Solution Manual For Accounting for Decision Making and Control 10th Edition By Jerald Zimmerman

Solution Manual For Accounting for Decision Making and Control 10th Edition By Jerald Zimmerman

Accounting for Decision Making and Control 10th Edition By Jerald Zimmerman – Solution Manual

Accounting for Decision Making and Control 10th Edition By Jerald Zimmerman

Accounting for Decision Making and Control 10th Edition

Accounting for Decision Making and Control

Chapter 01 Test Bank – Static Key

Multiple Choice Questions

 

1. The firm’s information system:

 

1. is always a single integrated system

 

1. includes only financial information

 

1. may include other information such as customer satisfaction surveys, in addition to financial information

 

1. is less important as a firm grows in size

 

1. none of the above

 

The firm’s information system includes many kinds of financial and non-financial information.

 

AACSB: Knowledge Application

 

Accessibility: Keyboard Navigation

 

Accessibility: Screen Reader Compatible

 

AICPA: BB Industry

 

AICPA: FN Leveraging Technology

 

Blooms: Remember

 

Difficulty: 1 Easy

 

Topic: Managerial Accounting: Decision Making and Control

 

2. Identify all the correct statements:

 

1. Managers naturally seek to maximize shareholders’ wealth

 

1. Managers act in their own interests, and so there is no way to align their interests with those of the owners

 

1. To motivate managers in non-profit firms, no employee incentives are needed

 

1. To align the interests of managers and owners, owners must design systems to monitor and reward management behavior that increases the firm’s profits

 

1. none of the above

 

To minimize conflicts between the economic interests of managers and owners, the owners need both systems to monitor the manager’s performance and systems of rewards or incentives.

 

AACSB: Knowledge Application

 

Accessibility: Keyboard Navigation

 

Accessibility: Screen Reader Compatible

 

AICPA: BB Industry

 

AICPA: FN Decision Making

 

AICPA: FN Risk Analysis

 

Blooms: Remember

 

Difficulty: 1 Easy

 

Topic: Management Accountant’s Role in the Organization

 

Topic: Managerial Accounting: Decision Making and Control

 

3. An internal accounting system should:

 

1. provide information to enable costs to be minimized

 

1. provide financial accounting data for external reporting purposes

 

1. provide management accounting information for decision-making

 

1. provide data for tax purposes

 

1. all of the above

 

A well designed internal accounting system should provide data for external purposes, such as financial reporting and tax, as well as internal purposes such as cost control, assessing performance and determining rewards. It is economically inefficient to maintain multiple accounting systems.

 

AACSB: Knowledge Application

 

Accessibility: Keyboard Navigation

 

Accessibility: Screen Reader Compatible

 

AICPA: BB Industry

 

AICPA: FN Decision Making

 

Blooms: Remember

 

Difficulty: 1 Easy

 

Topic: Design and Use of Cost Systems

 

4. Economic Darwinism:

 

1. explains why firms persist in inefficient behavior

 

1. explains why some inefficient accounting practices persist

 

1. explains why marmots eat bears

 

1. explains why bears eat marmots

 

1. none of the above

 

Inefficient accounting systems may continue to exist either because they have proved better than other systems or because better systems have not been yet discovered.

 

AACSB: Knowledge Application

 

Accessibility: Keyboard Navigation

 

Accessibility: Screen Reader Compatible

 

AICPA: BB Marketing

 

AICPA: FN Risk Analysis

 

Blooms: Remember

 

Difficulty: 1 Easy

 

Topic: Marmots and Grizzly Bears