Test Bank for Management Accounting 7th Edition by Atkinson
25 views 1 purchase
Course
ACCT
Institution
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)
...
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
,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.
,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.
, 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.
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Tutor247. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $89.49. You're not tied to anything after your purchase.
