Controlling is the process of determining whether planned goals are being met
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18. Directing is the process of determining whether planned goals are being met.19. Decision-making is an integral part of the planning, directing, and motivatingfunctions, but not of the controlling function.20. Organization charts are common in companies but not relevant to managerialaccounting.21. The term “line position” is interchangeable with “staff position.”22. The CFO has overall responsibility for managing the business.23. Employees with staff positions serve other employees, while those with line positionswork directly in line with the company’s revenue generating goals.24. The CEO is directly responsible for the company’s complement of accounting andfinancial goals.25. The controller, treasurer, and internal audit staff are direct reports of the CFO.26. Generally Accepted Accounting Principles (GAAP) form the backbone of managerialaccounting conventions, and local and/or regional standards and professional judgementallow for variations among practitioners. Show 27. The Sarbanes-Oxley Act in the U.S. and similar legislation in Canada aims to guideethical standards used in management accounting practices.28. The triple bottom line focuses on assessing a company’s performance in three areas:people, planet, and profit.29. Whereas management accountants used to be responsible for strategic costmanagement, their modern-day responsibilities are more focused on collecting andreporting costs to management.30. Activity-based costing is a method of allocating overhead costs to products.31. The theory of constraints is used to measure performance.32. The focus of a TQM system is to reduce defects in finished products.33. The balanced scorecard approach attempts to maintain as little inventory on hand aspossible.34. The value chain is affected by technology through business-to-business on theInternet.35. A value chain refers to all the activities associated with providing a product orservice.36. Lean manufacturing is being used less often by manufacturing firms.37. Lean manufacturing is in contrast to traditional mass-production operations.38. Firms that use large amounts of direct labour to produce their products are apt to uselean manufacturing. ANSWERS TO TRUE-FALSE STATEMENTSItemAns.ItemAns.ItemAns.ItemAns.ItemAns.ItemAns.1.F8.F15.F22.F29.F36.F2.F9.T16.T23.T30.T37.T3.F10.F17.F24.F31.F38.F4.T11.F18.F25.T32.T5.F12.F19.F26.F33.F6.F13.T20.F27.F34.T7.T14.T21.F28.T35.T MULTIPLE CHOICE QUESTIONS Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document 37. In a manufacturing company balance sheet, manufacturing inventories are reported in the current assets section in the order of their expected use in production. MULTIPLE CHOICE QUESTIONS 38. Managerial accounting applies to each of the following types of businesses except a. service firms. b. merchandising firms. c. manufacturing firms. d. Managerial accounting applies to all types of firms. 39. Managerial accounting information is generally prepared for a. stockholders. b. creditors. c. managers. d. regulatory agencies. 40. Managerial accounting information a. pertains to the entity as a whole and is highly aggregated. b. pertains to subunits of the entity and may be very detailed. c. is prepared only once a year. d. is constrained by the requirements of generally accepted accounting principles. 41. The major reporting standard for presenting managerial accounting information is a. relevance. b. generally accepted accounting principles. c. the cost principle. d. the current tax law. 42. Managerial accounting is also called a. management accounting. b. controlling. c. analytical accounting. d. inside reporting. 43. Which of the following is not an internal user? a. Creditor b. Department manager c. Controller d. Treasurer 44. Managerial accounting does not encompass a. calculating product cost. b. calculating earnings per share. c. determining cost behavior. d. profit planning. 45. Managerial accounting is applicable to a. service entities. b. manufacturing entities. c. not-for-profit entities. d. all of these. 46. Management accountants would not a. assist in budget planning. b. prepare reports primarily for external users. c. determine cost behavior. d. be concerned with the impact of cost and volume on profits. 47. Internal reports must be communicated a. daily. b. monthly. c. annually. d. as needed. 48. Financial statements for external users can be described as a. user-specific. b. general-purpose. c. special-purpose. d. managerial reports. 49. Managerial accounting reports can be described as a. general-purpose. b. macro-reports. c. special-purpose. d. classified financial statements. 50. The reporting standard for external financial reports is a. industry-specific. b. company-specific. c. generally accepted accounting principles. d. department-specific. 51. Which of the following statements about internal reports is not true? a. The content of internal reports may extend beyond the double-entry accounting system. b. Internal reports may show all amounts at market values. c. Internal reports may discuss prospective events. d. Most internal reports are summarized rather than detailed. 52. In an analogous sense, external user is to internal user as generally accepted accounting principles are to a. timely. b. special-purpose. c. relevance to decision. d. SEC. 53. Internal reports are generally a. aggregated. b. detailed. c. regulated. d. unreliable. 54. A distinguishing feature of managerial accounting is a. external users. b. general-purpose reports. c. very detailed reports. d. quarterly and annual reports. 55. What activities and responsibilities are not associated with management's functions? a. Planning b. Accountability c. Controlling d. Directing 56. Planning is a function that involves a. hiring the right people for a particular job. b. coordinating the accounting information system. c. setting goals and objectives for an entity. d. analyzing financial statements. 57. The managerial function of controlling a. is performed only by the controller of a company. b. is only applicable when the company sustains a loss. c. is concerned mainly with operating a manufacturing segment. d. includes performance evaluation by management. 58. Which of the following is not a management function? a. Constraining b. Planning c. Controlling d. Directing 59. A manager that is establishing objectives is performing which management function? a. Controlling b. Directing c. Planning d. Constraining 60. The management function that requires managers to look ahead and establish objectives is a. controlling. b. directing. c. planning. d. constraining. 61. In determining whether planned goals are being met, a manager is performing the function of a. planning. b. follow-up. c. directing. d. controlling. 62. Which of the following is not a separate management function? a. Planning b. Directing c. Decision-making d. Controlling More Questions are included Is it true that managerial accounting internal reports are prepared more frequently than are classified financial statements?Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports. True. Managerial accounting internal reports are prepared more frequently than are classified financial statements.
Is Managerial Accounting highly aggregated?Managerial accounting:
Pertains to the entity as a whole and is highly aggregated.
What is managerial accounting?Definition. Managerial accounting is the practice of using accounting information — from revenues to production inputs and outputs affecting the supply chain — internally, in support of organization-wide efficiency and for tracking the organization's progress toward attaining its stated goals.
What is work in process inventory generally described as?What does work in process inventory mean? Work in process (WIP) inventory refers to the total cost of unfinished goods currently in the production process at the end of each accounting period. It is also considered a current asset on a company's balance sheet.
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