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

A product line.

A production department.

All the above.

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

22. Which of the following statements is true?
    1. Management accounting and financial accounting both focus exclusively on financial information.
    2. Management accounting and financial accounting both follow strict reporting rules that are laid down by accounting regulators.
    3. Management accounting is primarily internally focused while financial accounting is primarily externally focused.
    4. Managers inside organizations rely heavily on both management accounting and financial accounting when making operating decisions such as what to produce.

 
Answer: C
 
 

 
LO1
Terms:  Role of management accounting
Difficulty:  1

23. Which of the following items would not usually be part of the focus of management accounting?
    1. The cost of production.
    2. The quality of production.
    3. Providing information to support developing the organization’s strategy.
    4. Tracking the company’s share price.

 
Answer: D
 
 
LO2
Terms:  Evolution of management accounting
Difficulty:  2

24. The first modern industry in the United States to develop and use large quantities of financial statistics to assess and monitor organizational performance was:

A) steel companies.
B) lumber companies.
C) the railroads.
D) automobile companies.
 
Answer:  C
 
 
LO3
Terms:  Financial and nonfinancial information
Difficulty:  2

25. Managers of service departments need all of the following information, except:

A) efficiency data on work performance.
B) quality data on work performance.
C) profitability data of the whole company.
D) profitability data of the service department.
 
Answer:  C
 
 
LO3
Terms:  Financial and nonfinancial information
Difficulty:  2

26. A law firm would use management accounting information for all of the following decisions except:

A) staffing needs.
B) performance evaluation of staff.
C) budgeted purchases of supplies.
D) location of annual holiday party.
 
Answer:  D
 

 
LO3
Terms:  Management accounting
Difficulty:  2

27. Management accounting can play a critical role in the service industry because of all the following reasons, except:

A) firms must be especially sensitive to the timeliness and quality of customer service.
B) many employees have very little contact with customers.
C) customers immediately notice defects and a delay in service.
D) dissatisfied customers may never return.
 
Answer:  B
 
 
LO3
Terms:  Nonfinancial information
Difficulty:  2

28. For improving operational efficiencies and customer satisfaction, nonfinancial information is:

A) critical.
B) moderate.
C) infrequently used.
D) unnecessary.
 
Answer:  A
 
 
LO3
Terms:  Nonfinancial information
Difficulty:  2

29. Nonfinancial information might be used for all of the following except:

A) improve product quality.
B) reduce cycle times.
C) satisfy customers' needs.
D) All of the above are used.
 
Answer:  D
 
 
LO4
Terms:  Performance measurement systems
Difficulty:  1

30. The roles of performance measurement systems in organizations include all the following except:

A) motivate employees to help the organization achieve its strategic objectives.
B) help managers with resource allocation.