TEST BANK
Management Accounting: Information for creating and managing value
Kim Langfield
JN 8th Edition
U
R
SE
,Table of Contents
1. Management Accounting: Information for creating value and managing resources
2. Management Accounting: Cost terms and concepts
3. Cost behaviour, cost drivers and cost estimation
4. Product costing systems
5. Process costing and operation costing
6. Service costing
7. A closer look at overhead costs
8. Activity-based costing
9. Budgeting systems
10. Standard costs for control: direct material and direct labour
11. Standard costs for control: flexible budgets and manufacturing overheads
12. Financial performance reports and transfer pricing
13. Financial performance measures for investment centres, and reward systems
14. Contemporary approaches to measuring and managing performance
15. Managing suppliers and customers
16. Managing costs and quality
17. Sustainability and management accounting
18. Cost-profit-volume analysis
JN
19. Information for tactical decisions
20. Pricing and product-mix decisions
21. Information for capital-expenditure decisions
U
R
SE
, Chapter 01 Test Bank – Static KEY
1. What type of accounting system is part of an organization's management information system for internal use only?
A. Financial accounting
B. Management accounting
C. Governmental accounting
D. All of the given answers
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.03 Describe the major differences between management accounting and financial accounting information
Topic: Role of Management Accountant in Value Creation
2. Which of the following statement/s about management accounting is/are true?
i. It is a part of an organisation's management information system.
ii. It is relied on by managers to plan and control an organisation's operations.
iii. It is relied on by external users to make investment decisions.
A. i and ii
B. i, ii and iii
C. iii
D. ii
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.02 Define management accounting in terms of value creation
Topic: Role of Management Accountant in Value Creation
3. Which of the following statement/s about management accounting is/are true?
JN
i. It is concerned only with information obtained from the accounting records.
ii. It is concerned with financial and non-financial information.
iii. It can provide information useful for making decisions.
A. i
U
B. i and ii
C. ii and iii
D. ii
R
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.02 Define management accounting in terms of value creation
Topic: Role of Management Accountant in Value Creation
SE
4. A strategy is
i. another name for a long-term objective
ii. the same as an objective
iii. a means by which an organisation plans to meet its mission and achieve its objectives
A. i
B. ii
C. iii
D. i and ii
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.06 Explain the basic concepts of strategy and how management accounting systems can support strategies
Topic: Fundamental Management Processes
5. Which of the following is not an objective of management accounting?
A. Providing information for making decisions
B. Providing information for planning
C. Providing information for control
D. Providing information for profit and loss statements
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.06 Explain the basic concepts of strategy and how management accounting systems can support strategies
Topic: Objectives of Management Accounting
6. Planning is
, A. comparing actual performance against targets
B. setting objectives and formulating plans for future operations
C. measuring the performance of managers against preset targets
D. motivating managers towards achieving organisational goals
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.07 Explain how planning and control mechanisms can be used to support resource management
Topic: Fundamental Management Processes
7. 'Control' involves
A. formulating details of operations and finances for the next financial year
B. comparing actual performance against targets
C. deciding whether to expand activities
D. All of the given answers
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.07 Explain how planning and control mechanisms can be used to support resource management
Topic: Fundamental Management Processes
8. Part of the planning process involves
A. formulating details of operations and finances for the next financial year
B. comparing actual performance against targets
C. making a choice between available alternatives
D. measuring the performance of managers against preset targets
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.07 Explain how planning and control mechanisms can be used to support resource management
JN
Topic: Fundamental Management Processes
9. The role of management accounting is to
A. provide information to parties outside the organisation
B. provide information to managers within the organisation.
C. provide information to government agencies.
U
D. All of the given answers
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.02 Define management accounting in terms of value creation
R
Topic: Objectives of Management Accounting
10. Budgeting can be used in an organisation to
SE
A. motivate managers to achieve organisational goals.
B. control operations.
C. provide managers with information for making decisions and planning.
D. All of the given answers
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.07 Explain how planning and control mechanisms can be used to support resource management
Topic: Fundamental Management Processes
11. The benefits of management accounting information include
A. improved decisions.
B. more effective planning.
C. greater efficiency of operations.
D. All of the given answers
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.09 Describe the factors that may influence the design of management accounting systems including behavioural issues, cost-benefit trade-offs and the implications of
contingency and institutional theories
Topic: Fundamental Management Processes
12. Management accounting
Management Accounting: Information for creating and managing value
Kim Langfield
JN 8th Edition
U
R
SE
,Table of Contents
1. Management Accounting: Information for creating value and managing resources
2. Management Accounting: Cost terms and concepts
3. Cost behaviour, cost drivers and cost estimation
4. Product costing systems
5. Process costing and operation costing
6. Service costing
7. A closer look at overhead costs
8. Activity-based costing
9. Budgeting systems
10. Standard costs for control: direct material and direct labour
11. Standard costs for control: flexible budgets and manufacturing overheads
12. Financial performance reports and transfer pricing
13. Financial performance measures for investment centres, and reward systems
14. Contemporary approaches to measuring and managing performance
15. Managing suppliers and customers
16. Managing costs and quality
17. Sustainability and management accounting
18. Cost-profit-volume analysis
JN
19. Information for tactical decisions
20. Pricing and product-mix decisions
21. Information for capital-expenditure decisions
U
R
SE
, Chapter 01 Test Bank – Static KEY
1. What type of accounting system is part of an organization's management information system for internal use only?
A. Financial accounting
B. Management accounting
C. Governmental accounting
D. All of the given answers
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.03 Describe the major differences between management accounting and financial accounting information
Topic: Role of Management Accountant in Value Creation
2. Which of the following statement/s about management accounting is/are true?
i. It is a part of an organisation's management information system.
ii. It is relied on by managers to plan and control an organisation's operations.
iii. It is relied on by external users to make investment decisions.
A. i and ii
B. i, ii and iii
C. iii
D. ii
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.02 Define management accounting in terms of value creation
Topic: Role of Management Accountant in Value Creation
3. Which of the following statement/s about management accounting is/are true?
JN
i. It is concerned only with information obtained from the accounting records.
ii. It is concerned with financial and non-financial information.
iii. It can provide information useful for making decisions.
A. i
U
B. i and ii
C. ii and iii
D. ii
R
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.02 Define management accounting in terms of value creation
Topic: Role of Management Accountant in Value Creation
SE
4. A strategy is
i. another name for a long-term objective
ii. the same as an objective
iii. a means by which an organisation plans to meet its mission and achieve its objectives
A. i
B. ii
C. iii
D. i and ii
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.06 Explain the basic concepts of strategy and how management accounting systems can support strategies
Topic: Fundamental Management Processes
5. Which of the following is not an objective of management accounting?
A. Providing information for making decisions
B. Providing information for planning
C. Providing information for control
D. Providing information for profit and loss statements
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.06 Explain the basic concepts of strategy and how management accounting systems can support strategies
Topic: Objectives of Management Accounting
6. Planning is
, A. comparing actual performance against targets
B. setting objectives and formulating plans for future operations
C. measuring the performance of managers against preset targets
D. motivating managers towards achieving organisational goals
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.07 Explain how planning and control mechanisms can be used to support resource management
Topic: Fundamental Management Processes
7. 'Control' involves
A. formulating details of operations and finances for the next financial year
B. comparing actual performance against targets
C. deciding whether to expand activities
D. All of the given answers
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.07 Explain how planning and control mechanisms can be used to support resource management
Topic: Fundamental Management Processes
8. Part of the planning process involves
A. formulating details of operations and finances for the next financial year
B. comparing actual performance against targets
C. making a choice between available alternatives
D. measuring the performance of managers against preset targets
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.07 Explain how planning and control mechanisms can be used to support resource management
JN
Topic: Fundamental Management Processes
9. The role of management accounting is to
A. provide information to parties outside the organisation
B. provide information to managers within the organisation.
C. provide information to government agencies.
U
D. All of the given answers
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.02 Define management accounting in terms of value creation
R
Topic: Objectives of Management Accounting
10. Budgeting can be used in an organisation to
SE
A. motivate managers to achieve organisational goals.
B. control operations.
C. provide managers with information for making decisions and planning.
D. All of the given answers
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.07 Explain how planning and control mechanisms can be used to support resource management
Topic: Fundamental Management Processes
11. The benefits of management accounting information include
A. improved decisions.
B. more effective planning.
C. greater efficiency of operations.
D. All of the given answers
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.09 Describe the factors that may influence the design of management accounting systems including behavioural issues, cost-benefit trade-offs and the implications of
contingency and institutional theories
Topic: Fundamental Management Processes
12. Management accounting
