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