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

Answer:  A
 
 
LO1
Terms:  Management accounting
Difficulty:  2

4. Which of the following descriptors refer to management accounting information?

A) It is only retrospective, reporting and summarizing in financial terms the results of past decisions and transactions.
B) It is driven by rules.
C) It is prepared for shareholders.
D) It is oriented to meeting the decision making needs of employees and managers inside the organization.
 
Answer:  D

 
LO1
Terms:  Management accounting
Difficulty:  1

5. Which of the following would be considered management accounting information?

A) Budgeted production for the current year.
B) Budgeted Balance Sheet.
C) Analysis of trend in stock prices.
D) Both budgeted production for the current year and the budgeted balance sheet.
 
Answer:  D
 
 
LO1
Terms:  Management accounting
Difficulty:  2

6. Management accounting information includes all of the following except:

A) tabulated results of customer satisfaction surveys.
B) the cost of producing a product.
C) the percentage of units produced that is defective.
D) market price of the stock.
 
Answer:  D
 
 
LO1
Terms:  Management accounting
Difficulty:  2

7. Management accounting reports could include information about:

A) customer complaints.
B) net income for the year on budgeted income statement.
C) total assets on budgeted balance sheet.
D) All of the above are correct.
 
Answer:  D
 
 
LO1
Terms:  Management accounting
Difficulty:  2

8. The person most likely to use management accounting information is a(n):

A) banker evaluating a credit application.
B) shareholder evaluating a stock investment.
C) governmental taxing authority.
D) assembly department supervisor.
 
Answer:  D
 
 

 
LO1
Terms:  Management accounting
Difficulty:  2

9. Which of the following is NOT a function of a management accounting system?

A) strategic development
B) financial reporting
C) control
D) product costing
 
Answer:  B
 
 
LO1
Terms:  Financial accounting
Difficulty:  1

10. Financial accounting:

A) focuses on the future and includes activities such as preparing next year's operating budget.
B) does not need to comply with GAAP (generally accepted accounting principles).
C) is primarily oriented to external stakeholders, such as investors, creditors, regulators and tax authorities.
D) is prepared for the use of department heads and other employees.
 
Answer:  C
 
 
LO1
Terms:  Financial accounting
Difficulty:  2

11. The person MOST likely to use ONLY financial accounting information is a:

A) factory shift supervisor.
B) vice president of operations.
C) current shareholder.
D) department manager.
 
Answer:  C
 
 
LO1
Terms:  Management accounting
Difficulty:  2

12. Historically, management accounting innovations have been developed by:

A) the International Accounting Standards Board.
B) the Cost Accounting Standards Board.
C) Academic accountants.
D) Managers.
 
Answer:  D
 
 

 
LO1
Terms:  Management accounting
Difficulty:  2

13. In general, it was not until the 1970s that management accounting systems:

A) were improved because of demands by the FASB and the SEC.
B) stagnated and proved inadequate.
C) started to develop innovations in costing and performance-measurement systems due to intense pressure from overseas competitors.
D) started to address the decision-making needs of managers.