Ch. 10 Questions: 1. (a) Budgetary control is when a company controls its operations with budgets. Companies will use certain budget reports to compare actual results for their planned objectives. (b) There are four steps that Greg should include in his d
A) is both retrospective, providing feedback about past operations, and also prospective,
incorporating forecasts and estimates about future events.
B) is primarily oriented to external stakeholders.
C) must be consistent with rules
Which of the following types of information are used in management accounting?
A) financial information
B) nonfinancial information
C) information focused on the long term
D) All of the above are correct.
Management accounting information is primarily oriented to external stakeholders, such as
investors, creditors, regulators, and tax authorities.
Explanation: Management accounting information is primarily oriented to management.
For quarter ended july 2014
April may june
price per unit
For quarter ended july 2014
1. Identify the different types of receivables.
They refer to the amount due from individual and other companies. They are claims that
are expected to be collected in cash. They are frequently classified as accounts
Write a 350- to 700-word summary explaining the differences between revenue expenditures and
capital expenditures during a useful life and identifying any similarities. Briefly explain the entries of
revenue expenditures and capital expenditures.
Long term liabilities are obligations that are expected to be paid after one year. Long term obligations are
in the form of bonds and long term notes. Bonds are a form of interest-bearing notes payable. To obtain
large amounts of long term cap
Review page 413 that discusses natural resources and how depletion is calculated. Describe your
understanding of the depletion process and how it compares to the depreciation process for plant
The depreciation process for plant assets are compared
Determine property, plant, and equipment costs.
Trudy Company incurred the following costs.
1. Sales tax on factory machinery purchased $ 5,000 (Equipment)
2. Painting of and lettering on truck immediately upon purchase 700 (Equipment)
A national company manufactures a line of modern furniture. Information MOST useful to the top
A) individual job summaries of materials used.
B) monthly financial reports on the company's profitability by product line.
C) time reports
Management accounting is subject to the rules formulated by standard setters such as the Financial
Accounting Standards Board (FASB).
Explanation: Financial accounting is subject to the rules of the FASB.
Management accounting information can be used for all of the following EXCEPT:
A) calculate the cost of a product or service.
B) evaluate the performance of a company.
C) project materials needs.
D) evaluate the market price of the stock.
Which statement below is FALSE?
A) "What gets measured gets managed."
B) People react to measurements.
C) Employees spend more attention on those variables that are not getting measured.
D) "If I can't measure it, I can't manage it."
The act of simply measuring and reporting information on certain processes:
A) focuses the attention of employees on those processes that are being measured.
B) diverts the employee's attention to other activities that are not being measured.
Discuss the potential behavior implications of performance evaluation.
As measurements are made on operations and, especially, on individuals and groups, the behavior of
the individuals and groups are affecte.D
People react to the measurements bei
The Institute of Management Accountants (IMA):
A) is a professional organization of management accountants.
B) is a professional organization of financial accountants.
C) issues standards for management accounting.
D) a professional organization of manage
The introduction of a new management accounting system is MOST likely to motivate UNWANTED
employee behavior when it is used for:
C) decision making.
D) coordinating individual efforts.