1-1 TestZBankZforZDavisZ&ZDavis,ZManagerialZAccounting,Z4/e
TEST BANK
Managerial Accounting 4th Edition
By Charles Davis Elizabeth Davis Chapter 1 - 13
, 1-2 TestZBankZforZDavisZ&ZDavis,ZManagerialZAccounting,Z4/e
Table Of Contents
Z Z
1. Accounting as a Tool for Management
Z Z Z Z Z Z
2.Cost Behavior and Cost Estimation
Z Z Z Z
3. Cost-Volume-Profit Analysis and Pricing Decisions
Z Z Z Z Z
4. Product Costs and Job Order Costing
Z Z Z Z Z Z
5. Planning and Forecasting
Z Z Z
5A: Planning and Forecasting in a Retail Setting* (online only)
Z Z Z Z Z Z Z Z Z
6. Performance Evaluation: Variance Analysis
Z Z Z Z
7. Activity-Based Costing and Activity-Based Management
Z Z Z Z Z
8. Using Accounting Information to Make Managerial Decisions
Z Z Z Z Z Z Z
9. Capital Budgeting
Z Z
10. Decentralization and Performance Evaluation
Z Z Z Z
11. Performance Evaluation Revisited: A Balanced Approach
Z Z Z Z Z Z
12. Financial Statement Analysis
Z Z Z
13. Statement of Cash Flows
Z Z Z Z Z
,1-3 TestZBankZforZDavisZ&ZDavis,ZManagerialZAccounting,Z4/e
ChapterZ1
AccountingZasZaZToolZforZManagement
CHAPTERZLEARNINGZOBJECTIVES
1. DefineZmanagerialZaccountingZ(UnitZ1.1)
ThereZareZseveralZformalZdefinitionsZofZmanagerialZaccounting.ZAZsimpleZoneZisZ“theZg
enerationZofZrelevantZinformationZtoZsupportZmanagement’sZdecision-
makingZactivities.”
2. DescribeZtheZdifferencesZbetweenZmanagerialZandZfinancialZaccountingZ(
UnitZ1.1)
ManagerialZaccounting’sZprimaryZusersZareZmanagersZandZdecisionZmakersZwithinZanZorga
nization,ZwhereasZfinancialZaccountingZisZaimedZprimarilyZatZexternalZusers.ZUnlikeZGAAPZt
hatZguidesZfinancialZaccounting,ZthereZareZnoZmandatedZrulesZinZmanagerialZaccounting.ZM
anagerialZaccountingZreportsZfocusZonZoperatingZsegments,ZwhileZfinancialZaccountingZstat
ementsZreportZresultsZforZtheZorganizationZasZaZwhole.ZManagerialZaccountingZisZconcerne
dZmoreZwithZprojectingZfutureZresultsZthanZreportingZpastZresults.ZManagerialZinformationZ
isZpreparedZtoZtakeZadvantageZofZaZwindowZofZopportunity,ZevenZifZsomeZaccuracyZmustZbeZ
sacrificed.ZFinancialZaccountingZinformationZisZbalancedZtoZtheZpennyZandZisZdeliveredZafte
rZtheZendZofZtheZaccountingZperiod.
3. ListZandZdescribeZtheZfourZfunctionsZofZmanagersZ(UnitZ1.1)
PlanningZmeansZsettingZaZdirectionZforZtheZorganization.ZLong-
term,ZorZstrategicZplanningZprovidesZdirectionZforZaZfive-ZtoZten-yearZperiod.ZShort-
termZorZoperationalZplanningZprovidesZmoreZdetailedZguidanceZforZtheZcomingZyear;ZitZtran
slatesZtheZcompany’sZstrategyZintoZactionZsteps.ZControllingZisZtheZmonitoringZofZday-to-
dayZoperationsZtoZidentifyZanyZproblemsZthatZrequireZcorrectiveZaction.ZEvaluatingZisZtheZp
rocessZofZcomparingZaZparticularZperiod’sZactualZresultsZtoZplannedZresults,ZforZtheZpurpose
ZofZassessingZmanagerialZperformance.ZDecisionZmakingZmeansZchoosingZbetweenZalterna
tiveZcoursesZofZaction.
4. ExplainZhowZtheZselectionZofZaZparticularZbusinessZstrategyZdeterminesZtheZi
nformationZthatZmanagersZneedZtoZrunZanZorganizationZeffectivelyZ(UnitZ1.
2)
ToZrunZaZbusinessZeffectively,ZmanagersZneedZinformationZthatZshowsZhowZwellZoperati
onsZareZmeetingZtheZorganization’sZstrategicZgoals.ZForZinstance,ZifZtheZorganization’sZst
rategyZisZtoZbeZaZlow-
costZproducer,ZinformationZaboutZproductZcostsZandZcostZvariancesZwillZbeZmoreZusefulZ
toZmanagersZthanZinformationZaboutZresearchZandZdevelopment.
, 1-4 TestZBankZforZDavisZ&ZDavis,ZManagerialZAccounting,Z4/e
5. DiscussZtheZimportanceZofZethicalZbehaviorZinZmanagerialZaccountingZ(UnitZ
1.3)
EthicalZbehaviorZmeansZknowingZrightZfromZwrongZandZthenZdoingZtheZrightZthing.ZManyZc
ompaniesZandZmostZprofessionalZorganizationsZhaveZcodesZofZconductZtoZguideZemployee
s’Zactions.ZActingZunethicallyZcanZleadZtoZillegalZactivityZandZultimatelyZtoZtheZdestructionZ
ofZtheZfirm.ZFurthermore,ZresearchZhasZshownZthatZaZpublicZcommitmentZtoZethicalZbehavi
orZcanZleadZtoZsuperiorZfinancialZperformance.
TEST BANK
Managerial Accounting 4th Edition
By Charles Davis Elizabeth Davis Chapter 1 - 13
, 1-2 TestZBankZforZDavisZ&ZDavis,ZManagerialZAccounting,Z4/e
Table Of Contents
Z Z
1. Accounting as a Tool for Management
Z Z Z Z Z Z
2.Cost Behavior and Cost Estimation
Z Z Z Z
3. Cost-Volume-Profit Analysis and Pricing Decisions
Z Z Z Z Z
4. Product Costs and Job Order Costing
Z Z Z Z Z Z
5. Planning and Forecasting
Z Z Z
5A: Planning and Forecasting in a Retail Setting* (online only)
Z Z Z Z Z Z Z Z Z
6. Performance Evaluation: Variance Analysis
Z Z Z Z
7. Activity-Based Costing and Activity-Based Management
Z Z Z Z Z
8. Using Accounting Information to Make Managerial Decisions
Z Z Z Z Z Z Z
9. Capital Budgeting
Z Z
10. Decentralization and Performance Evaluation
Z Z Z Z
11. Performance Evaluation Revisited: A Balanced Approach
Z Z Z Z Z Z
12. Financial Statement Analysis
Z Z Z
13. Statement of Cash Flows
Z Z Z Z Z
,1-3 TestZBankZforZDavisZ&ZDavis,ZManagerialZAccounting,Z4/e
ChapterZ1
AccountingZasZaZToolZforZManagement
CHAPTERZLEARNINGZOBJECTIVES
1. DefineZmanagerialZaccountingZ(UnitZ1.1)
ThereZareZseveralZformalZdefinitionsZofZmanagerialZaccounting.ZAZsimpleZoneZisZ“theZg
enerationZofZrelevantZinformationZtoZsupportZmanagement’sZdecision-
makingZactivities.”
2. DescribeZtheZdifferencesZbetweenZmanagerialZandZfinancialZaccountingZ(
UnitZ1.1)
ManagerialZaccounting’sZprimaryZusersZareZmanagersZandZdecisionZmakersZwithinZanZorga
nization,ZwhereasZfinancialZaccountingZisZaimedZprimarilyZatZexternalZusers.ZUnlikeZGAAPZt
hatZguidesZfinancialZaccounting,ZthereZareZnoZmandatedZrulesZinZmanagerialZaccounting.ZM
anagerialZaccountingZreportsZfocusZonZoperatingZsegments,ZwhileZfinancialZaccountingZstat
ementsZreportZresultsZforZtheZorganizationZasZaZwhole.ZManagerialZaccountingZisZconcerne
dZmoreZwithZprojectingZfutureZresultsZthanZreportingZpastZresults.ZManagerialZinformationZ
isZpreparedZtoZtakeZadvantageZofZaZwindowZofZopportunity,ZevenZifZsomeZaccuracyZmustZbeZ
sacrificed.ZFinancialZaccountingZinformationZisZbalancedZtoZtheZpennyZandZisZdeliveredZafte
rZtheZendZofZtheZaccountingZperiod.
3. ListZandZdescribeZtheZfourZfunctionsZofZmanagersZ(UnitZ1.1)
PlanningZmeansZsettingZaZdirectionZforZtheZorganization.ZLong-
term,ZorZstrategicZplanningZprovidesZdirectionZforZaZfive-ZtoZten-yearZperiod.ZShort-
termZorZoperationalZplanningZprovidesZmoreZdetailedZguidanceZforZtheZcomingZyear;ZitZtran
slatesZtheZcompany’sZstrategyZintoZactionZsteps.ZControllingZisZtheZmonitoringZofZday-to-
dayZoperationsZtoZidentifyZanyZproblemsZthatZrequireZcorrectiveZaction.ZEvaluatingZisZtheZp
rocessZofZcomparingZaZparticularZperiod’sZactualZresultsZtoZplannedZresults,ZforZtheZpurpose
ZofZassessingZmanagerialZperformance.ZDecisionZmakingZmeansZchoosingZbetweenZalterna
tiveZcoursesZofZaction.
4. ExplainZhowZtheZselectionZofZaZparticularZbusinessZstrategyZdeterminesZtheZi
nformationZthatZmanagersZneedZtoZrunZanZorganizationZeffectivelyZ(UnitZ1.
2)
ToZrunZaZbusinessZeffectively,ZmanagersZneedZinformationZthatZshowsZhowZwellZoperati
onsZareZmeetingZtheZorganization’sZstrategicZgoals.ZForZinstance,ZifZtheZorganization’sZst
rategyZisZtoZbeZaZlow-
costZproducer,ZinformationZaboutZproductZcostsZandZcostZvariancesZwillZbeZmoreZusefulZ
toZmanagersZthanZinformationZaboutZresearchZandZdevelopment.
, 1-4 TestZBankZforZDavisZ&ZDavis,ZManagerialZAccounting,Z4/e
5. DiscussZtheZimportanceZofZethicalZbehaviorZinZmanagerialZaccountingZ(UnitZ
1.3)
EthicalZbehaviorZmeansZknowingZrightZfromZwrongZandZthenZdoingZtheZrightZthing.ZManyZc
ompaniesZandZmostZprofessionalZorganizationsZhaveZcodesZofZconductZtoZguideZemployee
s’Zactions.ZActingZunethicallyZcanZleadZtoZillegalZactivityZandZultimatelyZtoZtheZdestructionZ
ofZtheZfirm.ZFurthermore,ZresearchZhasZshownZthatZaZpublicZcommitmentZtoZethicalZbehavi
orZcanZleadZtoZsuperiorZfinancialZperformance.
