Question 1

Which of the following is not one of the primary responsibilities of management?
A)Adhering to GAAP
B)Planning
C)Directing
D)Controlling

Accepted Answer

Adhering to GAAP (Generally Accepted Accounting Principles) is not a primary responsibility of management. While financial management and reporting are important aspects of management, adhering to GAAP is more a responsibility of the accounting and finance teams within an organization. The primary responsibilities of management are planning, directing, and controlling the organization's resources to achieve specific goals and objectives.

Question 2

Evaluating operations by comparing actual results to budgeted results is a part of the controlling responsibility of management.

Accepted Answer

Evaluating operations by comparing actual results to budgeted results is an important part of management's controlling function. By comparing the actual results with the budgeted results, management can identify the reasons for any deviations and take corrective action if necessary.

Question 3

Controlling means overseeing the company's day-to-day operations.

Accepted Answer

Controlling in management refers to the process of setting standards, measuring actual performance, and taking corrective action to ensure that objectives are achieved, rather than merely overseeing day-to-day operations.

Question 4

Directing means setting goals and objectives for the company and determining how to achieve them.

Accepted Answer

Directing involves guiding, leading, and overseeing employees to achieve the goals and objectives that have been set; setting goals and objectives and determining how to achieve them is more accurately described as planning.

Question 5

Which of the following is being fulfilled when management compares the budget to actual results?
A)Directing
B)Planning
C)Adjusting
D)Controlling

Accepted Answer

Comparing the budget to actual results is a key step in the controlling function of management, which involves monitoring performance and taking corrective action as needed to ensure that goals are achieved.

Question 6

Budgets are the quantitative expression of management's plans.

Accepted Answer

Budgets are created to express management's plans in numerical terms. They provide a guideline for financial decision making and help in monitoring and controlling expenses.

Question 7

When management uses feedback to take corrective action on the budgets, which of the following management responsibilities are being fulfilled?
A)Controlling
B)Adjusting
C)Directing
D)Planning

Accepted Answer

Feedback and corrective action on budgets are part of the controlling function of management, which involves monitoring performance, comparing it with goals, and taking corrective action as needed.

Question 8

Budgeting is the process of evaluating the results of business operations against a plan and then making adjustments to that plan.

Accepted Answer

Budgeting is the process of creating a plan to spend your money, forecasting future income and expenses, not evaluating the results of business operations against a plan. The evaluation and adjustment of plans based on actual results is more accurately described as variance analysis or budget review.

Question 9

________ gathers, summarizes, and reports on the financial impact of changes to business operations.
A)Managerial accounting
B)Planning
C)Directing
D)Controlling

Accepted Answer

Managerial accounting is the process of gathering, summarizing, and reporting financial information to help managers make informed decisions about the financial impact of changes to business operations. Planning involves creating goals and strategies for achieving them, directing involves overseeing and guiding employees to achieve those goals, and controlling involves monitoring performance and making adjustments as needed. However, none of these specifically focus on the financial impact of changes to business operations like managerial accounting does.

Question 10

Managerial accounting develops reports that help internal parties effectively and efficiently run the company.

Accepted Answer

Managerial accounting focuses on providing information and reports to internal parties, such as managers and employees, to help them make informed decisions and effectively run the company. These reports may include budget reports, variance analyses, profitability analyses, and other types of information and data that is useful for internal decision-making.

Question 11

The purpose of managerial accounting is to gather, summarize, and report the cost and revenue data relevant to each decision that is made.

Accepted Answer

Managerial accounting is focused on providing information to managers and decision-makers within an organization so that they can make informed decisions. This includes gathering and summarizing cost and revenue data for each decision that needs to be made. Therefore, the statement is true.

Question 12

When management analyzes whether to move production to another country or to keep the production located where it currently is, which of the following management responsibilities is being performed?
A)Adjusting
B)Controlling
C)Planning
D)Directing

Accepted Answer

Analyzing whether to move production to another country or to keep it where it currently is falls under the category of planning, which involves making decisions about future activities and resources needed to achieve organizational goals.

Question 13

Planning, directing, and controlling are a manager's three primary responsibilities.

Accepted Answer

This is a commonly accepted principle in management theory. Planning involves setting goals and devising strategies to achieve them, directing involves overseeing the work of employees to ensure they are following the strategies, and controlling involves monitoring progress and making adjustments as needed to stay on track.

Question 14

Using product cost information to determine sales prices is an example of
A)directing and planning.
B)directing and controlling.
C)controlling, directing, and planning.
D)controlling and planning.

Accepted Answer

Using product cost information to determine sales prices is an example of directing and planning because it involves setting goals and objectives and developing strategies to achieve them.

Question 15

When management reviews hourly sales reports to determine the level of staffing needed to service customers, which of management's three primary responsibilities is fulfilled?
A)Controlling and planning
B)Directing and planning
C)Directing, controlling, and planning
D)Analyzing, directing, and planning

Accepted Answer

The answer of When management reviews hourly sales reports to...

Question 16

Comparing actual results to budgets is an example of which of the following management functions?
A)Analyzing
B)Planning
C)Controlling
D)Directing

Accepted Answer

Comparing actual results to budgets is a part of controlling, which involves monitoring performance and taking corrective actions as necessary to ensure that goals are being met.

Question 17

Creating budgets are part of which primary management responsibility?
A)Controlling
B)Planning
C)Managerial accounting
D)Directing

Accepted Answer

Creating budgets is part of the planning function, where managers set objectives anddevelop strategies to achieve them.

Question 18

Which one of the following items is not one of the three primary manager responsibilities?
A)Controlling
B)Planning
C)Feedback
D)Adjusting

Accepted Answer

The answer of Which one of the following items is...

Question 19

Planning involves which of the following activities?
A)Evaluating the results of operations
B)Overseeing the company's day-to-day operations
C)Setting goals and objectives for the company
D)None of the above

Accepted Answer

Planning involves setting goals and objectives for the company, determining the actions needed to achieve those goals and objectives, and developing strategies to meet those objectives. It does not involve evaluating the results of operations or overseeing day-to-day operations.

Question 20

Budgets are a way for managers to communicate their
A)control.
B)decision-making.
C)hiring practices.
D)plans.

Accepted Answer

Budgets are used by managers to communicate their plans for the upcoming period, including how much money can be spent and what resources will be allocated towards certain goals. They help managers to set goals and establish priorities for the organization, and they provide a framework for decision-making throughout the budget period.

Quiz 1: Introduction to Managerial Accounting

Which of the following is not one of the primary responsibilities of management?

Evaluating operations by comparing actual results to budgeted results is a part of the controlling responsibility of management.

Controlling means overseeing the company's day-to-day operations.

Directing means setting goals and objectives for the company and determining how to achieve them.

Which of the following is being fulfilled when management compares the budget to actual results?

Budgets are the quantitative expression of management's plans.

When management uses feedback to take corrective action on the budgets, which of the following management responsibilities are being fulfilled?

Budgeting is the process of evaluating the results of business operations against a plan and then making adjustments to that plan.

________ gathers, summarizes, and reports on the financial impact of changes to business operations.

Managerial accounting develops reports that help internal parties effectively and efficiently run the company.

The purpose of managerial accounting is to gather, summarize, and report the cost and revenue data relevant to each decision that is made.

When management analyzes whether to move production to another country or to keep the production located where it currently is, which of the following management responsibilities is being performed?

Planning, directing, and controlling are a manager's three primary responsibilities.

Using product cost information to determine sales prices is an example of

When management reviews hourly sales reports to determine the level of staffing needed to service customers, which of management's three primary responsibilities is fulfilled?

Comparing actual results to budgets is an example of which of the following management functions?

Creating budgets are part of which primary management responsibility?

Which one of the following items is not one of the three primary manager responsibilities?

Planning involves which of the following activities?

Budgets are a way for managers to communicate their