1. Management accounting information focuses on external reporting.
F
2. Cost management is narrowly focused on a continuous reduction of
costs. F
3. Managers always require the information in an accounting system to be presented in the same format.F
4. The balance sheet, income statement, and statement of cash flows are used for financial accounting, and
also for management accounting. T
5. Financial accounting is broader in scope than management accounting. F
6. Cost accounting measures and reports short-term, long-term, financial, and non financial information. T
7. Cost management provides information that helps increase value for customers. T
8. Management accounting has to strictly follow the rules of generally accepted accounting principles for
the purposes of measurement and reporting.
9. Cost accounting provides information only for management accounting purposes. F
10. Cost management involves long-term and short-term decisions that attempt to increase value for
customers and lower costs of products or services T
11. Strategy does NOT specify how an organization matches its capabilities with the opportunities in the
marketplace. F
12. Southwest Airlines is an example of a company that pursues a product differentiation strategy F
13. The key to a company's success is creating value for customers while differentiating itself from its
competitors. T
14. The key to a company's success is always to be the low cost producer in a particular industry. F
15. Companies generally follow one of two basic strategies: 1) providing a quality product or service at
low prices, or 2) offering a unique product or service often priced higher than competing products. T
16. Management accountants should have little or no role in deciding on a company's strategy. F
17. Companies can decide on an appropriate strategy based strictly on internally available information. F
18. Identifying a company's most important customers does NOT help formulate strategy. F
19. The supply chain refers to the sequence of business functions in which customer usefulness is added
to products or services. F (value chain)
20. Key success factors include cost, quality, timeliness, and innovation. Answer: TRUE
21. Customers are demanding increased levels of performance in all aspects of the value chain and the
supply chain. T
22. The supply chain describes the flow of goods, services, and information from the initial sources of
materials and services to the delivery of products to consumers. T
23. The supply chain always occurs within a single organization. Answer: FALSE
24. Distribution refers to promoting and selling products or services to customers or prospective
customers. F
25. The production component of the value chain refers detailed planning, engineering, and testing of
products and processes. F (Design)
26. Management accountants might provide information on decisions on whether to buy a product from
outside or manufacture it in-house. T
27. Value chain refers to its value to the employee. F (for customer)
28. Companies have to follow strict guidelines when designing a management accounting system. F
29. Increased global competition is placing pressure on companies to reduce costs. T
30. The increasing pace of technological innovation has resulted in shorter product life cycles. T
31. A bottleneck occurs when the work to be performed exceeds the available capacity. T (nút cổ chai)
32. The last step in the decision-making process is to make decisions by choosing among alternatives.
F
33. One of the steps in planning is making predictions about the future. T
34. It is difficult to control activities without a budget.
35. A budget is a quantitative expression of a plan.
36. The process of preparing a budget forces coordination and communication throughout the company.
37. Employees pay little attention to how their performance is measured.
38. A budget may be used as a planning tool, but NOT as a control tool.
39. Financial accounting reports financial and non financial information that helps managers implement
company strategies.
40. Feedback and learning helps in the future decision-making process.
41. Control includes deciding what feedback to provide that will help with future decision making.
42. When a particular aspect of employee performance is measured, employees pay more attention to it.
43. A performance report compares actual performance to the amount budgeted.
44. Management accounting is playing an increasingly important role by helping managers develop and
implement strategy.