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
Fostering a culture of high ethical standards includes all of the following EXCEPT:
A) following the good example set by senior management.
B) communicating to employees a belief system that inspires and promotes commitment to the
organization's core valu
Is financial accounting or management accounting more useful to an operations manager? Why?
Management accounting is more useful to an operations manager because management accounting
reports operating results by department or unit rather than for
Give two examples of financial information and nonfinancial information.
Financial information includes amounts that can be expressed in dollar amounts such as sales, net
income, and total assets. It also includes ratios prepared using financial i
Financial accounting information:
A) provides a signal that something is wrong.
B) identifies what is wrong.
C) explains what is wrong.
D) simply summarizes information but gives no indication that anything is wrong.
The person MOST likely to use management accounting information is a(n):
A) banker evaluating a credit application.
B) shareholder evaluating a stock investment.
C) governmental taxing authority.
D) assembly department supervisor.
Management accounting information includes all of the following EXCEPT:
A) tabulated results of customer satisfaction surveys.
B) the cost of producing a product.
C) the percentage of units produced that is defective.
D) market price of the stock.
traditional theory of consumer choice from microeconomics, so that its
implications are consistent with the empirical findings from the literature on
psychological well-being? Bridging psychology and economic theory is the central
purpose of an important
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."
through land reform (wealth redistribution) designed to more or less equalize
landholdings, and/or through export restrictions. To sum up, the discussions in this
section clearly suggest that the failure of poverty alleviation programs in
explain how. If you cannot infer a ranking, explain why not. b) On the graph, shade
in (and clearly label) the areas that are revealed to be less preferred to basket B,
and explain why you indicated these areas. c) On the graph, shade in (and clearly
marginal utility is positive. Second, you can look at the marginal utility of the good
to see if it is a positive number. When the marginal utility is a positive number, the
total utility will increase when more of the good is consumed. Some utility
two years the law requires the 4You may recognize that this equation is an
approximation of the change in utility that results from changing x and y by x and
y, respectively. The approximation becomes more accurate when x and y are small
because the margi
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.
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.
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
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
Which of the following would be considered management accounting information?
A) Budgeted production for the year 2011.
B) Budgeted Balance Sheet.
C) Analysis of trend in stock prices.
D) Both budgeted production for the year of 2011, and the budgeted bal
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.
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
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)
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
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
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.