Copyright 2024 Pearson Education, Inc.

1 Copyright © 2024 Pearson Education, Inc.Managerial Accounting, 7e (Braun et al.) 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 company's 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.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.Managerial Accounting, 7e (Global Edition) By Karen Braun, Wendy Tietz (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4

2 Copyright © 2024 Pearson Education, Inc.5) Planning, directing, and controlling are a manager's 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 management's 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.

8) ________ gathers, summarizes, and reports on the financial impact of changes to business operations.

• Managerial accounting
• Planning
• Directing
• 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.

• / 4

3 Copyright © 2024 Pearson Education, Inc.9) Creating budgets are part of which primary management responsibility?

• Controlling
• Planning
• Managerial accounting
• 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?

• Adhering to GAAP
• Planning
• Directing
• 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.

11) Planning involves which of the following activities?

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

• / 4

4 Copyright © 2024 Pearson Education, Inc.12) Which of the following is being fulfilled when management compares the budget to actual results?

• Directing
• Planning
• Adjusting
• 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?

• Controlling
• Adjusting
• Directing
• Planning

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.

14) When management analyzes whether to move production to another country or to keep the production located where it currently is, which of the following management responsibilities is being performed?

• Adjusting
• Controlling
• Planning
• Directing

Answer: C

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.

• / 4