Copyright 2024 Pearson Canada Inc.

1 Copyright © 2024 Pearson Canada Inc.Managerial Accounting, 5Ce (Braun) Chapter 1 Introduction to Managerial Accounting 1.1 Identify managers' four primary responsibilities.1) Controlling means overseeing the company's day-to-day operations.

Answer: FALSE

Diff: 1

LO: 1-1

Bloom's Taxonomy: Remember

2) Managerial accounting gathers, summarizes, and reports the cost and revenue data relevant to decisions.

Answer: TRUE

Diff: 1

LO: 1-1

Bloom's Taxonomy: Remember

3) Managerial accounting focuses on providing shareholders and creditors with the information they need to make investment and lending decisions.

Answer: FALSE

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LO: 1-1

Bloom's Taxonomy: Remember

4) Managerial accounting focuses on providing internal management with the information it needs to run an organization efficiently and effectively.

Answer: FALSE

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LO: 1-1

Bloom's Taxonomy: Remember

5) Evaluating the results of business operations against a plan and then making adjustments to that plan is called budgeting.

Answer: FALSE

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LO: 1-1

Bloom's Taxonomy: Remember

6) The four primary responsibilities of managers are planning, budgeting, controlling, and decision making.

Answer: FALSE

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Bloom's Taxonomy: Remember

Managerial Accounting, 5th Canadian Edition, 5e Karen Braun, Wendy Tietz, Louis Beaubien (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4

2 Copyright © 2024 Pearson Canada Inc.7) Managerial accounting develops reports that help internal parties effectively and efficiently run the company.

Answer: TRUE

Diff: 1

LO: 1-1

Bloom's Taxonomy: Remember

8) Directing means overseeing the day to day operations of an organization.

Answer: TRUE

Diff: 1

LO: 1-1

Bloom's Taxonomy: Remember

9) Budgets are the quantitative expression of management's plans.

Answer: TRUE

Diff: 1

LO: 1-1

Bloom's Taxonomy: Remember

10) Making adjustments to keep the company moving forward is related to the management responsibility of controlling.

Answer: TRUE

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Bloom's Taxonomy: Remember

11) Planning involves which of the following activities?

• Setting goals and objectives for the company
• Overseeing the company's day-to-day operations
• Evaluating the results of operations
• Getting feedback on results

Answer: A

Diff: 2

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Bloom's Taxonomy: Understand

12) When management compares the budget to actual results, which of the following is being fulfilled?

• Directing
• Controlling
• Decision-making
• Planning

Answer: B

Diff: 1

LO: 1-1

Bloom's Taxonomy: Remember

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3 Copyright © 2024 Pearson Canada Inc.13) Which of the following management responsibilities are being fulfilled when management uses feedback to take corrective action on the budgets?

• Directing and planning
• Planning and decision-making
• Controlling and decision-making
• Planning and controlling

Answer: C

Diff: 2

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Bloom's Taxonomy: Remember

14) Which one of the following manager responsibilities encompasses the other three?

• Decision-making
• Feedback
• Planning
• Controlling

Answer: A

Diff: 3

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Bloom's Taxonomy: Understand

15) Using product cost information to determine sales prices is an example of

• controlling, planning, and decision-making.
• directing, controlling, and planning.
• directing, planning, and decision-making.
• controlling, directing, and planning.

Answer: C

Diff: 3

LO: 1-1

Bloom's Taxonomy: Understand

16) Using hourly sales reports to determine the level of staffing needed to service customers fulfills which of management's four primary responsibilities?

• Directing, planning, and decision-making
• Directing, controlling, and planning
• Controlling, planning, and decision-making
• Analyzing, directing, and planning

Answer: A

Diff: 3

LO: 1-1

Bloom's Taxonomy: Understand

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4 Copyright © 2024 Pearson Canada Inc.17) Budgets are the way that managers can express their

• plans.
• decision-making.
• control.
• hiring practices.

Answer: A

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Bloom's Taxonomy: Remember

18) Comparing actual results to budgets is an example of the management function of

• controlling.
• decision-making.
• directing.
• planning.

Answer: A

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Bloom's Taxonomy: Remember

19) Overseeing the day-to-day operations of a company is an example of the management function of

• controlling.
• decision-making.
• directing.
• planning.

Answer: C

Diff: 1

LO: 1-1

Bloom's Taxonomy: Remember

20) Preparing budgets is an example of the management function of

• controlling.
• decision-making.
• directing.
• planning.

Answer: D

Diff: 1

LO: 1-1

Bloom's Taxonomy: Remember

21) Evaluating results against the plan is an example of the management function of

• controlling.
• decision-making.
• directing.
• planning.

Answer: A

Diff: 1

LO: 1-1

Bloom's Taxonomy: Remember

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