Test Bank for Managerial Accounting: The Cornerstone of Business Decision Making 8th Edition By Mowen - (All Chapters) Latest 2024
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Test Bank for Managerial Accounting: The Cornerstone of
Business Decision Making 8th Edition by Mowen A+
Indicate whether the statement is true or false.
1. A cost accountant would normally occupy a staff position within an organization.
True
False
2. The four emphasized areas of the CMA examination reflect the needs of managerial
accounting and highlight that managerial accounting has more of an interdisciplinary flavor than
other areas of accounting.
True
False
3. Management accounting information is used only by manufacturing organizations.
True
False
4. Positions that have direct responsibility for the basic objectives of an organization are
referred to as line positions.
True
False
5. Virtually all managerial accounting practices were developed to assist managers in
maximizing profits.
True
False
6. Managerial accounting is designed primarily for internal users.
True
False
7. Managerial accounting information is not important for not-for-profit organizations.
True
False
8. Time is not a crucial element in all phases of the value chain.
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True
False
9. Activity-based costing is a less detailed approach to determining the cost of goods and
services than traditional cost accounting.
True
False
10. Amelia compared the budgeted spending on labor and materials used in production
to the actual spending on labor and materials used in production. Labor spending was higher than
expected. Amelia emailed Robbie to discuss this outcome. This is a managerial accounting-
oriented issue.
True
False
11. The purpose of the Certificate in Public Accounting is to provide minimal
professional qualification for external auditors.
True
False
12. Excellent customer service is an example of a value-added activity.
True
False
13. GAAP governs financial accounting.
True
False
14. Managerial accounting emphasizes the future.
True
False
15. The value chain is the set of activities required to design, develop, produce, market,
and deliver products and services to customers.
True
False
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16. 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.
True
False
17. The process of choosing among competing alternatives is called decision making.
True
False
18. The managerial activity of monitoring a plan's implementation and taking corrective
action as needed is referred to as decision making.
True
False
Indicate the answer choice that best completes the statement or answers the question.
19. Which of the following would normally hold a line position?
Staff accountant
Purchasing manager
General manager
Cost accountant
20. The standards of ethical conduct for managerial accountants include:
caring for others, intuition, and respect for others.
pursuit of excellence, credibility, and immediacy.
confidentiality, confidence, integrity, and observance.
competence, confidentiality, integrity, and credibility.
21. Investigating production variances and adjusting the production process are examples
of:
planning.
controlling.
decision making.
All of these are correct.
22. Which of the following statements is true of total quality management?
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It is a management philosophy in which manufacturers strive to create an environment that will
enable workers to manufacture zero-defect products.
It has replaced the acceptable quality attitudes of the past.
It emphasizes the elimination of waste.
All of these are correct.
23. Activity-based costing:
strives to create an environment that will enable workers to manufacture zero-defect products.
is the process of choosing among competing alternatives.
was established in response to financial scandals.
emphasizes the cost of tasks required to produce a product or offer a service.
24. Accountants that have a Certificate in Public Accounting (CPA):
are the only accountants permitted to serve as external auditors.
must pass a national examination and be licensed by the state in which they practice.
are responsible for assuring the reliability of a firm's financial statements.
All of these are correct.
25. Which of the following statements is true of profit maximization?
Profit maximization is achieved by considering the financial measures focused only on
efficiency.
Profit maximization is an objective of financial accounting but not managerial accounting.
Profit maximization should be achieved through legal and ethical means.
Profit maximization results in maximum cost to and maximum production by a company.
26. The controller of an organization participates in:
planning.
controlling.
decision making.
All of these are correct
27. In the United States, individuals who provide assurance service are designated as:
Certified Public Accountants.
Certified Financial Accountants.
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