,Chapter 01 - Managerial Accounting and the Business Environment
Chapter 01
Managerial Accounting and the Business Environment
Multiple Choice Questions
f f
1. Day-to-day decision making is most common to which of the following activities managers
f f f f f f f f f f f f
are expected to carry on in organizations?
f f f f f f f
A. Strategy formulation.
f
B. Directing and motivating.
f f
C. Planning.
D. Budgeting.
Blooms: fUnderstand
CPA fCompetency: f3.1.1 fEvaluates fmanagement finformation frequirements.
f Difficulty: fMedium
Learning fObjective: f01-01 fDescribe fthe ffunctions fperformed fby fmanagers.
Topic: f01-02 fThe fWork fof fManagers fand fTheir fNeed ffor fManagerial fAccounting fInformation
2. Identifying alternatives and selecting the best among them is part of which of the following
f f f f f f f f f f f f f f
activities which managers carry on in organizations?
f f f f f f f
A. Controlling.
B. Directing.
C. Planning.
D. Motivating.
Blooms: fUnderstand
CPA fCompetency: f3.1.1 fEvaluates fmanagement finformation frequirements.
f Difficulty: fMedium
Learning fObjective: f01-01 fDescribe fthe ffunctions fperformed fby fmanagers.
f Topic: f01-03 fPlanning
1-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,Chapter 01 - Managerial Accounting and the Business Environment
3. Budgeting is part of which of the following activities managers perform in organizations?
f f f f f f f f f f f f
A. Controlling.
B. Directing.
C. Planning.
D. Motivating.
Blooms: fUnderstand
CPA fCompetency: f3.1.1 fEvaluates fmanagement finformation frequirements.
f Difficulty: fEasy
Learning fObjective: f01-01 fDescribe fthe ffunctions fperformed fby fmanagers.
f Topic: f01-03 fPlanning
4. Obtaining feedback is generally identified most directly with which of these functions of
f f f f f f f f f f f f
management?
f
A. Planning.
B. Directing and motivating. f f
C. Controlling.
D. Decision making. f
Blooms: fUnderstand
CPA fCompetency: f3.1.1 fEvaluates fmanagement finformation frequirements.
f Difficulty: fEasy
Learning fObjective: f01-01 fDescribe fthe ffunctions fperformed fby fmanagers.
f Topic: f01-05 fControlling
5. Which of the following is part of managing and improving business processes?
f f f f f f f f f f f
A. Directing
B. Lean production
f
C. Motivating
D. Planning
Blooms: fRemember
CPA fCompetency: f3.1.2 fEvaluates fthe ftypes fof finformation fsystems fused fand fthe frole fthey fplay fin fan forganization.
f Difficulty: fEasy
Learning fObjective: f01-03 fExplain fthe fbasic fconcepts fof flean fproduction fand fenterprise frisk fmanagement.
f Topic: f01-16 fBusiness fProcess fManagement
1-2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, Chapter 01 - Managerial Accounting and the Business Environment
6. Which is the most common risk management tactic?
f f f f f f f
A. Accept the risk. f f
B. Avoid the risk. f f
C. Reduce the risk. f f
D. Share the risk. f f
Blooms: fRemember
CPA fCompetency: f3.1.2 fEvaluates fthe ftypes fof finformation fsystems fused fand fthe frole fthey fplay fin fan forganization.
f Difficulty: fEasy
Learning fObjective: f01-03 fExplain fthe fbasic fconcepts fof flean fproduction fand fenterprise frisk fmanagement.
f Topic: f01-18 fEnterprise fRisk fManagement
7. Which of the following best describes the function of managerial accounting within an
f f f f f f f f f f f f
organization?
f
A. It has its primary emphasis on the future.
f f f f f f f
B. It is required by regulatory bodies such as the Ontario Securities Commission.
f f f f f f f f f f f
C. It focuses on the organization as a whole, rather than on the organization's segments.
f f f f f f f f f f f f f
D. It places more emphasis on precision of data than financial accounting does.
f f f f f f f f f f f
Blooms: fRemember
CPA fCompetency: f3.1.1 fEvaluates fmanagement finformation frequirements.
f Difficulty: fEasy
Learning fObjective: f01-02 fIdentify fthe fmajor fdifferences fand fsimilarities fbetween ffinancial fand fmanagerial faccounting.
f Topic: f01-10 fEmphasis fon fthe fFuture
8. Upon which of the following does managerial accounting place considerable weight?
f f f f f f f f f f
A. Generally accepted accounting principles. f f f
B. The financial history of the entity.
f f f f f
C. Ensuring that all transactions are properly recorded.
f f f f f f
D. Detailed segment reports about departments, products, and customers.
f f f f f f f
Blooms: fUnderstand
CPA fCompetency: f3.1.1 fEvaluates fmanagement finformation frequirements.
f Difficulty: fEasy
Learning fObjective: f01-02 fIdentify fthe fmajor fdifferences fand fsimilarities fbetween ffinancial fand fmanagerial faccounting.
f Topic: f01-13 fSegments fof fan fOrganization
1-3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 01
Managerial Accounting and the Business Environment
Multiple Choice Questions
f f
1. Day-to-day decision making is most common to which of the following activities managers
f f f f f f f f f f f f
are expected to carry on in organizations?
f f f f f f f
A. Strategy formulation.
f
B. Directing and motivating.
f f
C. Planning.
D. Budgeting.
Blooms: fUnderstand
CPA fCompetency: f3.1.1 fEvaluates fmanagement finformation frequirements.
f Difficulty: fMedium
Learning fObjective: f01-01 fDescribe fthe ffunctions fperformed fby fmanagers.
Topic: f01-02 fThe fWork fof fManagers fand fTheir fNeed ffor fManagerial fAccounting fInformation
2. Identifying alternatives and selecting the best among them is part of which of the following
f f f f f f f f f f f f f f
activities which managers carry on in organizations?
f f f f f f f
A. Controlling.
B. Directing.
C. Planning.
D. Motivating.
Blooms: fUnderstand
CPA fCompetency: f3.1.1 fEvaluates fmanagement finformation frequirements.
f Difficulty: fMedium
Learning fObjective: f01-01 fDescribe fthe ffunctions fperformed fby fmanagers.
f Topic: f01-03 fPlanning
1-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,Chapter 01 - Managerial Accounting and the Business Environment
3. Budgeting is part of which of the following activities managers perform in organizations?
f f f f f f f f f f f f
A. Controlling.
B. Directing.
C. Planning.
D. Motivating.
Blooms: fUnderstand
CPA fCompetency: f3.1.1 fEvaluates fmanagement finformation frequirements.
f Difficulty: fEasy
Learning fObjective: f01-01 fDescribe fthe ffunctions fperformed fby fmanagers.
f Topic: f01-03 fPlanning
4. Obtaining feedback is generally identified most directly with which of these functions of
f f f f f f f f f f f f
management?
f
A. Planning.
B. Directing and motivating. f f
C. Controlling.
D. Decision making. f
Blooms: fUnderstand
CPA fCompetency: f3.1.1 fEvaluates fmanagement finformation frequirements.
f Difficulty: fEasy
Learning fObjective: f01-01 fDescribe fthe ffunctions fperformed fby fmanagers.
f Topic: f01-05 fControlling
5. Which of the following is part of managing and improving business processes?
f f f f f f f f f f f
A. Directing
B. Lean production
f
C. Motivating
D. Planning
Blooms: fRemember
CPA fCompetency: f3.1.2 fEvaluates fthe ftypes fof finformation fsystems fused fand fthe frole fthey fplay fin fan forganization.
f Difficulty: fEasy
Learning fObjective: f01-03 fExplain fthe fbasic fconcepts fof flean fproduction fand fenterprise frisk fmanagement.
f Topic: f01-16 fBusiness fProcess fManagement
1-2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, Chapter 01 - Managerial Accounting and the Business Environment
6. Which is the most common risk management tactic?
f f f f f f f
A. Accept the risk. f f
B. Avoid the risk. f f
C. Reduce the risk. f f
D. Share the risk. f f
Blooms: fRemember
CPA fCompetency: f3.1.2 fEvaluates fthe ftypes fof finformation fsystems fused fand fthe frole fthey fplay fin fan forganization.
f Difficulty: fEasy
Learning fObjective: f01-03 fExplain fthe fbasic fconcepts fof flean fproduction fand fenterprise frisk fmanagement.
f Topic: f01-18 fEnterprise fRisk fManagement
7. Which of the following best describes the function of managerial accounting within an
f f f f f f f f f f f f
organization?
f
A. It has its primary emphasis on the future.
f f f f f f f
B. It is required by regulatory bodies such as the Ontario Securities Commission.
f f f f f f f f f f f
C. It focuses on the organization as a whole, rather than on the organization's segments.
f f f f f f f f f f f f f
D. It places more emphasis on precision of data than financial accounting does.
f f f f f f f f f f f
Blooms: fRemember
CPA fCompetency: f3.1.1 fEvaluates fmanagement finformation frequirements.
f Difficulty: fEasy
Learning fObjective: f01-02 fIdentify fthe fmajor fdifferences fand fsimilarities fbetween ffinancial fand fmanagerial faccounting.
f Topic: f01-10 fEmphasis fon fthe fFuture
8. Upon which of the following does managerial accounting place considerable weight?
f f f f f f f f f f
A. Generally accepted accounting principles. f f f
B. The financial history of the entity.
f f f f f
C. Ensuring that all transactions are properly recorded.
f f f f f f
D. Detailed segment reports about departments, products, and customers.
f f f f f f f
Blooms: fUnderstand
CPA fCompetency: f3.1.1 fEvaluates fmanagement finformation frequirements.
f Difficulty: fEasy
Learning fObjective: f01-02 fIdentify fthe fmajor fdifferences fand fsimilarities fbetween ffinancial fand fmanagerial faccounting.
f Topic: f01-13 fSegments fof fan fOrganization
1-3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
