Introduction to Managerial Accounting

Chapter 1—Introduction to Managerial Accounting

TRUE/FALSE

1. Management accounting information is only used by manufacturing organizations.

ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: AICPA: BB-Industry | IMA: Business Applications | ACBSP: APC-25-Managerial Characteristics/Terminology KEY: Bloom's: Knowledge
NOT: 1 min.

2. The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as decision making.

ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: AICPA: FN-Decision Modeling | IMA: Cost Management | ACBSP: APC-26-Management Functions KEY: Bloom's: Knowledge NOT: 1 min.

3. The process of choosing among competing alternatives is decision making.

ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 NAT: BUSPROG: Analytic
STA: AICPA: FN-Decision Modeling | IMA: Cost Management | ACBSP: APC-26-Management Functions KEY: Bloom's: Knowledge NOT: 1 min.

4. Managerial accounting information is not important for not-for-profit organizations.

ANS: F
Managerial accounting information is important for all types of organizations.

PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1-1
NAT: BUSPROG: Analytic
STA: AICPA: FN-Reporting | IMA: Cost Management | ACBSP: APC-25-Managerial Characteristics/Terminology KEY: Bloom's: Knowledge
NOT: 1 min.

5. Managerial Accounting is designed primarily for internal users.

ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-1 | LO: 1-2 NAT: BUSPROG: Analytic
STA: AICPA: FN-Reporting | IMA: Cost Management | ACBSP: APC-25-Managerial Characteristics/Terminology KEY: Bloom's: Knowledge
NOT: 1 min.

6. Managerial accounting has its emphasis on the future.

ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: LO: 1-2 NAT: BUSPROG: Analytic
STA: AICPA: BB-Industry | IMA: Cost Management | ACBSP: APC-25-Managerial Characteristics/Terminology KEY: Bloom's: Knowledge
NOT: 1 min.

7. Financial accounting is governed by