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Test Bank for Managerial Accounting, 7e Jame Jiambalvo (All Chapters) 1 / 4
CHAPTER 1
Managerial Accounting in the Information Age Summary of Questions by Objectives and Bloom’s Taxonomy
Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements
1. 1 K 11. 1 K 21. 2 K 31. 4 K 41. 5 C
2. 1 K 12. 1 K 22. 2 K 32. 4 K 42. 5 K
3. 1 K 13. 1 K 23. 2 K 33. 4 K 43. 5 K
4. 1 K 14. 1 K 24. 2 K 34. 4 K 44. 5 K
5. 1 K 15. 1 K 25. 2 K 35. 4 K 45. 5 K
6. 1 K 16. 1 K 26. 3 K 36.
4 K 46. 5 K
7. 1 C 17. 1 K 27. 3 K 37.
4 K 47. 5 K
8. 1 K 18. 2 K 28. 3 K 38. 4 K 48. 5 K
9. 1 K 19. 2 C 29. 3 C 39. 4 K
10. 1 K 20. 2 K 30. 3 K 40. 4 K
Multiple Choice Questions
49. 1 K 68. 2 C 87. 2 AP 106. 3 K 125. 5 K
50. 1 K 69. 2 K 88. 2 AP 107. 3 C 126. 5 K
51. 1 K 70. 2 K 89. 2 AP 108. 3 C 127. 5 K
52. 1 C 71. 2 K 90. 2 AP 109. 3 AP 128. 2 AP
53. 1 C 72. 2 K 91. 2 K 110. 3 AP 129. 2 AP
54. 1 K 73. 2 K 92. 2 AP 111. 3 AP 130. 2 AP
55. 1 K 74. 2 K 93. 2 AP 112. 3 AP 131. 2 AP
56. 1 K 75. 2 C 94. 2 AP 113. 3 AP 132. 2 AP
57. 1 K 76. 2 C 95. 2 AP 114. 3 AP 133. 3 AP
58. 1 AN 77. 2 K 96. 2 AP 115. 3 C 134. 3 AP
59. 1 K 78. 2 K 97. 2 AP 116. 4 K 135. 3 AP
60. 1 K 79. 2 C 98. 2 AP 117. 4 K 136. 3 AP
61. 1 K 80. 2 C 99. 3 AP 118. 4 K 137. 2 AP
62. 1 C 81. 2 K 100. 3 AP 119. 5 K 138. 2 AP
63. 2 K 82. 2 AP 101. 3 AP 120. 5 K 139. 2 AP
64. 2 K 83. 2 AP 102. 3 K 121. 5 K 140. 2 AP
65. 2 AP 84. 2 AP 103. 3 K 122. 5 K 141. 2 AP
66. 2 C 85. 2 AP 104. 3 K 123. 5 K 142. 2 AP
67. 2 C 86. 2 AP 105. 3 K 124. 5 K
Matching
143. 1,2,3,4
7,7 K Exercises
144. 1 AN 147. 2 AP 150. 2 AP 153. 2,3 AP 156. 2,3 AP
145. 2 C 148. 2 K 151. 2,3 AP 154. 2,3 AP 157. 2,3 AN
146. 2 AP 149. 2 C 152. 2 AP 155. 1,2 AP 158. 2,3 AN
Challenge Exercises
159. 2,3 AN 160. 2,3 AN
Short-Answer Essays
161. 1 K 163. 1 C 165. 3 C 167. 4 C
162. 1 K 164. 2 C 166. 3 C
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Test Bank to accompany Jiambalvo Managerial Accounting, 6 th
Edition 1-2
TRUE-FALSE STATEMENTS
- Financial accounting stresses accounting concepts and procedures that are relevant to
preparing reports for internal users of accounting information.Ans: False, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC:
Communication, IMA: Reporting
- The goal of managerial accounting is to provide information for planning, controlling, and
reporting information to shareholders.
Ans: False, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC:
Communication, IMA: Reporting
- A thorough understanding of managerial accounting is essential to be an effective manager.
Ans: True, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC: Communication,
IMA: Reporting
- A production cost budget provides details of planned production amounts and the cost of
resources needed for production.
Ans: True, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC: Communication,
IMA: Reporting
- Budgets can be used to communicate a company’s goals to employees.
Ans: True, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC: Communication,
IMA: Reporting
- Only amounts that can be expressed in dollars and cents can be used in preparing budgets.
Ans: False, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC:
Communication, IMA: Reporting
- A favorable evaluation of an operation indicates that the manager of that operation is
performing adequately.
Ans: False, LO: 1, Bloom: C, Difficulty: Moderate, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC:
Communication, IMA: Reporting
- Performance reports are used for control purposes.
Ans: True, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC: Communication,
IMA: Reporting
- Performance reports, like other managerial accounting reports, must follow GAAP.
Ans: False, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC:
Communication, IMA: Reporting
- Budgets show comparisons of current period performance to the planned performance.
Ans: False, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC:
Communication, IMA: Reporting
- Management by exception requires managers to investigate every difference between actual
and budgeted costs that causes profit to be less than budgeted. 3 / 4
Chapter 1 Managerial Accounting in the Information Age 1-3
Ans: False, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC:
Communication, IMA: Reporting
- Decisions to reward or punish managers are part of the planning and control process.
Ans: True, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC: Communication,
IMA: Reporting
- Managerial accounting is directed at internal users of accounting information.
Ans: True, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC: Communication,
IMA: Reporting
- Financial accounting must follow generally accepted accounting principles, whereas
managerial accounting stresses information that is useful to managers.
Ans: True, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC: Communication,
IMA: Reporting
15 Managerial accounting may present more detailed information than financial accounting.
Ans: True, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC: Communication,
IMA: Reporting
- Managerial accounting stresses that the information provided should be useful to decision
makers such as creditors and shareholders.
Ans: False, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC:
Communication, IMA: Reporting
- Financial accounting is concerned with presenting results of past transactions, while
managerial accounting places considerable emphasis on the future.
Ans: True, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC: Communication,
IMA: Reporting
- Variable costs in total increase or decrease in proportion with changes in the level of business
activity.
Ans: True, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Measurement Analysis and Interpretation, AICPA PC: Decision Making, IMA: Cost Management
- Equipment depreciation is generally a controllable cost for a factory department supervisor.
Ans: False, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Measurement Analysis and Interpretation, AICPA PC: Decision Making, IMA: Cost Management
- Fixed cost per unit remains the same even though there is a change in the number of units
produced.
Ans: False, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Reporting, AICPA PC:
Communication, IMA: Reporting
- Variable cost per unit remains constant when the number of units produced changes.
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Ans: True, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Analytic, AICPA FN: Measurement Analysis and Interpretation, AICPA PC: Decision Making, IMA: Cost Management
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