Site MapHelpFeedbackTrue or False
True or False
(See related pages)

1
Managerial accounting is the process of identifying, measuring, analyzing, interpreting, and communicating information in pursuit of an organization's goals. (LO 1)
A)True
B)False
2
The role of managerial accounting has changed little over the past decade. (LO 1)
A)True
B)False
3
In order to avoid conflicts of interest, managerial accountants are usually physically separated from the managers for whom they provide reports and information. (LO 1)
A)True
B)False
4
A major goal an organization's management team is to create value for the organization. (LO 1)
A)True
B)False
5
The day-to-day work of an organization's management team comprises three activities. (LO 2)
A)True
B)False
6
In pursuing its goals, an organization acquires resources, hires people, and then engages in an organized set of activities. (LO 2)
A)True
B)False
7
Planning generally involves developing a detailed financial and operational description of anticipated operations. (LO 2)
A)True
B)False
8
Decision-making involves choosing among the available alternatives. (LO 2)
A)True
B)False
9
Directing operational activities means running the organization on a day-to-day basis. (LO 2)
A)True
B)False
10
Controlling involves surveillance of personnel and monitoring their activities. (LO 2)
A)True
B)False
11
Managerial accounting activity adds value to an organization by pursing five major activities. (LO3)
A)True
B)False
12
Managerial accounting reports usually provide the solution to a decision problem. (LO 3)
A)True
B)False
13
Empowerment refers to the management accountant's responsibility relative to controlling personnel behavior. (LO 3)
A)True
B)False
14
The attention-directing function of managerial accounting would include, among other things, directing managers' attention to a decrease in the inventory turnover rate and a decrease in receivables turnover rate. (LO 3)
A)True
B)False
15
Management compares actual costs incurred with those specified in the budget, in controlling operations. (LO 3)
A)True
B)False
16
The priority of the managerial accounting system is the measurement of the performance of people. (LO 3)
A)True
B)False
17
The balanced scorecard focuses on four perspectives or "compass points." (LO 4)
A)True
B)False
18
A balanced scorecard can be used to aid management in its assessment of the organizations' competitive position, which is one of the major objectives of managerial accounting. (LO 3)
A)True
B)False
19
Financial accounting and managerial accounting rely on two separate accounting systems. (LO 4)
A)True
B)False
20
Managerial accounting is highly regulated. (LO 4)
A)True
B)False
21
Managerial accounting reports focus on subunits of an organization, and financial accounting reports focus on the enterprise in its entirety. (LO 4)
A)True
B)False
22
A cost accounting system provides information only for use by management accountants. (LO 4)
A)True
B)False
23
Managerial accounting must conform to generally accepted accounting principles (GAAP). (LO 4)
A)True
B)False
24
Managers in staff positions are directly involved in the provision of goods or services or the operation of the facilities. (LO 5)
A)True
B)False
25
The treasurer of an organization is responsible for raising capital. (LO 6)
A)True
B)False
26
The controller is responsible for reviewing the accounting procedures and records. (LO 6)
A)True
B)False
27
A cross-function team is comprised of individuals from diverse functions and backgrounds joined as a team in order to generate solutions to problems. (LO 6)
A)True
B)False
28
Cross-functional management teams seldom include managerial accountants. (LO 6)
A)True
B)False
29
Managerial accounting information serves two functions: a decision-making function and a decision-influencing function. (LO 7)
A)True
B)False
30
The managerial accountant should always provide as much detail as is possible to generate when providing reports to managers. (LO 7)
A)True
B)False
31
Any proposed activity that will improve efficiency of operations should be adopted. (LO 7)
A)True
B)False
32
E-business is having an astounding influence on managerial accounting. (LO 7)
A)True
B)False
33
Managerial accounting techniques do not lend themselves to service industries because services are consumed as they are produced (there is no inventory) and service organization tend to be more labor-intensive than manufacturing organizations. (LO 7)
A)True
B)False
34
A multinational company is an organization that has operational subunits in two or more countries. (LO 7)
A)True
B)False
35
Cross functional managerial teams concentrate primarily on how to best manufacture a product or produce a service. (LO 7)
A)True
B)False
36
CIM is an acronym for computer-integrated-management. (LO 7)
A)True
B)False
37
With the changes and improvements in technology, the life cycle of most products is becoming longer. (LO 7)
A)True
B)False
38
The acronym GPS refers to global positioning satellite system. (LO 7)
A)True
B)False
39
The objective of Just-in-time (JIT) systems is to purchase materials, make products, and deliver products just when needed. (LO 7)
A)True
B)False
40
A view that improvements in quality, as defined by customers, will always result in improved organizational performance is called total quality management (TQM).(LO 7)
A)True
B)False
41
Continuous improvement is the constant effort to improve on the innovation and learning perspective of the balanced scorecard.(LO 7)
A)True
B)False
42
One of the objectives in using a cost management system is to identify and eliminate non-value-added activities. (LO 7)
A)True
B)False
43
ABM (activity-based management) is a system that managerial accountants have developed for determining the cost of producing goods or services. (LO 7)
A)True
B)False
44
A set of linked operations or processes that begins with obtaining resources and ends with providing products or services, which customers value, is called a value chain. (LO 8)
A)True
B)False
45
For a company that buys gravel from a quarry and sorts and crushes the gravel to various sizes and sells the products to landscapers and paving contractors, the cost of having the raw material delivered to its plant is an upstream contribution. (LO 8)
A)True
B)False
46
The miles driven on an automobile can be used as a cost driver. (LO 8)
A)True
B)False
47
In order for a company to achieve a sustainable competitive advantage, it must perform its value chain activities at a higher quality level than its competitors, regardless of the cost. (LO 8)
A)True
B)False
48
The overall recognition of the importance of cost relationships among activities in the value chain, and the process of managing those cost relationships to the firm's advantage, are called strategic cost management. (LO 8)
A)True
B)False
49
The theory of constraints may be viewed as a philosophy of management that argues that any action other than strengthening the weakest link will be a waste of time and effort, and is also counterproductive because it ignores the most pressing problems. (LO 8)
A)True
B)False
50
One of the reforms as a result of massive fraud perpetrated by large, public corporations over the past decade, was the passage of the Sarbanes-Oxley Act by Congress which established the Public Company Accounting Oversight Board. (LO 9)
A)True
B)False
51
In the United States, the AICPA administers the Certified Management Accountant (CMA) program. (LO 10)
A)True
B)False
52
The expectation that a CMA will communicate information fairly and objectively is found in the IMA ethical standard of confidentiality. (LO 10)
A)True
B)False
53
The expectation that a CMA will perform professional duties in accordance with relevant laws, regulations, and technical standards is found in the IMA ethical standard of integrity. (LO 10)
A)True
B)False
54
The expectation that a CMA will abstain from engaging in or supporting any conduct that might discredit the profession is found in the IMA ethical standard of integrity. (LO 10)
A)True
B)False





To learn more about the book this website supports, please visit its Information Center.
(c)2009 Tata McGraw-Hill
Any use is subject to the Terms of Use and Privacy Policy.
Tata McGraw-Hill is one of the many fine businesses ofThe McGraw-Hill Companies.


Hilton (SIE)Online Learning Center

Home > Chapter 1 > True or False