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1 Managerial Accounting, 5e (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.5) Planning, directing, and controlling are a manager's three primary 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.Managerial Accounting 5e Karen Braun Wendy Tietz (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4
2 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.
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. 2 / 4
3 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.
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. 3 / 4
4 15) Which one of the following items is not one of the three primary manager responsibilities?
- Controlling
- Planning
- Directing
- Adjusting
Answer: D
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.
16) Using product cost information to determine sales prices is an example of
- directing.
- directing and controlling.
- controlling, directing, and planning.
- controlling and planning.
Answer: A
Diff: 3
LO: 1-1
EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an organization.
17) When management reviews product sales reports to set goals and objectives and then evaluates the results of sales operations against the plan and performance results, which of management's three primary responsibilities is fulfilled?
- Controlling and planning
- Directing and planning
- Directing, controlling, and planning
- Analyzing, directing, and planning
Answer: C
Diff: 3
LO: 1-1
EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an organization.
18) Budgets are a way for managers to communicate their
- control.
- decision-making.
- hiring practices.
- plans.
Answer: D
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
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