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Chapter 1-3A
Name__________________________
Choose the best answer.
1. Which of the following managerial functions involves a detailed financial and operational description of anticipated operations?
A) Decision making.
B) Planning.
C) Directing operational activities.
D) Controlling.
E) Measuring.
Ans: B
2. Which of the following is not an objective of managerial accounting?
A) Providing information for decision making and planning.
B) Assisting in directing and controlling operations.
C) Maximizing profits and minimizing costs.
D) Measuring the performance of managers and subunits.
E) Motivating managers toward the organization's goals.
Ans: C
3. Managerial accounting:
A) involves the financial history of an organization.
B) is governed by GAAP.
C) focuses primarily on the needs of personnel within the organization.
D) provides information for parties external to the organization.
E) focuses on financial statements and other financial reports.
Ans: C
4. All of the following entities would have a need for managerial accounting information except:
A) General Motors.
B) Southwest Airlines.
C) Kmart.
D) New York City.
E) None of the above responses is correct, as all of these entities would use managerial accounting information.
Ans: E
5. Which of the following is not a function of the treasurer?
A) Maintaining custody of cash and other assets.
B) Managing investments.
C) Preparing all reports for internal users.
D) Being responsible for the credit policy and collection of accounts.
E) Managing relationships with investors and creditors.
Ans: C
6. Much of managerial accounting information is based on:
A) a cost-benefit theme.
B) profit maximization.
C) cost minimization.
D) the generation of external information.
E) effectiveness but not efficiency.
Ans: A
7. Which of the following statement(s) about just-in-time (JIT) inventory management is (are) true?
I) The emphasis of JIT is on "pull" manufacturing.
II) Raw materials are purchased just in time to be used during each production phase.
III) JIT is an inventory technique that focuses on reduction of inventory and related inventory costs.
A) I only.
B) II only.
C) III only.
D) II and III only.
E) I, II, and III.
Ans: E
8. The value chain of a manufacturer would tend to include activities related to:
A) manufacturing.
B) research and development.
C) product design.
D) marketing.
E) all of the above.
Ans: E
9. Which of the following is not an ethical standard of managerial accounting?
A) Competence.
B) Confidentiality.
C) Efficiency.
D) Integrity.
E) Objectivity.
Ans: C
10. Managerial accounting differs from financial accounting in that financial accounting is:
A) more oriented toward the future.
B) primarily concerned with external financial reporting.
C) concerned with nonquantitative information.
D) heavily involved with decision analysis and implementation of decisions.
E) not required and unregulated.
Ans: B