ACC302 12edi on| Ques ons and answers | Updated
RATED A+ | NEW 2026
True/False Ques ons
1. Although financial and managerial accoun ng differ in many ways, they are similar in that
both rely on the same underlying financial data.
True Level: Medium
1
2. Managerial accoun ng is a branch of financial accoun ng and serves essen ally the same
purposes as financial accoun ng.
False Level: Medium
1
3. Managerial accoun ng places greater emphasis on the future than financial accoun ng,
which is primarily concerned with the past.
True Level: Easy
1
4. Managerial accoun ng is not needed in a non-profit or governmental organiza on.
False Level: Easy
1
5. When carrying out their planning ac vi es, managers select a course of ac on and specify
how the ac on will be implemented.
True Level: Easy
2
6. When carrying out their planning ac vi es, managers obtain feedback to ensure that the plan
is actually carried out and is appropriately modified as circumstances change.
False Level: Medium
,2
7. The controller occupies a line posi on in an organiza on.
False Level: Easy
2
8. Decentraliza on means the delega on of decision-making authority throughout an
organiza on by allowing managers at various opera ng levels to make key decisions rela ng to
their own area of responsibility.
True Level: Easy
2
9. A firm's organiza on chart will normally show both the formal and informal lines of repor ng
and communica on.
False Level: Easy
2
10. The Chief Financial Officer of an organiza on is responsible for ensuring that line opera ons
run smoothly.
False Level: Medium
2
11. Tradi onally, companies have maintained large amounts of raw materials, work in process,
and finished goods inventories to act as buffers so that opera ons can proceed smoothly even if
there are unan cipated disrup ons.
True Level: Medium
3
12. Process Reengineering is generally considered to be a more radical approach to
improvement than Total Quality Management.
True Level: Easy
3
,13. Process Reengineering emphasizes a team approach involving front-line workers, whereas
Total Quality Management is usually implemented using outside specialists and is imposed from
above.
False Level: Medium
3
14. If ethical standards were not generally followed, one of the results would probably be fewer
goods and services available in the marketplace.
True Level: Medium
4
15. The Standards of Ethical Conduct for Management Accountants promulgated by the
Ins tute of Management Accountants specifically state that management accountants' sole
ethical responsibility is to not break any laws.
False Level: Easy
4
Mul ple Choice Ques ons
16. Management accoun ng focuses primarily on providing data for: A) internal uses by
managers.
B) external uses by stockholders and creditors.
C) external uses by the Internal Revenue Service.
D) external uses by the Securi es and Exchange Commission.
A Level: Easy
1
17. Managerial accoun ng:
A) is more future oriented than financial accoun ng.
B) tends to summarize informa on more than financial accoun ng C) is primarily concerned
with providing informa on to external users.
D) is more concerned with precision than meliness.
, A Level: Easy
1
18. Compared to financial accoun ng, managerial accoun ng places more emphasis on: A) the
flexibility of informa on.
B) the precision of informa on.
C) the meliness of informa on.
D) both A and C above.
D Level: Easy
1
19. The func on of management that compares planned results to actual results is known as:
A) planning.
B) direc ng and mo va ng.
C) controlling.
D) decision making.
C Level: Easy
2
20. Which of the func ons of management involves overseeing day-to-day ac vi es?
A) Planning
B) Direc ng and mo va ng
C) Controlling
D) Decision making
B Level: Easy
2
21. Which of the following is not one of the three basic ac vi es of a manager?
A) Planning
B) Controlling
C) Direc ng and mo va ng
D) Compiling management accoun ng reports
D Level: Easy
2
RATED A+ | NEW 2026
True/False Ques ons
1. Although financial and managerial accoun ng differ in many ways, they are similar in that
both rely on the same underlying financial data.
True Level: Medium
1
2. Managerial accoun ng is a branch of financial accoun ng and serves essen ally the same
purposes as financial accoun ng.
False Level: Medium
1
3. Managerial accoun ng places greater emphasis on the future than financial accoun ng,
which is primarily concerned with the past.
True Level: Easy
1
4. Managerial accoun ng is not needed in a non-profit or governmental organiza on.
False Level: Easy
1
5. When carrying out their planning ac vi es, managers select a course of ac on and specify
how the ac on will be implemented.
True Level: Easy
2
6. When carrying out their planning ac vi es, managers obtain feedback to ensure that the plan
is actually carried out and is appropriately modified as circumstances change.
False Level: Medium
,2
7. The controller occupies a line posi on in an organiza on.
False Level: Easy
2
8. Decentraliza on means the delega on of decision-making authority throughout an
organiza on by allowing managers at various opera ng levels to make key decisions rela ng to
their own area of responsibility.
True Level: Easy
2
9. A firm's organiza on chart will normally show both the formal and informal lines of repor ng
and communica on.
False Level: Easy
2
10. The Chief Financial Officer of an organiza on is responsible for ensuring that line opera ons
run smoothly.
False Level: Medium
2
11. Tradi onally, companies have maintained large amounts of raw materials, work in process,
and finished goods inventories to act as buffers so that opera ons can proceed smoothly even if
there are unan cipated disrup ons.
True Level: Medium
3
12. Process Reengineering is generally considered to be a more radical approach to
improvement than Total Quality Management.
True Level: Easy
3
,13. Process Reengineering emphasizes a team approach involving front-line workers, whereas
Total Quality Management is usually implemented using outside specialists and is imposed from
above.
False Level: Medium
3
14. If ethical standards were not generally followed, one of the results would probably be fewer
goods and services available in the marketplace.
True Level: Medium
4
15. The Standards of Ethical Conduct for Management Accountants promulgated by the
Ins tute of Management Accountants specifically state that management accountants' sole
ethical responsibility is to not break any laws.
False Level: Easy
4
Mul ple Choice Ques ons
16. Management accoun ng focuses primarily on providing data for: A) internal uses by
managers.
B) external uses by stockholders and creditors.
C) external uses by the Internal Revenue Service.
D) external uses by the Securi es and Exchange Commission.
A Level: Easy
1
17. Managerial accoun ng:
A) is more future oriented than financial accoun ng.
B) tends to summarize informa on more than financial accoun ng C) is primarily concerned
with providing informa on to external users.
D) is more concerned with precision than meliness.
, A Level: Easy
1
18. Compared to financial accoun ng, managerial accoun ng places more emphasis on: A) the
flexibility of informa on.
B) the precision of informa on.
C) the meliness of informa on.
D) both A and C above.
D Level: Easy
1
19. The func on of management that compares planned results to actual results is known as:
A) planning.
B) direc ng and mo va ng.
C) controlling.
D) decision making.
C Level: Easy
2
20. Which of the func ons of management involves overseeing day-to-day ac vi es?
A) Planning
B) Direc ng and mo va ng
C) Controlling
D) Decision making
B Level: Easy
2
21. Which of the following is not one of the three basic ac vi es of a manager?
A) Planning
B) Controlling
C) Direc ng and mo va ng
D) Compiling management accoun ng reports
D Level: Easy
2
