Which of the following functions is best described as choosing among available alternatives?

Accounting 202 Home

Chapter 1-2A

Choose the best answer.

1. Which of the following functions involves choosing among available alternatives? 
A) Decision making. 
B) Planning. 
C) Directing operational activities. 
D) Controlling. 
E) Budgeting.

Ans: A

2. Which of the following functions involves comparing actual results with planned results? 
A) Planning. 
B) Organizing. 
C) Controlling. 
D) Decision making. 
E) Coordinating.

Ans: C

3. Employee empowerment involves encouraging and authorizing workers to take initiatives to: 
A) improve operations. 
B) reduce costs. 
C) improve product quality. 
D) improve customer service. 
E) all of the above.

Ans: E

4. Managerial accounting: 
A) is not required and unregulated. 
B) produces information that is useful only for manufacturing organizations. 
C) is based exclusively on historical data. 
D) is regulated by the Securities and Exchange Commission (SEC). 
E) generally focuses on reporting information about the enterprise in its entirety rather than by subunits.

Ans: A

5. 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

6. The chief managerial and financial accountant of an organization is the: 
A) controller. 
B) treasurer. 
C) vice president of accounting. 
D) internal auditor. 
E) vice president of finance.

Ans: A

7. The two dimensions of managerial accounting are: 
A) a decision-facilitating dimension and a decision-influencing dimension. 
B) a decision-facilitating dimension and a financial-influencing dimension. 
C) a decision-influencing dimension and a cost-minimizing dimension. 
D) a cost-minimizing dimension and a profit-maximizing dimension. 
E) a decision-influencing dimension and a profit-maximizing dimension.

Ans: A

8. Managerial accounting has changed in recent years because of: 
A) an increased focus on the customer. 
B) the growing popularity of cross-functional teams. 
C) computer-integrated manufacturing (CIM). 
D) time-based competition. 
E) all of the above factors.

Ans: E

9. 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

10. Assume that a managerial accountant strives to fully disclose all relevant information that could be expected to influence a user's understanding of a monthly sales report. In so doing, the accountant will have applied the ethical standard of: 
A) objectivity. 
B) confidentiality. 
C) effectiveness. 
D) integrity. 
E) competence.

Ans: A

1. Controlling involves the coordination of daily business functions

within an organization.

FALSE

2. Measuring the performance of managers and subunits is not an

objective of managerialaccounting.

FAlSE

3. Middle-level managers would likely be considered internal users of

accounting informationrather than external users.

TRUE

4. A controller is normally involved with preparing financial statements.

TRUE

5. The upper limit on the production of goods and services if

everything works perfectly is known as practical capacity.

FALSE

6. Which of the following statements about managerial accountants is

false?

A. Managerial accountants more and more are considered “business

partners.”

B. Managerial accountants often are part of cross functional teams.

C. Increasing number of organizations are segregating managerial

accountants in separatemanagerial accounting departments.

D. In a number of companies managerial accountants make significant

business decisions andresolve operating problems.

E. The role of managerial accountants has changed considerably over

the past decade

7. The day-to-day work of management teams will typically comprise

all of the followingactivities except

A. decision making.

B. planning.

C. cost minimizing.

D. directing operational activities.

E. controlling.

8. Which of the following functions is best described as choosing

among available

alternatives?

A. Decision making.

B. Planning.

C. Directing operational activities.

Which of the following managerial functions involves a detailed financial and operational description of anticipated operation?

Which of the following is the function of management accounting?

Which of the following involves the coordination of daily business functions?

Which of the following are standards of ethical conduct for management accountants?