16. Management
accounting focuses primarily on providing data for:
A) internal
uses by managers.
B) external
uses by stockholders and creditors.
C) external
uses by the Internal Revenue Service.
D)
external uses by the
Securities and Exchange
17. Managerial
accounting:
A) is
more future oriented than financial accounting.
B) tends
to summarize information more than financial accounting
C) is
primarily concerned with providing information to external users.
D) is
more concerned with precision than timeliness.
18. Compared
to financial accounting, managerial accounting places more emphasis on:
A) the
flexibility of information.
B) the
precision of information.
C) the
timeliness of information.
D) both
A and C above.
19. The
function of management that compares planned results to actual results is known
as:
A) planning.
B) directing
and motivating.
C) controlling.
D) decision
making.
20. Which
of the functions of management involves overseeing day-to-day activities?
A) Planning
B) Directing
and motivating
C) Controlling
D) Decision
making
Garrison, Managerial Accounting, 12th Edition 5
Chapter
1 Managerial Accounting and the Business Environment
21. Which
of the following is not one of the three basic activities of a manager?
A) Planning
B) Controlling
C) Directing
and motivating
D) Compiling
management accounting reports
22. The
delegation of decision making to lower levels in an organization is known as:
A) the
planning and control cycle.
B) controlling.
C) decentralization.
D) none
of these.
23. Which
of the following statements are false concerning line and staff functions? I.
Persons occupying staff functions have authority over persons occupying line
functions.
II. Both line
and staff functions are depicted on the organization chart.
III. Line
functions are directly related to the basic objectives of an organization.
A) Only
I
B) Only
II
C) Only
I and II
D) I,
II, and III
24.
Which of following
would normally be found on a manufacturing company’s organization chart?
A) the
layout of the factory assembly lines
B) a
list of the materials needed to produce each of the company’s products
C) the
informal lines of reporting and communication
D) none
of the above
6 Garrison,
Managerial Accounting, 12th Edition
Chapter
1 Managerial Accounting and the Business Environment
25. For a hospital, what type of position (line
or staff) is each of the following?
Emergency Room Manager
Human Resources
(Personnel) Manager
A)
Staff
Staff
B)
Staff
Line
C)
Line
Staff
D)
Line
Line