Professional Documents
Culture Documents
ACC Chapter 1
ACC Chapter 1
ReportingB.
Decision makingC.
Control
D.
Planning
3.
The setting of objectives and the identification of methods to achieve those objectives iscalled
A.
planning
B.
controllingC.
decision makingD.
performance evaluation4.
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.
Identify variable costs, identify fixed costs, project the sales mix, determine breakeven.5.
stockholders and potential investors with useful information for decision making.B.
banks and other creditors with useful information in making credit decisions.
C.
management with information useful for planning and control of operations.
D.
uses historical cost as the basis for reports to managers who are making decisionsabout future courses of
actions.
AD
Download to read ad-free.
B.
should be developed and provided only if the benefits exceed its costs.
C.
Which of the following is included in the day-to-day work of the management team?A.
decision makingB.
planningC.
controlling
D.
Which of the following statements is true when comparing managerial accounting tofinancial accounting?
A.
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.
Management accountin
g’s role in the control processes is to provide
A.
managers with information that can be used to determine customer satisfaction levels.B.
investors and creditors the information about financial stability of the company.
C.
input to managers on the best ways to achieve continuous improvement in the production process.11.
Which of the following statements is (are) true regarding financial and managerialaccounting?I.
Both emphasize the segments of an organization, rather than just looking at theorganization as a
whole.IV.
C.
Only II
12.
For internal users, managers are more concerned with receiving information that is:A.
A certified public accountant can readily render management advisory services to the public.B.
A CPA with MBA and DBM degrees is automatically qualified to rendermanagement advisory
services.C.
Competence as a standard in the rendition of management advisory services by aCPA may be equated to
having excellent scholarly preparation to include the usual baccalaureate degree, an MBA and other post
graduate studies.
D.
Adequate training and experience in both the analytical approach and process ina particular undertaking are
requisites for the CPA to be involved in amanagement advisory service engagement.
15.
CPAs provide management advisory services to go around the ethicalconstraints as mandated by the accounting
profession.
B.
Businesses hire management consultants to help define specific problems and developdecisions.C.
CPAs who are performing management advisory service may be considered to be inthe practice of
management consulting.
AD
Download to read ad-free.
D.
Included in the practice of consulting is the provision of confidential service in whichthe identity of the
client is concealed.17.
earn the best rate of return on resources entrusted to its care with safety of investment
being taken into account and consistent with firm’s social and legal responsibilities.
18.
relevance
B.
With respect to the time dimension, how does managerial decision compare with external performance
evaluation?Managerial Decision ExternalMaking PerformanceA.
Past PastB.
Past Future
C.
Future Past
D.
Future Future20.
How does the managerial decision making compare with external performanceevaluation?
Managerial Decision Making External Performance EvaluationA. Detailed Detailed
B. Detailed More aggregated
C. More aggregated DetailedD. More aggregated More aggregated
10
AD
Download to read ad-free.
22.
Managerial accounting provides data to achieve all of the following major objectivesexcept:A.
dailyB.
monthlyC.
annually
D.
as needed
27.
The frequency with which decisions that require the information are made.C.
The content of internal reports may extend beyond the double-entry accountingsystem.
AD
Download to read ad-free.
B.
Which statement about the extent of detail in a management accounting report is true?A.
In order to be useful to managers, management accounting reports should possess all ofthe following
characteristics except:A.
Provide objective measures of past operations and subjective estimates about futuredecisions
B.
Be prepared to report information for any unit of the business to support decisionmaking.34.
Which ethical standard of conduct requires that a managerial accountant be responsible to prepare
complete and clear reports and recommendations are based on appropriateanalyses of relevant and
reliable information?
AD
Download to read ad-free.
A.
competence
B.
confidentialityC.
integrityD.
objectivity35.
Which ethical standard of conduct requires the managerial accountant have tocommunicate information
fairly and objectively?A.
competenceB.
confidentialityC.
integrity
D.
objectivity
36.
Under which ethical standard of conduct does the managerial accountant have theresponsibility to refuse
any gift, favor, or hospitality that would influence or appear toinfluence his or her decision?A.
competenceB.
confidentiality
C.
integrity
D.
objectivity37.
Under which ethical standard of conduct does the managerial accountant have theresponsibility to refrain
from either actively or passively subverting the attainment of an
organization’s legitimate and ethical objectives?
A.
integrity
B.
competenceC.
objectivityD.
confidentiality38.
Under which ethical standard of conduct does the managerial accountant have theresponsibility 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.
competenceC.
confidentialityD.
integrity39.
For managerial decision purposes, the volume of information should be evaluated on the basis of
A.
cost-benefit relationship
AD
Download to read ad-free.
B.
identify a problem.
D.
list alternative courses of action.41.
In a broad sense, cost accounting can be defined within the accounting system asA.
internal and external reporting that may be used in making nonroutine decisions andin developing plans
and policies.B.
internal reporting for use in management planning and control, and externalreporting to the extent its product-
costing function satisfies external reportingrequirements.
D.
treasurer.C.
purchasing manager.
D.
controller.
43.
valuation inventory.B.
internally focused.B.
externally focused
D.
detailed information45.
B.
In determining whether planned goals are being met, a manager is performing thefunction ofA.
planning
B.
controlling
C.
motivatingD.
follow-up48.
by focusing managers attention on the relationship between financial and non-financial factors
D.
Which of the following best describes what performance evaluation should be designedto do?A.
Establish blame50.
vice-president of productionB.
vice-president of marketing
C.
vice-president of finance
D.
plant foreman51.
Internal auditor
B.
Treasurer
AD
Download to read ad-free.
C.
ControllerD.
CFO52.
vice-president of financeB.
CompanyB.
FunctionalC.
Line
D.
Staff
54.
investor relations
B.
financial reports
C.
short-term financingD.
C.
tax planning
D.
independently
evaluating the firm’s financial statements
56.
decision makingB.
controlling
C.
planning
D.
motivating57.
controlling activity
B.
operating activity
C.
planning activityD.
58.
Obtaining feedback is generally identified most directly with the management function ofA.
PlanningB.
Controlling
D.
Decision making59.
A staff positionA.
relates directly to the carrying out of the basic objectives of the organization.
B.
none of these.60.
Since most business decisions are simply a matter of economics, ethicalconsiderations should be ignored.
B.