions br br br br br br br br br
United States - AK - AICPA: FN-Decision Modeling br br br br br br br
United States - AK - IMA: Decision Analysis br br br br br br br
KEYWORDS: Bloom's: Remember br
3. Managerial accounting information is not important for not-for-profit organizations.
br br br br br br br br br
a. Truebr
b. False
br
ANSWER: False
RATIONALE: Managerial accounting information is important for all types of organizations. br br br br br br br br br
Copyright Cengage Learning. Powered by Cognero.
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,br
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: br True / False
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LEARNING OBJECTIVES: br b r MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting. br br br br br br br
NATIONAL STANDARDS: br b r United States - BUSPROG: Analytic
br br br br
STATE STANDARDS:
br United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
br br br br br br br br br
United States - AK - AICPA: FN-Reporting
br br br br br br
United States - AK - IMA: Cost Management
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KEYWORDS: Bloom's: Understand br
4. Management accounting information is used only by manufacturing organizations.
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a. True
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b. False
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ANSWER: False
RATIONALE: Management accounting information is used by all manufacturing, merchandising, and br br br br br br br br br
service organizations. br
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: br True / False br br
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
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NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS:
br United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
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United States - AK - AICPA: FN-Reporting br br br br br br
United States - AK - IMA: Cost Management br br br br br br br
KEYWORDS: Bloom's: Understand br
5. Managerial accounting is designed primarily for internal users.
br br br br br br br br
a. True
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b. False
br
ANSWER: True
RATIONALE: Managerial accounting is the provision of accounting information for a company’s internal
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users.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: br True / False br br
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
br b r br br br br br br br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS:
br United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
br br br br br br br br br
United States - AK - AICPA: FN-Reporting br br br br br br
United States - AK - IMA: Cost Management br br br br br br br
KEYWORDS: Bloom's: Understand br
6. Managerial accounting emphasizes the future.
br br br br br
a. True
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b. False
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ANSWER: True
RATIONALE: Although managerial accounting records and reports events that have already occurred, it
br br br br br br br br br br br
Copyright Cengage Learning. Powered by Cognero.
br br br br br Page 2
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,br
strongly emphasizes providing information about future events. br br br br br br
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
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LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
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financial accounting. br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS:
br United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology br br br br br br br br br
United States - AK - AICPA: FN-Reporting br br br br br br
United States - AK - IMA: Cost Management br br br br br br br
KEYWORDS: Bloom's: Understand br
7. GAAP governs financial accounting.
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a. True
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b. False
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ANSWER: True
RATIONALE: Financial accounting is subject to externally imposed rules (e.g., GAAP and SEC br br br br br br br br br br br
regulations).
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
br br br
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
br b r br br br br br br br br
financial accounting. br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS:
br United States - AK - ACBSP: APC-02-GAAP br br br br br br
United States - AK - AICPA: FN-Reporting br br br br br br
United States - AK - IMA: Reporting br br br br br br
KEYWORDS: Bloom's: Remember br
8. The value chain is the set of activities required to design, develop, produce, market, and deliver products and services to
br br br br br br br br br br br br br br br br br br br br
customers.
a. True
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b. False
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ANSWER: True
RATIONALE: The value chain is the set of activities required to design, develop, produce, market, and
br br br br br br br br br br br br br br
deliver products and services, as well as provide support services to customers. br br br br br br br br br br br
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
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LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
br b r br br br br br br br br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS:
br United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology br br br br br br br br br
United States - AK - AICPA: BB-Resource Management br br br br br br br
United States - AK - IMA: Strategic Planning br br br br br br br
KEYWORDS: Bloom's: Remember br
9. Time is not a crucial element in all phases of the value chain.
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a. True
br
Copyright Cengage Learning. Powered by Cognero.
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,br
b. False br
ANSWER: False
RATIONALE: Time is a crucial element in all phases of the value chain.
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POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: br True / False br br
LEARNING OBJECTIVES: br b r MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting. br br br br br br br br
NATIONAL STANDARDS: br b r United States - BUSPROG: Analytic
br br br br
STATE STANDARDS: br United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
br br br br br br br br br
United States - AK - AICPA: BB-Resource Management
br br br br br br br
United States - AK - IMA: Strategic Planning
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KEYWORDS: Bloom's: Understand br
10. Activity-based costing is a less detailed approach to determining the cost of goods and services than traditional cost
br br br br br br br br br br br br br br br br br br
accounting.
a. True br
b. False br
ANSWER: False
RATIONALE: Activity-based costing is a more detailed approach to determining the cost of goods and br br br br br br br br br br br br br
services.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
br br br
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
br b r br br br br br br br br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS: br United States - AK - ACBSP: APC-27 - Managerial Accounting Features/Costs br br br br br br br br br br
United States - AK - AICPA: FN-Measurement br br br br br br
United States - AK - IMA: Cost Management br br br br br br br
KEYWORDS: Bloom's: Understand br
11. Excellent customer service is an example of a value-added activity.
br br br br br br br br br br
a. True br
b. Falsebr
ANSWER: True
RATIONALE: Excellent customer service is an example of a value-added activity. br br br br br br br br br
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
br br br
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
br b r br br br br br br br br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS: br United States - AK - ACBSP-APC-25 - Managerial Characteristics/Terminology br br br br br br br br
United States - AK - AICPA: BB-Resource Management br br br br br br br
United States - AK - IMA: Strategic Planning br br br br br br br
KEYWORDS: Bloom's: Understand br
12. A cost accountant would normally occupy a staff position within an organization.
br br br br br br br br br br br br
a. True br
Copyright Cengage Learning. Powered by Cognero.
br br br br br Page 4
br
TesT Bank For br br
Managerial Accounting The Cornerstone of Business Decision Making 9th Edition by Maryanne M.
br br br br br br br br br br br br
Mowen, Don R. Hansen, Dan L. Heitger Copyright 2026
br br br br br br br br
Chapter 1-14 br
Ch01 - Introduction to Managerial Accounting
br br br br br
True / False
br br
1. The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as
br br br br br br br br br br br br br br br br br br
decision making. br
a. Truebr
b. False
br
ANSWER: False
RATIONALE: The managerial activity of monitoring a plan's implementation and taking corrective action as
br br br br br br br br br br br br
needed is referred to as controlling. br br br br br
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
br br br
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
br b r br br br br br br br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS:br United States - AK - ACBSP: APC-26 - Management Functions br br br br br br br br br
United States - AK - AICPA: FN-Decision Modeling br br br br br br br
United States - AK - IMA: Decision Analysis br br br br br br br
KEYWORDS: Bloom's: Remember br
2. The process of choosing among competing alternatives is called decision making.
br br br br br br br br br br br
a. Truebr
b. False
br
ANSWER: True
RATIONALE: The process of choosing among competing alternatives is called decision making. br br br br br br br br br br
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
br br br
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
br b r br br br br br br br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS:br United States - AK - ACBSP: APC-26 - Management Functions br br br br br br br br br
United States - AK - AICPA: FN-Decision Modeling br br br br br br br
United States - AK - IMA: Decision Analysis br br br br br br br
KEYWORDS: Bloom's: Remember br
3. Managerial accounting information is not important for not-for-profit organizations.
br br br br br br br br br
a. Truebr
b. False
br
ANSWER: False
RATIONALE: Managerial accounting information is important for all types of organizations. br br br br br br br br br
Copyright Cengage Learning. Powered by Cognero.
br br br br br Page 1 br
,br
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: br True / False
br br
LEARNING OBJECTIVES: br b r MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting. br br br br br br br
NATIONAL STANDARDS: br b r United States - BUSPROG: Analytic
br br br br
STATE STANDARDS:
br United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
br br br br br br br br br
United States - AK - AICPA: FN-Reporting
br br br br br br
United States - AK - IMA: Cost Management
br br br br br br br
KEYWORDS: Bloom's: Understand br
4. Management accounting information is used only by manufacturing organizations.
br br br br br br br br br
a. True
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b. False
br
ANSWER: False
RATIONALE: Management accounting information is used by all manufacturing, merchandising, and br br br br br br br br br
service organizations. br
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: br True / False br br
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
br b r br br br br br br br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS:
br United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
br br br br br br br br br
United States - AK - AICPA: FN-Reporting br br br br br br
United States - AK - IMA: Cost Management br br br br br br br
KEYWORDS: Bloom's: Understand br
5. Managerial accounting is designed primarily for internal users.
br br br br br br br br
a. True
br
b. False
br
ANSWER: True
RATIONALE: Managerial accounting is the provision of accounting information for a company’s internal
br br br br br br br br br br br
users.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: br True / False br br
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
br b r br br br br br br br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS:
br United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
br br br br br br br br br
United States - AK - AICPA: FN-Reporting br br br br br br
United States - AK - IMA: Cost Management br br br br br br br
KEYWORDS: Bloom's: Understand br
6. Managerial accounting emphasizes the future.
br br br br br
a. True
br
b. False
br
ANSWER: True
RATIONALE: Although managerial accounting records and reports events that have already occurred, it
br br br br br br br br br br br
Copyright Cengage Learning. Powered by Cognero.
br br br br br Page 2
br
,br
strongly emphasizes providing information about future events. br br br br br br
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
br br br
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
br b r br br br br br br br br
financial accounting. br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS:
br United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology br br br br br br br br br
United States - AK - AICPA: FN-Reporting br br br br br br
United States - AK - IMA: Cost Management br br br br br br br
KEYWORDS: Bloom's: Understand br
7. GAAP governs financial accounting.
br br br br
a. True
br
b. False
br
ANSWER: True
RATIONALE: Financial accounting is subject to externally imposed rules (e.g., GAAP and SEC br br br br br br br br br br br
regulations).
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
br br br
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
br b r br br br br br br br br
financial accounting. br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS:
br United States - AK - ACBSP: APC-02-GAAP br br br br br br
United States - AK - AICPA: FN-Reporting br br br br br br
United States - AK - IMA: Reporting br br br br br br
KEYWORDS: Bloom's: Remember br
8. The value chain is the set of activities required to design, develop, produce, market, and deliver products and services to
br br br br br br br br br br br br br br br br br br br br
customers.
a. True
br
b. False
br
ANSWER: True
RATIONALE: The value chain is the set of activities required to design, develop, produce, market, and
br br br br br br br br br br br br br br
deliver products and services, as well as provide support services to customers. br br br br br br br br br br br
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
br br br
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
br b r br br br br br br br br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS:
br United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology br br br br br br br br br
United States - AK - AICPA: BB-Resource Management br br br br br br br
United States - AK - IMA: Strategic Planning br br br br br br br
KEYWORDS: Bloom's: Remember br
9. Time is not a crucial element in all phases of the value chain.
br br br br br br br br br br br br br
a. True
br
Copyright Cengage Learning. Powered by Cognero.
br br br br br Page 3 br
,br
b. False br
ANSWER: False
RATIONALE: Time is a crucial element in all phases of the value chain.
br br br br br br br br br br br
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: br True / False br br
LEARNING OBJECTIVES: br b r MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting. br br br br br br br br
NATIONAL STANDARDS: br b r United States - BUSPROG: Analytic
br br br br
STATE STANDARDS: br United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
br br br br br br br br br
United States - AK - AICPA: BB-Resource Management
br br br br br br br
United States - AK - IMA: Strategic Planning
br br br br br br br
KEYWORDS: Bloom's: Understand br
10. Activity-based costing is a less detailed approach to determining the cost of goods and services than traditional cost
br br br br br br br br br br br br br br br br br br
accounting.
a. True br
b. False br
ANSWER: False
RATIONALE: Activity-based costing is a more detailed approach to determining the cost of goods and br br br br br br br br br br br br br
services.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
br br br
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
br b r br br br br br br br br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS: br United States - AK - ACBSP: APC-27 - Managerial Accounting Features/Costs br br br br br br br br br br
United States - AK - AICPA: FN-Measurement br br br br br br
United States - AK - IMA: Cost Management br br br br br br br
KEYWORDS: Bloom's: Understand br
11. Excellent customer service is an example of a value-added activity.
br br br br br br br br br br
a. True br
b. Falsebr
ANSWER: True
RATIONALE: Excellent customer service is an example of a value-added activity. br br br br br br br br br
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
br br br
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
br b r br br br br br br br br
NATIONAL STANDARDS: United States - BUSPROG: Analytic
br b r br br br br
STATE STANDARDS: br United States - AK - ACBSP-APC-25 - Managerial Characteristics/Terminology br br br br br br br br
United States - AK - AICPA: BB-Resource Management br br br br br br br
United States - AK - IMA: Strategic Planning br br br br br br br
KEYWORDS: Bloom's: Understand br
12. A cost accountant would normally occupy a staff position within an organization.
br br br br br br br br br br br br
a. True br
Copyright Cengage Learning. Powered by Cognero.
br br br br br Page 4
br
