Managerial Accounting Chapter 1 Exercises
Managerial Accounting Chapter 1 Exercises
Managerial Accounting Chapter 1 Exercises
27. Which of the following is an example of the management activity referred to as planning?
a. Developing a strategy for disposing of hazardous waste.
b. The decision to eliminate an unprofitable segment of an organization.
c. The decision to outsource an organization's payroll processing.
d. All of these are correct
28. Developing a company strategy for responding to anticipated new markets is an example of
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a. planning.
b. controlling.
c. decision making.
d. all of these are correct.
29. Investigating production variances and adjusting the production process is an example of
a. planning.
b. controlling.
c. decision making.
d. all of these.
34. Which of the following managerial functions involves a detailed financial and operational description of
anticipated operations?
A. Decision making.
B. Planning.
C. Directing operational activities.
D. Controlling.
E. Measuring.
35. Which of the following involves the coordination of daily business functions within an organization?
A. Decision making.
B. Planning.
C. Directing operational activities.
D. Controlling.
E. Motivating.
36. Taurus Company has set various goals, and management is now taking appropriate action to ensure that the
firm achieves these goals. One such action is to reduce outlays for overhead, which have exceeded budgeted
amounts. Which of the following functions best describes this process?
A. Decision making.
B. Planning.
C. Coordinating.
D. Controlling.
E. Organizing.
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37. Which of the following would not be an example of a value-added activity?
a. timely delivery of products
b. offering the customer a variety of products
c. storage of finished products
d. excellent customer service
ANSWERS:
1. T 6. T 11. T 26. A 31. B 36. D 41. B
2. F 7. F 12. T 27. A 32. B 37. C 42. C
3. F 8. F 13. T 28. A 33. D 38. D 43. D
4. T 9. F 14. F 29. B 34. B 39. D 44. C
5. T 10. T 15-25 (answers above) 30. C 35. C 40. C 45. D
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