All of the following entities would have a need for managerial accounting information except:

CHAPTER 1: INTRODUCTION

1.All of the following entities would have a need for managerial accounting information except:

a) General Motors (manufacturer).

b) Southwest Airlines (service firm).

c) Kmart (retailer).

d) New York City (non-profit, governmental agency).

e) None of the above responses are correct, as all of these entities would use managerial accounting

information.

2.Managerial accounting:

a) is unregulated and not mandatory.

b) produces information that is useful only for manufacturing organizations.

c) is based exclusively on historical data.

d) is regulated by the Securities and Exchange Commission (SEC).

e) generally focuses on reporting information to the external users.

3.Managerial accounting:

a)involves the financial history of an organization.

b)is governed by GAAP.

c)focuses primarily on the needs of personnel within the organization.

d)provides information for parties external to the organization.

e)focuses on financial statements and other financial reports.

4.All of the following are characteristics of managerial accounting, except:

a.Reports are used primarily by insiders rather than by persons outside of the business entity.

b.Its purpose is to assist managers in planning and controlling business operations.

c.Information must be developed in conformity with generally accepted accounting principles or with

income tax regulations.

d.Information may be tailored to assist in specific managerial decisions.

5.The role of managerial accounting information in assisting management is a(n):

a) financial-directing role.

b) attention-directing role.

c) planning and controlling role.

d) organizational role.

e) problem-solving role.

6.Managerial accounting has changed in recent years because of:

a) a growing service economy in the world.

b) increased global competition.

c) the emergence of new industries.

d) an increased focus on the customer.

e) all of the above factors.

7.What is main function of management accounting?

(a) Funds flow analysis

(b) Social cost and benefit analysis of a project

(c) Forex management

(d) To take managerial decisions

8.Managerial accounting differs from financial accounting because financial accounting is:

a)more oriented toward the future.

b)primarily concerned with external financial reporting.

c)concerned with nonquantitative information.

1. Controlling involves the coordination of daily business functions within an organization.FALSE 2. Measuring the erfor!ance of !anagers and subunits is not an ob"ective of !anagerial accounting.FAlSE

3.

Middle#level !anagers would li$ely be considered internal users of accounting infor!ation rather than e%ternal users. &'(E ). A controller is nor!ally involved with rearing *nancial state!ents. &'(E+. &he uer li!it on the roduction of goods and services if everything wor$s erfectly is $nown as ractical caacity.FALSE ,. -hich of the following state!ents about !anagerial accountants is falseA. Managerial accountants !ore and !ore are considered /business artners.0. Managerial accountants often are art of cross functional tea!s.C. ncreasing nu!ber of organizations are segregating !anagerial accountants in searate !anagerial accounting deart!ents.3. n a nu!ber of co!anies !anagerial accountants !a$e signi*cant business decisions and resolve oerating roble!s. E. &he role of !anagerial accountants has changed considerably over the ast decade4. &he day#to#day wor$ of !anage!ent tea!s will tyically co!rise all of the following activities

except

A. decision !a$ing.. lanning.C. cost !ini!izing.3. directing oerational activities.E. controlling. 5. -hich of the following functions is best described as choosing a!ong availablealternativesA. 3ecision !a$ing.. 6lanning.C. 3irecting oerational activities.

3. Controlling.E. udgeting.7. -hich of the following !anagerial functions involves a detailed *nancial and oerational descrition of anticiated oerationsA. 3ecision !a$ing.. 6lanning.C. 3irecting oerational activities.3. Controlling.E. Measuring. 18. -hich of the following involves the coordination of daily business functions within an organizationA. 3ecision !a$ing.. 6lanning.C. 3irecting oerational activities.3. Controlling.E. Motivating11.  &aurus Co!any has set various goals and !anage!ent is now ta$ing aroriate action to ensure that the *r! achieves these goals. ,ne such action is to reduce outlays for overhead9 which have e%ceeded budgeted a!ounts. -hich of the following functions best describes this rocessA. 3ecision !a$ing.. 6lanning.C. Coordinating.3. Controlling.E. :rganizing. 12. -hich of the following is not an ob"ective of !anagerial accountingA. 6roviding infor!ation for decision !a$ing and lanning.. Assisting in directing and controlling oerations.C. Ma%i!izing ro*ts and !ini!izing costs.3. Measuring the erfor!ance of !anagers and subunits.E. Motivating !anagers toward the organization4s goals1;. &he role of !anagerial accounting infor!ation in assisting !anage!ent is a<n=>A. *nancial directing role.. attention#directing role.C. lanning and controlling role.3. organizational role.E. roble! solving role. 

1). E!loyee e!ower!ent involves encouraging and authorizing wor$ers to ta$e initiatives to> A. i!rove oerations.. reduce costs.C. i!rove roduct ?uality.3. i!rove custo!er service.E. All of these1+. &he rocess of encouraging and authorizing wor$ers to ta$e aroriate initiatives to i!rove the overall *r! is co!!only $nown as> A. lanning and control.. e!loyee e!ower!ent.C. ersonnel aggressiveness.3. decision !a$ing.E. roble! recognition and solution.1,. -hich of the following business !odels considers *nancial9 custo!er9 internal oerating9 and other !easures in the evaluation of erfor!ance=A. 3eter!inistic si!ulation.. alanced scorecard.C. 6ayo@ !atri%3. 3ecision tree.E. Chart of oerating erfor!ance <C:6=14. -hich of the following ersectives is nor!ally absent in a balanced scorecardA. Financial.. Custo!er.C. nternal oerations.3. Learning and innovationgrowth.E. Bone of these15. Managerial accounting

A.

focuses only on historical data.. is governed by AA6C. focuses ri!arily on the needs of ersonnel within the organization.3. rovides infor!ation for arties e%ternal to the organization.E. focuses on *nancial state!ents and other *nancial reort