Management Accounting and Management Decisions

Only available on StudyMode
  • Download(s) : 138
  • Published : March 30, 2013
Open Document
Text Preview
Management Accounting, Cdn. 6e (Horngren/Sundem/Stratton/Beaulieu) Chapter 1 Management Accounting and Management Decisions

1) Both internal managers and external parties use accounting information. Answer: TRUE
Diff: 2 Type: TF Page Ref: 16
Objective: 8

2) Internal accounting reports must follow generally accepted accounting principles and account for assets at historical cost. Answer: FALSE
Diff: 2 Type: TF Page Ref: 16
Objective: 8

3) Organizations that do not make or sell tangible goods are called service organizations. Answer: TRUE
Diff: 1 Type: TF Page Ref: 7
Objective: 3

4) The cost-benefit balance is the primary consideration in choosing among accounting systems and methods. Answer: TRUE
Diff: 1 Type: TF Page Ref: 2
Objective: 3

5) Planning refers to setting objectives, implementing plans, and evaluating objectives. Answer: FALSE
Diff: 1 Type: TF Page Ref: 3
Objective: 2

6) A budget is a quantitative expression of a plan of action. Answer: TRUE
Diff: 1 Type: TF Page Ref: 2
Objective: 3

7) Management by exception involves a detailed analysis of all deviations from planned performance regardless of the amount. Answer: FALSE
Diff: 1 Type: TF Page Ref: 2
Objective: 3

8) Sales growth occurs in the mature market stage of product life cycle. Answer: FALSE
Diff: 1 Type: TF Page Ref: 9
Objective: 4

9) Line authority is authority exerted downward over subordinates. Answer: TRUE
Diff: 1 Type: TF Page Ref: 12
Objective: 5

10) Line departments support or service staff departments.
Answer: FALSE
Diff: 1 Type: TF Page Ref: 12
Objective: 5

11) According to the Financial Executives Institute, the controller's function is to obtain both short-term and long-term loans. Answer: FALSE
Diff: 1 Type: TF Page Ref: 14

12) The CMA program focuses on management accounting and its role in Canadian business. Answer: TRUE
Diff: 1 Type: TF Page Ref: 16
Objective: 8

13) The factors causing changes in management accounting today include increased global competition, technological advances and increased production by Canadian companies. Answer: FALSE
Diff: 1 Type: TF Page Ref: 16
Objective: 8

14) The essence of the just-in-time philosophy is to eliminate waste. Answer: TRUE
Diff: 1 Type: TF Page Ref: 16
Objective: 8

15) The Society of Management Accountants of Canada (SMAC) has developed standards of ethical conduct for management accountants, which include standards of competence, confidentiality, integrity and objectivity. Answer: TRUE

Diff: 1 Type: TF Page Ref: 20
Objective: 9

16) A survey of managers selected which of the following business areas as the most common starting-point for future managers? A) Accounting.
B) Finance.
C) Legal environment of business.
D) Computers in business.
Answer: A
Diff: 1 Type: MC Page Ref: 2
Objective: 1

17) Management accounting refers to accounting information developed for A) shareholders.
B) governmental authorities.
C) managers within an organization.
D) loan officers.
Answer: C
Diff: 1 Type: MC Page Ref: 16
Objective: 8

18) ________ is a formal mechanism for gathering, organizing, and communicating information about an organization's activities. A) An accounting system
B) Scorekeeping
C) Management accounting
D) Attention directing
Answer: A
Diff: 1 Type: MC Page Ref: 3
Objective: 2

19) ________ refers to accounting information developed for users within an organization. A) An accounting system
B) Scorekeeping
C) Management accounting
D) Financial accounting
Answer: C
Diff: 1 Type: MC Page Ref: 3
Objective: 2

20) ________ is the accumulation and classification of data. A) An accounting system
B) Scorekeeping
C) Management accounting
D) Attention directing
Answer: B...
tracking img