Question 1

Planning involves which of the following activities?
A) Setting goals and objectives for the company
B) Overseeing the company's day-to-day operations
C) Evaluating the results of operations
D) Getting feedback on results

Accepted Answer

Planning involves setting goals and objectives for the company. Overseeing day-to-day operations is more closely related to organizing and managing, while evaluating results and getting feedback are part of the controlling function.

Question 2

Making adjustments to keep the company moving forward is related to the management responsibility of controlling.

Accepted Answer

Making adjustments to keep the company moving forward involves monitoring performance and making necessary changes, which is a key aspect of the management responsibility of controlling.

Question 3

Budgets are the quantitative expression of management's plans.

Accepted Answer

Budgets are prepared to quantitatively express management's plans in terms of anticipated revenues, expenses, and profits. They serve as a roadmap to guide the organization’s operations and help it achieve its goals.

Question 4

When management compares the budget to actual results, which of the following is being fulfilled?
A) Directing
B) Controlling
C) Decision-making
D) Planning

Accepted Answer

When management compares the budget to actual results, they are in the process of controlling. Controlling involves monitoring performance, comparing actual results to the budget, and taking corrective actions as necessary to ensure the company stays on track towards achieving its goals. Directing involves providing guidance and leadership to employees, decision-making involves selecting the best course of action among a set of alternatives, and planning involves setting goals and developing a roadmap to achieve them.

Question 5

Comparing actual results to budgets is an example of the management function of
A) controlling.
B) decision-making.
C) directing.
D) planning.

Accepted Answer

Comparing actual results to budgets is a key component of the controlling function, which involves monitoring performance and taking corrective action as needed to ensure that goals are achieved. This process helps managers identify areas where performance is falling short of expectations and make adjustments to improve future results. The other options (decision-making, directing, planning) are important management functions, but they are not directly related to the process of comparing actual results to budgets.

Question 6

Budgets are the way that managers can express their
A) plans.
B) decision-making.
C) control.
D) hiring practices.

Accepted Answer

Budgets are a financial plan that outlines the expected income and expenses over a specific period. Through the budget, managers can express their plans for how to allocate resources to achieve specific goals.

Question 7

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 8

Which of the following management responsibilities are being fulfilled when management uses feedback to take corrective action on the budgets?
A) Directing and planning
B) Planning and decision-making
C) Controlling and decision-making
D) Planning and controlling

Accepted Answer

The management responsibility of controlling involves monitoring performance and taking corrective action when necessary, which is what happens when feedback is used to take corrective action on budgets. The management responsibility of decision-making may also be involved, as management may need to make decisions based on the feedback received, but planning is not necessarily being fulfilled in this scenario. Therefore, the best choice is C: controlling and decision-making.

Question 9

Evaluating the results of business operations against a plan and then making adjustments to that plan is called budgeting.

Accepted Answer

This process is called variance analysis. Budgeting involves preparing a plan for future financial activities, whereas variance analysis compares actual results to those plans and makes adjustments as necessary.

Question 10

Management accounting
A) helps managers make decisions.
B) is useful for external and internal users.
C) creates technical reports that require external audit for verification.
D) is the same as cost accounting.

Accepted Answer

Management accounting is focused on providing information to internal users (primarily managers) for decision-making purposes. It includes a wide range of techniques and methods to analyze and interpret financial and non-financial information related to the organization's operations, costs, revenues, and performance. Cost accounting is a subset of management accounting that focuses on measuring and controlling the cost of producing goods or services. Management accounting is not typically subject to external audit, as it is intended for internal use only.

Question 11

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

Accepted Answer

Managerial accounting focuses on providing information and reports that aid internal decision-making and strategic planning. The reports generated by managerial accounting are used by managers and other internal parties to effectively and efficiently run the company, such as improving operations, controlling costs, and making informed business decisions.

Question 12

Overseeing the day-to-day operations of a company is an example of the management function of
A) controlling.
B) decision-making.
C) directing.
D) planning.

Accepted Answer

Directing involves overseeing the daily activities of an organization, including managing employees and resources to achieve specific goals. This includes tasks such as delegating responsibilities, providing guidance and feedback, and motivating employees to work towards the company's objectives. Controlling involves tracking progress and making any necessary adjustments to ensure that goals are being met, decision-making involves choosing between different courses of action, and planning involves setting goals and developing strategies to achieve them.

Question 13

Using hourly sales reports to determine the level of staffing needed to service customers fulfills which of management's four primary responsibilities?
A) Directing, planning, and decision-making
B) Directing, controlling, and planning
C) Controlling, planning, and decision-making
D) Analyzing, directing, and planning

Accepted Answer

Using hourly sales reports to determine the level of staffing needed to service customers fulfills the management responsibility of directing. Directing involves guiding and overseeing the work of others to achieve organizational goals. In this case, the manager is using data to make decisions about staffing levels to ensure that customers are adequately served.

Question 14

Evaluating results against the plan is an example of the management function of
A) controlling.
B) decision-making.
C) directing.
D) planning.

Accepted Answer

Evaluating results against the plan is a key aspect of the controlling function of management. This involves monitoring and measuring actual performance against planned goals and objectives, and taking corrective action as needed to ensure that outcomes are consistent with the plan. Control is an important part of the management cycle and requires ongoing attention to ensure that the organization is on track and making progress towards its stated objectives.

Question 15

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

Accepted Answer

Using product cost information to determine sales prices involves directing the pricing strategy, planning the pricing approach based on production costs, and making decisions about the appropriate pricing level to maximize profitability.

Question 16

The four primary responsibilities of managers are planning, directing, controlling, and decision making.

Accepted Answer

These are the four primary responsibilities of managers as recognized in management theory and practice.

Question 17

Which one of the following manager responsibilities encompasses the other three?
A) Decision-making
B) Feedback
C) Planning
D) Controlling

Accepted Answer

Decision-making encompasses feedback, planning, and controlling, as it is a fundamental aspect of all these managerial responsibilities. Managers make decisions based on feedback, use decision-making in planning, and control processes to ensure plans are executed correctly.

Question 18

Preparing budgets is an example of the management function of
A) controlling.
B) decision-making.
C) directing.
D) planning.

Accepted Answer

Preparing budgets is an example of the planning function of management, as it involves setting goals and objectives, determining resources needed, and allocating resources to achieve those goals.

Question 19

Managerial accounting gathers, summarizes, and reports the cost and revenue data relevant to decisions.

Accepted Answer

Managerial accounting is concerned with providing relevant and timely financial information to support decision-making within an organization. This includes gathering, summarizing, and reporting cost and revenue data to assist managers in making informed decisions.

Question 20

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 already set by the company, not setting those goals and objectives. Setting goals and objectives is part of the planning function.

Quiz 1: Introduction to Managerial Accounting

Planning involves which of the following activities?

Making adjustments to keep the company moving forward is related to the management responsibility of controlling.

Budgets are the quantitative expression of management's plans.

When management compares the budget to actual results, which of the following is being fulfilled?

Comparing actual results to budgets is an example of the management function of

Budgets are the way that managers can express their

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

Which of the following management responsibilities are being fulfilled when management uses feedback to take corrective action on the budgets?

Evaluating the results of business operations against a plan and then making adjustments to that plan is called budgeting.

Management accounting

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

Overseeing the day-to-day operations of a company is an example of the management function of

Using hourly sales reports to determine the level of staffing needed to service customers fulfills which of management's four primary responsibilities?

Evaluating results against the plan is an example of the management function of

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

The four primary responsibilities of managers are planning, directing, controlling, and decision making.

Which one of the following manager responsibilities encompasses the other three?

Preparing budgets is an example of the management function of

Managerial accounting gathers, summarizes, and reports the cost and revenue data relevant to decisions.

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