atkinson5etif_ch01 - CHAPTER 1 MANAGEMENT ACCOUNTING:...

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CHAPTER 1 MANAGEMENT ACCOUNTING: INFORMATION THAT CREATES VALUE TRUE/FALSE 1. Controlling activities focus on projecting product or service cost. a. True b. False 2. Management accounting information generally reports on the organization as a whole. a. True b. False 3. The International Accounting Standards Board sets the guidelines used for management accounting. a. True b. False 4. A good management accounting system is intended to meet specific decision-making needs at all levels in the organization. a. True b. False 5. During the history of management accounting, innovations were developed to address the decision-making needs of managers. a. True b. False 6. A key element in any organization’s strategy is to identify its target customers and to deliver what those target customers want. a. True b. False 7. The value proposition has only two elements: price and quality. a. True b. False 8. Quality is the degree of conformance between what the customer is promised and what the customer receives. a. True b. False 9. Management accounting information is sometimes predictive and forward looking. a. True b. False 1
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10. Functionality refers to the performance of a product or service. a. True b. False 11. Management accounting innovations are usually developed by academics. a. True b. False 12. Sensitivity to timeliness and quality of service is especially important to service organizations. a. True b. False 13. Government and nonprofit organizations, as well as profit-seeking enterprises, are feeling the pressures for improved performance. a. True b. False 14. Management accounting information allows managers to compare actual and planned costs and to identify areas and opportunities for process improvement. a. True b. False 15. Management accounting can provide information on customer satisfaction. a. True b. False 16. The Federal Accounting Standards Advisory Board sets cost accounting standards for all federal government activities. a. True b. False 17. The primary objective of governmental and not-for-profit organizations is to provide services to the citizens or clients. a. True b. False 18. Corporations may try to project a favorable image by adopting a Code of Ethics. a. True b. False 19. Management accounting measures can provide advance warnings of problems. a. True b. False 2
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20. Information about customer satisfaction is an example of financial information. a. True b. False 21. Operating profit is an example of nonfinancial information. a. True b. False 22. Organizational leadership plays a critical role in fostering an organization’s culture of high ethical standards. a. True b. False 23. Information is never neutral; just the act of measuring and reporting information affects the individuals involved. a.
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atkinson5etif_ch01 - CHAPTER 1 MANAGEMENT ACCOUNTING:...

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