Test Bank For
Managerial Accounting The Cornerstone of Business Decision Making 9th Edition by Maryanne M.
Mowen, Don R. Hansen, Dan L. Heitger Copyright 2026
Chapter 1-14
Ch01 - Introduction to Managerial Accounting
True / False
1. The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as
decision making.
a. True
b. False
ANSWER: False
RATIONALE: The managerial activity of monitoring a plan's implementation and taking corrective action as
needed is referred to as controlling.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: FN-Decision Modeling
United States - AK - IMA: Decision Analysis
KEYWORDS: Bloom's: Remember
2. The process of choosing among competing alternatives is called decision making.
a. True
b. False
ANSWER: True
RATIONALE: The process of choosing among competing alternatives is called decision making.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: FN-Decision Modeling
United States - AK - IMA: Decision Analysis
KEYWORDS: Bloom's: Remember
3. Managerial accounting information is not important for not-for-profit organizations.
a. True
b. False
ANSWER: False
RATIONALE: Managerial accounting information is important for all types of organizations.
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,POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
4. Management accounting information is used only by manufacturing organizations.
a. True
b. False
ANSWER: False
RATIONALE: Management accounting information is used by all manufacturing, merchandising, and
service organizations.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
5. Managerial accounting is designed primarily for internal users.
a. True
b. False
ANSWER: True
RATIONALE: Managerial accounting is the provision of accounting information for a company’s internal
users.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
6. Managerial accounting emphasizes the future.
a. True
b. False
ANSWER: True
RATIONALE: Although managerial accounting records and reports events that have already occurred, it
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, strongly emphasizes providing information about future events.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
financial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
7. GAAP governs financial accounting.
a. True
b. False
ANSWER: True
RATIONALE: Financial accounting is subject to externally imposed rules (e.g., GAAP and SEC
regulations).
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
financial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-02-GAAP
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Reporting
KEYWORDS: Bloom's: Remember
8. The value chain is the set of activities required to design, develop, produce, market, and deliver products and services to
customers.
a. True
b. False
ANSWER: True
RATIONALE: The value chain is the set of activities required to design, develop, produce, market, and
deliver products and services, as well as provide support services to customers.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Remember
9. Time is not a crucial element in all phases of the value chain.
a. True
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, b. False
ANSWER: False
RATIONALE: Time is a crucial element in all phases of the value chain.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Understand
10. Activity-based costing is a less detailed approach to determining the cost of goods and services than traditional cost
accounting.
a. True
b. False
ANSWER: False
RATIONALE: Activity-based costing is a more detailed approach to determining the cost of goods and
services.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-27 - Managerial Accounting Features/Costs
United States - AK - AICPA: FN-Measurement
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
11. Excellent customer service is an example of a value-added activity.
a. True
b. False
ANSWER: True
RATIONALE: Excellent customer service is an example of a value-added activity.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Understand
12. A cost accountant would normally occupy a staff position within an organization.
a. True
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, b. False
ANSWER: True
RATIONALE: Positions that are supportive in nature and have only indirect responsibility for an
organization's basic objectives are called staff positions. For example, a cost accountant
normally holds a staff position.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-04 - Describe the role of managerial accountants in an
organization.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
13. Positions that have direct responsibility for the basic objectives of an organization are referred to as line positions.
a. True
b. False
ANSWER: True
RATIONALE: Positions that have direct responsibility for the basic objectives of an organization are
referred to as line positions.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-04 - Describe the role of managerial accountants in an
organization.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Remember
14. Virtually all managerial accounting practices were developed to assist managers in maximizing profits.
a. True
b. False
ANSWER: True
RATIONALE: Virtually all managerial accounting practices were developed to assist managers in
maximizing profits.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-05 - Explain the importance of ethical behavior for managers and
managerial accountants.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: BB-Industry
United States - AK - IMA: Business Applications
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,KEYWORDS: Bloom's: Understand
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.
a. True
b. False
ANSWER: False
RATIONALE: The belief that each member of a group bears some responsibility for the well-being of other
members is a common principle underlying all ethical systems.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-05 - Explain the importance of ethical behavior for managers and
managerial accountants.
NATIONAL STANDARDS: United States - BUSPROG: Ethics
STATE STANDARDS: United States - AK - ACBSP: APC-01-Purpose
United States - AK - AICPA: BB-Industry
United States - AK - IMA: Business Applications
KEYWORDS: Bloom's: Understand
16. The four emphasized areas of the CMA examination reflect the needs of managerial accounting and highlight that
managerial accounting has more of an interdisciplinary flavor than other areas of accounting.
a. True
b. False
ANSWER: True
RATIONALE: The areas emphasized by the CMA examination reflect the needs of managerial accounting
and underscore the observation that managerial accounting has more of an interdisciplinary
flavor than other areas of accounting.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-06 - Identify three forms of certification available to managerial
accountants.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-01-Purpose
United States - AK - AICPA: BB-Industry
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
17. The purpose of the Certificate in Public Accounting is to provide minimal professional qualification for external
auditors.
a. True
b. False
ANSWER: True
RATIONALE: The Certificate in Public Accounting is the oldest and most well-known certification in
accounting. The purpose of the certificate is to provide minimal professional qualification for
external auditors.
POINTS: 1
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,DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-06 - Identify three forms of certification available to managerial
accountants.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-01-Purpose
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Reporting
KEYWORDS: Bloom's: Understand
18. Amelia compared the budgeted spending on labor and materials used in production to the actual spending on labor and
materials used in production. Labor spending was higher than expected. Amelia emailed Robbie to discuss this outcome.
This is a managerial accounting-oriented issue.
a. True
b. False
ANSWER: True
RATIONALE: Managerial accounting produces information for internal users. Amelia and Robbie are
internal users.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
financial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-01-Purpose
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Reporting
KEYWORDS: Bloom's: Apply
Completion
19. The detailed formulation of action to achieve a particular end is the management activity called _________.
ANSWER: planning
RATIONALE: The detailed formulation of action to achieve a particular end is the management activity
called planning.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: FN-Decision Modeling
United States - AK - IMA: Decision Analysis
KEYWORDS: Bloom's: Remember
20. _________ is the provision of accounting information for a company’s internal users.
ANSWER: Managerial accounting
RATIONALE: Managerial accounting is the provision of accounting information for a company’s internal
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, users.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Remember
21. The process of choosing among competing alternatives is called _________.
ANSWER: decision making
RATIONALE: The process of choosing among competing alternatives is called decision making.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: FN-Decision Modeling
United States - AK - IMA: Decision Analysis
KEYWORDS: Bloom's: Remember
22. The managerial activity of monitoring a plan’s implementation and taking corrective action as needed is referred to as
_________.
ANSWER: controlling
RATIONALE: The managerial activity of monitoring a plan’s implementation and taking corrective action
as needed is referred to as controlling.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: FN-Decision Modeling
United States - AK - IMA: Performance Measurement
KEYWORDS: Bloom's: Remember
23. The managerial accounting system produces information for _________ users.
ANSWER: internal
RATIONALE: The managerial accounting system produces information for internal users, such as managers,
executives, and workers.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
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, financial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
24. _________ is primarily concerned with producing information for external users.
ANSWER: Financial accounting
RATIONALE: Financial accounting is primarily concerned with producing information (financial
statements) for external users, including investors, creditors, customers, suppliers,
government agencies (Food and Drug Administration, Federal Communications Commission,
etc.), and labor unions.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
financial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-01-Purpose
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Reporting
KEYWORDS: Bloom's: Understand
25. Managerial accounting strongly emphasizes providing information about _________.
ANSWER: future events
RATIONALE: Although managerial accounting records and reports events that have already occurred, it
strongly emphasizes providing information about future events.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
financial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
26. The _________ is the set of activities required to design, develop, produce, market and deliver products and services
as well as provide support services to customers.
ANSWER: value chain
RATIONALE: The value chain is the set of activities required to design, develop, produce, market, and
deliver products and services, as well as provide support services to customers.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
Copyright Cengage Learning. Powered by Cognero. Page 9
, NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Measurement
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Remember
27. _________ organizes costs according to the value chain and collects both financial and nonfinancial information with
the objective of providing information to support waste reduction efforts and provide financial statements that better
reflect overall performance.
ANSWER: Lean accounting
RATIONALE: Lean accounting organizes costs according to the value chain and collects both financial and
nonfinancial information. The objective is to provide information to managers that supports
their waste reduction efforts and to provide financial statements that better reflect overall
performance, using both financial and nonfinancial information.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-27 - Managerial Accounting Features/Costs
United States - AK - AICPA: FN-Decision Modeling
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Remember
28. _________ is a management philosophy in which manufacturers strive to create an environment that will enable
workers to manufacture perfect (zero-defect) products.
ANSWER: Total quality management
RATIONALE: Total quality management is a management philosophy in which manufacturers strive to
create an environment that will enable workers to manufacture perfect (zero-defect) products.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-27 - Managerial Accounting Features/Costs
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Remember
29. _________ is the continual search for ways to increase the overall efficiency and productivity of activities by reducing
waste, increasing quality and managing costs.
ANSWER: Continuous improvement
RATIONALE: Continuous improvement is the continual search for ways to increase the overall efficiency
and productivity of activities by reducing waste, increasing quality, and managing costs.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
Copyright Cengage Learning. Powered by Cognero. Page 10
Managerial Accounting The Cornerstone of Business Decision Making 9th Edition by Maryanne M.
Mowen, Don R. Hansen, Dan L. Heitger Copyright 2026
Chapter 1-14
Ch01 - Introduction to Managerial Accounting
True / False
1. The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as
decision making.
a. True
b. False
ANSWER: False
RATIONALE: The managerial activity of monitoring a plan's implementation and taking corrective action as
needed is referred to as controlling.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: FN-Decision Modeling
United States - AK - IMA: Decision Analysis
KEYWORDS: Bloom's: Remember
2. The process of choosing among competing alternatives is called decision making.
a. True
b. False
ANSWER: True
RATIONALE: The process of choosing among competing alternatives is called decision making.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: FN-Decision Modeling
United States - AK - IMA: Decision Analysis
KEYWORDS: Bloom's: Remember
3. Managerial accounting information is not important for not-for-profit organizations.
a. True
b. False
ANSWER: False
RATIONALE: Managerial accounting information is important for all types of organizations.
Copyright Cengage Learning. Powered by Cognero. Page 1
,POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
4. Management accounting information is used only by manufacturing organizations.
a. True
b. False
ANSWER: False
RATIONALE: Management accounting information is used by all manufacturing, merchandising, and
service organizations.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
5. Managerial accounting is designed primarily for internal users.
a. True
b. False
ANSWER: True
RATIONALE: Managerial accounting is the provision of accounting information for a company’s internal
users.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
6. Managerial accounting emphasizes the future.
a. True
b. False
ANSWER: True
RATIONALE: Although managerial accounting records and reports events that have already occurred, it
Copyright Cengage Learning. Powered by Cognero. Page 2
, strongly emphasizes providing information about future events.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
financial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
7. GAAP governs financial accounting.
a. True
b. False
ANSWER: True
RATIONALE: Financial accounting is subject to externally imposed rules (e.g., GAAP and SEC
regulations).
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
financial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-02-GAAP
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Reporting
KEYWORDS: Bloom's: Remember
8. The value chain is the set of activities required to design, develop, produce, market, and deliver products and services to
customers.
a. True
b. False
ANSWER: True
RATIONALE: The value chain is the set of activities required to design, develop, produce, market, and
deliver products and services, as well as provide support services to customers.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Remember
9. Time is not a crucial element in all phases of the value chain.
a. True
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, b. False
ANSWER: False
RATIONALE: Time is a crucial element in all phases of the value chain.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Understand
10. Activity-based costing is a less detailed approach to determining the cost of goods and services than traditional cost
accounting.
a. True
b. False
ANSWER: False
RATIONALE: Activity-based costing is a more detailed approach to determining the cost of goods and
services.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-27 - Managerial Accounting Features/Costs
United States - AK - AICPA: FN-Measurement
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
11. Excellent customer service is an example of a value-added activity.
a. True
b. False
ANSWER: True
RATIONALE: Excellent customer service is an example of a value-added activity.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Understand
12. A cost accountant would normally occupy a staff position within an organization.
a. True
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, b. False
ANSWER: True
RATIONALE: Positions that are supportive in nature and have only indirect responsibility for an
organization's basic objectives are called staff positions. For example, a cost accountant
normally holds a staff position.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-04 - Describe the role of managerial accountants in an
organization.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
13. Positions that have direct responsibility for the basic objectives of an organization are referred to as line positions.
a. True
b. False
ANSWER: True
RATIONALE: Positions that have direct responsibility for the basic objectives of an organization are
referred to as line positions.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-04 - Describe the role of managerial accountants in an
organization.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Remember
14. Virtually all managerial accounting practices were developed to assist managers in maximizing profits.
a. True
b. False
ANSWER: True
RATIONALE: Virtually all managerial accounting practices were developed to assist managers in
maximizing profits.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-05 - Explain the importance of ethical behavior for managers and
managerial accountants.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: BB-Industry
United States - AK - IMA: Business Applications
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,KEYWORDS: Bloom's: Understand
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.
a. True
b. False
ANSWER: False
RATIONALE: The belief that each member of a group bears some responsibility for the well-being of other
members is a common principle underlying all ethical systems.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-05 - Explain the importance of ethical behavior for managers and
managerial accountants.
NATIONAL STANDARDS: United States - BUSPROG: Ethics
STATE STANDARDS: United States - AK - ACBSP: APC-01-Purpose
United States - AK - AICPA: BB-Industry
United States - AK - IMA: Business Applications
KEYWORDS: Bloom's: Understand
16. The four emphasized areas of the CMA examination reflect the needs of managerial accounting and highlight that
managerial accounting has more of an interdisciplinary flavor than other areas of accounting.
a. True
b. False
ANSWER: True
RATIONALE: The areas emphasized by the CMA examination reflect the needs of managerial accounting
and underscore the observation that managerial accounting has more of an interdisciplinary
flavor than other areas of accounting.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-06 - Identify three forms of certification available to managerial
accountants.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-01-Purpose
United States - AK - AICPA: BB-Industry
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
17. The purpose of the Certificate in Public Accounting is to provide minimal professional qualification for external
auditors.
a. True
b. False
ANSWER: True
RATIONALE: The Certificate in Public Accounting is the oldest and most well-known certification in
accounting. The purpose of the certificate is to provide minimal professional qualification for
external auditors.
POINTS: 1
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,DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-06 - Identify three forms of certification available to managerial
accountants.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-01-Purpose
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Reporting
KEYWORDS: Bloom's: Understand
18. Amelia compared the budgeted spending on labor and materials used in production to the actual spending on labor and
materials used in production. Labor spending was higher than expected. Amelia emailed Robbie to discuss this outcome.
This is a managerial accounting-oriented issue.
a. True
b. False
ANSWER: True
RATIONALE: Managerial accounting produces information for internal users. Amelia and Robbie are
internal users.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
financial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-01-Purpose
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Reporting
KEYWORDS: Bloom's: Apply
Completion
19. The detailed formulation of action to achieve a particular end is the management activity called _________.
ANSWER: planning
RATIONALE: The detailed formulation of action to achieve a particular end is the management activity
called planning.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: FN-Decision Modeling
United States - AK - IMA: Decision Analysis
KEYWORDS: Bloom's: Remember
20. _________ is the provision of accounting information for a company’s internal users.
ANSWER: Managerial accounting
RATIONALE: Managerial accounting is the provision of accounting information for a company’s internal
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, users.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Remember
21. The process of choosing among competing alternatives is called _________.
ANSWER: decision making
RATIONALE: The process of choosing among competing alternatives is called decision making.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: FN-Decision Modeling
United States - AK - IMA: Decision Analysis
KEYWORDS: Bloom's: Remember
22. The managerial activity of monitoring a plan’s implementation and taking corrective action as needed is referred to as
_________.
ANSWER: controlling
RATIONALE: The managerial activity of monitoring a plan’s implementation and taking corrective action
as needed is referred to as controlling.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-01 - Explain the meaning of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-26 - Management Functions
United States - AK - AICPA: FN-Decision Modeling
United States - AK - IMA: Performance Measurement
KEYWORDS: Bloom's: Remember
23. The managerial accounting system produces information for _________ users.
ANSWER: internal
RATIONALE: The managerial accounting system produces information for internal users, such as managers,
executives, and workers.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
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, financial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
24. _________ is primarily concerned with producing information for external users.
ANSWER: Financial accounting
RATIONALE: Financial accounting is primarily concerned with producing information (financial
statements) for external users, including investors, creditors, customers, suppliers,
government agencies (Food and Drug Administration, Federal Communications Commission,
etc.), and labor unions.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
financial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-01-Purpose
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Reporting
KEYWORDS: Bloom's: Understand
25. Managerial accounting strongly emphasizes providing information about _________.
ANSWER: future events
RATIONALE: Although managerial accounting records and reports events that have already occurred, it
strongly emphasizes providing information about future events.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-02 - Explain the differences between managerial accounting and
financial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Reporting
United States - AK - IMA: Cost Management
KEYWORDS: Bloom's: Understand
26. The _________ is the set of activities required to design, develop, produce, market and deliver products and services
as well as provide support services to customers.
ANSWER: value chain
RATIONALE: The value chain is the set of activities required to design, develop, produce, market, and
deliver products and services, as well as provide support services to customers.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
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, NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-25 - Managerial Characteristics/Terminology
United States - AK - AICPA: FN-Measurement
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Remember
27. _________ organizes costs according to the value chain and collects both financial and nonfinancial information with
the objective of providing information to support waste reduction efforts and provide financial statements that better
reflect overall performance.
ANSWER: Lean accounting
RATIONALE: Lean accounting organizes costs according to the value chain and collects both financial and
nonfinancial information. The objective is to provide information to managers that supports
their waste reduction efforts and to provide financial statements that better reflect overall
performance, using both financial and nonfinancial information.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-27 - Managerial Accounting Features/Costs
United States - AK - AICPA: FN-Decision Modeling
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Remember
28. _________ is a management philosophy in which manufacturers strive to create an environment that will enable
workers to manufacture perfect (zero-defect) products.
ANSWER: Total quality management
RATIONALE: Total quality management is a management philosophy in which manufacturers strive to
create an environment that will enable workers to manufacture perfect (zero-defect) products.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
STATE STANDARDS: United States - AK - ACBSP: APC-27 - Managerial Accounting Features/Costs
United States - AK - AICPA: BB-Resource Management
United States - AK - IMA: Strategic Planning
KEYWORDS: Bloom's: Remember
29. _________ is the continual search for ways to increase the overall efficiency and productivity of activities by reducing
waste, increasing quality and managing costs.
ANSWER: Continuous improvement
RATIONALE: Continuous improvement is the continual search for ways to increase the overall efficiency
and productivity of activities by reducing waste, increasing quality, and managing costs.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Completion
LEARNING OBJECTIVES: MANG.MOWE.9e.26.01-03 - Explain the current focus of managerial accounting.
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