TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1) Controlling means overseeing the company's day- to- day operations.
Answer: True False
2) Managerial accounting gathers, summarizes, and reports the cost and revenue data relevant to decisions.
Answer: True False
3) Managerial accounting focuses on providing shareholders and creditors with the information they need to make
investment and lending decisions.
Answer: True False
4) Financial accounting focuses on providing internal management with the information it needs to run an
organization efficiently and effectively.
Answer: True False
5) Evaluating the results of business operations against a plan and then making adjustments to that plan is called
budgeting.
Answer: True False
6) The four primary responsibilities of managers are planning, directing, controlling, and decision making.
Answer: True False
7) Managerial accounting develops reports that help internal parties effectively and efficiently run the company.
Answer: True False
8) Directing means setting goals and objectives for the company and determining how to achieve them.
Answer: True False
9) Budgets are the quantitative expression of management's plans.
Answer: True False
10) Making adjustments to keep the company moving forward is related to the management responsibility of
controlling.
Answer: True False
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
11) Planning involves which of the following activities?
A) Overseeing the company's day-to- day operations
B) Getting feedback on results
C) Evaluating the results of operations
D) Setting goals and objectives for the company
Answer: D
12) When management compares the budget to actual results, which of the following is being fulfilled?
A) Decision- making B) Directing C) Controlling D) Planning
Answer: C
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13) Which of the following management responsibilities are being fulfilled when management uses feedback to
take corrective action on the budgets?
A) Controlling and decision- making B) Directing and planning
C) Planning and controlling D) Planning and decision-making
Answer: A
14) Which one of the following manager responsibilities encompasses the other three?
A) Controlling B) Planning C) Decision- making D) Feedback
Answer: C
15) Using product cost information to determine sales prices is an example of
A) controlling, planning, and decision-making. B) directing, planning, and decision- making.
C) controlling, directing, and planning. D) directing, controlling, and planning.
Answer: B
16) Using hourly sales reports to determine the level of staffing needed to service customers fulfills which of
management's four primary responsibilities?
A) Directing, planning, and decision- making B) Controlling, planning, and decision-making
C) Analyzing, directing, and planning D) Directing, controlling, and planning
Answer: A
17) Budgets are the way that managers can express their
A) plans. B) control. C) decision-making. D) hiring practices.
Answer: A
18) Comparing actual results to budgets is an example of the management function of
A) controlling. B) decision-making. C) directing. D) planning.
Answer: A
19) Overseeing the day- to- day operations of a company is an example of the management function of
A) controlling. B) decision-making. C) directing. D) planning.
Answer: C
20) Preparing budgets is an example of the management function of
A) controlling. B) decision-making. C) directing. D) planning.
Answer: D
21) Evaluating results against the plan is an example of the management function of
A) controlling. B) decision-making. C) directing. D) planning.
Answer: A
22) Management accounting
A) creates technical reports that require external audit for verification.
B) helps managers make decisions.
C) is the same as cost accounting.
D) is useful for external and internal users.
Answer: B
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23) The budgetary control function may include evaluating the difference
A) between the historical cost and the current cost.
B) between budgeted amounts and actual results.
C) between current operating costs and last year's operating costs.
D) between the original budget and the final adjusted budget.
Answer: B
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
24) What are the four primary responsibilities of managers as described in Chapter 1? Give an example of each type
of responsibility.
Answer: The following are managers' four primary responsibilities:
a. Planning: An example of planning is when the manager of a local McDonald's restaurant makes the schedule
1) Controlling means overseeing the company's day- to- day operations.
Answer: True False
2) Managerial accounting gathers, summarizes, and reports the cost and revenue data relevant to decisions.
Answer: True False
3) Managerial accounting focuses on providing shareholders and creditors with the information they need to make
investment and lending decisions.
Answer: True False
4) Financial accounting focuses on providing internal management with the information it needs to run an
organization efficiently and effectively.
Answer: True False
5) Evaluating the results of business operations against a plan and then making adjustments to that plan is called
budgeting.
Answer: True False
6) The four primary responsibilities of managers are planning, directing, controlling, and decision making.
Answer: True False
7) Managerial accounting develops reports that help internal parties effectively and efficiently run the company.
Answer: True False
8) Directing means setting goals and objectives for the company and determining how to achieve them.
Answer: True False
9) Budgets are the quantitative expression of management's plans.
Answer: True False
10) Making adjustments to keep the company moving forward is related to the management responsibility of
controlling.
Answer: True False
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
11) Planning involves which of the following activities?
A) Overseeing the company's day-to- day operations
B) Getting feedback on results
C) Evaluating the results of operations
D) Setting goals and objectives for the company
Answer: D
12) When management compares the budget to actual results, which of the following is being fulfilled?
A) Decision- making B) Directing C) Controlling D) Planning
Answer: C
1
13) Which of the following management responsibilities are being fulfilled when management uses feedback to
take corrective action on the budgets?
A) Controlling and decision- making B) Directing and planning
C) Planning and controlling D) Planning and decision-making
Answer: A
14) Which one of the following manager responsibilities encompasses the other three?
A) Controlling B) Planning C) Decision- making D) Feedback
Answer: C
15) Using product cost information to determine sales prices is an example of
A) controlling, planning, and decision-making. B) directing, planning, and decision- making.
C) controlling, directing, and planning. D) directing, controlling, and planning.
Answer: B
16) Using hourly sales reports to determine the level of staffing needed to service customers fulfills which of
management's four primary responsibilities?
A) Directing, planning, and decision- making B) Controlling, planning, and decision-making
C) Analyzing, directing, and planning D) Directing, controlling, and planning
Answer: A
17) Budgets are the way that managers can express their
A) plans. B) control. C) decision-making. D) hiring practices.
Answer: A
18) Comparing actual results to budgets is an example of the management function of
A) controlling. B) decision-making. C) directing. D) planning.
Answer: A
19) Overseeing the day- to- day operations of a company is an example of the management function of
A) controlling. B) decision-making. C) directing. D) planning.
Answer: C
20) Preparing budgets is an example of the management function of
A) controlling. B) decision-making. C) directing. D) planning.
Answer: D
21) Evaluating results against the plan is an example of the management function of
A) controlling. B) decision-making. C) directing. D) planning.
Answer: A
22) Management accounting
A) creates technical reports that require external audit for verification.
B) helps managers make decisions.
C) is the same as cost accounting.
D) is useful for external and internal users.
Answer: B
2
23) The budgetary control function may include evaluating the difference
A) between the historical cost and the current cost.
B) between budgeted amounts and actual results.
C) between current operating costs and last year's operating costs.
D) between the original budget and the final adjusted budget.
Answer: B
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
24) What are the four primary responsibilities of managers as described in Chapter 1? Give an example of each type
of responsibility.
Answer: The following are managers' four primary responsibilities:
a. Planning: An example of planning is when the manager of a local McDonald's restaurant makes the schedule