Chapter 01
The Changing Role of Managerial Accounting in a Dynamic Business Environment

Chapter 01 The Changing Role of Managerial Accounting in a Dynamic Business Environment Answer Key

True / False Questions

1. Controlling involves the coordination of daily business functions within an organization.
FALSE

AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Bloom's: RC
Difficulty: Easy
Learning Objective: 01-02 Explain four fundamental management processes that help organizations attain their goals.

2. Measuring the performance of managers and subunits is not an objective of managerial accounting.
FALSE

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Research
Bloom's: RC
Difficulty: Easy
Learning Objective: 01-03 List and describe five objectives of managerial accounting activity.

3. Middle-level managers would likely be considered internal users of accounting information rather than external users.
TRUE

AACSB: Reflective Thinking
AICPA BB: Resource Management
AICPA FN: Reporting
Bloom's: RC
Difficulty: Easy
Learning Objective: 01-04 Explain the major differences between managerial and financial accounting.

4. A controller is normally involved with preparing financial statements.
TRUE

AACSB: Analytic
AICPA BB: Resource Management
AICPA FN: Reporting
Bloom's: RC
Difficulty: Medium
Learning Objective: 01-06 Describe the roles of an organization's chief financial officer (CFO) or controller
Learning Objective: and internal auditor.
Learning Objective: treasurer

5. The upper limit on the production of goods and services if everything works perfectly is known as practical capacity.
FALSE

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Bloom's: RC
Difficulty: Easy
Learning Objective: 01-07 Briefly describe some of the