Test Bank Managerial Accounting 7th Edition by Karen W. Braun - All
Chapters ( 1-15 ) || Latest Version 2024 A+
Chapter 1 Introduction to Managerial Accounting
1.1 Identify managers' three primary responsibilities
1) Evaluating operations by comparing actual results to budgeted results is a part of the
controlling responsibility of management.
Answer: TRUE
Diff: 1
LO: 1-1
EOC: QC1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
2) Controlling means overseeing the companyʹs day-to-day operations.
Answer: FALSE
Diff: 1
LO: 1-1
EOC: QC1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
Organization.
3) The purpose of managerial accounting is to gather, summarize, and report the cost and
revenue data relevant to each decision that is made.
Answer: TRUE
Diff: 1
LO: 1-1
EOC: QC1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
Test bank A++
PAGE 1
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4) Budgeting is the process of evaluating the results of business operations against a plan and
then making adjustments to that plan.
Answer: FALSE
Diff: 1
LO: 1-1
EOC: QC1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
5) Planning, directing, and controlling are a managerʹs three primary decision-making
responsibilities.
Answer: TRUE
Diff: 1
LO: 1-1
EOC: QC1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
6) Directing means setting goals and objectives for the company and determining how to achieve
them.
Answer: FALSE
Diff: 1
LO: 1-1
EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
7) Budgets are the quantitative expression of managementʹs plans.
Answer: TRUE
Diff: 1
LO: 1-1
EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
Test bank A++
PAGE 2
,Created By : TestsBanks
8) ________ gathers, summarizes, and reports on the financial impact of changes to business
operations.
A) Managerial accounting
B) Planning
C) Directing
D) Controlling
Answer: A
Diff: 2
LO: 1-1
EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
9) Creating budgets are part of which primary management responsibility?
A) Controlling
B) Planning
C) Managerial accounting
D) Directing
Answer: B
Diff: 2
LO: 1-1
EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
10) Which of the following is not one of the primary responsibilities of management?
A) Adhering to GAAP
B) Planning
C) Directing
D) Controlling
Answer: A
Diff: 2
LO: 1-1
EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
Test bank A++
PAGE 3
, Created By : TestsBanks
11) Planning involves which of the following activities?
A) Evaluating the results of operations
B) Overseeing the companyʹs day-to-day operations
C) Setting goals and objectives for the company
D) None of the above
Answer: C
Diff: 1
LO: 1-1
EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
12) Which of the following is being fulfilled when management compares the budget to actual
results?
A) Directing
B) Planning
C) Adjusting
D) Controlling
Answer: D
Diff: 2
LO: 1-1
EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
13) When management uses feedback to take corrective action on the budgets, which of the
following management responsibilities are being fulfilled?
A) Controlling
B) Adjusting
C) Directing
D) Planning
Answer: A
Diff: 2
LO: 1-1
EOC: S1-1
AACSB: Reflective thinking
Test bank A++
PAGE 4
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