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Test Bank for Management Accounting, 3e Leslie Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy (All Chapters) 1 / 4
Chapter 1: The role of accounting information in management decision making
© John Wiley & Sons Australia, Ltd 2017 1.2
Chapter 1: The role of accounting information in management decision
making
True/False questions
- A vision statement is a theoretical description of what an organisation should become.
*a. True
- False
LO 1
- An organisational vision is a short term plan for maximizing financial results.
- True
*b. False
LO 1
- Most organisations have one stakeholder.
- True
*b. False
LO 1
- Organisational core competencies unrelated to the organizational vision.
- True
*b. False
LO 1
- Organisational strategies are the same as operating plans.
- True
*b. False
LO 1
- / 4
Testbank to accompany: Management accounting 3e by Eldenburg et al.
© John Wiley & Sons Australia, Ltd 2017 1.3
- The starting point for managerial decisions is monitoring actual operations.
- True
*b. False
LO 1
- Desirable employee behaviour can be motivated by trying employee performance
evaluation and pay to long term or short term results.
*a. True
- False
LO 1
- Organisational information systems only collect accounting information.
- True
*b. False
LO 2
- Cost accounting information is used for both management accounting and financial
accounting activities.
*a. True
- False
LO 2
- Management accounting is the process of gathering, summarizing and reporting
financial and non-financial information used internally to make decisions.
*a. True
- False
LO 2
- / 4
Chapter 1: The role of accounting information in management decision making
© John Wiley & Sons Australia, Ltd 2017 1.4
- Intellectual capital is a type of financial resource that is captured by the organisation’s
information system.
- True
*b. False
LO 2
- It is easy to differentiate between internal and external reports.
- True
*b. False
LO 2
- The design of the management accounting system structure is influenced by both
external and internal factors.
*a. True
- False
LO 2
- Technological advances have allowed management accountants to develop previously
infeasible cost and management accounting systems.
*a. True
- False
LO 2
- GAAP stands for Generally Agreed Accounting Practices
- True
*b. False
LO 2
- / 4
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