Management Accounting Information for Decision Making 7th edition by Atkinson Test bank

 
 
LO4
Terms:  Database and information systems
Difficulty:  1
12.       Database and information systems are physical assets that create distinctive value for companies.
 
Answer:  FALSE
Explanation:  Database and information systems are intangible assets.
 
 
LO4
Terms:  Balanced scorecard
Difficulty:  1
13.       The balanced scorecard measures organizational performance across five different but linked perspectives.
 
Answer:  FALSE
Explanation:  The balanced scorecard measures organizational performance across four different but linked perspectives that are derived from the organization's mission, vision, and strategy.
 
 
LO4
Terms:  Learning and growth perspective
Difficulty:  1
14.       The learning and growth perspective addresses what employee capabilities, information systems, and organizational capabilities we need to continually improve.
 
Answer:  TRUE
 
 

 
LO4
Terms:  Process perspective
Difficulty:  2
15.       The customer perspective of the balanced scorecard focuses on excellence in processes which satisfy customers.
 
Answer:  FALSE
Explanation:  The process perspective of the balanced scorecard focuses on excellence in processes which satisfy customers.
 
 
LO4
Terms:  Customer perspective
Difficulty:  2
16.       Important measures in the customer perspective usually include the percentage of repeat customers and growth in sales to existing customers.
 
Answer:  TRUE
 
 
LO5
Terms:  Nonfinancial information
Difficulty:  2
17.       The design and introduction of new measurements and systems must be accompanied by an analysis of the behavioral and organizational reactions to the measurements.
 
Answer:  TRUE
 
LO5
Terms:  Measurements
Difficulty:  2
18.  People react when they are being measured, and they react to the measurements.
 
Answer:  TRUE
 
 
LO5
Terms:  Financial information, nonfinancial information
Difficulty:  2
19.       Information is never neutral; just the act of measuring and reporting information affects the individuals involved.
 
Answer:  TRUE
 

 
   
 
LO1
Terms:  Management accounting
Difficulty:  2

1. Management accounting information can be used for all of the following except:

A) Calculate the cost of a product or service.
B) evaluate the performance of a company.
C) project materials needs.
D) evaluate the market price of the stock.
 
Answer:  D
 
 
LO1
Terms:  Management accounting
Difficulty:  1

2. Which of the following types of information are used in management accounting?

A) financial information
B) nonfinancial information
C) information focused on the long term
D)  All of the above are correct.
 
Answer:  D
 
 
LO1
Terms:  Management accounting
Difficulty:  2

3. Management accounting:

A) is both retrospective, providing feedback about past operations, and also prospective, incorporating forecasts and estimates about future events.
B) is primarily oriented to external stakeholders.
C) must be consistent with rules formulated by the Financial Accounting Standards Board (FASB).
D) provides information that is generally available only on a quarterly or annual basis.