TEST BANK FOR Managerial Accounting 4th Edition by Charles E. Davis, Elizabeth Davis ISBN: 978-1119577669 COMPLETE GUIDE ALL CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!NEW LATEST UPDATE!!!

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TEST BANK
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Managerial Accounting 4th Edition
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By Charles Davis Elizabeth Davis Chapter 1 - 13
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Table Of Contents7% 7%




1. Accounting as a Tool for Management
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2.Cost Behavior and Cost Estimation
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3. Cost-Volume-Profit Analysis and Pricing Decisions
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4. Product Costs and Job Order Costing
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5. Planning and Forecasting
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5A: Planning and Forecasting in a Retail Setting* (online only)
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6. Performance Evaluation: Variance Analysis
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7. Activity-Based Costing and Activity-Based Management
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8. Using Accounting Information to Make Managerial Decisions
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9. Capital Budgeting
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10. Decentralization and Performance Evaluation
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11. Performance Evaluation Revisited: A Balanced Approach
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12. Financial Statement Analysis
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13. Statement of Cash Flows
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Chapter 1 7%




Accounting as a Tool for Management 7% 7% 7% 7% 7%




CHAPTER LEARNING OBJECTIVES
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1. Define managerial accounting (Unit 1.1)
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There are several formal definitions of managerial accounting. A simple one is “t
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hegeneration of relevant information to support management’s decision-
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making activities.” 7%




2. Describe the differences between managerial and financial accounting
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(Unit 1.1) 7%




Managerial accounting’s primary users are managers and decision makers within an o
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rganization, whereas financial accounting is aimed primarily at external users. Unlike
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GAAP that guides financial accounting, there are no mandated rules in managerial acc
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ounting. Managerial accounting reports focus on operating segments, while financiala
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ccounting statements report results for the organization as a whole. Managerial accou
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nting is concerned more with projecting future results than reporting past results. Ma
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nagerial information is prepared to take advantage of a window of opportunity, eveni
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f some accuracy must be sacrificed. Financial accounting information is balanced to th
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e penny and is delivered after the end of the accounting period.
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3. List and describe the four functions of managers (Unit 1.1)
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Planning means setting a direction for the organization. Long-
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term, or strategic planningprovides direction for a five- to ten-year period. Short-
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term or operational planning provides more detailed guidance for the coming year; it
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translates the company’s strategy into action steps. Controlling is the monitoring of d
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ay-to-
day operations to identify any problems that require corrective action. Evaluating is t
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he process of comparing a particular period’s actual results to planned results, for the
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purpose of assessing managerial performance. Decision making means choosing betw
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een alternative courses of action.
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4. Explain how the selection of a particular business strategy determines th
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einformation that managers need to run an organization effectively (Uni
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t 1.2)
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To run a business effectively, managers need information that shows how well op
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erations are meeting the organization’s strategic goals. For instance, if the organiz
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ation’s strategy is to be a low-7% 7% 7% 7% 7% 7%



cost producer, information about product costsand cost variances will be more us
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eful to managers than information about researchand development.
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5. Discuss the importance of ethical behavior in managerial accounting (Uni
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t1.3)
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Ethical behavior means knowing right from wrong and then doing the right thing. Ma
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nycompanies and most professional organizations have codes of conduct to guide e
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mployees’ actions. Acting unethically can lead to illegal activity and ultimately to the
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destruction of the firm. Furthermore, research has shown that a public commitment
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toethical behavior can lead to superior financial performance.
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