, TESTBANK FOR Managerial Accounting The Cornerstone of Business
Decision Making 9th Edition Mowen
Important Notes
The file includes the complete test bank, organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
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editions.
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,Name: Class: Date:
Ch01 - Introduction to Managerial Accounting
True / False
1. The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as
decision making.
a. True
b. False
ANSWER: False
2. The process of choosing among competing alternatives is called decision making.
a. True
b. False
ANSWER: True
3. Managerial accounting information is not important for not-for-profit organizations.
a. True
b. False
ANSWER: False
4. Management accounting information is used only by manufacturing organizations.
a. True
b. False
ANSWER: False
5. Managerial accounting is designed primarily for internal users.
a. True
b. False
ANSWER: True
6. Managerial accounting emphasizes the future.
a. True
b. False
ANSWER: True
7. GAAP governs financial accounting.
a. True
b. False
ANSWER: True
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,Name: Class: Date:
Ch01 - Introduction to Managerial Accounting
8. The value chain is the set of activities required to design, develop, produce, market, and deliver products and services
to customers.
a. True
b. False
ANSWER: True
9. Time is not a crucial element in all phases of the value chain.
a. True
b. False
ANSWER: False
10. Activity-based costing is a less detailed approach to determining the cost of goods and services than traditional cost
accounting.
a. True
b. False
ANSWER: False
11. Excellent customer service is an example of a value-added activity.
a. True
b. False
ANSWER: True
12. A cost accountant would normally occupy a staff position within an organization.
a. True
b. False
ANSWER: True
13. Positions that have direct responsibility for the basic objectives of an organization are referred to as line positions.
a. True
b. False
ANSWER: True
14. Virtually all managerial accounting practices were developed to assist managers in maximizing profits.
a. True
b. False
ANSWER: True
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,Name: Class: Date:
Ch01 - Introduction to Managerial Accounting
15. The belief that each member of a group bears no responsibility for the well-being of other members is a common
principle underlying all ethical systems.
a. True
b. False
ANSWER: False
16. The four emphasized areas of the CMA examination reflect the needs of managerial accounting and highlight that
managerial accounting has more of an interdisciplinary flavor than other areas of accounting.
a. True
b. False
ANSWER: True
17. The purpose of the Certificate in Public Accounting is to provide minimal professional qualification for external
auditors.
a. True
b. False
ANSWER: True
18. Amelia compared the budgeted spending on labor and materials used in production to the actual spending on labor and
materials used in production. Labor spending was higher than expected. Amelia emailed Robbie to discuss this
outcome. This is a managerial accounting-oriented issue.
a. True
b. False
ANSWER: True
Completion
19. The detailed formulation of action to achieve a particular end is the management activity called _________.
ANSWER: planning
20. _________ is the provision of accounting information for a company’s internal users.
ANSWER: Managerial accounting
21. The process of choosing among competing alternatives is called _________.
ANSWER: decision making
22. The managerial activity of monitoring a plan’s implementation and taking corrective action as needed is referred to as
_________.
ANSWER: controlling
23. The managerial accounting system produces information for _________ users.
ANSWER: internal
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,Name: Class: Date:
Ch01 - Introduction to Managerial Accounting
24. _________ is primarily concerned with producing information for external users.
ANSWER: Financial accounting
25. Managerial accounting strongly emphasizes providing information about _________.
ANSWER: future events
26. The _________ is the set of activities required to design, develop, produce, market, and deliver products and
services, as well as provide support services to customers.
ANSWER: value chain
27. _________ organizes costs according to the value chain and collects both financial and nonfinancial information with
the objective of providing information to support waste reduction efforts and provide financial statements that better
reflect overall performance.
ANSWER: Lean accounting
28. _________ is a management philosophy in which manufacturers strive to create an environment that will enable
workers to manufacture perfect (zero-defect) products.
ANSWER: Total quality management
29. _________ is the continual search for ways to increase the overall efficiency and productivity of activities by
reducing waste, increasing quality, and managing costs.
ANSWER: Continuous improvement
30. _________ is a crucial element in all phases of the value chain.
ANSWER: Time
31. The _________ supervises all accounting functions and reports directly to the general manager and chief operating
officer (COO).
ANSWER: controller
32. Positions that are supportive in nature and have only indirect responsibility for an organization’s basic objectives are
called _________.
ANSWER: staff positions
33. The _________ is responsible for the finance function.
ANSWER: treasurer
34. Congress passed the _________ in response to financial scandals such as the accounting misconduct at Enron.
ANSWER: Sarbanes-Oxley Act (SOX)
35. _________ involves choosing actions that are right, proper, and just.
ANSWER: Ethical behavior
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,Name: Class: Date:
Ch01 - Introduction to Managerial Accounting
36. To promote ethical behavior by managers and employees, organizations commonly establish standards of conduct
referred to as Company _________.
ANSWER: Codes of Conduct
37. Only a(n) _________ is permitted to serve as an external auditor.
ANSWER: Certified Public Accountant (CPA)
38. A(n) _________ has passed a comprehensive examination designed to ensure technical competence and has 2 years
of experience.
ANSWER: Certified Internal Auditor (CIA)
39. The objective of _________ should be constrained by the requirement to follow legal and ethical rules.
ANSWER: profit maximization
Multiple Choice
40. Managerial accounting, as opposed to financial accounting, is primarily concerned with:
a. the financial condition of the organization as a whole.
b. providing information for investors and creditors.
c. emphasizing the future.
d. meeting the requirements of generally accepted accounting principles.
ANSWER: c
41. Which of the following is not an objective of managerial accounting?
a. To produce information for external users, including investors, creditors, customers, suppliers, and government
agencies
b. To provide information for planning an organization’s actions
c. To provide information for evaluating and continuously improving an organization’s actions
d. To provide information for effective decision making by the management of a company
ANSWER: a
42. Which of the following items is an example of the management activity referred to as planning?
a. Developing a strategy for disposing of hazardous waste
b. Tracking the cost of employee absence
c. Ensuring that the most competent candidates are recruited by a company
d. All of these are correct.
ANSWER: a
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,Name: Class: Date:
Ch01 - Introduction to Managerial Accounting
43. The detailed formulation of action to achieve a particular end is the management activity called:
a. planning.
b. controlling.
c. decision making.
d. All of these are correct.
ANSWER: a
44. Investigating production variances and adjusting the production process are examples of:
a. planning.
b. controlling.
c. decision making.
d. All of these are correct.
ANSWER: b
45. The primary objective of managerial accounting is:
a. to produce information for external users, including investors, creditors, customers, suppliers, and government
agencies.
b. to produce financial information that must comply with various accounting standards.
c. to provide management with financial and nonfinancial information useful in planning, controlling, and decision
making.
d. to provide the Internal Revenue Service with financial and nonfinancial information about the taxable income of
an organization.
ANSWER: c
46. Which of the following statements is true of managerial accounting?
a. Managerial accounting is the provision of accounting information for a company’s external users.
b. Managerial accounting attempts to provide information for controlling the organization’s actions.
c. Managerial accounting provides historical information.
d. Managerial accounting is subject to rules for external financial reporting.
ANSWER: b
47. Managerial accounting reports are prepared:
a. to provide creditors with information useful in making credit decisions.
b. to meet the needs of decision makers within a firm.
c. to present historical information.
d. All of these are correct.
ANSWER: b
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,Name: Class: Date:
Ch01 - Introduction to Managerial Accounting
48. Which of the following statements is true of financial accounting?
a. Financial accounting is directed toward external users.
b. Financial accounting is subject to externally imposed rules.
c. Financial accounting provides information that can be objectively verified and audited.
d. All of these are correct.
ANSWER: d
49. Which of the following statements is true of managerial accounting?
a. Managerial accounting reports must adhere to Generally Accepted Accounting Principles (GAAP).
b. Managerial accounting focuses on providing information that is useful to external stakeholders.
c. Managerial accounting reports must be prepared on a regularly set schedule, such as at the end of each
quarter.
d. Managerial accounting provides information that is most useful to managers, employees, and other internal
stakeholders.
ANSWER: d
50. Which of the following is true of financial accounting?
a. Financial accounting reports must adhere to Generally Accepted Accounting Principles (GAAP).
b. Financial accounting focuses on providing information that is useful to external stakeholders.
c. Financial accounting reports must be prepared on a regularly set schedule, such as at the end of each quarter.
d. All of these choices.
ANSWER: d
51. Which of the following items would not be an example of a value-added activity?
a. Timely delivery of products
b. Customers being offered a variety of products
c. Storage of finished products
d. Excellent customer service
ANSWER: c
52. Which of the following statements is true of total quality management?
a. It is a management philosophy in which manufacturers strive to create an environment that will enable workers
to manufacture zero-defect products.
b. It has replaced the acceptable quality attitudes of the past.
c. It emphasizes the elimination of waste.
d. All of these are correct.
ANSWER: d
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, Name: Class: Date:
Ch01 - Introduction to Managerial Accounting
53. Activity-based costing:
a. strives to create an environment that will enable workers to manufacture zero-defect products.
b. is the process of choosing among competing alternatives.
c. was established in response to financial scandals.
d. emphasizes the cost of tasks required to produce a product or offer a service.
ANSWER: d
54. Data analytics:
a. refers to graphical or other presentations of data to improve their interpretation.
b. refers to gathering and analyzing data to improve decision making.
c. refers to ensuring data integrity and security.
d. includes three types of analytics: descriptive, diagnostic, and predictive.
ANSWER: b
55. Which of the following would normally hold a line position?
a. Staff accountant
b. Purchasing manager
c. General manager
d. Cost accountant
ANSWER: c
56. Which of the following members of an organization would normally hold a staff position?
a. Head of security
b. Accounting manager
c. Customer service executive
d. All of these are correct.
ANSWER: d
57. Which of the following would occupy a line position in a hospital?
a. Cafeteria manager
b. Hospital administrator
c. Chief of surgery
d. None of these are correct.
ANSWER: c
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Decision Making 9th Edition Mowen
Important Notes
The file includes the complete test bank, organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
✅ Why Buy From Us?
📚 Complete & organized chapter-by-chapter – no missing content, no guessing.
⚡ Instant digital delivery – get your file the moment you pay, no waiting.
📅 Always up to date – we track new editions so you always get the latest version.
💬 Friendly support – real humans ready to help, anytime you need us.
🔒 Safe & secure – thousands of satisfied students trust us every semester.
🛡️Our Guarantees
💰 Money-Back Guarantee: Not satisfied? We offer a full refund – no questions asked.
🔄 Wrong File? No Problem: Contact us and we will replace it immediately with the
correct version, free of charge.
⏰ 24/7 Support: We are always here – reach out anytime and expect a fast response.
Contact Email:
,Name: Class: Date:
Ch01 - Introduction to Managerial Accounting
True / False
1. The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as
decision making.
a. True
b. False
ANSWER: False
2. The process of choosing among competing alternatives is called decision making.
a. True
b. False
ANSWER: True
3. Managerial accounting information is not important for not-for-profit organizations.
a. True
b. False
ANSWER: False
4. Management accounting information is used only by manufacturing organizations.
a. True
b. False
ANSWER: False
5. Managerial accounting is designed primarily for internal users.
a. True
b. False
ANSWER: True
6. Managerial accounting emphasizes the future.
a. True
b. False
ANSWER: True
7. GAAP governs financial accounting.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Ch01 - Introduction to Managerial Accounting
8. The value chain is the set of activities required to design, develop, produce, market, and deliver products and services
to customers.
a. True
b. False
ANSWER: True
9. Time is not a crucial element in all phases of the value chain.
a. True
b. False
ANSWER: False
10. Activity-based costing is a less detailed approach to determining the cost of goods and services than traditional cost
accounting.
a. True
b. False
ANSWER: False
11. Excellent customer service is an example of a value-added activity.
a. True
b. False
ANSWER: True
12. A cost accountant would normally occupy a staff position within an organization.
a. True
b. False
ANSWER: True
13. Positions that have direct responsibility for the basic objectives of an organization are referred to as line positions.
a. True
b. False
ANSWER: True
14. Virtually all managerial accounting practices were developed to assist managers in maximizing profits.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Ch01 - Introduction to Managerial Accounting
15. The belief that each member of a group bears no responsibility for the well-being of other members is a common
principle underlying all ethical systems.
a. True
b. False
ANSWER: False
16. The four emphasized areas of the CMA examination reflect the needs of managerial accounting and highlight that
managerial accounting has more of an interdisciplinary flavor than other areas of accounting.
a. True
b. False
ANSWER: True
17. The purpose of the Certificate in Public Accounting is to provide minimal professional qualification for external
auditors.
a. True
b. False
ANSWER: True
18. Amelia compared the budgeted spending on labor and materials used in production to the actual spending on labor and
materials used in production. Labor spending was higher than expected. Amelia emailed Robbie to discuss this
outcome. This is a managerial accounting-oriented issue.
a. True
b. False
ANSWER: True
Completion
19. The detailed formulation of action to achieve a particular end is the management activity called _________.
ANSWER: planning
20. _________ is the provision of accounting information for a company’s internal users.
ANSWER: Managerial accounting
21. The process of choosing among competing alternatives is called _________.
ANSWER: decision making
22. The managerial activity of monitoring a plan’s implementation and taking corrective action as needed is referred to as
_________.
ANSWER: controlling
23. The managerial accounting system produces information for _________ users.
ANSWER: internal
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Ch01 - Introduction to Managerial Accounting
24. _________ is primarily concerned with producing information for external users.
ANSWER: Financial accounting
25. Managerial accounting strongly emphasizes providing information about _________.
ANSWER: future events
26. The _________ is the set of activities required to design, develop, produce, market, and deliver products and
services, as well as provide support services to customers.
ANSWER: value chain
27. _________ organizes costs according to the value chain and collects both financial and nonfinancial information with
the objective of providing information to support waste reduction efforts and provide financial statements that better
reflect overall performance.
ANSWER: Lean accounting
28. _________ is a management philosophy in which manufacturers strive to create an environment that will enable
workers to manufacture perfect (zero-defect) products.
ANSWER: Total quality management
29. _________ is the continual search for ways to increase the overall efficiency and productivity of activities by
reducing waste, increasing quality, and managing costs.
ANSWER: Continuous improvement
30. _________ is a crucial element in all phases of the value chain.
ANSWER: Time
31. The _________ supervises all accounting functions and reports directly to the general manager and chief operating
officer (COO).
ANSWER: controller
32. Positions that are supportive in nature and have only indirect responsibility for an organization’s basic objectives are
called _________.
ANSWER: staff positions
33. The _________ is responsible for the finance function.
ANSWER: treasurer
34. Congress passed the _________ in response to financial scandals such as the accounting misconduct at Enron.
ANSWER: Sarbanes-Oxley Act (SOX)
35. _________ involves choosing actions that are right, proper, and just.
ANSWER: Ethical behavior
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Ch01 - Introduction to Managerial Accounting
36. To promote ethical behavior by managers and employees, organizations commonly establish standards of conduct
referred to as Company _________.
ANSWER: Codes of Conduct
37. Only a(n) _________ is permitted to serve as an external auditor.
ANSWER: Certified Public Accountant (CPA)
38. A(n) _________ has passed a comprehensive examination designed to ensure technical competence and has 2 years
of experience.
ANSWER: Certified Internal Auditor (CIA)
39. The objective of _________ should be constrained by the requirement to follow legal and ethical rules.
ANSWER: profit maximization
Multiple Choice
40. Managerial accounting, as opposed to financial accounting, is primarily concerned with:
a. the financial condition of the organization as a whole.
b. providing information for investors and creditors.
c. emphasizing the future.
d. meeting the requirements of generally accepted accounting principles.
ANSWER: c
41. Which of the following is not an objective of managerial accounting?
a. To produce information for external users, including investors, creditors, customers, suppliers, and government
agencies
b. To provide information for planning an organization’s actions
c. To provide information for evaluating and continuously improving an organization’s actions
d. To provide information for effective decision making by the management of a company
ANSWER: a
42. Which of the following items is an example of the management activity referred to as planning?
a. Developing a strategy for disposing of hazardous waste
b. Tracking the cost of employee absence
c. Ensuring that the most competent candidates are recruited by a company
d. All of these are correct.
ANSWER: a
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,Name: Class: Date:
Ch01 - Introduction to Managerial Accounting
43. The detailed formulation of action to achieve a particular end is the management activity called:
a. planning.
b. controlling.
c. decision making.
d. All of these are correct.
ANSWER: a
44. Investigating production variances and adjusting the production process are examples of:
a. planning.
b. controlling.
c. decision making.
d. All of these are correct.
ANSWER: b
45. The primary objective of managerial accounting is:
a. to produce information for external users, including investors, creditors, customers, suppliers, and government
agencies.
b. to produce financial information that must comply with various accounting standards.
c. to provide management with financial and nonfinancial information useful in planning, controlling, and decision
making.
d. to provide the Internal Revenue Service with financial and nonfinancial information about the taxable income of
an organization.
ANSWER: c
46. Which of the following statements is true of managerial accounting?
a. Managerial accounting is the provision of accounting information for a company’s external users.
b. Managerial accounting attempts to provide information for controlling the organization’s actions.
c. Managerial accounting provides historical information.
d. Managerial accounting is subject to rules for external financial reporting.
ANSWER: b
47. Managerial accounting reports are prepared:
a. to provide creditors with information useful in making credit decisions.
b. to meet the needs of decision makers within a firm.
c. to present historical information.
d. All of these are correct.
ANSWER: b
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,Name: Class: Date:
Ch01 - Introduction to Managerial Accounting
48. Which of the following statements is true of financial accounting?
a. Financial accounting is directed toward external users.
b. Financial accounting is subject to externally imposed rules.
c. Financial accounting provides information that can be objectively verified and audited.
d. All of these are correct.
ANSWER: d
49. Which of the following statements is true of managerial accounting?
a. Managerial accounting reports must adhere to Generally Accepted Accounting Principles (GAAP).
b. Managerial accounting focuses on providing information that is useful to external stakeholders.
c. Managerial accounting reports must be prepared on a regularly set schedule, such as at the end of each
quarter.
d. Managerial accounting provides information that is most useful to managers, employees, and other internal
stakeholders.
ANSWER: d
50. Which of the following is true of financial accounting?
a. Financial accounting reports must adhere to Generally Accepted Accounting Principles (GAAP).
b. Financial accounting focuses on providing information that is useful to external stakeholders.
c. Financial accounting reports must be prepared on a regularly set schedule, such as at the end of each quarter.
d. All of these choices.
ANSWER: d
51. Which of the following items would not be an example of a value-added activity?
a. Timely delivery of products
b. Customers being offered a variety of products
c. Storage of finished products
d. Excellent customer service
ANSWER: c
52. Which of the following statements is true of total quality management?
a. It is a management philosophy in which manufacturers strive to create an environment that will enable workers
to manufacture zero-defect products.
b. It has replaced the acceptable quality attitudes of the past.
c. It emphasizes the elimination of waste.
d. All of these are correct.
ANSWER: d
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Ch01 - Introduction to Managerial Accounting
53. Activity-based costing:
a. strives to create an environment that will enable workers to manufacture zero-defect products.
b. is the process of choosing among competing alternatives.
c. was established in response to financial scandals.
d. emphasizes the cost of tasks required to produce a product or offer a service.
ANSWER: d
54. Data analytics:
a. refers to graphical or other presentations of data to improve their interpretation.
b. refers to gathering and analyzing data to improve decision making.
c. refers to ensuring data integrity and security.
d. includes three types of analytics: descriptive, diagnostic, and predictive.
ANSWER: b
55. Which of the following would normally hold a line position?
a. Staff accountant
b. Purchasing manager
c. General manager
d. Cost accountant
ANSWER: c
56. Which of the following members of an organization would normally hold a staff position?
a. Head of security
b. Accounting manager
c. Customer service executive
d. All of these are correct.
ANSWER: d
57. Which of the following would occupy a line position in a hospital?
a. Cafeteria manager
b. Hospital administrator
c. Chief of surgery
d. None of these are correct.
ANSWER: c
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