Chapterg1g ManagerialgAccountinggandgthegBusinessgEnvironment
True/FalsegQuestions
1. Althoughgfinancialgandgmanagerialgaccountinggdiffergingmanygways,gtheygaregsimilargi
ngthatgbothgrelygongthegsamegunderlyinggfinancialgdata.
Answer:gTrueg g Level:gMediumg g LO:g1
2. Managerialgaccountinggisgagbranchgofgfinancialgaccountinggandgservesgessentiallygth
egsamegpurposesgasgfinancialgaccounting.
Answer:gFalseg g Level:gMediumg g LO:g1
3. Managerialgaccountinggplacesggreatergemphasisgongthegfuturegthangfinancia
lgaccounting,gwhichgisgprimarilygconcernedgwithgthegpast.
Answer:gTrueg g Level:gEasyg g LO:g1
4. Managerialgaccountinggisgnotgneededgingagnon-profitgorggovernmentalgorganization.
Answer:gFalseg g Level:gEasyg g LO:g1
5. Whengcarryinggoutgtheirgplanninggactivities,gmanagersgselectgagcoursegofgactiongan
dgspecifyghowgthegactiongwillgbegimplemented.
Answer:gTrueg g Level:gEasyg g LO:g2
6. Whengcarryinggoutgtheirgplanninggactivities,gmanagersgobtaingfeedbackgtogensuregthat
gthegplangisgactuallygcarriedgoutgandgisgappropriatelygmodifiedgasgcircumstancesgchang
e.
Answer:gFalseg g Level:gMediumg g LO:g2
7. Thegcontrollergoccupiesgaglinegpositiongingangorganization.
Answer:gFalseg g Level:gEasyg g LO:g2
8. Decentralizationgmeansgthegdelegationgofgdecision-
makinggauthoritygthroughoutgangorganizationgbygallowinggmanagersgatgvariousgopera
tingglevelsgtogmakegkeygdecisionsgrelatinggtogtheirgowngareagofgresponsibility.
Answer:gTrueg g Level:gEasyg g LO:g2
Garrison,gManagerialgAccounting,g12thgEditio 3
n
,Chapterg1g ManagerialgAccountinggandgthegBusinessgEnvironment
9. Agfirm'sgorganizationgchartgwillgnormallygshowgbothgthegformalgandginformalglinesg
ofgreportinggandgcommunication.
Answer:gFalseg g Level:gEasyg g LO:g2
10. ThegChiefgFinancialgOfficergofgangorganizationgisgresponsiblegforgensuringgthatglin
egoperationsgrungsmoothly.
Answer:gFalseg g Level:gMediumg g LO:g2
11. Traditionally,gcompaniesghavegmaintainedglargegamountsgofgrawgmaterials,gworkgingpr
ocess,gandgfinishedggoodsginventoriesgtogactgasgbuffersgsogthatgoperationsgcangproceedg
smoothlygevengifgtheregaregunanticipatedgdisruptions.
Answer:gTrueg g Level:gMediumg g LO:g3
12. ProcessgReengineeringgisggenerallygconsideredgtogbegagmoregradicalgapproachgt
ogimprovementgthangTotalgQualitygManagement.
Answer:gTrueg g Level:gEasyg g LO:g3
13. ProcessgReengineeringgemphasizesgagteamgapproachginvolvinggfront-
linegworkers,gwhereasgTotalgQualitygManagementgisgusuallygimplementedgusinggout
sidegspecialistsgandgisgimposedgfromgabove.
Answer:gFalseg g Level:gMediumg g LO:g3
14. Ifgethicalgstandardsgweregnotggenerallygfollowed,gonegofgthegresultsgwouldgprobablygb
egfewerggoodsgandgservicesgavailablegingthegmarketplace.
Answer:gTrueg g Level:gMediumg g LO:g4
15. ThegStandardsgofgEthicalgConductgforgManagementgAccountantsgpromulgatedgbygthe
gInstitutegofgManagementgAccountantsgspecificallygstategthatgmanagementgaccountant
s'gsolegethicalgresponsibilitygisgtognotgbreakganyglaws.
Answer:gFalseg g Level:gEasyg g LO:g4
4 Garrison,gManagerialgAccounting,g12thgEditio
n
,Chapterg1g ManagerialgAccountinggandgthegBusinessgEnvironment
MultiplegChoicegQuestions
16. Managementgaccountinggfocusesgprimarilygongprovidinggdatagfor:
A) internalgusesgbygmanagers.
B) externalgusesgbygstockholdersgandgcreditors.
C) externalgusesgbygthegInternalgRevenuegService.
D) externalgusesgbygthegSecuritiesgandgExchangegCommission.
Answer:gAg g Level:gEasyg g LO:g1
17. Managerialgaccounting:
A) isgmoregfuturegorientedgthangfinancialgaccounting.
B) tendsgtogsummarizeginformationgmoregthangfinancialgaccounting
C) isgprimarilygconcernedgwithgprovidingginformationgtogexternalgusers.
D) isgmoregconcernedgwithgprecisiongthangtimeliness.
Answer:gAg g Level:gEasyg g LO:g1
18. Comparedgtogfinancialgaccounting,gmanagerialgaccountinggplacesgmoregemphasisgon:
A) thegflexibilitygofginformation.
B) thegprecisiongofginformation.
C) thegtimelinessgofginformation.
D) bothgAgandgCgabove.
Answer:gDg g Level:gEasyg g LO:g1
19. Thegfunctiongofgmanagementgthatgcomparesgplannedgresultsgtogactualgresultsgisgknow
ngas:
A) planning.
B) directinggandgmotivating.
C) controlling.
D) decisiongmaking.
Answer:gCg g Level:gEasyg g LO:g2
20. Whichgofgthegfunctionsgofgmanagementginvolvesgoverseeinggday-to-daygactivities?
A) Planning
B) Directinggandgmotivating
C) Controlling
D) Decisiongmaking
Answer:gBg g Level:gEasyg g LO:g2
Garrison,gManagerialgAccounting,g12thgEditio 5
n
, Chapterg1g ManagerialgAccountinggandgthegBusinessgEnvironment
21. Whichgofgthegfollowinggisgnotgonegofgthegthreegbasicgactivitiesgofgagmanager?
A) Planning
B) Controlling
C) Directinggandgmotivating
D) Compilinggmanagementgaccountinggreports
gAnswer:gDg Level:gEasyg LO:g2
22. Thegdelegationgofgdecisiongmakinggtoglowerglevelsgingangorganizationgisgknowngas:
A) thegplanninggandgcontrolgcycle.
B) controlling.
C) decentralization.
D) nonegofgthese.
Answer:gCg g Level:gEasyg g LO:g2
23. Whichgofgthegfollowinggstatementsgaregfalsegconcerningglinegandgstaffgfunctions?
I. Personsgoccupyinggstaffgfunctionsghavegauthoritygovergpersonsgoccupyingglin
egfunctions.
II. Bothglinegandgstaffgfunctionsgaregdepictedgongthegorganizationgchart.
III. Linegfunctionsgaregdirectlygrelatedgtogthegbasicgobjectivesgofgangorganization.
A) OnlygI
B) OnlygII
C) OnlygIgandgII
D) I,gII,gandgIII
Answer:gAg g Level:gMediumg g LO:g2
24. Whichgofgfollowinggwouldgnormallygbegfoundgongagmanufacturinggcompany'
sgorganizationgchart?
A) theglayoutgofgthegfactorygassemblyglines
B) aglistgofgthegmaterialsgneededgtogproducegeachgofgthegcompany'sgproducts
C) theginformalglinesgofgreportinggandgcommunication
D) nonegofgthegabove
Answer:gDg g Level:gEasyg g LO:g2
6 Garrison,gManagerialgAccounting,g12thgEditio
n
True/FalsegQuestions
1. Althoughgfinancialgandgmanagerialgaccountinggdiffergingmanygways,gtheygaregsimilargi
ngthatgbothgrelygongthegsamegunderlyinggfinancialgdata.
Answer:gTrueg g Level:gMediumg g LO:g1
2. Managerialgaccountinggisgagbranchgofgfinancialgaccountinggandgservesgessentiallygth
egsamegpurposesgasgfinancialgaccounting.
Answer:gFalseg g Level:gMediumg g LO:g1
3. Managerialgaccountinggplacesggreatergemphasisgongthegfuturegthangfinancia
lgaccounting,gwhichgisgprimarilygconcernedgwithgthegpast.
Answer:gTrueg g Level:gEasyg g LO:g1
4. Managerialgaccountinggisgnotgneededgingagnon-profitgorggovernmentalgorganization.
Answer:gFalseg g Level:gEasyg g LO:g1
5. Whengcarryinggoutgtheirgplanninggactivities,gmanagersgselectgagcoursegofgactiongan
dgspecifyghowgthegactiongwillgbegimplemented.
Answer:gTrueg g Level:gEasyg g LO:g2
6. Whengcarryinggoutgtheirgplanninggactivities,gmanagersgobtaingfeedbackgtogensuregthat
gthegplangisgactuallygcarriedgoutgandgisgappropriatelygmodifiedgasgcircumstancesgchang
e.
Answer:gFalseg g Level:gMediumg g LO:g2
7. Thegcontrollergoccupiesgaglinegpositiongingangorganization.
Answer:gFalseg g Level:gEasyg g LO:g2
8. Decentralizationgmeansgthegdelegationgofgdecision-
makinggauthoritygthroughoutgangorganizationgbygallowinggmanagersgatgvariousgopera
tingglevelsgtogmakegkeygdecisionsgrelatinggtogtheirgowngareagofgresponsibility.
Answer:gTrueg g Level:gEasyg g LO:g2
Garrison,gManagerialgAccounting,g12thgEditio 3
n
,Chapterg1g ManagerialgAccountinggandgthegBusinessgEnvironment
9. Agfirm'sgorganizationgchartgwillgnormallygshowgbothgthegformalgandginformalglinesg
ofgreportinggandgcommunication.
Answer:gFalseg g Level:gEasyg g LO:g2
10. ThegChiefgFinancialgOfficergofgangorganizationgisgresponsiblegforgensuringgthatglin
egoperationsgrungsmoothly.
Answer:gFalseg g Level:gMediumg g LO:g2
11. Traditionally,gcompaniesghavegmaintainedglargegamountsgofgrawgmaterials,gworkgingpr
ocess,gandgfinishedggoodsginventoriesgtogactgasgbuffersgsogthatgoperationsgcangproceedg
smoothlygevengifgtheregaregunanticipatedgdisruptions.
Answer:gTrueg g Level:gMediumg g LO:g3
12. ProcessgReengineeringgisggenerallygconsideredgtogbegagmoregradicalgapproachgt
ogimprovementgthangTotalgQualitygManagement.
Answer:gTrueg g Level:gEasyg g LO:g3
13. ProcessgReengineeringgemphasizesgagteamgapproachginvolvinggfront-
linegworkers,gwhereasgTotalgQualitygManagementgisgusuallygimplementedgusinggout
sidegspecialistsgandgisgimposedgfromgabove.
Answer:gFalseg g Level:gMediumg g LO:g3
14. Ifgethicalgstandardsgweregnotggenerallygfollowed,gonegofgthegresultsgwouldgprobablygb
egfewerggoodsgandgservicesgavailablegingthegmarketplace.
Answer:gTrueg g Level:gMediumg g LO:g4
15. ThegStandardsgofgEthicalgConductgforgManagementgAccountantsgpromulgatedgbygthe
gInstitutegofgManagementgAccountantsgspecificallygstategthatgmanagementgaccountant
s'gsolegethicalgresponsibilitygisgtognotgbreakganyglaws.
Answer:gFalseg g Level:gEasyg g LO:g4
4 Garrison,gManagerialgAccounting,g12thgEditio
n
,Chapterg1g ManagerialgAccountinggandgthegBusinessgEnvironment
MultiplegChoicegQuestions
16. Managementgaccountinggfocusesgprimarilygongprovidinggdatagfor:
A) internalgusesgbygmanagers.
B) externalgusesgbygstockholdersgandgcreditors.
C) externalgusesgbygthegInternalgRevenuegService.
D) externalgusesgbygthegSecuritiesgandgExchangegCommission.
Answer:gAg g Level:gEasyg g LO:g1
17. Managerialgaccounting:
A) isgmoregfuturegorientedgthangfinancialgaccounting.
B) tendsgtogsummarizeginformationgmoregthangfinancialgaccounting
C) isgprimarilygconcernedgwithgprovidingginformationgtogexternalgusers.
D) isgmoregconcernedgwithgprecisiongthangtimeliness.
Answer:gAg g Level:gEasyg g LO:g1
18. Comparedgtogfinancialgaccounting,gmanagerialgaccountinggplacesgmoregemphasisgon:
A) thegflexibilitygofginformation.
B) thegprecisiongofginformation.
C) thegtimelinessgofginformation.
D) bothgAgandgCgabove.
Answer:gDg g Level:gEasyg g LO:g1
19. Thegfunctiongofgmanagementgthatgcomparesgplannedgresultsgtogactualgresultsgisgknow
ngas:
A) planning.
B) directinggandgmotivating.
C) controlling.
D) decisiongmaking.
Answer:gCg g Level:gEasyg g LO:g2
20. Whichgofgthegfunctionsgofgmanagementginvolvesgoverseeinggday-to-daygactivities?
A) Planning
B) Directinggandgmotivating
C) Controlling
D) Decisiongmaking
Answer:gBg g Level:gEasyg g LO:g2
Garrison,gManagerialgAccounting,g12thgEditio 5
n
, Chapterg1g ManagerialgAccountinggandgthegBusinessgEnvironment
21. Whichgofgthegfollowinggisgnotgonegofgthegthreegbasicgactivitiesgofgagmanager?
A) Planning
B) Controlling
C) Directinggandgmotivating
D) Compilinggmanagementgaccountinggreports
gAnswer:gDg Level:gEasyg LO:g2
22. Thegdelegationgofgdecisiongmakinggtoglowerglevelsgingangorganizationgisgknowngas:
A) thegplanninggandgcontrolgcycle.
B) controlling.
C) decentralization.
D) nonegofgthese.
Answer:gCg g Level:gEasyg g LO:g2
23. Whichgofgthegfollowinggstatementsgaregfalsegconcerningglinegandgstaffgfunctions?
I. Personsgoccupyinggstaffgfunctionsghavegauthoritygovergpersonsgoccupyingglin
egfunctions.
II. Bothglinegandgstaffgfunctionsgaregdepictedgongthegorganizationgchart.
III. Linegfunctionsgaregdirectlygrelatedgtogthegbasicgobjectivesgofgangorganization.
A) OnlygI
B) OnlygII
C) OnlygIgandgII
D) I,gII,gandgIII
Answer:gAg g Level:gMediumg g LO:g2
24. Whichgofgfollowinggwouldgnormallygbegfoundgongagmanufacturinggcompany'
sgorganizationgchart?
A) theglayoutgofgthegfactorygassemblyglines
B) aglistgofgthegmaterialsgneededgtogproducegeachgofgthegcompany'sgproducts
C) theginformalglinesgofgreportinggandgcommunication
D) nonegofgthegabove
Answer:gDg g Level:gEasyg g LO:g2
6 Garrison,gManagerialgAccounting,g12thgEditio
n
