1.2
,Chapter 1: The role of accounting information in management decision ma
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king
True/false questions cn
1. A vision statement is a theoretical description of what an organisation should become.
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*a. True cn
b. False
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Correct answer: a
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
2. An organisational vision is a short-term plan for maximising financial results.
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a. True
*b. False cn
Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
3. Most organisations have one stakeholder.
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a. True
*b. False cn
Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
4. Organisational core competencies unrelated to the organisational vision.
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a. True
*b. False cn
Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
1.3
,5. Organisational strategies are the tactics that managers use to take advantage of core
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competencies while working towards the organisational vision.
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*a. True cn
b. False
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Correct answer: a
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
6. Most organisations have databases that contain information collected formally or i
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nformally from internal sources only.
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a. True
*b. False
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Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
7. Desirable employee behaviour can be motivated by tying employee performance
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evaluation and pay to long-term or short-term results.
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*a. True cn
b. False
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Correct answer: a
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
8. Organisational information systems only collect accounting information.
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a. True
*b. False cn
Correct answer: b
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information i
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n management decision making
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1.4
, 9. Cost accounting information is used for both management accounting and financial
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accounting activities. cn
*a. True cn
b. False cn
Correct answer: a
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information i
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n management decision making
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10. Management accounting is the process of gathering, summarising and reporting
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financial and non-financial information used internally to make decisions.
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*a. True cn
b. False cn
Correct answer: a
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information i
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n management decision making
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11. Intellectual capital is a type of financial resource that is captured by the organisation’s i
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nformation system. cn
a. True
*b. False cn
Correct answer: b
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information i
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n management decision making
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12. It is easy to differentiate between internal and external reports.
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a. True
*b. False cn
Correct answer: b
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information i
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n management decision making
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1.5
,Chapter 1: The role of accounting information in management decision ma
cn cn cn cn cn cn cn cn cn cn
king
True/false questions cn
1. A vision statement is a theoretical description of what an organisation should become.
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*a. True cn
b. False
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Correct answer: a
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
2. An organisational vision is a short-term plan for maximising financial results.
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a. True
*b. False cn
Correct answer: b
cn cn
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
3. Most organisations have one stakeholder.
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a. True
*b. False cn
Correct answer: b
cn cn
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
4. Organisational core competencies unrelated to the organisational vision.
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a. True
*b. False cn
Correct answer: b
cn cn
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
1.3
,5. Organisational strategies are the tactics that managers use to take advantage of core
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competencies while working towards the organisational vision.
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*a. True cn
b. False
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Correct answer: a
cn cn
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
6. Most organisations have databases that contain information collected formally or i
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nformally from internal sources only.
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a. True
*b. False
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Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
7. Desirable employee behaviour can be motivated by tying employee performance
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evaluation and pay to long-term or short-term results.
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*a. True cn
b. False
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Correct answer: a
cn cn
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
8. Organisational information systems only collect accounting information.
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a. True
*b. False cn
Correct answer: b
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information i
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n management decision making
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1.4
, 9. Cost accounting information is used for both management accounting and financial
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accounting activities. cn
*a. True cn
b. False cn
Correct answer: a
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information i
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n management decision making
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10. Management accounting is the process of gathering, summarising and reporting
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financial and non-financial information used internally to make decisions.
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*a. True cn
b. False cn
Correct answer: a
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information i
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n management decision making
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11. Intellectual capital is a type of financial resource that is captured by the organisation’s i
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nformation system. cn
a. True
*b. False cn
Correct answer: b
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information i
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n management decision making
cn cn cn
12. It is easy to differentiate between internal and external reports.
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a. True
*b. False cn
Correct answer: b
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information i
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n management decision making
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1.5
