Test Bank for Introduction To Managerial Accounting 6th Edition By Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan.

,ManagementbAccounting,bCdn.b6eb(Horngren/Sundem/Stratton/Beaulieu)b
Chapterb1b ManagementbAccountingbandbManagementbDecisions

1) Bothbinternalbmanagersbandbexternalbpartiesbusebaccountingbinformation
.bAnswer:bTRUE
Diff:b2 Type:bTF
PagebRef:b16bObjective:b
8

2) Internalbaccountingbreportsbmustbfollowbgenerallybacceptedbaccountingbprinciplesbandbaccountbfo
rbassetsbatbhistoricalbcost.
Answer:b FALSE
Diff:b2 Type:bTF
PagebRef:b16bObjective:b
8

3) Organizationsbthatbdobnotbmakeborbsellbtangiblebgoodsbarebcalledbserviceborganizations
.bAnswer:bTRUE
Diff:b1 Type:bTF
PagebRef:b7bObjective:b
3

4) Thebcost-
benefitbbalancebisbthebprimarybconsiderationbinbchoosingbamongbaccountingbsystemsbandbmethods.
Answer:b TRUE
Diff:b1 Type:bTF
PagebRef:b2bObjective:b
3

5) Planningbrefersbtobsettingbobjectives,bimplementingbplans,bandbevaluatingbobjectives
.bAnswer:bFALSE
Diff:b1 Type:bTF
PagebRef:b3bObjective:b
2

6) Abbudgetbisbabquantitativebexpressionbofbabplanbofbaction
.bAnswer:bTRUE
Diff:b1 Type:bTF
PagebRef:b2bObjective:b
3

7) Managementbbybexceptionbinvolvesbabdetailedbanalysisbofballbdeviationsbfrombplannedbperformanc
ebregardlessbofbthebamount.
Answer:b FALSE
Diff:b1 Type:bTF
PagebRef:b2bObjective:b
3

8) Salesbgrowthboccursbinbthebmaturebmarketbstagebofbproductblifebcycle
.bAnswer:bFALSE
Diff:b1 Type:bTF
PagebRef:b9bObjective:b
4

1
©b2012bPearsonbCanadabInc
.

,9) Linebauthoritybisbauthoritybexertedbdownwardboverbsubordinates
.bAnswer:bTRUE
Diff:b1 Type:bTF
PagebRef:b12bObjective:b
5

10) Linebdepartmentsbsupportborbservicebstaffbdepartments
.bAnswer:bFALSE
Diff:b1 Type:bTF
PagebRef:b12bObjective:b
5

11) AccordingbtobthebFinancialbExecutivesbInstitute,bthebcontroller'sbfunctionbisbtobobtainbbothbshort-
termbandblong-termbloans.
Answer:b FALSE
Diff:b1 Type:bTF PagebRef:b14

12) ThebCMAbprogrambfocusesbonbmanagementbaccountingbandbitsbrolebinbCanadianbbusiness
.bAnswer:bTRUE
Diff:b1 Type:bTF
PagebRef:b16bObjective:b
8

13) Thebfactorsbcausingbchangesbinbmanagementbaccountingbtodaybincludebincreasedbglobalbcompetition
,btechnologicalbadvancesbandbincreasedbproductionbbybCanadianbcompanies.
Answer:b FALSE
Diff:b1 Type:bTF
PagebRef:b16bObjective:b
8

14) Thebessencebofbthebjust-in-
timebphilosophybisbtobeliminatebwaste.bAnswer:bTRUE
Diff:b1 Type:bTF
PagebRef:b16bObjective:b
8

15) ThebSocietybofbManagementbAccountantsbofbCanadab(SMAC)bhasbdevelopedbstandardsbofbethicalbco
nductbforbmanagementbaccountants,bwhichbincludebstandardsbofbcompetence,bconfidentiality,bintegrityba
ndbobjectivity.
Answer:b TRUE
Diff:b1 Type:bTF
PagebRef:b20bObjective:b
9

16) Absurveybofbmanagersbselectedbwhichbofbthebfollowingbbusinessbareasbasbthebmostbcommonbstartin
g-bpointbforbfuturebmanagers?
A) Accounting.
B) Finance.
C) Legalbenvironmentbofbbusiness.
D) Computersbinbbusiness
.bAnswer:bA
Diff:b1 Type:bMC
PagebRef:b2bObjective:b 1

17) Managementbaccountingbrefersbtobaccountingbinformationbdevelopedbfor
2
©b2012bPearsonbCanadabInc
.

, A) shareholders.
B) governmentalbauthorities.
C) managersbwithinbanborganization.
D) loanbofficers.
bAnswer:bC

Diff:b1 Type:bMC PagebRef:b16




3
©b2012bPearsonbCanadabInc
.