Test Bank For management Accounting information for creating and managing value 8th edition
Chapter 01 Test Bank – Static KEY
1. What type of accounting system is part of an organisation's management information system for internal use only?
A. Financial accounting
B. Management accounting
C. Governmental accounting
D. All of the given answers
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.03 Describe the major differences between management accounting and financial accounting information
Topic: Role of Management Accountant in Value Creation
2. Which of the following statement/s about management accounting is/are true?
i. It is a part of an organisation's management information system.
ii. It is relied on by managers to plan and control an organisation's operations.
iii. It is relied on by external users to make investment decisions.
A. i and ii
B. i, ii and iii
C. iii
D. ii
AACSB: Reflective
St
Difficulty: Easy
Learning Objective: 1.02 Define management accounting in terms of value creation
Topic: Role of Management Accountant in Value Creation
3. Which of the following statement/s about management accounting is/are true?
i. It is concerned only with information obtained from the accounting records.
ud
ii. It is concerned with financial and non-financial information.
iii. It can provide information useful for making decisions.
A. i
B. i and ii
C. ii and iii
yN
D. ii
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.02 Define management accounting in terms of value creation
Topic: Role of Management Accountant in Value Creation
4. A strategy is
i. another name for a long-term objective
es
ii. the same as an objective
iii. a means by which an organisation plans to meet its mission and achieve its objectives
A. i
B. ii
t
C. iii
D. i and ii
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.06 Explain the basic concepts of strategy and how management accounting systems can support strategies
Topic: Fundamental Management Processes
5. Which of the following is not an objective of management accounting?
A. Providing information for making decisions
B. Providing information for planning
C. Providing information for control
D. Providing information for profit and loss statements
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.06 Explain the basic concepts of strategy and how management accounting systems can support strategies
Topic: Objectives of Management Accounting
6. Planning is
,Test Bank For management Accounting information for creating and managing value 8th edition
A. comparing actual performance against targets
B. setting objectives and formulating plans for future operations
C. measuring the performance of managers against preset targets
D. motivating managers towards achieving organisational goals
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.07 Explain how planning and control mechanisms can be used to support resource management
Topic: Fundamental Management Processes
7. 'Control' involves
A. formulating details of operations and finances for the next financial year
B. comparing actual performance against targets
C. deciding whether to expand activities
D. All of the given answers
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.07 Explain how planning and control mechanisms can be used to support resource management
Topic: Fundamental Management Processes
8. Part of the planning process involves
A. formulating details of operations and finances for the next financial year
B. comparing actual performance against targets
C. making a choice between available alternatives
D. measuring the performance of managers against preset targets
St
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.07 Explain how planning and control mechanisms can be used to support resource management
Topic: Fundamental Management Processes
9. The role of management accounting is to
ud
A. provide information to parties outside the organisation
B. provide information to managers within the organisation.
C. provide information to government agencies.
D. All of the given answers
AACSB: Reflective
yN
Difficulty: Easy
Learning Objective: 1.02 Define management accounting in terms of value creation
Topic: Objectives of Management Accounting
10. Budgeting can be used in an organisation to
A. motivate managers to achieve organisational goals.
B. control operations.
C. provide managers with information for making decisions and planning.
es
D. All of the given answers
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.07 Explain how planning and control mechanisms can be used to support resource management
Topic: Fundamental Management Processes
t
11. The benefits of management accounting information include
A. improved decisions.
B. more effective planning.
C. greater efficiency of operations.
D. All of the given answers
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.09 Describe the factors that may influence the design of management accounting systems including behavioural issues, cost-benefit trade-offs and the implications of
contingency and institutional theories
Topic: Fundamental Management Processes
12. Management accounting
,Test Bank For management Accounting information for creating and managing value 8th edition
A. must comply with Australian accounting standards.
B. focuses primarily on the needs of managers internal to the organisation.
C. provides information for parties external to the organisation.
D. involves reports focusing on the enterprise in its entirety.
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.02 Define management accounting in terms of value creation
Topic: Difference between Management and Financial
Accounting
13. Which of the following is necessary for management accounting information to be useful?
A. It must report to external users.
B. It must develop a framework of principles and guidelines.
C. It must adapt to accommodate changes in the business environment.
D. It must focus on the enterprise in its entirety.
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.10 Identify the organisational responses and management accounting responses to changes in the business environment
Topic: Difference between Management and Financial Accounting
14. Both financial and management accounting
A. draw on data from the organisation's basic information system.
B. provide information for external users.
C. must comply with Australian accounting standards.
St
D. rely exclusively on historical data.
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.02 Define management accounting in terms of value creation
Topic: Difference between Management and Financial
Accounting
ud
15. Which of the following statements regarding management accounting information is false?
A. The cost of providing the information must be considered in the light of the benefits received from the information.
B. All information derived is necessary despite the cost.
C. The information entails both costs and benefits.
D. The cost of the information includes the time spent by the user to read, understand and use the information.
yN
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.09 Describe the factors that may influence the design of management accounting systems including behavioural issues, cost-benefit trade-offs and the implications of
contingency and institutional theories
Topic: Fundamental Management Processes
16. A management accountant should be concerned with
es
A. providing daily information on physical measures of operational performance.
B. assisting in interdepartmental communications.
C. developing and implementing information systems.
D. All of the given answers
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.04 Explain where management accountants are located in organisations
t
Topic: Role of Management Accountant in Value Creation
17. The largest professional organisation for management accountants in Australia is the
A. CPA Australia.
B. Australian Accounting Association.
C. Institute of Chartered Accountants in Australia.
D. Certified Institute of Management Accountants.
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.12 After studying the appendix, discuss the professional qualifications that are relevant to becoming an accountant, and the ethical standards to which accountants must adhere
Topic: Role of Management Accountant in Value Creation
, Test Bank For management Accounting information for creating and managing value 8th edition
18. Which of the following does not represent the ethics of professional accountants?
A. Competence and confidentiality
B. Integrity and objectivity
C. Professional skepticism and efficiency
D. Objectivity and confidentiality
AACSB: Ethics
Difficulty: Easy
Learning Objective: 1.12 After studying the appendix, discuss the professional qualifications that are relevant to becoming an accountant, and the ethical standards to which accountants must adhere
Topic: Ethics, Corporate Governance, and Corporate Social Responsibility
19. Which of the following statements regarding the competence of an accountant is true? The accountant must
A. strive continually to improve technical services and keep knowledge up-to-date.
B. not breach the trust of clients and employers.
C. not disclose information acquired in the course of professional work, except where there is a legal or professional duty to disclose.
D. at all times safeguard the interest of the clients and employers, provided it does not conflict with their duty to the community.
AACSB: Ethics
Difficulty: Easy
Learning Objective: 1.12 After studying the appendix, discuss the professional qualifications that are relevant to becoming an accountant, and the ethical standards to which accountants must adhere
Topic: Role of Management Accountant in Value Creation
20. Which of the following statements is an element of confidentiality?
i. Accountants must not disclose information acquired in the course of their work.
ii. Accountants must disclose information if there is a professional duty to do so.
St
iii. Accountants may not use information gained in the course of their work for their own or another's personal advantage.
A. i
B. ii
C. iii
ud
D. i, ii and iii
AACSB: Ethics
Difficulty: Easy
Learning Objective: 1.12 After studying the appendix, discuss the professional qualifications that are relevant to becoming an accountant, and the ethical standards to which accountants must adhere
Topic: Ethics, Corporate Governance, and Corporate Social Responsibility
21. The focus of management accounting over time has changed. Which is the correct historical order for the following foci?
yN
i. Cost
ii. Profitability
iii. Resource management
iv. Waste reduction
A. i, ii, iii and iv
es
B. ii, iii, i and iv
C. i, ii, iv and iii
D. i, iii, iv and ii
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.11 After studying the appendix, describe how the focus of management accounting has evolved
t
Topic: Fundamental Management Processes
22. Which of the following statement/s is/are false? Management accountants should
i. help in the provision of physical data to managers.
ii. be included in the management of information systems.
iii. present their information in monetary terms only.
iv. help to ensure effective interdepartmental communications.
A. i and ii
B. iii and iv
C. iii
D. iv
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.03 Describe the major differences between management accounting and financial accounting information
Topic: Role of Management Accountant in Value Creation
Chapter 01 Test Bank – Static KEY
1. What type of accounting system is part of an organisation's management information system for internal use only?
A. Financial accounting
B. Management accounting
C. Governmental accounting
D. All of the given answers
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.03 Describe the major differences between management accounting and financial accounting information
Topic: Role of Management Accountant in Value Creation
2. Which of the following statement/s about management accounting is/are true?
i. It is a part of an organisation's management information system.
ii. It is relied on by managers to plan and control an organisation's operations.
iii. It is relied on by external users to make investment decisions.
A. i and ii
B. i, ii and iii
C. iii
D. ii
AACSB: Reflective
St
Difficulty: Easy
Learning Objective: 1.02 Define management accounting in terms of value creation
Topic: Role of Management Accountant in Value Creation
3. Which of the following statement/s about management accounting is/are true?
i. It is concerned only with information obtained from the accounting records.
ud
ii. It is concerned with financial and non-financial information.
iii. It can provide information useful for making decisions.
A. i
B. i and ii
C. ii and iii
yN
D. ii
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.02 Define management accounting in terms of value creation
Topic: Role of Management Accountant in Value Creation
4. A strategy is
i. another name for a long-term objective
es
ii. the same as an objective
iii. a means by which an organisation plans to meet its mission and achieve its objectives
A. i
B. ii
t
C. iii
D. i and ii
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.06 Explain the basic concepts of strategy and how management accounting systems can support strategies
Topic: Fundamental Management Processes
5. Which of the following is not an objective of management accounting?
A. Providing information for making decisions
B. Providing information for planning
C. Providing information for control
D. Providing information for profit and loss statements
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.06 Explain the basic concepts of strategy and how management accounting systems can support strategies
Topic: Objectives of Management Accounting
6. Planning is
,Test Bank For management Accounting information for creating and managing value 8th edition
A. comparing actual performance against targets
B. setting objectives and formulating plans for future operations
C. measuring the performance of managers against preset targets
D. motivating managers towards achieving organisational goals
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.07 Explain how planning and control mechanisms can be used to support resource management
Topic: Fundamental Management Processes
7. 'Control' involves
A. formulating details of operations and finances for the next financial year
B. comparing actual performance against targets
C. deciding whether to expand activities
D. All of the given answers
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.07 Explain how planning and control mechanisms can be used to support resource management
Topic: Fundamental Management Processes
8. Part of the planning process involves
A. formulating details of operations and finances for the next financial year
B. comparing actual performance against targets
C. making a choice between available alternatives
D. measuring the performance of managers against preset targets
St
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.07 Explain how planning and control mechanisms can be used to support resource management
Topic: Fundamental Management Processes
9. The role of management accounting is to
ud
A. provide information to parties outside the organisation
B. provide information to managers within the organisation.
C. provide information to government agencies.
D. All of the given answers
AACSB: Reflective
yN
Difficulty: Easy
Learning Objective: 1.02 Define management accounting in terms of value creation
Topic: Objectives of Management Accounting
10. Budgeting can be used in an organisation to
A. motivate managers to achieve organisational goals.
B. control operations.
C. provide managers with information for making decisions and planning.
es
D. All of the given answers
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.07 Explain how planning and control mechanisms can be used to support resource management
Topic: Fundamental Management Processes
t
11. The benefits of management accounting information include
A. improved decisions.
B. more effective planning.
C. greater efficiency of operations.
D. All of the given answers
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.09 Describe the factors that may influence the design of management accounting systems including behavioural issues, cost-benefit trade-offs and the implications of
contingency and institutional theories
Topic: Fundamental Management Processes
12. Management accounting
,Test Bank For management Accounting information for creating and managing value 8th edition
A. must comply with Australian accounting standards.
B. focuses primarily on the needs of managers internal to the organisation.
C. provides information for parties external to the organisation.
D. involves reports focusing on the enterprise in its entirety.
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.02 Define management accounting in terms of value creation
Topic: Difference between Management and Financial
Accounting
13. Which of the following is necessary for management accounting information to be useful?
A. It must report to external users.
B. It must develop a framework of principles and guidelines.
C. It must adapt to accommodate changes in the business environment.
D. It must focus on the enterprise in its entirety.
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.10 Identify the organisational responses and management accounting responses to changes in the business environment
Topic: Difference between Management and Financial Accounting
14. Both financial and management accounting
A. draw on data from the organisation's basic information system.
B. provide information for external users.
C. must comply with Australian accounting standards.
St
D. rely exclusively on historical data.
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.02 Define management accounting in terms of value creation
Topic: Difference between Management and Financial
Accounting
ud
15. Which of the following statements regarding management accounting information is false?
A. The cost of providing the information must be considered in the light of the benefits received from the information.
B. All information derived is necessary despite the cost.
C. The information entails both costs and benefits.
D. The cost of the information includes the time spent by the user to read, understand and use the information.
yN
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.09 Describe the factors that may influence the design of management accounting systems including behavioural issues, cost-benefit trade-offs and the implications of
contingency and institutional theories
Topic: Fundamental Management Processes
16. A management accountant should be concerned with
es
A. providing daily information on physical measures of operational performance.
B. assisting in interdepartmental communications.
C. developing and implementing information systems.
D. All of the given answers
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.04 Explain where management accountants are located in organisations
t
Topic: Role of Management Accountant in Value Creation
17. The largest professional organisation for management accountants in Australia is the
A. CPA Australia.
B. Australian Accounting Association.
C. Institute of Chartered Accountants in Australia.
D. Certified Institute of Management Accountants.
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.12 After studying the appendix, discuss the professional qualifications that are relevant to becoming an accountant, and the ethical standards to which accountants must adhere
Topic: Role of Management Accountant in Value Creation
, Test Bank For management Accounting information for creating and managing value 8th edition
18. Which of the following does not represent the ethics of professional accountants?
A. Competence and confidentiality
B. Integrity and objectivity
C. Professional skepticism and efficiency
D. Objectivity and confidentiality
AACSB: Ethics
Difficulty: Easy
Learning Objective: 1.12 After studying the appendix, discuss the professional qualifications that are relevant to becoming an accountant, and the ethical standards to which accountants must adhere
Topic: Ethics, Corporate Governance, and Corporate Social Responsibility
19. Which of the following statements regarding the competence of an accountant is true? The accountant must
A. strive continually to improve technical services and keep knowledge up-to-date.
B. not breach the trust of clients and employers.
C. not disclose information acquired in the course of professional work, except where there is a legal or professional duty to disclose.
D. at all times safeguard the interest of the clients and employers, provided it does not conflict with their duty to the community.
AACSB: Ethics
Difficulty: Easy
Learning Objective: 1.12 After studying the appendix, discuss the professional qualifications that are relevant to becoming an accountant, and the ethical standards to which accountants must adhere
Topic: Role of Management Accountant in Value Creation
20. Which of the following statements is an element of confidentiality?
i. Accountants must not disclose information acquired in the course of their work.
ii. Accountants must disclose information if there is a professional duty to do so.
St
iii. Accountants may not use information gained in the course of their work for their own or another's personal advantage.
A. i
B. ii
C. iii
ud
D. i, ii and iii
AACSB: Ethics
Difficulty: Easy
Learning Objective: 1.12 After studying the appendix, discuss the professional qualifications that are relevant to becoming an accountant, and the ethical standards to which accountants must adhere
Topic: Ethics, Corporate Governance, and Corporate Social Responsibility
21. The focus of management accounting over time has changed. Which is the correct historical order for the following foci?
yN
i. Cost
ii. Profitability
iii. Resource management
iv. Waste reduction
A. i, ii, iii and iv
es
B. ii, iii, i and iv
C. i, ii, iv and iii
D. i, iii, iv and ii
AACSB: Reflective
Difficulty: Easy
Learning Objective: 1.11 After studying the appendix, describe how the focus of management accounting has evolved
t
Topic: Fundamental Management Processes
22. Which of the following statement/s is/are false? Management accountants should
i. help in the provision of physical data to managers.
ii. be included in the management of information systems.
iii. present their information in monetary terms only.
iv. help to ensure effective interdepartmental communications.
A. i and ii
B. iii and iv
C. iii
D. iv
AACSB: Reflective
Difficulty: Medium
Learning Objective: 1.03 Describe the major differences between management accounting and financial accounting information
Topic: Role of Management Accountant in Value Creation
