Professional Documents
Culture Documents
3. The setting of objectives and the identification of methods to achieve those objectives is
called
A. planning
B. controlling
C. decision making
D. performance evaluation
4. In the planning and control process, what is the proper sequence of events?
A. Set goals, set objectives, develop plans, implement plans, evaluate performance.
B. Establish a master budget, set standard costs, develop variance analysis.
C. Develop engineered costs, develop pricing targets, calculate contribution margins
D. Identify variable costs, identify fixed costs, project the sales mix, determine
breakeven.
7. Which of the following is included in the day-to-day work of the management team?
A. decision making
B. planning
C. controlling
D. all of the given choices
9. Which of the following is true of managerial accounting rather than financial accounting?
A. The outputs of this accounting system are the basic financial statements.
B. The methods of this accounting system are established by an overseeing board.
C. The accounting methods are standardized to allow comparisons among companies.
D. The accounting system would be unique to each company.
11. Which of the following statements is (are) true regarding financial and managerial
accounting?
I. Both are mandatory.
II. Both rely on the same underlying financial data.
III. Both emphasize the segments of an organization, rather than just looking at the
organization as a whole.
IV. Both are geared to the future, rather than to the past.
13. For internal users, managers are more concerned with receiving information that is:
A. completely objective and verifiable.
B. completely accurate and precise.
C. relevant, flexible, and immediately available.
D. relevant, completely accurate, and precise.
18. The major reporting standard for presenting managerial accounting information is
A. relevance
B. generally accepted accounting principles
C. the cost principle
D. the current tax law
19. With respect to the time dimension, how does managerial decision compare with external
performance evaluation?
Managerial Decision External
Making Performance
A. Past Past
B. Past Future
C. Future Past
D. Future Future
20. Which of the following activities is not usually performed by a management accountant?
A. Assisting managers to interpret data in managerial accounting reports.
B. Designing systems to provide information for internal and external reports.
C. Gathering data from sources other than the accounting system.
D. Deciding the best level of inventory to be maintained.
21. How does the managerial decision making compare with external performance
evaluation?
Managerial Decision Making External Performance Evaluation
A. Detailed Detailed
B. Detailed More aggregated
C. More aggregated Detailed
D. More aggregated More aggregated
22. Management accountants would not
A. assist in budget planning.
B. prepare reports primarily for external users.
C. determine cost behavior.
D. be concerned with the impact of cost and volume on profits.
25. Managerial accounting provides data to achieve all of the following major objectives
except:
A. planning and control of costs.
B. supporting management planning
C. compliance with SEC reporting requirements
D. determining the costs of products
28. Which of the following statements about internal reports is not true?
A. The content of internal reports may extend beyond the double-entry accounting
system.
B. Internal reports may show all amounts at market values.
C. Internal reports may discuss prospective events.
D. Most internal reports are summarized rather than detailed.
31. Which statement about the extent of detail in a management accounting report is true?
A. It may depend on the frequency of the report.
B. It depends on the type of manager receiving the report.
C. It depends on the level of the manager receiving the report.
D. All of the given choices.
33. In order to be useful to managers, management accounting reports should possess all of
the following characteristics except:
A. Provide objective measures of past operations and subjective estimates about future
decisions
B. Be prepared in accordance with generally accepted accounting principles.
C. Be provided at any time management needs information.
D. Be prepared to report information for any unit of the business to support decision
making.
34. Which ethical standard of conduct requires that a managerial accountant be responsible to
prepare complete and clear reports and recommendations are based on appropriate
analyses of relevant and reliable information?
A. competence
B. confidentiality
C. integrity
D. objectivity
35. Which ethical standard of conduct requires the managerial accountant have to
communicate information fairly and objectively?
A. competence
B. confidentiality
C. integrity
D. objectivity
36. Under which ethical standard of conduct does the managerial accountant have the
responsibility to refuse any gift, favor, or hospitality that would influence or appear to
influence his or her decision?
A. competence
B. confidentiality
C. integrity
D. objectivity
37. Under which ethical standard of conduct does the managerial accountant have the
responsibility to refrain from either actively or passively subverting the attainment of an
organization’s legitimate and ethical objectives?
A. integrity
B. competence
C. objectivity
D. confidentiality
38. Under which ethical standard of conduct does the managerial accountant have the
responsibility to disclose fully all relevant information that could reasonably expected to
influence an intended user’s understanding of the reports, comments, and
recommendations presented?
A. objectivity
B. competence
C. confidentiality
D. integrity
39. For managerial decision purposes, the volume of information should be evaluated on the
basis of
A. cost-benefit relationship
B. A cost, but not benefit.
C. A benefit, but not cost.
D. Neither cost nor benefits, but some other criteria.
41. In a broad sense, cost accounting can be defined within the accounting system as
A. internal and external reporting that may be used in making nonroutine decisions and
in developing plans and policies.
B. external reporting to government, various outside parties, and stockholders.
C. internal reporting for use in management planning and control, and external
reporting to the extent its product-costing function satisfies external reporting
requirements.
D. internal reporting for use in planning and controlling routing operations.
43. If a distinction is made between cost accounting and managerial accounting, managerial
accounting is more oriented toward
A. valuation inventory.
B. analysis of variances including spoilage.
C. financial reporting to third parties.
D. the planning and controlling aspects of the management process.
47. In determining whether planned goals are being met, a manager is performing the
function of
A. planning
B. controlling
C. motivating
D. follow-up
49. Which of the following best describes what performance evaluation should be designed
to do?
A. Modify goal and objectives each month.
B. Establish sales goals and targets.
C. Compare actual results to plan.
D. Establish blame
52. Each of the following would be considered a staff function EXCEPT the:
A. vice-president of finance
B. vice-president of corporate planning
C. vice-president of research and development
D. vice-president of marketing
56. Developing a company strategy for responding to anticipated new markets is an example
of:
A. decision making
B. controlling
C. planning
D. motivating