Managerial Accounting: Tools for Business Decision-Making 6th Canadian Edition by Jerry J. Weygandt

36.
MC
88.
BE
110.
C
 
 

4.
TF
29.
MC
33.
MC
37.
MC
89.
BE
111.
C
 
 

26.
MC
30.
MC
34.
MC
38.
MC
97.
Ex
114.
SAE
 
 

27.
MC
31.
MC
35.
MC
39.
MC
109.
C
 
 
 
 

Learning Objective 3

40.
MC
44.
MC
48.
MC
52.
MC
102.
Ex
 
 
 
 

41.
MC
45.
MC
49.
MC
90.
BE
103.
Ex
 
 
 
 

42.
MC
46.
MC
50.
MC
91.
BE
115.
SAE
 
 
 
 

43.
MC
47.
MC
51.
MC
101.
Ex
116.
SAE
 
 
 
 

Learning Objective 4

5.
TF
59.
MC
66.
MC
73.
MC
80.
MC
92.
BE
117.
SAE

53.
MC
60.
MC
67.
MC
74.
MC
81.
MC
93.
BE
 
 

54.
MC
61.
MC
68.
MC
75.
MC
82.
MC
94.
BE
 
 

55.
MC
62.
MC
69.
MC
76.
MC
83.
MC
95.
BE
 
 

56.
MC
63.
MC
70.
MC
77.
MC
84.
MC
104.
Ex
 
 

57.
MC
64.
MC
71.
MC
78.
MC
85.
MC
105.
Ex
 
 

58.
MC
65.
MC
72.
MC
79.
MC
86.
MC
112.
Ma
 
 

 
Note:     TF   =   True-False     C    =   Completion                 BE =    Brief Exercise
              MC     =                                 Multiple Choice   Ex   = Exercise                     SAE      =               Short-Answer Essay
              Ma  =   Matching

CHAPTER LEARNING OBJECTIVES
 
 
1. Explain the distinguishing features of managerial accounting.
Managerial accounting is needed in all types of businesses—service, merchandising, and manufacturing. It also applies to all forms of business organization—proprietorships, partnerships, and corporations. Managerial accounting is needed in not-for-profit entities, as well as in profit-oriented enterprises. Managerial accounting provides tools that help management make decisions and evaluate the effectiveness of those decisions.
The distinguishing features of managerial accounting are
∙       the primary users of reports—internal users, who are officers, department heads, managers, and supervisors in the company;
∙       the type and frequency of reports—internal reports that are issued as frequently as needed;
∙       the purpose of reports—to provide special-purpose information for a particular user for a specific decision;
∙       the content of reports—pertains to subunits of the business and may be very detailed and may extend beyond the double-entry accounting system; the reporting standard is relevant to the decision being made; and
∙       the verification of reports—no independent audits.
 
2. Identify the three broad functions of management and the role of management accountants in an organizational structure.
The three functions are planning, directing, and controlling. Planning requires management to look ahead and to establish objectives. Directing involves coordinating a company’s diverse activities and human resources to produce a smoothly running operation. Controlling is the process of keeping the activities on track.
Management accountants serve as staff members in an organization and play an important role in providing the required information for decision making.