Managerial Accounting Summary
Questions: Chapters 1-4
__ is the accounting for the planning, control, and decision activities of an organization. 1.1 -
correct answer-management accounting
In general, the work that management performs can be classified as __,__,__, and __. 1.4 -
correct answer-planning, coordinating, controlling, decision making
There are two types of authorities in the organizational structure: __ and __. 1.5 - correct
answer-line, staff
__ is the authority to give orders to subordinates. 1.5 - correct answer-line authority
__ is the authority to give advice, support, and service to line departments. 1.5 - correct
answer-staff authority
The chief management accountant or the chief accounting executive of an organization is
called the __. 1.6 - correct answer-controler
What are the principal functions of a controller? 1.6 - correct answer-planning for control,
financial reporting and interpreting, tax administration, management audits and development
of accounting systems and computer data processing, internal audits
Management accounting provides data for __ uses. - correct answer-internal
The chief accounting executive in and organization is often called the __. 1 - correct
answer-controller
The institute of Management Accounting, created by the National Association of
Accountants, offers a program for becoming a __, indication professional competence in this
expanding field.1 - correct answer-certified management accountant
In contrast to financial accounting, management accounting is not necessarily governed by
the so-called __.1 - correct answer-generally accepted accounting pricipals
Management accounting places more emphasis on the __ rather than on the __.1 - correct
answer-future, past
One of the most important aspects of cost accounting is __ for inventory valuation and
income determination.1 - correct answer-cost accumulation
__ entails the implementation of a decision method and the use of __ so that the firm's goals
are optimally attained.1 - correct answer-controlling, feedback
, The controller has __ authority over his or her subordinates but has __ authority from the
viewpoint of the organization as a whole.1 - correct answer-line, staff
The principal functions of the controller include: (a) decision making; (b) arranging short-term
and long term financing; (c) both of the above; (d) none of the above.1 - correct answer-d
Management accounting is for: (a) decision making; (b) planning; (c) control; (d) all of the
above; (e) none of the above.1 - correct answer-d
Management accounting looks at parts as well as the business as a whole: (a) true; (b)
false.1 - correct answer-a
Management carries out four broad functions in an organization. They are planning, __,
controlling , and decision making.1 - correct answer-coordinating
__ is mainly concerned with providing information for external users such as stockholders
and creditors.1 - correct answer-financial accounting
For each of the following, indicate whether it is identified primarily with management
accounting or financial accounting: 1
1. Draws heavily from other disciplines such as economics and statistics
2. Prepares financial statements
3. Provides financial information to internal managers
4. Emphasizes the past rather than the future
5. Focuses on relevant and flexible data
6. Is not mandatory
7. Focuses on the segments as well as the entire organization
8. Is not subject to generally accepted accounting principles
9. Is built around the fundamental accounting equation of debits
10. draws heavily from other business disciplines - correct answer-1. ma; 2. fa; 3. ma; 4. fa;
5. ma; 6. ma; 7. ma; 8. ma; 9. fa; 10. ma
__ are all materials that become an integral part of the finished product. Glues, nails, and
other minor items are called __ and are classified as part of factory overhead. 2.3 - correct
answer-direct materials, indirect materials
__ is the labor that is involved directly in making the product. __, such as wages of
supervisory personnel and janitors, is classified as part of factory overhead. 2.3 - correct
answer-direct labor, indirect labor
__ can be defined as including all costs of manufacturing except direct materials and direct
labor. 2.3 - correct answer-factory overhead
direct material + direct labor = __ 2.3 - correct answer-prime costs
direct labor + factory overhead = __ 2.3 - correct answer-conversion costs (or processing
costs)
Questions: Chapters 1-4
__ is the accounting for the planning, control, and decision activities of an organization. 1.1 -
correct answer-management accounting
In general, the work that management performs can be classified as __,__,__, and __. 1.4 -
correct answer-planning, coordinating, controlling, decision making
There are two types of authorities in the organizational structure: __ and __. 1.5 - correct
answer-line, staff
__ is the authority to give orders to subordinates. 1.5 - correct answer-line authority
__ is the authority to give advice, support, and service to line departments. 1.5 - correct
answer-staff authority
The chief management accountant or the chief accounting executive of an organization is
called the __. 1.6 - correct answer-controler
What are the principal functions of a controller? 1.6 - correct answer-planning for control,
financial reporting and interpreting, tax administration, management audits and development
of accounting systems and computer data processing, internal audits
Management accounting provides data for __ uses. - correct answer-internal
The chief accounting executive in and organization is often called the __. 1 - correct
answer-controller
The institute of Management Accounting, created by the National Association of
Accountants, offers a program for becoming a __, indication professional competence in this
expanding field.1 - correct answer-certified management accountant
In contrast to financial accounting, management accounting is not necessarily governed by
the so-called __.1 - correct answer-generally accepted accounting pricipals
Management accounting places more emphasis on the __ rather than on the __.1 - correct
answer-future, past
One of the most important aspects of cost accounting is __ for inventory valuation and
income determination.1 - correct answer-cost accumulation
__ entails the implementation of a decision method and the use of __ so that the firm's goals
are optimally attained.1 - correct answer-controlling, feedback
, The controller has __ authority over his or her subordinates but has __ authority from the
viewpoint of the organization as a whole.1 - correct answer-line, staff
The principal functions of the controller include: (a) decision making; (b) arranging short-term
and long term financing; (c) both of the above; (d) none of the above.1 - correct answer-d
Management accounting is for: (a) decision making; (b) planning; (c) control; (d) all of the
above; (e) none of the above.1 - correct answer-d
Management accounting looks at parts as well as the business as a whole: (a) true; (b)
false.1 - correct answer-a
Management carries out four broad functions in an organization. They are planning, __,
controlling , and decision making.1 - correct answer-coordinating
__ is mainly concerned with providing information for external users such as stockholders
and creditors.1 - correct answer-financial accounting
For each of the following, indicate whether it is identified primarily with management
accounting or financial accounting: 1
1. Draws heavily from other disciplines such as economics and statistics
2. Prepares financial statements
3. Provides financial information to internal managers
4. Emphasizes the past rather than the future
5. Focuses on relevant and flexible data
6. Is not mandatory
7. Focuses on the segments as well as the entire organization
8. Is not subject to generally accepted accounting principles
9. Is built around the fundamental accounting equation of debits
10. draws heavily from other business disciplines - correct answer-1. ma; 2. fa; 3. ma; 4. fa;
5. ma; 6. ma; 7. ma; 8. ma; 9. fa; 10. ma
__ are all materials that become an integral part of the finished product. Glues, nails, and
other minor items are called __ and are classified as part of factory overhead. 2.3 - correct
answer-direct materials, indirect materials
__ is the labor that is involved directly in making the product. __, such as wages of
supervisory personnel and janitors, is classified as part of factory overhead. 2.3 - correct
answer-direct labor, indirect labor
__ can be defined as including all costs of manufacturing except direct materials and direct
labor. 2.3 - correct answer-factory overhead
direct material + direct labor = __ 2.3 - correct answer-prime costs
direct labor + factory overhead = __ 2.3 - correct answer-conversion costs (or processing
costs)
