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