Chapter 2—The Roles of Managerial Accounting Information Key
1. The main focus of managerial accounting is:
2. Which of the following is not true about knowledge in the business environment?
3. Which of the following statements is not true regarding enterprise resource planning (ERP)?
4. ERP systems capture:
5. An example of qualitative data is:
6. An example of quantitative data is:
7. All of the following are knowledge management tools except:
8. Which of the following serves as a central depository for electronic data?
9. ____ is a term used to describe the process of searching for and extracting information from a computer
system.
10. Which of the following is organized in such a way as to provide access to a wide variety of qualitative
data?
11. Which of the following is not true regarding an ERP system?
12. Which of the following statements is false regarding an ERP system?
13. Which of the following is not a benefit of electronic data interchange?
14. Which of the following statements is true?
15. Which of the following is not an example of an external user of accounting information?
16. Which of the following is an example of an internal user of accounting information?
17. Which of the following is not one of the three primary activities of managers?
18. ____ involve(s) the development of short-terms objectives and goals.
19. Looking at how a company will distinguish itself from its competitors involves:
20. A company’s decision on where to locate a new factory is most likely a result of:
21. Which manager activity would address the decision on whether or not to accept a special order within the
next few days?
22. All of the following are examples of operating activities except:
23. Which type of business manager decides how much inventory should be kept on hand?
24. Which type of business manager decides whether a company should borrow money or issue stock as a way
to raise money?
25. Which type of business manager would be the most likely to decide whether or not a company should lease
or buy expensive manufacturing equipment?
26. Which type of business manager would be the most likely to decide whether or not employees need to work
overtime in order to fill a special order?
27. Which type of business manager would most likely be involved in product packaging decisions?
28. Which type of business manager would most likely be in charge of deciding on the type of benefit package
an employee receives?
29. The primary role of today’s managerial accountant is to:
30. In the past 5-10 years, the role of the managerial accountant:
31. Managerial accountants primarily see themselves as:
32. Which of the following is a characteristic of managerial accounting?
33. Which of the following is true regarding managerial accounting?
34. One of the advantages of managerial accounting is its:
35. Which of the following statements about accounting information users is correct?
36. Which of the following is not acceptable with regards to managerial accounting information?
37. What is the source of most of the information that a shareholder has available to them?
38. The production manager needs to decide on whether or not to accept a special order from a specific
customer. Which of the following reports would be the best source of information available to make this
decision?
39. Which of the following is not an example of an external accounting information user?
40. Use the following key to indicate the correct order in the decision-making process:
I.
Identify objectives
II.
Consider the ethical implications
III.
Select the best option
IV.
Define the problem
V.
Identify and analyze available options
41. Which of the following statements about decision-making is true?
42. In the decision-making process, an example of a quantitative measure would include:
43. Decision-makers should consider:
44. Relevant costs are costs that:
45. Costs that differ between alternatives are called:
46. MaryAnn is trying to decide whether to fly to Florida or New York. The cost of her ticket will be the same
either way. The cost of the ticket is an example of a(n):
47. Sunk costs are:
48. Relevant costs:
49. When making a decision, which of the following should not be considered?
50. Which of the following is not true with regard to opportunity costs?
51. You are now considering your housing options for next semester. If the cost of a dorm room and the cost of
an apartment are exactly the same, housing costs are:
52. You are now considering your housing options for next semester. If the cost of a dorm room and the cost of
an apartment are the same, but the apartment is larger, then:
53. You are considering your housing options for next semester. The cost of a dorm room and the cost of an
apartment are the same. You paid a $50 non-refundable deposit to live in the dorm last year. This deposit is an
example of a(n):
54. Which of the following would be an irrelevant cost?
55. Which of the following statements about risk in decision-making is not true?
56. Which of the following statements about risk is correct?
57. Risk:
58. Sensitivity analysis:
59. All of the following statements about enterprise risk management (ERM) are true except:
60. Which of the following must explicitly be considered in order to implement ERM effectively?
61. Which of the following statements is true regarding ethics in decision-making?
62. Which of the following should not be taken into account in decision-making?
63. Accounting information systems generate both monetary and non-monetary accounting information. List
two examples of each type of accounting information.
64. Identify one internal user of accounting information and one external user of accounting information.
Provide a specific example of how accounting information might be used by each.
65. Discuss how a managerial accounting report prepared for an internal user might differ from a financial
accounting report prepared for an external user.
66. Managers are responsible for numerous activities including planning, operating, and controlling.
67. Select one of the following functional managers and provide an example of the type of accounting
information that they might request from the managerial accountant: marketing manager, operations/production
manager, human resource manager, or finance manager.
68. Select one of the following functional managers and discuss how they might use accounting information in
their managerial role: marketing manager, operations/production manager, human resource manager, or finance
manager.
69. Describe the role of the management accountant within an organization.
70. How has the automation of accounting information altered the role of the managerial accountant?
71. Grant Enterprises is considering the introduction of a new product. The marketing and production
departments have begun informal discussions about its design, production, and sales. List three examples of
accounting information that the marketing and production managers would find useful in their meeting.
72. List the five steps in the decision-making process in the proper order.
73. Distinguish between quantitative objectives and qualitative objectives. Provide an example of each. Which
would be used by managers in their decision making?
74. You are trying to decide what to do during your next school break. One campus group is planning a trip to
Jacksonville Beach. Another is planning a ski trip to Snowmass. Many students will be going home to see
family, and others will remain on campus. List three factors that you might consider in making your decision.
75. What is risk? Describe one of the three methods for integrating risk into the decision-making process.
76. You and your roommate would like to purchase a projection TV for your apartment. You have gathered the
following information about the two leading models:
Xenabox 1000
BigScreen 1050
50 inch
50 inch
great
good
$1300
$1200
$50
$50
You paid $750 for your current TV two years ago.
Required:
a.
Which of the four factors listed above are relevant to your decision?
b.
Is the cost of your old TV relevant to your decision? Why or why not?
c.
Which of the factors are quantitative and which are qualitative?
·
the student’s financial situation
·
whether or not the student likes the students within each campus group
·
does the student prefer the beach or skiing
·
does the student have to study or work during the break
·
the cost of each alternative
77. A friend has informed you of a part-time job for which you are well-qualified. It would begin next semester
and require working 20 hours a week at a rate of $35 per hour. You would have to commute 2 hours round trip
four days a week to work. You have already registered for 18 credit hours (6 classes) next semester, and you
have been told that each of the classes is very demanding, requiring projects and extensive study time. If you
complete these 18 hours, you will graduate. You are only taking 12 credit hours this semester. You have enough
money for tuition ($100 per credit hour) and room and board but would love some extra spending money.
Required:
a.
Define your problem related to the information above.
b.
What information above would you consider relevant to the decision? Why?
c.
What information above would you consider not relevant to the decision? Why?
d.
What other factors not provided above might be relevant to the decision?
e.
What are some possible alternatives?
f.
Which alternative would you choose? Why?
a.
A well-paying part-time job is available; however, the job will most likely affect your studies. Should you accept the part-time job?
Relevant – work hours, commuting hours, hourly wages, demands for next semester, need for spending money
Answers may vary.
Not relevant – number of hours this semester, tuition cost
Answers may vary.
Do you have a reliable car to make the commute in? Can you drop any classes?
e.
Do not accept the job; accept the job and drop some classes; accept the job and do not drop any classes
Answers will vary depending upon the “why.”
a.
The picture quality and cost are relevant since they differ among the two alternatives.
The cost of the old TV is a sunk cost and therefore is not relevant to the current decision.
c.
Only the picture quality variable is qualitative, the rest are quantitative.