Predetermined Overhead Rates and Overhead Analysis in accounting test bank.pdf
Predetermined Overhead Rates and Overhead Analysis in accounting test bank.pdf
Predetermined Overhead Rates and Overhead Analysis in accounting test bank.pdf
All for this textbook (23)
Written for
Chapter 1 Managerial Accounting and the Business
All documents for this subject (2)
Seller
Follow
FutureHub
Content preview
Chapter 1 Managerial Accounting and the Business Environment
Chapter 1 Managerial Accounting and the Business
Environment
True/False Questions
1. Although financial and managerial accounting differ in many ways, they are similar in
that both rely on the same underlying financial data.
Answer: True Level: Medium LO: 1
2. Managerial accounting is a branch of financial accounting and serves essentially the
same purposes as financial accounting.
Answer: False Level: Medium LO: 1
3. Managerial accounting places greater emphasis on the future than financial
accounting, which is primarily concerned with the past.
Answer: True Level: Easy LO: 1
4. Managerial accounting is not needed in a non-profit or governmental organization.
Answer: False Level: Easy LO: 1
5. When carrying out their planning activities, managers select a course of action and
specify how the action will be implemented.
Answer: True Level: Easy LO: 2
6. When carrying out their planning activities, managers obtain feedback to ensure that
the plan is actually carried out and is appropriately modified as circumstances change.
Answer: False Level: Medium LO: 2
7. The controller occupies a line position in an organization.
Answer: False Level: Easy LO: 2
8. Decentralization means the delegation of decision-making authority throughout an
organization by allowing managers at various operating levels to make key decisions
relating to their own area of responsibility.
,Chapter 1 Managerial Accounting and the Business Environment
9. A firm's organization chart will normally show both the formal and informal lines of
reporting and communication.
Answer: False Level: Easy LO: 2
10. The Chief Financial Officer of an organization is responsible for ensuring that line
operations run smoothly.
Answer: False Level: Medium LO: 2
11. Traditionally, companies have maintained large amounts of raw materials, work in
process, and finished goods inventories to act as buffers so that operations can proceed
smoothly even if there are unanticipated disruptions.
Answer: True Level: Medium LO: 3
12. Process Reengineering is generally considered to be a more radical approach to
improvement than Total Quality Management.
Answer: True Level: Easy LO: 3
13. Process Reengineering emphasizes a team approach involving front-line workers,
whereas Total Quality Management is usually implemented using outside specialists
and is imposed from above.
Answer: False Level: Medium LO: 3
14. If ethical standards were not generally followed, one of the results would probably be
fewer goods and services available in the marketplace.
Answer: True Level: Medium LO: 4
15. The Standards of Ethical Conduct for Management Accountants promulgated by the
Institute of Management Accountants specifically state that management accountants'
sole ethical responsibility is to not break any laws.
,Chapter 1 Managerial Accounting and the Business Environment
Multiple Choice Questions
16. Management accounting focuses primarily on providing data for:
A) internal uses by managers.
B) external uses by stockholders and creditors.
C) external uses by the Internal Revenue Service.
D) external uses by the Securities and Exchange Commission.
Answer: A Level: Easy LO: 1
17. Managerial accounting:
A) is more future oriented than financial accounting.
B) tends to summarize information more than financial accounting
C) is primarily concerned with providing information to external users.
D) is more concerned with precision than timeliness.
Answer: A Level: Easy LO: 1
18. Compared to financial accounting, managerial accounting places more emphasis on:
A) the flexibility of information.
B) the precision of information.
C) the timeliness of information.
D) both A and C above.
Answer: D Level: Easy LO: 1
19. The function of management that compares planned results to actual results is known
as:
A) planning.
B) directing and motivating.
C) controlling.
D) decision making.
Answer: C Level: Easy LO: 2
20. Which of the functions of management involves overseeing day-to-day activities?
A) Planning
B) Directing and motivating
C) Controlling
D) Decision making
, Chapter 1 Managerial Accounting and the Business Environment
21. Which of the following is not one of the three basic activities of a manager?
A) Planning
B) Controlling
C) Directing and motivating
D) Compiling management
accounting reportsAnswer: D Level:
Easy LO: 2
22. The delegation of decision making to lower levels in an organization is known as:
A) the planning and control cycle.
B) controlling.
C) decentralization.
D) none of these.
Answer: C Level: Easy LO: 2
23. Which of the following statements are false concerning line and staff functions?
I. Persons occupying staff functions have authority over persons
occupying linefunctions.
II. Both line and staff functions are depicted on the organization chart.
III. Line functions are directly related to the basic objectives of an organization.
A) Only I
B) Only II
C) Only I and II
D) I, II, and III
Answer: A Level: Medium LO: 2
24. Which of following would normally be found on a manufacturing
company'sorganization chart?
A) the layout of the factory assembly lines
B) a list of the materials needed to produce each of the company's products
C) the informal lines of reporting and communication
D) none of the above
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 EFT, 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FutureHub. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R214,34. You're not tied to anything after your purchase.
