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TEST BANK For Managerial Accounting: Creating Value in a Dynamic Business Environment, 13th Edition by Hilton | Verified Chapter's 1 - 17 | Complete$27.99
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TEST BANK For Managerial Accounting: Creating Value in a Dynamic Business Environment, 13th Edition by Hilton | Verified Chapter's 1 - 17 | Complete
Chapter 1: The Changing Role of Managerial Accounting in a Dynamic Business Environment
Chapter 2: Basic Cost Management Concepts
Chapter 3: Prod...
Test Bank for Managerial Accounting:
Creating Value in a Dynamic Business
Environment, 13th Edition by Hilton
Chapter 1 - 17
1-1
,Chapter 1: The Changing Role of Managerial Accounting in a Dynamic Business Environment
Chapter 2: Basic Cost Management Concepts
Chapter 3: Product Costing and Cost Accumulation in a Batch Production Environment
Chapter 4: Process Costing and Hybrid Product-Costing Systems
Chapter 5: Activity-Based Costing and Management
Chapter 6: Activity Analysis, Cost Behavior, and Cost Estimation
Chapter 7: Cost-Volume-Profit Analysis
Chapter 8: Variable Costing and the Measurement of ESG and Quality Costs
Chapter 9: Financial Planning and Analysis: The Master Budget
Chapter 10: Standard Costing and Analysis of Direct Costs
Chapter 11: Flexible Budgeting and the Management of Overhead and Support Activity Costs
Chapter 12: Responsibility Accounting and the Balanced Scorecard
Chapter 13: Investment Centers and Transfer Pricing
Chapter 14: Decision Making: Relevant Costs and Benefits
Chapter 15: Target Costing and Cost Analysis for Pricing Decisions
Chapter 16: Capital Expenditure Decisions
Chapter 17: Allocation of Support Activity Costs and Joint Costs
Appendix I: The Sarbanes-Oxley Act, Internal Controls, and Management Accounting
Appendix II: Compound Interest and the Concept of Present Value
Appendix III: Inventory Management
1-2
, Chapter 1
The Changing Role of Managerial Accounting in a Dynamic Business
Environment
True / False Questions
1. Two things that all organizations have in common are a set of goals and information needed
by managers.
TRUE
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01
Feedback True: Correct! All organizations have a set of goals and managers need information to accomplish these goals.
Feedback False: It is true that all organizations have a set of goals and managers need information to accomplish these goals.
2. The role of managerial accounting in organizations is the same as it has been over many
years.
FALSE
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01
Feedback True: The role of managerial accounting has been changing in recent years.
Feedback False: Correct! The role of managerial accounting has been changing in recent years.
1-3
,3. Controlling involves the coordination of daily business functions within an organization.
FALSE
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02
Feedback True: This is actually the definition for directing operational activities, which is a managerial activity.
Feedback False: Correct! This is actually the definition for directing operational activities, which is a managerial activity.
4. Decision making requires managers to choose among the available alternatives.
TRUE
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02
Feedback True: Correct! This is the correct definition for decision making.
Feedback False: This is the correct definition for decision making.
5. The balanced scorecard is an important managerial accounting tool for short-run
competitiveness.
FALSE
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03
Feedback True: The balanced scorecard is an important managerial accounting tool for long-run competitiveness.
Feedback False: Correct! The balanced scorecard is an important managerial accounting tool for long-run competitiveness.
1-4
,6. In most situations, managerial accounting reports solve decision problems.
FALSE
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03
Feedback True: Managerial accounting reports rarely solve a decision problem; instead they direct attention to issues.
Feedback False: Correct! Managerial accounting reports rarely solve a decision problem; instead they direct attention to issues.
7. Middle-level managers would likely be considered internal users of accounting information
rather than external users.
TRUE
AACSB: Reflective Thinking
AICPA BB: Resource Management
AICPA FN: Reporting
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03
Feedback True: Correct! Middle-level managers are generally considered internal users of accounting information.
Feedback False: Middle-level managers are generally considered internal users of accounting information.
8. Measuring the performance of managers and subunits is not an objective of managerial
accounting.
FALSE
AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Research
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04
Feedback True: In fact, measuring the performance of managers and subunits is an objective of managerial accounting..
Feedback False: Correct! In fact, measuring the performance of managers and subunits is an objective of managerial accounting.
1-5
,9. The nature of managerial accounting reports is to focus on the enterprise in its entirety.
FALSE
AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Research
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04
Feedback True: The nature of financial accounting rather than managerial accounting reports is to focus on the enterprise in its entirety.
Feedback False: Correct! The nature of financial accounting rather than managerial accounting reports is to focus on the enterprise in its
entirety.
10. Line positions are indirectly involved in operational activities.
FALSE
AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Research
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-05
Feedback True: Managers in line positions are directly involved in the provision of goods or services.
Feedback False: Correct! Managers in line positions are directly involved in the provision of goods or services.
1-6
,11. The position of chief financial officer (CFO) is typically a staff position.
TRUE
AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Research
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-05
Feedback True: Correct! The position of chief financial officer (CFO) is typically a staff position.
Feedback False: The position of chief financial officer (CFO) is typically a staff position.
12. A controller is normally involved with preparing financial statements.
TRUE
AACSB: Reflective Thinking
AICPA BB: Resource Management
AICPA FN: Reporting
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-06
Feedback True: Correct! A controller is typically involved in the process to prepare financial statements.
Feedback False: A controller is typically involved in the process to prepare financial statements.
13. The treasurer typically is responsible for raising capital and safeguarding the
organization’s assets.
TRUE
AACSB: Reflective Thinking
AICPA BB: Resource Management
AICPA FN: Reporting
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-06
Feedback True: Correct! It is the treasurer that typically raises capital and safeguards the organizational assets.
Feedback False: It is the treasurer that typically raises capital and safeguards the organizational assets.
14. The value chain is a managerial accounting tool that primarily assists in the valuation of
assets.
FALSE
1-7
,AACSB: Reflective Thinking
AICPA BB: Resource Management
AICPA FN: Reporting
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-07
Feedback True: The value chain is a set of linked, value-creating activities, ranging from securing basic raw materials and energy to the
ultimate delivery of products and services.
Feedback False: Correct! The value chain is a set of linked, value-creating activities, ranging from securing basic raw materials and energy
to the ultimate delivery of products and services.
15. All companies define the value chain in the same way.
FALSE
AACSB: Reflective Thinking
AICPA BB: Resource Management
AICPA FN: Reporting
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-07
Feedback True: Different companies define their value chains in different ways, depending upon their strategies.
Feedback False: Correct! Different companies define their value chains in different ways, depending on their strategies.
16. The upper limit on the production of goods and services if everything works perfectly is
known as practical capacity.
FALSE
AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-08
Feedback True: Theoretical capacity is the upper limit on production .
Feedback False: Correct! Theoretical capacity is the upper limit on production .
17. Non-value-added costs are the costs of activities that can be eliminated with no
deterioration of product quality, performance, or perceived value.
TRUE
AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-08
Feedback True: Correct! Managers work to eliminate non-value-added costs since they do not affect performance.
Feedback False: Managers work to eliminate non-value-added costs since they do not affect performance.
1-8
,18. The largest managerial accounting professional association in the U.S. is the Chartered
Institute of Management Accountants.
FALSE
AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-09
Feedback True: The largest managerial accounting professional association in the United States is the Institute of Management Accountants.
Feedback False: Correct! The largest managerial accounting professional association in the United States is the Institute of Management
Accountants.
19. The CMA is a professional certification that managerial accountants can earn to validate
their skills and the specialized knowledge that they possess.
TRUE
AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-09
Feedback True: Correct! The CMA is a professional certification for managerial accountants.
Feedback False: The CMA is a professional certification for managerial accountants.
20. All financial professionals, including managerial accountants, have an obligation to
themselves, their colleagues, and their organizations to adhere to high standards of ethical
conduct.
TRUE
AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-10
Feedback True: Correct! Ethical conduct standards are important to maintain the integrity for all financial professionals.
Feedback False: Ethical conduct standards are important to maintain the integrity for all financial professionals.
1-9
, 21. Legitimate ethical issues rarely impact the managerial accountant.
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