1.2
,Chapter 1: The role of accounting information in management decision ma
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king
True/false questions br
1. A vision statement is a theoretical description of what an organisation should become.
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*a. True br
b. False
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Correct answer: a
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
2. An organisational vision is a short-term plan for maximising financial results.
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a. True
*b. False br
Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
3. Most organisations have one stakeholder.
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a. True
*b. False br
Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
4. Organisational core competencies unrelated to the organisational vision.
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a. True
*b. False br
Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
1.3
,5. Organisational strategies are the tactics that managers use to take advantage of core c
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ompetencies while working towards the organisational vision.
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*a. True br
b. False
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Correct answer: a
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
6. Most organisations have databases that contain information collected formally or i
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nformally from internal sources only.
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a. True
*b. False
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Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
7. Desirable employee behaviour can be motivated by tying employee performance e
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valuation and pay to long-term or short-term results.
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*a. True br
b. False
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Correct answer: a
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
8. Organisational information systems only collect accounting information.
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a. True
*b. False br
Correct answer: b
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making
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1.4
, 9. Cost accounting information is used for both management accounting and financial a
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ccounting activities. br
*a. True br
b. False
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Correct answer: a
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making
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10. Management accounting is the process of gathering, summarising and reporting f
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inancial and non-financial information used internally to make decisions.
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*a. True br
b. False
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Correct answer: a
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making
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11. Intellectual capital is a type of financial resource that is captured by the organisation’s i
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nformation system. br
a. True
*b. False br
Correct answer: b
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making
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12. It is easy to differentiate between internal and external reports.
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a. True
*b. False br
Correct answer: b
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making
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1.5
,Chapter 1: The role of accounting information in management decision ma
br br br br br br br br br br
king
True/false questions br
1. A vision statement is a theoretical description of what an organisation should become.
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*a. True br
b. False
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Correct answer: a
br br
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
br br br br br br br br br br br br br
n
2. An organisational vision is a short-term plan for maximising financial results.
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a. True
*b. False br
Correct answer: b
br br
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
3. Most organisations have one stakeholder.
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a. True
*b. False br
Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
br br br br br br br br br br br br br
n
4. Organisational core competencies unrelated to the organisational vision.
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a. True
*b. False br
Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
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n
1.3
,5. Organisational strategies are the tactics that managers use to take advantage of core c
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ompetencies while working towards the organisational vision.
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*a. True br
b. False
br
Correct answer: a
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
br br br br br br br br br br br br br
n
6. Most organisations have databases that contain information collected formally or i
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nformally from internal sources only.
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a. True
*b. False
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Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
br br br br br br br br br br br br br
n
7. Desirable employee behaviour can be motivated by tying employee performance e
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valuation and pay to long-term or short-term results.
br br br br br br br
*a. True br
b. False
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Correct answer: a
br br
Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisatio
br br br br br br br br br br br br br
n
8. Organisational information systems only collect accounting information.
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a. True
*b. False br
Correct answer: b
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making
br br br
1.4
, 9. Cost accounting information is used for both management accounting and financial a
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ccounting activities. br
*a. True br
b. False
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Correct answer: a
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
br br br br br br br br br br br br br
management decision making
br br br
10. Management accounting is the process of gathering, summarising and reporting f
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inancial and non-financial information used internally to make decisions.
br br br br br br br br
*a. True br
b. False
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Correct answer: a
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making
br br br
11. Intellectual capital is a type of financial resource that is captured by the organisation’s i
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nformation system. br
a. True
*b. False br
Correct answer: b
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Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
br br br br br br br br br br br br br
management decision making
br br br
12. It is easy to differentiate between internal and external reports.
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a. True
*b. False br
Correct answer: b
br br
Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making
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1.5
