Managerial Accounting Testbank
Chapter 1
Introduction: The Role, History, and Direction of Management Accounting
MULTIPLE CHOICE
C 1. One of the objectives of management accounting is to provide a. stockholders and potential investors with useful information for decision making b. banks and other creditors with information useful in making credit decisions c. management with information useful for planning and controlling operations d. the Internal Revenue Service with information about taxable income
p. 004
D 2. Management accounting is concerned with which kind of decision? a. product costing and pricing b. continuous operational improvement c. financial control d. all of the above
p. 004-005
D 3. Which of the following is NOT an output of the management accounting information system? a. budgets b. customer cost information c. performance reports d. all of the above
p. 004
C 4. The process of searching for methods to increase the overall efficiency and productivity is called a. strategic decision making b. employee empowerment c. continuous improvement d. total quality management
p. 005
D 5. One advantage of employee empowerment is a. it frees up some of the time of upper management for more strategic decision making b. workers can improve production processes in a timely manner c. employees closest to the work can provide valuable input in increasing efficiency d. all of the above are advantages
p. 006
A 6. Setting the company’s profit targets for the upcoming year is an example of the management function of a. planning b. control c. variance analysis d. internal auditing
p. 006
B 7. Analyzing cost overruns to determine their cause is an example of the management function of a. planning b. controlling
Introduction: The Role, History, and Direction of Management Accounting
MULTIPLE CHOICE
C 1. One of the objectives of management accounting is to provide a. stockholders and potential investors with useful information for decision making b. banks and other creditors with information useful in making credit decisions c. management with information useful for planning and controlling operations d. the Internal Revenue Service with information about taxable income
p. 004
D 2. Management accounting is concerned with which kind of decision? a. product costing and pricing b. continuous operational improvement c. financial control d. all of the above
p. 004-005
D 3. Which of the following is NOT an output of the management accounting information system? a. budgets b. customer cost information c. performance reports d. all of the above
p. 004
C 4. The process of searching for methods to increase the overall efficiency and productivity is called a. strategic decision making b. employee empowerment c. continuous improvement d. total quality management
p. 005
D 5. One advantage of employee empowerment is a. it frees up some of the time of upper management for more strategic decision making b. workers can improve production processes in a timely manner c. employees closest to the work can provide valuable input in increasing efficiency d. all of the above are advantages
p. 006
A 6. Setting the company’s profit targets for the upcoming year is an example of the management function of a. planning b. control c. variance analysis d. internal auditing
p. 006
B 7. Analyzing cost overruns to determine their cause is an example of the management function of a. planning b. controlling