test bank of managerial accounting,
k k k k
Exercises for Managerial Economics
k k k
test bank of managerial
k k k k
accounting
Managerialk Economics k
Alk Akhawayn k Universityk
860 k pag.
Document k sharedk onk www.docsity.com k Download
edk by:k wambui-kamauk ()
,Chapter 1 Managerial Accounting and the Business Environment
k k k k k k k
True/False kQuestions
1. Although k financialk and kmanagerialk accountingk differk in kmany kways,kthey kareksimilark in kt
hatk both k rely k on k thek samek underlyingk financialk data.
Answer:k Truek Level:k Mediumk k LO:k 1
2. Managerialkaccountingk isk ak branchkofkfinancialkaccountingk andk serveskessentially kthek
samek purposesk ask financialk accounting.
Answer:k Falsek Level:k Mediumk k LO:k 1
3. Managerialkaccountingk placesk greaterk emphasiskon kthekfuturekthank financialk
accounting, k which k isk primarily k concerned k with k thek past.
Answer:k Truek Level:k Easy k k LO:k 1
4. Managerialkaccountingk isk notk needed k in k ak non-profitk ork governmentalk organization.
Answer:k Falsek Level:k Easy k k LO:k 1
5. When kcarryingk outk theirkplanningk activities,k managersk selectk akcourse kofkaction k and k
specify k howk thek action k willk bek implemented.
Answer:k Truek Level:k Easy k k LO:k 2
6. When k carryingk outk theirk planningk activities,k managerskobtain kfeedback kto kensurekthatkth
ekplan k isk actually k carried k outk and k isk appropriately kmodified k ask circumstancesk change.
Answer:k Falsek Level:k Mediumk k LO:k 2
7. Thek controllerk occupiesk ak linek position k in k an k organization.
Answer:k Falsek Level:k Easy k k LO:k 2
8. Decentralization k meansk thek delegation k of k decision-
makingk authority k throughoutk ank organization kbykallowingk managersk atkvariousk operati
ngk levelsk to k makek key k decisionsk relatingk to k theirk own k areak of k responsibility.
Answer:k Truek Level:k Easy k k LO:k 2
Garrison,kManagerial kAccounting,k12th kEdition 3
Document ksharedkonkwww.docsity.com
Downloadedk by:k wambui-kamauk ()
,Chapter 1 Managerial Accounting and the Business Environment
k k k k k k k
9. Ak firm'sk organization kchartk willk normally kshowk both kthekformalkand kinformalklineskofkr
eportingk and k communication.
Answer:k Falsek Level:k Easy k k LO:k 2
10. Thek Chief kFinancialkOfficerkofkankorganization kiskresponsible k fork ensuringk thatk linek
operationsk run k smoothly.
Answer:k Falsek Level:k Mediumk k LO:k 2
11. Traditionally,k companiesk havekmaintained klargek amountskofkrawk materials,k work k in k pro
cess,k and k finishedkgoodskinventorieskto kactkaskbuffersk sokthatkoperationskcankproceed ksmo
othly k even k if k therek arek unanticipated k disruptions.
Answer:k Truek Level:k Mediumk k LO:k 3
12. Processk Reengineeringk isk generally k considered kto kbek akmorekradicalkapproach kto ki
mprovementk than k Totalk Quality k Management.
Answer:k Truek Level:k Easy k k LO:k 3
13. Processk Reengineeringk emphasizesk ak teamk approach k involvingk front-
linek workers,k whereaskTotalkQuality kManagementkisk usually kimplemented k usingk outsi
dek specialistsk and k isk imposed k fromk above.
Answer:k Falsek Level:k Mediumk k LO:k 3
14. If k ethicalk standardskwereknotk generally kfollowed,k onekofkthekresultsk would kprobably kbekf
ewerk goodsk and k servicesk available k in k thek marketplace.
Answer:k Truek Level:k Mediumk k LO:k 4
15. Thek Standardsk of kEthicalk ConductkforkManagementk Accountantsk promulgated k by k thek I
nstitutek of kManagementk Accountantskspecifically kstatekthatkmanagementk accountants' ks
olek ethicalk responsibility k isk to k notk break k any k laws.
Answer:k Falsek Level:k Easy k k LO:k 4
4 Garrison,kManagerial kAccounting,k12th kEdition
Document ksharedkonkwww.docsity.com
Downloadedk by:k wambui-kamauk ()
, Chapter 1 Managerial Accounting and the Business Environment
k k k k k k k
MultiplekChoicekQuestions
16. Managementk accountingk focusesk primarily k on kprovidingk datak for:
A) internalkusesk by k managers.
B) externalkusesk by k stockholdersk and k creditors.
C) externalkusesk by k thek InternalkRevenue k Service.
D) externalkusesk by k thek Securitiesk and k Exchange k Commission.
Answer:k Ak Level:k Easy k k LO:k 1
17. Managerialkaccounting:
A) isk morek futurek oriented k than k financialk accounting.
B) tendsk to k summarize k information k morek than k financialk accounting
C) isk primarily k concerned k with k providingk information k to k externalkusers.
D) isk morek concerned k with k precision k than k timeliness.
Answer:k Ak Level:k Easy k k LO:k 1
18. Compared k to kfinancialkaccounting,k managerialk accountingk placesk morek emphasisk on:
A) thek flexibility k of k information.
B) thek precision k of k information.
C) thek timelinessk of k information.
D) both k Ak and k Ck above.
Answer:kDk Level:k Easy k k LO:k 1
19. Thek function kofkmanagementk thatk compareskplanned kresultskto kactualk resultsk isk known k
as:
A) planning.
B) directingk and k motivating.
C) controlling.
D) decision k making.
Answer:k Ck Level:k Easy k k LO:k 2
20. Which kof kthek functionsk of kmanagementk involvesk overseeingk day-to-day kactivities?
A) Planning
B) Directingk and k motivating
C) Controlling
D) Decision k making
Answer:k Bk Level:k Easy k k LO:k 2
Garrison,kManagerial kAccounting,k12th kEdition 5
Document ksharedkonkwww.docsity.com
Downloadedk by:k wambui-kamauk ()
k k k k
Exercises for Managerial Economics
k k k
test bank of managerial
k k k k
accounting
Managerialk Economics k
Alk Akhawayn k Universityk
860 k pag.
Document k sharedk onk www.docsity.com k Download
edk by:k wambui-kamauk ()
,Chapter 1 Managerial Accounting and the Business Environment
k k k k k k k
True/False kQuestions
1. Although k financialk and kmanagerialk accountingk differk in kmany kways,kthey kareksimilark in kt
hatk both k rely k on k thek samek underlyingk financialk data.
Answer:k Truek Level:k Mediumk k LO:k 1
2. Managerialkaccountingk isk ak branchkofkfinancialkaccountingk andk serveskessentially kthek
samek purposesk ask financialk accounting.
Answer:k Falsek Level:k Mediumk k LO:k 1
3. Managerialkaccountingk placesk greaterk emphasiskon kthekfuturekthank financialk
accounting, k which k isk primarily k concerned k with k thek past.
Answer:k Truek Level:k Easy k k LO:k 1
4. Managerialkaccountingk isk notk needed k in k ak non-profitk ork governmentalk organization.
Answer:k Falsek Level:k Easy k k LO:k 1
5. When kcarryingk outk theirkplanningk activities,k managersk selectk akcourse kofkaction k and k
specify k howk thek action k willk bek implemented.
Answer:k Truek Level:k Easy k k LO:k 2
6. When k carryingk outk theirk planningk activities,k managerskobtain kfeedback kto kensurekthatkth
ekplan k isk actually k carried k outk and k isk appropriately kmodified k ask circumstancesk change.
Answer:k Falsek Level:k Mediumk k LO:k 2
7. Thek controllerk occupiesk ak linek position k in k an k organization.
Answer:k Falsek Level:k Easy k k LO:k 2
8. Decentralization k meansk thek delegation k of k decision-
makingk authority k throughoutk ank organization kbykallowingk managersk atkvariousk operati
ngk levelsk to k makek key k decisionsk relatingk to k theirk own k areak of k responsibility.
Answer:k Truek Level:k Easy k k LO:k 2
Garrison,kManagerial kAccounting,k12th kEdition 3
Document ksharedkonkwww.docsity.com
Downloadedk by:k wambui-kamauk ()
,Chapter 1 Managerial Accounting and the Business Environment
k k k k k k k
9. Ak firm'sk organization kchartk willk normally kshowk both kthekformalkand kinformalklineskofkr
eportingk and k communication.
Answer:k Falsek Level:k Easy k k LO:k 2
10. Thek Chief kFinancialkOfficerkofkankorganization kiskresponsible k fork ensuringk thatk linek
operationsk run k smoothly.
Answer:k Falsek Level:k Mediumk k LO:k 2
11. Traditionally,k companiesk havekmaintained klargek amountskofkrawk materials,k work k in k pro
cess,k and k finishedkgoodskinventorieskto kactkaskbuffersk sokthatkoperationskcankproceed ksmo
othly k even k if k therek arek unanticipated k disruptions.
Answer:k Truek Level:k Mediumk k LO:k 3
12. Processk Reengineeringk isk generally k considered kto kbek akmorekradicalkapproach kto ki
mprovementk than k Totalk Quality k Management.
Answer:k Truek Level:k Easy k k LO:k 3
13. Processk Reengineeringk emphasizesk ak teamk approach k involvingk front-
linek workers,k whereaskTotalkQuality kManagementkisk usually kimplemented k usingk outsi
dek specialistsk and k isk imposed k fromk above.
Answer:k Falsek Level:k Mediumk k LO:k 3
14. If k ethicalk standardskwereknotk generally kfollowed,k onekofkthekresultsk would kprobably kbekf
ewerk goodsk and k servicesk available k in k thek marketplace.
Answer:k Truek Level:k Mediumk k LO:k 4
15. Thek Standardsk of kEthicalk ConductkforkManagementk Accountantsk promulgated k by k thek I
nstitutek of kManagementk Accountantskspecifically kstatekthatkmanagementk accountants' ks
olek ethicalk responsibility k isk to k notk break k any k laws.
Answer:k Falsek Level:k Easy k k LO:k 4
4 Garrison,kManagerial kAccounting,k12th kEdition
Document ksharedkonkwww.docsity.com
Downloadedk by:k wambui-kamauk ()
, Chapter 1 Managerial Accounting and the Business Environment
k k k k k k k
MultiplekChoicekQuestions
16. Managementk accountingk focusesk primarily k on kprovidingk datak for:
A) internalkusesk by k managers.
B) externalkusesk by k stockholdersk and k creditors.
C) externalkusesk by k thek InternalkRevenue k Service.
D) externalkusesk by k thek Securitiesk and k Exchange k Commission.
Answer:k Ak Level:k Easy k k LO:k 1
17. Managerialkaccounting:
A) isk morek futurek oriented k than k financialk accounting.
B) tendsk to k summarize k information k morek than k financialk accounting
C) isk primarily k concerned k with k providingk information k to k externalkusers.
D) isk morek concerned k with k precision k than k timeliness.
Answer:k Ak Level:k Easy k k LO:k 1
18. Compared k to kfinancialkaccounting,k managerialk accountingk placesk morek emphasisk on:
A) thek flexibility k of k information.
B) thek precision k of k information.
C) thek timelinessk of k information.
D) both k Ak and k Ck above.
Answer:kDk Level:k Easy k k LO:k 1
19. Thek function kofkmanagementk thatk compareskplanned kresultskto kactualk resultsk isk known k
as:
A) planning.
B) directingk and k motivating.
C) controlling.
D) decision k making.
Answer:k Ck Level:k Easy k k LO:k 2
20. Which kof kthek functionsk of kmanagementk involvesk overseeingk day-to-day kactivities?
A) Planning
B) Directingk and k motivating
C) Controlling
D) Decision k making
Answer:k Bk Level:k Easy k k LO:k 2
Garrison,kManagerial kAccounting,k12th kEdition 5
Document ksharedkonkwww.docsity.com
Downloadedk by:k wambui-kamauk ()
