Chapter 01
The Changing Role of Managerial Accounting in a Dynamic Business Environment

True / False Questions

1. Controlling involves the coordination of daily business functions within an organization.
True False

2. Measuring the performance of managers and subunits is not an objective of managerial accounting.
True False

3. Middle-level managers would likely be considered internal users of accounting information rather than external users.
True False

4. A controller is normally involved with preparing financial statements.
True False

5. The upper limit on the production of goods and services if everything works perfectly is known as practical capacity.
True …show more content…

to parties outside of an organization.
B. to parties within an organization.
C. to an organization's board of directors.
D. to financial institutions.
E. for financial institutions.

24. Which of the following characteristic(s) relate(s) more to managerial accounting than to financial accounting?
A. A focus on reporting to personnel within an organization.
B. A focus on reporting to external parties.
C. An area of accounting that is heavily regulated.
D. A focus on providing information that is relevant for planning, decision making, directing, and control.
E. Choices "A" and "D" above.

25. Which of the following statements represents a similarity between financial and managerial accounting?
A. Both are useful in providing information for external users.
B. Both are governed by GAAP.
C. Both draw upon data from an organization's accounting system.
D. Both rely heavily on published financial statements.
E. Both are solely concerned with historical transactions.

26. Which of the following employees at Delta Airlines would not be considered as holding a line position?
A. Pilot.
B. Chief financial officer (CFO).
C. Flight attendant.
D. Ticket agent.
E. Baggage handler.

27. Which of the following employees would be considered as holding a line position?
A. Exxon Corporation's vice-president for government relations.
B. The controller of General Motors.
C. A secretary employed by