Multiple Choice Questions
1. Much of managerial accounting is directed at gathering useful information about costs for planning and control decisions.
A) True
B) False
2. Managerial accounting is an activity that provides financial and nonfinancial information to an organization's managers and other internal decision makers.
A) True
B) False
3. Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it, and estimates and projections are acceptable.
A) True
B) False
4. Financial accounting relies on accepted principles that are enforced through an extensive set of rules and guidelines; on the other hand, managerial accounting systems are flexible.
A) True
B) False
5. Both financial and managerial accounting report monetary information; managerial accounting also reports considerable nonmonetary information.
A) True
B) False
6. The concept of total quality management focuses on continuous improvement.
A) True
B) False
7. When the attitude of continuous improvement exists throughout an organization, every manager and employee seeks to continuously experiment with new and improved business practices.
A) True
B) False
8. The management concept of customer orientation causes a company to spend large amounts on advertising to convince customers to buy the company's standard products.
A) True
B) False
9. Total quality management and just-in-time manufacturing are two modern systems designed to improve the quality of management and the products and services offered.
A) True
B) False
10. The balanced scorecard aids in continuous improvement by augmenting financial measures with drivers or indicators of future financial performance.
A) True
B) False