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

b) partnership
c) corporation
d) all forms of business organizations
 
13. Which of the following is false in terms of the reason companies replace a CEO with a management committee?
a) To enhance decision-making
b) To improve collaboration.
c) To avoid disruption associated with replacing a CEO.
d) To reduce management continuity.
 
 
14. Managerial accounting is also called
a) inside reporting.
b) cost accounting.
c) management accounting.
d) strategic management.
 
 
15. Which of the following is not an internal user?
a) corporate officers
b) staff employees
c) stockholders
d) department manager
 
 
16. Which of the following is not part of managerial accounting?
a) determining whether planned goals are being met
b) reporting financial information to the shareholders
c) calculating product costs
d) controlling costs
 
 
17. Which of the following uses managerial accounting?
a) manufacturing and service entities, but not merchandising
b) profit-oriented businesses only
c) service, manufacturing, and merchandising entities
d) only manufacturing entities
 
 
18. Which one of the following tasks would not be performed by a management accountant?
a) being concerned with the impact of cost and volume on profits
b) strategic cost management
c) assisting in budget planning
d) preparing reports primarily for external users
 
 
19. How often are internal managerial reports communicated?
a) as frequently as needed
b) annually
c) during every audit by the company’s CPA
d) monthly
 
 
20. Which description identifies financial statements that are prepared for external users?
a) external reports
b) special purpose
c) user-specific
d) general-purpose
 
 
21. Which term describes managerial accounting reports?
a) GAAP reports
b) special purpose
c) general-purpose
d) regulatory reports
 
 
22. Which of the following statements about internal reports is true?
a) Most internal reports are summarized rather than detailed.
b) Internal reports focus on general-purpose needs of users.
c) The content of internal reports extends beyond the double-entry accounting system.
d) Internal reports are often very general.
 
 
23. Which one of the following describes internal reports?
a) They are often audited by CPAs.
b) They must be prepared according to GAAP.
c) They are aggregated.
d) They are detailed.
 
 
24. Which of the following reports would management find useful in decision making?
a) monthly reports on activities to the Board of Directors
b) quarterly reporting to the Toronto Stock Exchange
c) specific purpose statements on services delivered
d) audited financial information in the annual report to shareholders
 
 
25. How often should management receive or prepare reports on its internal process activities?
a) on a fixed time basis
b) as often as is necessary
c) never more than monthly
d) weekly
 
 
26. How often should management receive or prepare reports on its external business process activities?
a) as they correspond to external financial reporting
b) never more than monthly
c) according to the company’s business cycle
d) as often as is necessary
 
27. A company must inform readers of its annual report of
a) all changes in financial accounting policies.
b) results of any overseas activities.
c) all changes in internal accounting information.
d) changes to management’s bonus system.
 
 
28. How could management information assist in motivating its employees?
a) By keeping track of quality improvements.
b) By highlighting the company’s percent of market share.
c) By presenting the statistics on plant safety.
d) All areas would benefit from providing internal management information.
 
 
29. In establishing a good internal reporting system, a company should
a) ensure that these reports agree to generally accepted accounting principles.
b) have the Board of Directors agree to the information provided.
c) establish clearly understood standards of performance.
d) All of the above are valid reasons.
 
 
30. What broad functions do the management of an organization perform?
a) directing, manufacturing, and controlling
b) planning, directing, and controlling
c) planning, directing, and selling
d) planning, manufacturing and controlling