Solution Manual For Accounting for Decision Making and Control Jerald Zimmerman 10th Edition
Chapter 01 Test Bank – Static Key
Multiple Choice Questions
- The firm’s information system:
- is always a single integrated system
- includes only financial information
- may include other information such as customer satisfaction surveys, in addition to financial information
- is less important as a firm grows in size
- 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
- Identify all the correct statements:
- Managers naturally seek to maximize shareholders’ wealth
- Managers act in their own interests, and so there is no way to align their interests with those of the owners
- To motivate managers in non-profit firms, no employee incentives are needed
- To align the interests of managers and owners, owners must design systems to monitor and reward management behavior that increases the firm’s profits
- 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
- An internal accounting system should:
- provide information to enable costs to be minimized
- provide financial accounting data for external reporting purposes
- provide management accounting information for decision-making
- provide data for tax purposes
- all of the above
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