Exam (elaborations)

Test Bank for Management Accounting 7th Edition by Atkinson

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ACCT

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ACCT

Test Bank, Practice Exam Quizzes for Management Accounting, Information for Decision Making 7e 7th Edition by Atkinson, Kaplan, Matsumura, Young. ISBN-13: 3517 Chapter 1 How Management Accounting Information Supports Decision Making (pg. 1) Chapter 2 Using Costs in Decision Making (pg. 10) ...

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Uploaded on March 14, 2022
Number of pages 415
Written in 2021/2022
Type Exam (elaborations)
Contains Questions & answers

management accounting
7th edition
atkinson
9781618533517
test bank

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Chapter 1
How Management Accounting Information
Supports Decision Making
Learning Objectives―Coverage by question type

LO1 – Understand the major differences between financial and management accounting.
True / False Multiple Choice Exercises, Problems & Short Answer
1-8 1-23 1, 2

LO2 – Appreciate the historical evolution of management accounting to its present set of
practices.
True / False Multiple Choice Exercises, Problems & Short Answer
9, 10 24 3

LO3 – Explain why management accounting uses nonfinancial as well as financial measures.
True / False Multiple Choice Exercises, Problems & Short Answer
11 25-29 4-6

LO4 – Explain the role for the balanced scorecard in measuring a company’s intangible assets
and capabilities.
True / False Multiple Choice Exercises, Problems & Short Answer
12-16 30-38 7, 8

LO5 – Be sensitive to the behavioral consequences that result from the introduction of new
measurement and management systems.
True / False Multiple Choice Exercises, Problems & Short Answer
17-19 39-44 9

© Cambridge Business Publishers, 2021
1-1 Management Accounting, 7th Edition

,Chapter 1: How Management Accounting Information Supports
Decision Making

True / False

LO1
Terms: Management accounting
Difficulty: 1
1. Management accounting is subject to the rules formulated by standard setters such as
the Financial Accounting Standards Board (FASB).

Answer: FALSE
Explanation: Financial accounting is subject to the rules of the FASB.

LO1
Terms: Management accounting
Difficulty: 1
2. Management accounting information is primarily oriented to external stakeholders, such
as investors, creditors, regulators, and tax authorities.

Answer: FALSE
Explanation: Management accounting information is primarily oriented to management.

LO1
Terms: International Accounting Standards Board
Difficulty: 1
3. The International Accounting Standards Board sets the guidelines used for management
accounting.

Answer: FALSE
Explanation: Financial accounting must be consistent with the rules of the IASB.

LO1
Terms: Management Accounting
Difficulty: 1
4. A good management accounting system can become a source of competitive advantage
for a company.

Answer: TRUE

© Cambridge Business Publishers, 2021
Test Bank, Chapter 1 1-2

,LO1
Terms: Management Accounting
Difficulty: 1
5. Management accounting information is sometimes predictive and forward looking.

Answer: TRUE

LO1
Terms: Management Accounting
Difficulty: 2
6. Management accounting has no prescribed rules about its content, how the content is to be
developed, and how the content is to be presented.

Answer: TRUE

LO1
Terms: Management Accounting
Difficulty: 1
7. Management accounting measures can provide advance warnings of problems.

Answer: TRUE

LO1
Terms: Nonfinancial information
Difficulty: 1
8. Information about customer satisfaction is an example of financial information.

Answer: FALSE
Explanation: Information about customer satisfaction is an example of nonfinancial
information.

LO2
Terms: Evolution of management accounting
Difficulty: 2
9. During the history of management accounting, innovations were developed to address
the decision-making needs of managers.

Answer: TRUE

© Cambridge Business Publishers, 2021
1-3 Management Accounting, 7th Edition

, LO2
Terms: Evolution of management accounting
Difficulty: 2
10. Management accounting innovations are usually developed by academics.

Answer: FALSE
Explanation: Management accounting innovations are usually developed by
management accountants in the field.

LO3
Terms: Financial information
Difficulty: 1
11. Operating profit is an example of nonfinancial information.

Answer: FALSE
Explanation: Operating profit is an example of financial information.

LO4
Terms: Database and information systems
Difficulty: 1
12. Database and information systems are physical assets that create distinctive value for
companies.

Answer: FALSE
Explanation: Database and information systems are intangible assets.

LO4
Terms: Balanced scorecard
Difficulty: 1
13. The balanced scorecard measures organizational performance across five different but
linked perspectives.

Answer: FALSE
Explanation: The balanced scorecard measures organizational performance across four
different but linked perspectives that are derived from the organization's mission, vision,
and strategy.

LO4
Terms: Learning and growth perspective
Difficulty: 1
14. The learning and growth perspective addresses what employee capabilities, information
systems, and organizational capabilities we need to continually improve.

Answer: TRUE

© Cambridge Business Publishers, 2021
Test Bank, Chapter 1 1-4

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