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Chapter 1 - Introduction to Managerial Accounting
1. The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as
decision making.
a.
True
b.
False
2. The process of choosing among competing alternatives is decision making.
a.
True
b.
False
Chapter 1 - Introduction to Managerial Accounting
3. Managerial accounting information is not important for not-for-profit organizations.
a.
True
b.
False
4. Management accounting information is only used by manufacturing organizations.
a.
True
b.
False
Chapter 1 - Introduction to Managerial Accounting
5. Managerial Accounting is designed primarily for internal users.
a.
True
b.
False
6. Managerial accounting has its emphasis on the future.
a.
True
b.
False
Chapter 1 - Introduction to Managerial Accounting
7. Financial accounting is governed by GAAP.
a.
True
b.
False
8. The value chain is the set of activities required to design, develop, produce, market, and deliver products and service to
customers.
a.
True
b.
False
9. Time is not a crucial element in all phases of the value chain.
a.
True
b.
False
10. Activity-based costing is a less detailed approach to determining the cost of goods and services than traditional cost
accounting.
a.
True
b.
False
Chapter 1 - Introduction to Managerial Accounting
11. Excellent customer service is an example of a value-added activity.
a.
True
b.
False
12. A cost accountant would normally occupy a staff position within an organization.
a.
True
b.
False
Chapter 1 - Introduction to Managerial Accounting
13. Positions that have direct responsibility for the basic objectives of an organization are referred to as line positions.
a.
True
b.
False
14. Virtually all managerial accounting practices were developed to assist managers in maximizing profits.
Chapter 1 - Introduction to Managerial Accounting
a.
True
b.
False
15. The belief that each member of a group bears no responsibility for the well-being of other members is a common
principle underlying all ethical systems.
a.
True
b.
False
Chapter 1 - Introduction to Managerial Accounting
16. The four emphasized areas of the CMA examination reflect the needs of managerial accounting and highlights that
managerial accounting has more of an interdisciplinary flavor than other areas of accounting.
a.
True
b.
False
17. The purpose of the Certificate in Public Accounting is to provide minimal professional qualification for external
auditors.
a.
True
b.
False
Chapter 1 - Introduction to Managerial Accounting
18. The detailed formulation of action to achieve a particular end is the management activity called_____________.
19. ______________________________ is the provision of accounting information for a company’s internal users.
Chapter 1 - Introduction to Managerial Accounting
20. The process of choosing among competing alternatives is called ________________________.
21. The managerial activity of monitoring a plan’s implementation and taking corrective action as needed is referred to as
______________.
Chapter 1 - Introduction to Managerial Accounting
22. The managerial accounting system produces information for __________ users.
23. ____________________ is primarily concerned with producing information for external users.
Chapter 1 - Introduction to Managerial Accounting
24. Managerial accounting strongly emphasizes providing information about _________________.
25. The _____________________ is the set of activities required to design, develop, produce, market and deliver products
and services as well as provide support services to customers.
Chapter 1 - Introduction to Managerial Accounting
26. __________________________ organizes costs according to the value chain and collects both financial and
nonfinancial information.
27. __________________________________________ is a management philosophy in which manufacturers strive to
create an environment that will enable workers to manufacture perfect (zero-defect) products.
Chapter 1 - Introduction to Managerial Accounting
28. _____________________________ is the continual search for ways to increase the overall efficiency and productivity
of activities by reducing waste, increasing quality and managing costs.
29. _________ is a crucial element in all phases of the value chain.
Chapter 1 - Introduction to Managerial Accounting
30. The________________supervises all accounting functions and reports directly to the general manager and chief
operating officer (COO).
31. Positions that are supportive in nature and have only indirect responsibility for an organization’s basic objectives are
called ________________________.
32. The ____________________ is responsible for the finance function.
Chapter 1 - Introduction to Managerial Accounting
33. In June 2002, Congress passed the____________________________________ in response to financial scandals such
as Enron.
34. ________________________ involves choosing actions that are right, proper, and just.
Chapter 1 - Introduction to Managerial Accounting
35. To promote ethical behavior by managers and employees, organizations commonly establish
a__________________________.
36. Only a _________________________ is permitted to serve as an external auditor.
