CHAPTER1MANAGEMENTACCOUNTING:INFORMATIONTHATCREATESVALUETRUE/FALSE1.Managementaccountinggathersshort-term,long-term,financial,andnonfinancialinformation.a.Trueb.False2.Managementaccountinginformationgenerallyreportsontheorganizationasawhole.a.Trueb.False3.Companieshavetofollowstrictguidelineswhendesigningamanagementaccountingsystem.a.Trueb.False4.Agoodmanagementaccountingsystemisintendedtomeetspecificdecision-makingneedsatalllevelsintheorganization.a.Trueb.False5.Duringthehistoryofmanagementaccounting,innovationsweredevelopedtoaddressthedecision-makingneedsofmanagers.a.Trueb.False6.Akeyelementinanyorganization’sstrategyistoidentifyitstargetcustomersandtodeliverwhatthosetargetcustomerswant.a.Trueb.False7.Thevaluepropositionhasonlytwoelements:costandquality.a.Trueb.False8.Qualityisthedegreeofconformancebetweenwhatthecustomerispromisedandwhatthecustomerreceives.a.Trueb.False9.Recently,thedemandforimprovedmanagementaccountingandcontrolinformationwithinmanufacturingfirmshasalsooccurredinserviceorganizations.a.Trueb.False10.Recently,thecompetitiveenvironmentforbothmanufacturingandservicecompanieshasbecomefarmorechallenginganddemanding.a.Trueb.False11.Servicecompaniesareverysimilartomanufacturingcompaniesinmayways,includingthefactthatmanyemployeeshavedirectcontactwithcustomers.a.Trueb.False12.Sensitivitytotimelinessandqualityofserviceisespeciallyimportanttoserviceorganizations.a.Trueb.False13.Governmentandnonprofitorganizations,aswellasprofit-seekingenterprises,arefeelingthepressuresforimprovedperformance.a.Trueb.False14.Managementaccountinginformationallowsmanagerstocompareactualandplannedcostsandtoidentifyareasandopportunitiesforprocessimprovement.a.Trueb.False15.Managementaccountingcanprovideinformationoncustomersatisfaction.a.Trueb.False16.ROI(returnoninvestment)combinestwoprofitabilitymeasurestoproduceasinglemeasureofdepartmentalordivisionalperformance.a.Trueb.False17.Around1920,centralizedcontrolofdecentralizedoperationswasaccomplishedbyhavingcorporatemanagersreceivefinancialreportsaboutdivisionaloperationsandprofitability.a.Trueb.False18.Inthelate1990s,littleinterestorattentionwaspaidtoevaluatingmanagement’sappropriategovernanceandstrategychoices.a.Trueb.False19.Financialinformationidentifiesandexplainstheunderlyingproblems.a.Trueb.False20.Managementaccountingmeasurescanprovideadvancewarningsofproblems.a.Trueb.False21.Customersatisfactionisanexampleoffinancialinformation.a.Trueb.False22.Operatingprofitisanexampleofnonfinancialinformation.a.Trueb.False23.Organizationalleadershipplaysacriticalroleinfosteringanorganization’scultureofhighethicalstandards.a.Trueb.False24.Informationisneverneutral;justtheactofmeasuringandreportinginformationaffectstheindividualsinvolved.a.Trueb.False25.Boundarysystemsarealwaysstatedinpositivetermsthatoutlinemaximumstandardsofbehavior.a.Trueb.FalseMULTIPLECHOICE26.Managementaccountinghelpsacompanyachieve:a.itsstrategicobjectivesb.itsoperationalobjectivesc.controlandalsosupportsperformanceevaluationd.Alloftheabovearecorrect.27.Whichofthefollowingtypesofinformationareusedinmanagementaccounting?a.financialinformationb.nonfinancialinformationc.informationfocusedonthelongtermd.Alloftheabovearecorrect.28.Managementaccounting:a.focusesonestimatingfuturerevenues,costs,andothermeasurestoforecastactivitiesandtheirresultsb.providesinformationaboutthec...
