Test Bank for Managerial Accounting: The Cornerstone of Business Decision Makin
m m m m m m m m m m
g 8e Mowen m m
Chapm 01_8e_Mowen
Indicate m whetherm them statementm ism truem orm false.
m 1.mAmcostmaccountantmwould mnormally moccupy mamstaff mposition mwithin man morganization.
True
False
m 2.mThemfourmemphasizedmareasmofmthemCMAmexamination mreflectmthemneedsmofmmanagerialmaccountingmand mhighl
ightmthatmmanagerialmaccountingmhasmmoremofmanminterdisciplinary mflavormthan mothermareasmof maccounting.
True
False
m 3.m Managementmaccountingminformation mismused monly mby mmanufacturingmorganizations.
True
False
m 4.mPositionsmthatmhavemdirectmresponsibility mformthembasicmobjectivesmofmanmorganization maremreferred mto masmlinempositions
.
True
False
m 5.mVirtually mallmmanagerialmaccountingmpracticesmweremdeveloped mto massistmmanagersmin mmaximizingmprofits.
True
False
m 6.m Managerialmaccountingmismdesigned mprimarily mforminternalmusers.
True
False
m 7.mManagerialmaccountingminformation mismnotmimportantmformnot-for-profitmorganizations.
True
False
m 8.mTimemismnotmamcrucialmelementmin mallmphasesmof mthemvaluemchain.
True
False
m 9.mActivity-
based mcostingmismamlessmdetailed mapproachmto mdeterminingmthemcostmofmgoodsmandmservicesmthanmtraditionalmcost
maccounting.
True
False
m 10.mAmeliamcomparedmthembudgetedmspendingmon mlabormandmmaterialsmused min mproductionmto mthemactualmspendingmon m
labormand mmaterialsmused minmproduction.mLabormspendingmwasmhighermthanmexpected.mAmeliamemailedmRobbiemto
mdiscuss mthis moutcome. mThismisma mmanagerialmaccounting-oriented missue.
True
False
Pagem1
,Name: Class: Date:
Chapm 01_8e_Mowen
m 11.mThempurposemofmthemCertificatemin mPublicmAccountingmismto mprovidemminimalmprofessionalmqualification mformext
ernalmauditors.
True
False
m 12.mExcellentmcustomermservicemisman mexample mof mamvalue-added mactivity.
True
False
m 13.mGAAPmgovernsmfinancialmaccounting.
True
False
m 14.mManagerialmaccountingmemphasizesmthemfuture.
True
False
m 15.mThemvaluemchain mismthemsetmofmactivitiesmrequired mto mdesign,mdevelop,mproduce,mmarket,mand mdelivermproduct
smand mservicesmto mcustomers.
True
False
m 16.mThembelief mthatmeach mmembermof mamgroup mbearsmno mresponsibility mformthemwell-
beingmof mothermmembersmismamcommon mprinciple munderlyingmallmethicalmsystems.
True
False
m 17.mThemprocessmof mchoosingmamongmcompetingmalternativesmismcalled mdecision mmaking.
True
False
m 18.mThemmanagerialmactivity mofmmonitoringmamplan'smimplementationmandmtakingmcorrective mactionmasmneededmismrefe
rred mto masmdecision mmaking.
True
False
Indicate m them answerm choicem thatm bestm completesm them statementm orm answersm them question.
m 19.mWhich mof mthemfollowingmwould mnormally mhold mamlinemposition?
Staff maccountant
Purchasingmmanager
Generalmmanager
Costmaccountant
Pagem2
,Name: Class: Date:
Chapm 01_8e_Mowen
m 20.mThemstandardsmof methicalmconductmformmanagerialmaccountantsminclude:
caringmformothers,mintuition,mand mrespectmformothers.
pursuitmof mexcellence,mcredibility,mand mimmediacy.
confidentiality, mconfidence,mintegrity,mand mobservance.
competence, mconfidentiality, mintegrity,mand mcredibility.
m 21.mInvestigatingmproduction mvariancesmand madjustingmthemproduction mprocessmaremexamplesmof:
planning.
controlling.
decision mmaking.
Allmof mthese maremcorrect.
m 22.mWhich mof mthemfollowingmstatementsmismtruemof mtotalmquality mmanagement?
Itmismammanagementmphilosophymin mwhich mmanufacturersmstrivemto mcreateman menvironmentmthatmwillmenabl
emworkersmto mmanufacture mzero-defectmproducts.
Itmhasmreplaced mthemacceptable mquality mattitudesmof mthempast.
Itmemphasizesmthemelimination mof mwaste.
Allmof mthese maremcorrect.
m 23.mActivity-based mcosting:
strivesmto mcreateman menvironmentmthatmwillmenablemworkersmto mmanufacture mzero-defectmproducts.
ismthemprocessmof mchoosingmamongmcompetingmalternatives.
wasmestablished min mresponse mto mfinancialmscandals.
emphasizesmthemcostmof mtasksmrequired mto mproduce mamproductmormoffermamservice.
m 24.mAccountantsmthatmhavemamCertificatemin mPublicmAccountingm(CPA):
aremthemonly maccountantsmpermitted mto mservemasmexternalmauditors.
mustmpassmamnationalmexamination mand mbemlicensed mby mthemstatemin mwhich mthey mpractice.
aremresponsible mformassuringmthemreliability mof mamfirm'smfinancialmstatements.
Allmof mthese maremcorrect.
m 25.mWhich mof mthemfollowingmstatementsmismtruemof mprofitmmaximization?
Profitmmaximization mismachieved mby mconsideringmthemfinancialmmeasuresmfocused monly mon mefficiency.
Profitmmaximization misman mobjective mof mfinancialmaccountingmbutmnotmmanagerialmaccounting.
Profitmmaximization mshould mbemachieved mthrough mlegalmand methicalmmeans.
Profitmmaximization mresultsmin mmaximum mcostmto mand mmaximum mproduction mby mamcompany.
m 26.mThemcontrollermof man morganization mparticipatesmin:
planning.
controlling.
decision mmaking.
Allmof mthese maremcorrect
Pagem3
, Name: Class: Date:
Chapm 01_8e_Mowen
m 27.mIn mthemUnited mStates,mindividualsmwho mprovide massurance mservicemaremdesignated mas:
Certified mPublicmAccountants.
Certified mFinancialmAccountants.
Chartered m Accountants.
Certified mManagementmAccountants.
m 28.mWhich mof mthemfollowingmmembersmof man morganization mwould mnormally mhold mamstaff mposition?
Head mof msecurity
Accountingmmanager
Customermservicemexecutive
Allmof mthese maremcorrect.
m 29.mWhichmofmthemfollowingmareasmismnotmemphasizedmby mthemCertifiedmManagementmAccountantm(CMA)mexamination?
Externalmauditingmand minternalmcontrol
Managementmreporting,manalysis,mand mbehavioralmissues
Decision manalysismand minformation msystems
Economics, mfinance,mand mmanagement
m 30.mWhich mof mthemfollowingmismnotman mobjective mof mmanagerialmaccounting?
To mproduceminformationmformexternalmusers,mincludingminvestors,mcreditors,mcustomers,msuppliers,mand
mgovernmentmagencies
To mprovideminformation mformplanningman morganization’smactions
To mprovideminformation mformevaluatingmand mcontinuously mimprovingman morganization’smactions
To mprovideminformation mformeffective mdecision mmakingmby mthemmanagementmof mamcompany
m 31.mManagerialmaccountingmreportsmaremprepared:
to mprovidemcreditorsmwith minformation musefulmin mmakingmcreditmdecisions.
to mmeetmthemneedsmof mdecision mmakersmwithin mamfirm.
to mpresentmhistoricalminformation.
Allmof mthese maremcorrect.
m 32.mWhich mof mthemfollowingmwould moccupy mamlinemposition min mamhospital?
Cafeteria m manager
Hospitalmadministrator
Chief mof msurgery
Nonem of m thesem arem correct.
m 33.mWhich mof mthemfollowingmstatementsmismtruemof mfinancialmaccounting?
Financialmaccountingmismdirected mtoward mexternalmusers.
Financialmaccountingmismsubjectmto mexternally mimposed mrules.
Financialmaccountingmprovidesminformation mthatmcan mbemobjectively mverified mand maudited.
Allmof mthese maremcorrect.
Pagem4
m m m m m m m m m m
g 8e Mowen m m
Chapm 01_8e_Mowen
Indicate m whetherm them statementm ism truem orm false.
m 1.mAmcostmaccountantmwould mnormally moccupy mamstaff mposition mwithin man morganization.
True
False
m 2.mThemfourmemphasizedmareasmofmthemCMAmexamination mreflectmthemneedsmofmmanagerialmaccountingmand mhighl
ightmthatmmanagerialmaccountingmhasmmoremofmanminterdisciplinary mflavormthan mothermareasmof maccounting.
True
False
m 3.m Managementmaccountingminformation mismused monly mby mmanufacturingmorganizations.
True
False
m 4.mPositionsmthatmhavemdirectmresponsibility mformthembasicmobjectivesmofmanmorganization maremreferred mto masmlinempositions
.
True
False
m 5.mVirtually mallmmanagerialmaccountingmpracticesmweremdeveloped mto massistmmanagersmin mmaximizingmprofits.
True
False
m 6.m Managerialmaccountingmismdesigned mprimarily mforminternalmusers.
True
False
m 7.mManagerialmaccountingminformation mismnotmimportantmformnot-for-profitmorganizations.
True
False
m 8.mTimemismnotmamcrucialmelementmin mallmphasesmof mthemvaluemchain.
True
False
m 9.mActivity-
based mcostingmismamlessmdetailed mapproachmto mdeterminingmthemcostmofmgoodsmandmservicesmthanmtraditionalmcost
maccounting.
True
False
m 10.mAmeliamcomparedmthembudgetedmspendingmon mlabormandmmaterialsmused min mproductionmto mthemactualmspendingmon m
labormand mmaterialsmused minmproduction.mLabormspendingmwasmhighermthanmexpected.mAmeliamemailedmRobbiemto
mdiscuss mthis moutcome. mThismisma mmanagerialmaccounting-oriented missue.
True
False
Pagem1
,Name: Class: Date:
Chapm 01_8e_Mowen
m 11.mThempurposemofmthemCertificatemin mPublicmAccountingmismto mprovidemminimalmprofessionalmqualification mformext
ernalmauditors.
True
False
m 12.mExcellentmcustomermservicemisman mexample mof mamvalue-added mactivity.
True
False
m 13.mGAAPmgovernsmfinancialmaccounting.
True
False
m 14.mManagerialmaccountingmemphasizesmthemfuture.
True
False
m 15.mThemvaluemchain mismthemsetmofmactivitiesmrequired mto mdesign,mdevelop,mproduce,mmarket,mand mdelivermproduct
smand mservicesmto mcustomers.
True
False
m 16.mThembelief mthatmeach mmembermof mamgroup mbearsmno mresponsibility mformthemwell-
beingmof mothermmembersmismamcommon mprinciple munderlyingmallmethicalmsystems.
True
False
m 17.mThemprocessmof mchoosingmamongmcompetingmalternativesmismcalled mdecision mmaking.
True
False
m 18.mThemmanagerialmactivity mofmmonitoringmamplan'smimplementationmandmtakingmcorrective mactionmasmneededmismrefe
rred mto masmdecision mmaking.
True
False
Indicate m them answerm choicem thatm bestm completesm them statementm orm answersm them question.
m 19.mWhich mof mthemfollowingmwould mnormally mhold mamlinemposition?
Staff maccountant
Purchasingmmanager
Generalmmanager
Costmaccountant
Pagem2
,Name: Class: Date:
Chapm 01_8e_Mowen
m 20.mThemstandardsmof methicalmconductmformmanagerialmaccountantsminclude:
caringmformothers,mintuition,mand mrespectmformothers.
pursuitmof mexcellence,mcredibility,mand mimmediacy.
confidentiality, mconfidence,mintegrity,mand mobservance.
competence, mconfidentiality, mintegrity,mand mcredibility.
m 21.mInvestigatingmproduction mvariancesmand madjustingmthemproduction mprocessmaremexamplesmof:
planning.
controlling.
decision mmaking.
Allmof mthese maremcorrect.
m 22.mWhich mof mthemfollowingmstatementsmismtruemof mtotalmquality mmanagement?
Itmismammanagementmphilosophymin mwhich mmanufacturersmstrivemto mcreateman menvironmentmthatmwillmenabl
emworkersmto mmanufacture mzero-defectmproducts.
Itmhasmreplaced mthemacceptable mquality mattitudesmof mthempast.
Itmemphasizesmthemelimination mof mwaste.
Allmof mthese maremcorrect.
m 23.mActivity-based mcosting:
strivesmto mcreateman menvironmentmthatmwillmenablemworkersmto mmanufacture mzero-defectmproducts.
ismthemprocessmof mchoosingmamongmcompetingmalternatives.
wasmestablished min mresponse mto mfinancialmscandals.
emphasizesmthemcostmof mtasksmrequired mto mproduce mamproductmormoffermamservice.
m 24.mAccountantsmthatmhavemamCertificatemin mPublicmAccountingm(CPA):
aremthemonly maccountantsmpermitted mto mservemasmexternalmauditors.
mustmpassmamnationalmexamination mand mbemlicensed mby mthemstatemin mwhich mthey mpractice.
aremresponsible mformassuringmthemreliability mof mamfirm'smfinancialmstatements.
Allmof mthese maremcorrect.
m 25.mWhich mof mthemfollowingmstatementsmismtruemof mprofitmmaximization?
Profitmmaximization mismachieved mby mconsideringmthemfinancialmmeasuresmfocused monly mon mefficiency.
Profitmmaximization misman mobjective mof mfinancialmaccountingmbutmnotmmanagerialmaccounting.
Profitmmaximization mshould mbemachieved mthrough mlegalmand methicalmmeans.
Profitmmaximization mresultsmin mmaximum mcostmto mand mmaximum mproduction mby mamcompany.
m 26.mThemcontrollermof man morganization mparticipatesmin:
planning.
controlling.
decision mmaking.
Allmof mthese maremcorrect
Pagem3
, Name: Class: Date:
Chapm 01_8e_Mowen
m 27.mIn mthemUnited mStates,mindividualsmwho mprovide massurance mservicemaremdesignated mas:
Certified mPublicmAccountants.
Certified mFinancialmAccountants.
Chartered m Accountants.
Certified mManagementmAccountants.
m 28.mWhich mof mthemfollowingmmembersmof man morganization mwould mnormally mhold mamstaff mposition?
Head mof msecurity
Accountingmmanager
Customermservicemexecutive
Allmof mthese maremcorrect.
m 29.mWhichmofmthemfollowingmareasmismnotmemphasizedmby mthemCertifiedmManagementmAccountantm(CMA)mexamination?
Externalmauditingmand minternalmcontrol
Managementmreporting,manalysis,mand mbehavioralmissues
Decision manalysismand minformation msystems
Economics, mfinance,mand mmanagement
m 30.mWhich mof mthemfollowingmismnotman mobjective mof mmanagerialmaccounting?
To mproduceminformationmformexternalmusers,mincludingminvestors,mcreditors,mcustomers,msuppliers,mand
mgovernmentmagencies
To mprovideminformation mformplanningman morganization’smactions
To mprovideminformation mformevaluatingmand mcontinuously mimprovingman morganization’smactions
To mprovideminformation mformeffective mdecision mmakingmby mthemmanagementmof mamcompany
m 31.mManagerialmaccountingmreportsmaremprepared:
to mprovidemcreditorsmwith minformation musefulmin mmakingmcreditmdecisions.
to mmeetmthemneedsmof mdecision mmakersmwithin mamfirm.
to mpresentmhistoricalminformation.
Allmof mthese maremcorrect.
m 32.mWhich mof mthemfollowingmwould moccupy mamlinemposition min mamhospital?
Cafeteria m manager
Hospitalmadministrator
Chief mof msurgery
Nonem of m thesem arem correct.
m 33.mWhich mof mthemfollowingmstatementsmismtruemof mfinancialmaccounting?
Financialmaccountingmismdirected mtoward mexternalmusers.
Financialmaccountingmismsubjectmto mexternally mimposed mrules.
Financialmaccountingmprovidesminformation mthatmcan mbemobjectively mverified mand maudited.
Allmof mthese maremcorrect.
Pagem4
