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 False

Multiple Choice Questions

6. Which of the following statements about managerial accountants is false?
A. Managerial accountants more and more are considered "business partners."
B. Managerial accountants often are part of cross-functional teams.
C. An increasing number of organizations are segregating managerial accountants in separate managerial-accounting departments.
D. In a number of companies, managerial accountants make significant business decisions and resolve operating problems.
E. The role of managerial accountants has changed considerably over the past decade.

7. The day-to-day work of management teams will typically comprise all of the following activities except:
A. decision making.
B. planning.
C. cost minimizing.
D. directing operational activities.
E. controlling.

8. Which of the following functions is best described as choosing among available alternatives?
A. Decision making.
B. Planning.
C. Directing operational activities.
D. Controlling.
E. Budgeting.

9. Which of the following managerial functions involves a detailed financial and operational