Question 1

An organization's employees use managerial accounting data to determine:

Accepted Answer

A)   Who to hire and how to pay them.
B)   Which products and services to offer.
C)   The prices of products and services.
D)   What equipment to purchase.
E)   All of the above.F) B) and C)
G) A) and E)

Question 2

Which one of the following is the best example of an organizational goal?

Accepted Answer

A)   Ensuring that costs exceed benefits.
B)   Maximizing shareholder value.
C)   Paying significant dividends.
D)   Launching a new product that is known to have potential defects.E) A) and B)
F) A) and C)

Question 3

The primary role of accounting is to help measure the costs and benefits of decision options.

Accepted Answer

A) True 
 B)False

Question 4

The planning and control cycle is a long-term cycle normally taking months to complete.

Accepted Answer

A) True 
 B)False

Question 5

In the planning and control cycle, the Plan stage deals with:

Accepted Answer

A)   Use of resources to make products and deliver services.
B)   Actual results.
C)   Performance targets.
D)   Products and services.
E)   Reasons for deviations.F) A) and E)
G) A) and C)

Question 6

Every option in making a decision presents a unique trade-off between benefits and costs.

Accepted Answer

A) True 
 B)False

Question 7

Janice is traveling to see a friend in New York next month and she is trying to decide whether to fly or take the train. She found a round-trip airline ticket for $170. Janice feels that traveling on the train would be more convenient and she was able to find a ticket for $159, however the total trip time traveling by train will take two hours more than by plane. Janice should:

Accepted Answer

A)   Take the train because it is the least expensive option.
B)   Take the train because it is the most convenient option.
C)   Take the plane if her goal is to spend as much time as possible with her friend.
D)   Take the plane because it has been proven to be the safest mode of transportation.E) None of the above
F) B) and C)

Question 8

John has three options for summer work. He can do lawn work for $100 per week, babysit for $125 per week, or work at the local pool for $175 per week. All of the options would require approximately 20 hours of work per week. In addition, if he chooses to work at the pool, he will incur $20 in gas costs per week. The opportunity cost if he chooses to babysit is:

Accepted Answer

A)   $100
B)   $175
C)   $155
D)   $105E) None of the above
F) A) and B)

Question 9

The planning and control cycle includes planning, implementing, evaluating, and revising.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is false?

Accepted Answer

A)   Decisions help us accomplish goals.
B)   When determining their goals, individuals generally agree on the factors they consider and the importance they attach to the various factors.
C)   Some decisions involve a small number of options.
D)   For most businesses, identifying the set of options is one of the more important tasks of management.
E)   Value is the contribution of an option to the decision maker's goals.F) C) and E)
G) A) and B)

Question 11

The Sarbanes-Oxley Act of 2002 mandates that the executives and financial officers certify, in writing, the truthfulness of reports filed with the IRS.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not one of the four steps in the decision making process?

Accepted Answer

A)   Specify the decision problem, including the decision maker's goals.
B)   Identify options.
C)   Separate routine decision
D)   Measure benefits and costs to determine the value of each option.
E)   Make the decision, choosing the option with the highest value.F) C) and D)
G) A) and B)

Question 13

The Sarbanes-Oxley Act of 2002 requires that:

Accepted Answer

A)   Executives of publicly-traded companies take responsibility for the accuracy of financial reports.
B)   Publicly-traded companies release financial statements on a quarterly basis.
C)   Publicly-traded companies notify stockholders if there is any turnover in executive positions.
D)   Publicly-traded companies provide a dividend to stockholders at least every other year.E) A) and B)
F) B) and C)

Question 14

Which one of the following is a primary user of managerial accounting?

Accepted Answer

A)   An ex employee.
B)   A county taxing authority.
C)   A sales manager of one of the company's divisions.
D)   A bank that loaned a company $2,000,000.E) A) and B)
F) B) and D)

Question 15

Which of the following is not a provision of the Sarbanes-Oxley Act of 2002?

Accepted Answer

A)   It mandates that executives of publicly traded companies take individual responsibility for the accuracy and completeness of financial reports.
B)   It requires executive and financial officers to certify, in writing, the truthfulness of quarterly and annual reports filed with the SEC.
C)   It provides for penalties, including fines and jail time, for executives who knowingly alter, destroy, conceal or falsify records.
D)   It prohibits managers from giving or taking bribes, even if such acts are part of the normal business practices in another country.
E)   All of the above are provisions of the Sarbanes-Oxley Act of 2002.F) A) and B)
G) C) and D)

Question 16

The primary role of accounting is to:

Accepted Answer

A)   Detect and prevent fraud.
B)   Maintain employee pay records.
C)   Measure the costs and benefits of decision options.
D)   Prepare reports for the government.
E)   None of the above.F) A) and E)
G) C) and E)

Question 17

Business decisions generally have few options.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not associated with how organizations motivate employees to achieve their goals?

Accepted Answer

A)   Policies and procedures.
B)   Incentive schemes and performance evaluation.
C)   Terminating employees.
D)   Monitoring employees for enforcement of policies and procedures.E) B) and C)
F) A) and D)

Question 19

The opportunity cost of any decision option is:

Accepted Answer

A)   The value to the decision maker of the least-best option.
B)   The total profit of the best option.
C)   The total costs of the least option.
D)   The value to the decision maker of the next best option.
E)   None of the above.F) B) and E)
G) A) and B)

Question 20

Which one of the following is considered a stage of the planning and control cycle?

Accepted Answer

A)   Analyze markets.
B)   Revise.
C)   Develop budgets.
D)   Modify.E) B) and C)
F) A) and B)

Exam 1: Accounting: Information for Decision Making

The planning and control cycle is a long-term cycle normally taking months to complete.

Correct Answer
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Which one of the following is considered a stage of the planning and control cycle?

Correct Answer
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The opportunity cost of any decision option is:

Correct Answer
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Which one of the following is the best example of an organizational goal?

Correct Answer
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Which of the following is not associated with how organizations motivate employees to achieve their goals?

Correct Answer
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Which of the following is not one of the four steps in the decision making process?

Correct Answer
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Correct Answer
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The primary role of accounting is to help measure the costs and benefits of decision options.

Correct Answer
verified

Which of the following is not a provision of the Sarbanes-Oxley Act of 2002?

Correct Answer
verified

An organization's employees use managerial accounting data to determine:

Correct Answer
verified

The Sarbanes-Oxley Act of 2002 requires that:

Correct Answer
verified

Which one of the following is a primary user of managerial accounting?

Correct Answer
verified

Business decisions generally have few options.

Correct Answer
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The primary role of accounting is to:

Correct Answer
verified

In the planning and control cycle, the Plan stage deals with:

Correct Answer
verified

The planning and control cycle includes planning, implementing, evaluating, and revising.

Correct Answer
verified

Correct Answer
verified

The Sarbanes-Oxley Act of 2002 mandates that the executives and financial officers certify, in writing, the truthfulness of reports filed with the IRS.

Correct Answer
verified

Every option in making a decision presents a unique trade-off between benefits and costs.

Correct Answer
verified

Which of the following statements is false?

Correct Answer
verified

Exam 1: Accounting: Information for Decision Making

The planning and control cycle is a long-term cycle normally taking months to complete.

Correct AnswerverifiedShow Answer

Which one of the following is considered a stage of the planning and control cycle?

Correct AnswerverifiedShow Answer

The opportunity cost of any decision option is:

Correct AnswerverifiedShow Answer

Which one of the following is the best example of an organizational goal?

Correct AnswerverifiedShow Answer

Which of the following is not associated with how organizations motivate employees to achieve their goals?

Correct AnswerverifiedShow Answer

Which of the following is not one of the four steps in the decision making process?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The primary role of accounting is to help measure the costs and benefits of decision options.

Correct AnswerverifiedShow Answer

Which of the following is not a provision of the Sarbanes-Oxley Act of 2002?

Correct AnswerverifiedShow Answer

An organization's employees use managerial accounting data to determine:

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act of 2002 requires that:

Correct AnswerverifiedShow Answer

Which one of the following is a primary user of managerial accounting?

Correct AnswerverifiedShow Answer

Business decisions generally have few options.

Correct AnswerverifiedShow Answer

The primary role of accounting is to:

Correct AnswerverifiedShow Answer

In the planning and control cycle, the Plan stage deals with:

Correct AnswerverifiedShow Answer

The planning and control cycle includes planning, implementing, evaluating, and revising.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act of 2002 mandates that the executives and financial officers certify, in writing, the truthfulness of reports filed with the IRS.

Correct AnswerverifiedShow Answer

Every option in making a decision presents a unique trade-off between benefits and costs.

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

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