TESTcBANKcChapterc1cManagerialcAccountingcandcthecBusiness

TESTcBANKcChapterc1c ManagerialcAccountingcandcthecBusinessc
Environment


True/FalsecQuestions

1. Althoughcfinancialcandcmanagerialcaccountingcdiffercincmanycways,ctheycarecsim
ilarcincthatcbothcrelyconcthecsamecunderlyingcfinancialcdata.


Answer:cTruec Level:cMediumc LO:c1


2. Managerialcaccountingciscacbranchcofcfinancialcaccountingcandcservescessential
lycthecsamecpurposescascfinancialcaccounting.


Answer:cFalsec Level:cMediumc LO:c1


3. Managerialcaccountingcplacescgreatercemphasisconcthecfuturecthancfi
nancialcaccounting,cwhichciscprimarilycconcernedcwithcthecpast.


Answer:cTruec Level:cEasycccLO:c1


4. Managerialcaccountingciscnotcneededcincacnon-profitcorcgovernmentalcorganization.


Answer:cFalsec Level:cEasycccLO:c1


5. Whenccarryingcoutctheircplanningcactivities,cmanagerscselectcaccoursecofcacti
oncandcspecifychowcthecactioncwillcbecimplemented.


Answer:cTruec Level:cEasycccLO:c2


6. Whenccarryingcoutctheircplanningcactivities,cmanagerscobtaincfeedbackctocensur
ecthatcthecplanciscactuallyccarriedcoutcandciscappropriatelycmodifiedcasccircumst
ancescchange.

Garrison,cManagerialcAccounting,c12thcEditio 3
n

,Chapterc1c ManagerialcAccountingcandcthecBusinesscEnvironment

Answer:cFalsec Level:cMediumc LO:c2


7. Theccontrollercoccupiescaclinecpositioncincancorganization.


Answer:cFalsec Level:cEasycccLO:c2


8. Decentralizationcmeanscthecdelegationcofcdecision-
makingcauthoritycthroughoutcancorganizationcbycallowingcmanagerscatcvariousc
operatingclevelsctocmakeckeycdecisionscrelatingctoctheircowncareacofcresponsibi
lity.


Answer:cTruec Level:cEasycccLO:c2




4 Garrison,cManagerialcAccounting,c12thcEditio
n

,TESTcBANKcChapterc1c ManagerialcAccountingcandcthecBusinessc
Environment

9. Acfirm'scorganizationcchartcwillcnormallycshowcbothcthecformalcandcinformalcli
nescofcreportingcandccommunication.


Answer:cFalsec Level:cEasycccLO:c2


10. ThecChiefcFinancialcOfficercofcancorganizationciscresponsiblecforcensuringctha
tclinecoperationscruncsmoothly.


Answer:cFalsec Level:cMediumc LO:c2


11. Traditionally,ccompanieschavecmaintainedclargecamountscofcrawcmaterials,cworkc
incprocess,candcfinishedcgoodscinventoriesctocactcascbufferscsocthatcoperationscc
ancproceedcsmoothlycevencifctherecarecunanticipatedcdisruptions.


Answer:cTruec Level:cMediumc LO:c3


12. ProcesscReengineeringciscgenerallycconsideredctocbecacmorecradicalcappro
achctocimprovementcthancTotalcQualitycManagement.


Answer:cTruec Level:cEasycccLO:c3


13. ProcesscReengineeringcemphasizescacteamcapproachcinvolvingcfront-
linecworkers,cwhereascTotalcQualitycManagementciscusuallycimplementedcusing
coutsidecspecialistscandciscimposedcfromcabove.


Answer:cFalsec Level:cMediumc LO:c3


14. Ifcethicalcstandardscwerecnotcgenerallycfollowed,conecofcthecresultscwouldcpro
bablycbecfewercgoodscandcservicescavailablecincthecmarketplace.


Garrison,cManagerialcAccounting,c12thcEditio 5
n

, Chapterc1c ManagerialcAccountingcandcthecBusinesscEnvironment
Answer:cTruec Level:cMediumc LO:c4


15. ThecStandardscofcEthicalcConductcforcManagementcAccountantscpromulgatedcby
cthecInstitutecofcManagementcAccountantscspecificallycstatecthatcmanagementc
accountants'csolecethicalcresponsibilitycisctocnotcbreakcanyclaws.


Answer:cFalsec Level:cEasycccLO:c4




6 Garrison,cManagerialcAccounting,c12thcEditio
n