Name: Class: Date: - Chapter 1 – Introduction to Managerial Accoun...

Name: Class: Date: Chapter 1 – Introduction to Managerial Accounting Page 1 1.Managerial accounting is designed primarily for external users.

• True
• False

ANSWER: False

2.The process of choosing among competing alternatives is called decision making.

• True
• False

ANSWER: True

3.The managerial activity of monitoring a plan’s implementation and taking corrective action as needed is referred to as controlling.

• True
• False

ANSWER: True

4.Managerial accounting information is important for both for-profit and not-for-profit organizations.

• True
• False

ANSWER: True

5.Managerial accounting information is used only by manufacturing organizations.

• True
• False

ANSWER: False

6.In Canada, both financial and managerial accounting are governed by the Accounting Standards Board (AcSB) of CPA Canada.

• True
• False

ANSWER: False

7.Financial accounting has its emphasis primarily on the future.

• True
• False

ANSWER: False

8.Managerial accounting is internally focused.

• True
• False

ANSWER: True

9.The Triple Bottom Line refers to management putting triple the focus on profits.

• True
• False

Cornerstones of Managerial Accounting 4th Canadian Edition, 4e Maryanne Mowen, Don Hansen, David McConomy, Bradley Witt (Test Bank All Chapters, 100% Original Verified, A+ Grade)

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Name:

Class:

Date:

Chapter 1 – Introduction to Managerial Accounting

Page 2

ANSWER: False

• Activity-based costing is a detailed approach to determining the cost of goods and services.
• True
• False

ANSWER: True

• Customer value is the difference between what a customer receives and what they give up when buying a product or

service.

• True
• False

ANSWER: True

• The value chain refers to the set of activities required to design, develop, produce, market, and deliver products and

services to customers.

• True
• False

ANSWER: True

• Because service organizations do not make or sell tangible products, they have no need for managerial accounting.
• True
• False

ANSWER: False

• Value chain analysis is a useful way of examining a firm’s competitive advantage.
• True
• False

ANSWER: True

• Positions that have direct responsibility for the basic objectives of an organization are normally referred to as staff

positions.

• True
• False

ANSWER: False

• A cost accountant would normally occupy a line position within an organization.
• True
• False

ANSWER: False

• In larger organizations, the controller is typically also the chief executive officer (CEO) of a company.
• True
• False

ANSWER: False

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Name:

Class:

Date:

Chapter 1 – Introduction to Managerial Accounting

Page 3

• Virtually all managerial accounting practices were developed to assist managers in maximizing profits.
• True
• False

ANSWER: True

• The belief that each member of a group bears some responsibility for the well-being of other members is a common

principle underlying all ethical systems.

• True
• False

ANSWER: True

• Professional accountants in Canada now operate as Chartered Professional Accountants (CPAs).
• True
• False

ANSWER: True

• The CPA designation in Canada refers to Certified Professional Accountant.
• True
• False

ANSWER: False

• Which of the following is a characteristic of managerial accounting?
• It has no mandatory rules.
• It must adhere to mandatory rules.
• Its main users are outside of the organization.
• It provides only objective financial information.

ANSWER: a

• Which statement best describes managerial accounting reports?
• The reports are prepared to meet the needs of decision makers within the firm.
• The reports are prepared for external shareholders, lenders, and tax authorities.
• The reports are prepared according to International Financial Reporting Standards (IFRS).
• The reports are prepared according to guidelines prepared by the Ontario Securities Commission.

ANSWER: a

• What is an objective of managerial accounting?
• to comply with international reporting standards
• to provide tax information for planning, controlling, evaluating, and continuous improvement
• to prepare reports for investors, creditors, government agencies, and other outside users
• to provide information for the costing of services, products, and other objects of interest to management

ANSWER: d

• What is a primary objective of managerial accounting?
• to provide the Canada Revenue Agency with information about taxable income

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Chapter 1 – Introduction to Managerial Accounting

Page 4

• to provide management with information useful for planning and control of operations
• to provide banks and other creditors with information useful in making credit decisions
• to provide existing shareholders and potential investors with useful information for decision making

ANSWER: b

• What is an example of the management activity referred to as planning?
• upgrading outdated equipment
• outsourcing the organization’s payroll processing
• developing a strategy to dispose of hazardous waste
• deciding to eliminate an unprofitable segment of an organization

ANSWER: c

• What is developing a company strategy for responding to anticipated new markets an example of?
• planning b. delegating
• controlling d. decision making

ANSWER: a

• What is investigating production variances and adjusting the production process an example of?
• planning b. delegating
• controlling d. decision making

ANSWER: c

• Which statement best describes financial accounting?
• It is internally focused.
• It has an emphasis on the future.
• It has no regulatory or mandatory rules.
• It is concerned with information about the organization as a whole.

ANSWER: d

• Which term refers to establishing objectives within an organization to include its social and environmental impact?
• triple impact b. triple accounting
• triple bottom line d. triple cost analysis

ANSWER: c

• Which of the following reflects all three of the key aspects of the Triple Bottom Line?
• measures of employees, customers, and suppliers
• measures of social, financial, and environmental impact
• measures of assets, liabilities, and equity of the organization
• measures of revenues, expenses, and profit of the organization

ANSWER: b

• Which term refers to the progress of new products through the stages of conception, introduction into the market,

growth, maturity, decline, and eventual withdrawal from a market?

• product life cycle b. value chain analysis

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