TEST BANK FOR CORNERSTONES OF
MANAGERIAL ACCOUNTING 4TH
EDITION BY MOWEN
,Chapter 1--Introduction to Managerial Accounting
Student: ___________________________________________________________________________
1. Management accounting information is only used by manufacturing organizations.
True False
2. The managerial activity of monitoring a plan's implementation and taking corrective action as needed is
referred to as decision making.
True False
3. The process of choosing among competing alternatives is decision making.
True False
4. Managerial accounting information isnot important for not-for-profit organizations.
True False
5. Managerial Accounting is designed primarily for internal users.
True False
6. Managerial accounting has its emphasis on the future.
True False
7. Financial accounting is governed by GAAP.
True False
8. The value chain is the set of activities required to design, develop, produce, market, and deliver products and
service to customers.
True False
, 9. Time is not a crucial element in all phases of the value chain.
True False
10. Activity-based costing is a less detailed approach to determining the cost of goods and services than
traditional cost accounting.
True False
11. Excellent customer service is an example of a value-added activity.
True False
12. A cost accountant would normally occupy a staff position within an organization.
True False
13. Positions that have direct responsibility for the basic objectives of an organization are referred to as line
positions.
True False
14. Virtually all managerial accounting practices were developed to assist managers in maximizing profits.
True False
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.
True False
16. The four emphasized areas of the CMA examination reflect the needs of managerial accounting and
highlights that managerial accounting has more of an interdisciplinary flavor than other areas of accounting.
True False
17. The purpose of the Certificate in Public Accounting is to provide minimal professional qualification for
external auditors.
True False
MANAGERIAL ACCOUNTING 4TH
EDITION BY MOWEN
,Chapter 1--Introduction to Managerial Accounting
Student: ___________________________________________________________________________
1. Management accounting information is only used by manufacturing organizations.
True False
2. The managerial activity of monitoring a plan's implementation and taking corrective action as needed is
referred to as decision making.
True False
3. The process of choosing among competing alternatives is decision making.
True False
4. Managerial accounting information isnot important for not-for-profit organizations.
True False
5. Managerial Accounting is designed primarily for internal users.
True False
6. Managerial accounting has its emphasis on the future.
True False
7. Financial accounting is governed by GAAP.
True False
8. The value chain is the set of activities required to design, develop, produce, market, and deliver products and
service to customers.
True False
, 9. Time is not a crucial element in all phases of the value chain.
True False
10. Activity-based costing is a less detailed approach to determining the cost of goods and services than
traditional cost accounting.
True False
11. Excellent customer service is an example of a value-added activity.
True False
12. A cost accountant would normally occupy a staff position within an organization.
True False
13. Positions that have direct responsibility for the basic objectives of an organization are referred to as line
positions.
True False
14. Virtually all managerial accounting practices were developed to assist managers in maximizing profits.
True False
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.
True False
16. The four emphasized areas of the CMA examination reflect the needs of managerial accounting and
highlights that managerial accounting has more of an interdisciplinary flavor than other areas of accounting.
True False
17. The purpose of the Certificate in Public Accounting is to provide minimal professional qualification for
external auditors.
True False
