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