1.2
,Chapter 1: The role of accounting information in management decision mak
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ing
True/false questions zl
1. A vision statement is a theoretical description of what an organisation should become.
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*a. True zl
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 organisation
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2. An organisational vision is a short-term plan for maximising financial results.
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a. True
*b. False zl
Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisation
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3. Most organisations have one stakeholder.
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a. True
*b. False zl
Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisation
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4. Organisational core competencies unrelated to the organisational vision.
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a. True
*b. False zl
Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisation
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1.3
,5. Organisational strategies are the tactics that managers use to take advantage of core co
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mpetencies while working towards the organisational vision.
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*a. True zl
b. False zl
Correct answer: a
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisation
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6. Most organisations have databases that contain information collected formally or in
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formally 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 organisation
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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 zl
b. False zl
Correct answer: a
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisation
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8. Organisational information systems only collect accounting information.
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a. True
*b. False zl
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 zl zl
1.4
, 9. Cost accounting information is used for both management accounting and financial a
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ccounting activities. zl
*a. True zl
b. False zl
Correct answer: a zl zl
Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making zl zl
10. Management accounting is the process of gathering, summarising and reporting fi
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nancial and non-financial information used internally to make decisions.
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*a. True zl
b. False zl
Correct answer: a zl zl
Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making zl zl
11. Intellectual capital is a type of financial resource that is captured by the organisation’s in
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formation system. zl
a. True
*b. False zl
Correct answer: b zl zl
Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making zl zl
12. It is easy to differentiate between internal and external reports.
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a. True
*b. False zl
Correct answer: b zl zl
Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making zl zl
1.5
,Chapter 1: The role of accounting information in management decision mak
zl zl zl zl zl zl zl zl zl zl
ing
True/false questions zl
1. A vision statement is a theoretical description of what an organisation should become.
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*a. True zl
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 organisation
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2. An organisational vision is a short-term plan for maximising financial results.
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a. True
*b. False zl
Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisation
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3. Most organisations have one stakeholder.
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a. True
*b. False zl
Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisation
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4. Organisational core competencies unrelated to the organisational vision.
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a. True
*b. False zl
Correct answer: b
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisation
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1.3
,5. Organisational strategies are the tactics that managers use to take advantage of core co
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mpetencies while working towards the organisational vision.
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*a. True zl
b. False zl
Correct answer: a
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisation
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6. Most organisations have databases that contain information collected formally or in
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formally 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 organisation
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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 zl
b. False zl
Correct answer: a
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Learning objective 1.1 ~ Recognise the types of decisions managers make for an organisation
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8. Organisational information systems only collect accounting information.
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a. True
*b. False zl
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 zl zl
1.4
, 9. Cost accounting information is used for both management accounting and financial a
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ccounting activities. zl
*a. True zl
b. False zl
Correct answer: a zl zl
Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making zl zl
10. Management accounting is the process of gathering, summarising and reporting fi
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nancial and non-financial information used internally to make decisions.
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*a. True zl
b. False zl
Correct answer: a zl zl
Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making zl zl
11. Intellectual capital is a type of financial resource that is captured by the organisation’s in
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formation system. zl
a. True
*b. False zl
Correct answer: b zl zl
Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making zl zl
12. It is easy to differentiate between internal and external reports.
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a. True
*b. False zl
Correct answer: b zl zl
Learning objective 1.2 ~ Discuss the role of cost and management accounting information in
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management decision making zl zl
1.5
