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Test Bank for Managerial Accounting, 3rd Edition by Ramji Balakrishnan £39.40   Add to cart

Exam (elaborations)

Test Bank for Managerial Accounting, 3rd Edition by Ramji Balakrishnan

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  • Module
  • Managerial Accounting
  • Institution
  • Managerial Accounting

Test Bank for Managerial Accounting 3e 3rd Edition by Ramji Balakrishnan, Geoff Sprinkle, and Shiva Sivaramakrishnan. ISBN-13: 1314 Full Chapters test bank PDF MODULE I – A Framework for Decision-Making and Cost Measurement CHAPTER 1 – Accounting: Information for Decision Making CHAP...

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  • August 17, 2022
  • 396
  • 2022/2023
  • Exam (elaborations)
  • Questions & answers
  • Managerial Accounting
  • Managerial Accounting
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CHAPTER 1
ACCOUNTING: INFORMATION FOR DECISION MAKING

TRUE/FALSE

1. The Decision Framework applies to all business-related decisions, but not to personal decisions.

(LO1) Answer – False The four-step process applies equally to all decisions, whether personal or
business-related.

2. Business decisions generally have few options.

(LO1) Answer – False Business decisions frequently have numerous options.

3. Every option in making a decision presents a unique trade-off between benefits and costs.

(LO1) Answer – True

4. Effective decision makers ensure that the value of the chosen decision option exceeds its
opportunity cost.

(LO1) Answer – True

5. The value of an option must always be expressed in monetary terms.

(LO1) Answer – False Even though most businesses measure value in terms of money, or profit, value
need not be a monetary amount.

6. Unlike individuals whose goals might have several factors, organizations tend to have focused goals.

(LO1) Answer – False

7. The key difference between individual and business decisions relate to Step 2 of the four-step
framework, that is, identifying options.

(LO1) Answer – False The key difference between individual and business decisions relates to step 1
of the four-step framework – that is, organizations need to ensure that the goals of individual
employees mesh with the focused goals of the organization.

8. To accomplish their goals, organizations not only need to allocate resources effectively, but also
need to motivate employees to focus on organizational goals.

(LO1) Answer – True

9. A for-profit business usually specifies organizational goals according to profit motive.

(LO2) Answer – False A for-profit business usually specifies organizational goals according to
ownership.

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