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

 
Answer:  C
 
 
LO1
Terms:  Financial accounting
Difficulty:  2

14. Financial accounting information:

A) provides a signal that something is wrong.
B) identifies what is wrong.
C) explains what is wrong.
D) simply summarizes information but does not indicate whether anything is wrong.
 
Answer:  D
 
 
LO1
Terms:  Management accounting
Difficulty:  1

15. Management accounting information is BEST described as:

A) providing a signal that something is wrong.
B) identifying and helping to explain what is wrong.
C) simply summarizing information, but giving no indication that anything is wrong.
D) measuring overall organizational performance.
 
Answer:  B
 
 
LO1
Terms:  Management accounting
Difficulty:  1

16. Which of the following statements is not true about management accounting?

1. Management accounting follows strict reporting rules.
2. Management accounting can sometimes report nonfinancial information.
3. Management accounting reports can include estimated costs or revenues.
4. Management accounting information is seldom provided to people outside the organization.

 
Answer: A

 
LO1
Terms:  Strategy
Difficulty:  1

17. Which of the following statements is not true about strategy?

1. Strategy is about making choices about what decisions to make and not to make.
2. Strategy is about choosing the best fit between the organization’s resources and its opportunities.
3. Strategy is about finding ways to achieve the organization’s objectives.
4. Organizations are required to report their chosen strategy in their financial

 
Answer: D
 
 
LO1
Terms:  Roles of management accounting
Difficulty:  1

18. Which of the following organization levels is most likely to find detailed information about the cost of a particular component of a product most useful?

1. The board of directors.
2. The organization’s chief operating officer.
3. The organization’s chief financial officer.
4. A production supervisor.

 
Answer: D
 
 
LO1
Terms:  Management accounting and financial accounting differences
Difficulty:  1

19. Which of the following statements does your text suggest is true?

1. Financial accounting information tends to be backward looking and management accounting information forward looking
2. Financial accounting focuses on financial numbers while management accounting focuses on both financial numbers and non-financial numbers
3. Financial accounting reporting is driven by rules developed by standard setters while management accounting reporting is driven by the needs of decision makers
4. The text suggests that all these statements are true

 
Answer: D
 
 

 
LO1
Terms:  Management accounting and financial accounting differences
Difficulty:  1

20. Which of the following statements is false about management accounting?
    1. Management accounting includes both financial and non-financial information.
    2. Management accounting information often includes estimates about future revenues and costs.
    3. Management accounting information must obey the strict rules developed by accounting authorities.
    4. Management accounting is prepared for decision makers inside the organization.

 
Answer: C
 
 
LO1
Terms:  Cost object
Difficulty:  2

21. Which of the following is a potential cost object in management accounting?
    1. A unit of production.