Management Accounting Chapter 01 Answer Key

1. _____ can be defined as a set of activities directed at an organization's resources, with the aim of achievingorganizational goals in an efficient and effective manner. a. Economics b. A theory c. Management d. Self-dealinge. Divestment ANSWER: c 2. Which of the following helps make the management process efficient? a. Increasing overhead production costs b. Using resources in a cost-effective manner c. Making management decisions independently of the organization's external environment d. Using the majority of resources for sales promotion activities e. Using micromanagement techniques ANSWER: b 3. A management process is considered to be effective when: a. overhead production costs are increased. b. the right decisions are made and implemented. c. decisions are made independently of the organization's external environment. d. the same amount of resources are allocated to all the functions of the organization. e. the organization is highly centralized. ANSWER: b 4. One of the titles found in the group of middle managers is a. director. b. vice president .c. supervisor. d. office manager. e. plant manager. ANSWER: e 5. Which of the following statements about top managers is true? a. They are the largest group of managers in most organizations b. They officially represent their organization to the external environment. c. They primarily oversee the day-to-day operations of an organization. d. They supervise and coordinate the activities of first-line managers. e. They supervise and coordinate the activities of operating employees. ANSWER: b 6. Which of the following is the role of top managers in an organization? a. Overseeing day-to-day operations b. Performing routine administrative tasks c. Implementing plans of first-line managers d. Creating organizational goals and overall strategy e. Coordinating the work of first-line managers ANSWER: d 7. _____ make decisions about activities such as investing in research and development (R&D) and entering or abandoning various markets. a. Division heads b. Limited partners c. First-line managers d. Middle managers e. Top managers ANSWER: e 8. A common middle-management title is a. chief executive officer (CEO). b. division head .c. supervisor. d. office manager. e. coordinator. ANSWER: b 9. _____ are probably the largest group of managers in most organizations, and are primarily responsible forimplementing the policies and plans of an organization .a. Middle managers b. Top managers c. The members of the board of directors d. First-line managers e. Floor supervisors ANSWER: a 10. First-line managers a. are primarily responsible for implementing the policies and plans developed by top managers. b. make decisions about activities such as acquiring other companies and entering or abandoning variousmarkets c. officially represent their organization to the external environment. d. create the organization's goals, overall strategy, and operating policies. e. handle administrative duties. ANSWER: e 11. Which of the following statements about first-line managers is true? a. They are primarily responsible for implementing policies made by top managers. b. They are typically involved in creating overall organizational strategies and goals. c. They officially represent their organization to the external environment. d. They typically spend a large proportion of their time supervising the work of their subordinates. e. They make decisions about activities such as acquiring other companies and entering or abandoning variousmarkets. ANSWER: d 12. _____ involves selecting a course of action from a set of alternatives. a. Divesting b. Controlling c. Leading d. Decision making e. Organizing ANSWER: d 13. One of the titles found in the group of first-line managers is a. chief executive officer (CEO). b. coordinator. c. division head. d. general manager. e. plant superintendent. ANSWER: b 14. Determining how a company's activities and resources are to be grouped is called a. leading. b. controlling. c. divesting. d. planning. e. organizing. ANSWER: e 15. Steve works with Beta Pharmaceuticals Inc. He is primarily responsible for overseeing production activities. Tyler isconcerned with decisions such as the number of product units that need to be manufactured, the overall functioningof the production plants, and the quality of products. Steve is most likely to be a(n) _____ manager .a. operations b. marketing c. human resources d. salese. public relations ANSWER: a 16. A typical responsibility of operations managers includes a. inventory control. b. sales promotion. c. accounting. d. employee development. e. benefit systems development. ANSWER: a 17. In its simplest form, _____ means setting an organization's goals and deciding how best to achieve them. a. coordinating b. leading c. organizing d. controlling e. planning ANSWER: e 18. Which of the following would be included in the management function of planning? a. Selecting the course of action most likely to lead to success b. Monitoring progress toward the achievement of goals c. Motivating others to higher levels of achievement d. Communicating company policies to subordinate e. Organizing people and resources ANSWER: a 19. _____ managers work in areas such as new product development, promotion, and distribution. a. Human resources b. Marketing c. Plant d. Operations e. Finance ANSWER: b 20. _____ managers are typically involved in recruiting and selecting employees, training and development, designingcompensation and benefit systems, formulating performance appraisal systems, and discharging low-performing andproblem employees. a. Operations b. Human resources c. Plant d. Marketing e. Finance ANSWER: b 21. _____ managers work at getting consumers and clients to buy the organization's products or services. a. Operations b. Marketing c. Regional d. Financial e. Human resources ANSWER: b 22. _____ managers are concerned with creating and managing the systems that create an organization's products andservices. a. Marketing b. Human resources c. Financial d. Operations e. First-line ANSWER: d 23. _____ are not associated with any particular management specialty. a. Office managers b. Floor supervisors c. Public relations managers d. Operations managers e. Administrative managers ANSWER: e 24. _____ is the set of processes used to get members of an organization to work together to further the interests of theorganization. a. Planning b. Organizing c. Controlling d. Leading e. Decision making ANSWER: d 25. The final phase of the management process is _____ which involves monitoring the organization's progress towardits goals. a. planning b. organizing c. leading d. controlling e. decision making ANSWER: d 26. Which of the following positions would be considered a specialized management position? a. Human resources manager b. Public relations manager c. Hospital administrator d. Accountant e. Marketing manager ANSWER: b 27. The management at Loft Corp. has introduced new employment policies. The mangers are now tracking andmonitoring the implementation of the new policies. Which of the following management functions is illustrated in thescenario? a. Decision making b. Controlling c. Organizing d. Leading e. Planning ANSWER: b 28. The skills necessary to accomplish or understand the specific kind of work done in an organization are called _____skills .a. diagnostic b. time management c. conceptual d. technical e. decision-making ANSWER: d 29. _____ skills refer to the abilities of managers to think in the abstract. a. Time management b. Technical c. Conceptual d. Interpersonal e. Communication ANSWER: c 30. Technical skills a. are crucial for top managers more than any other managers b. are nonspecific and broad. c. depend on a manager's ability to think in the abstract. d. are especially important for first-line managers. e. are used the most when making organizational policies. ANSWER: d 31. When a manager answers a subordinate's question regarding the process of creating a report from raw data, he is relying on his _____ skills. a. abstract b. technical c. time management d. decision-making e. interpersonal ANSWER: b 32. The ability to motivate others is a(n) _____ skill. a. conceptual b. technical c. communication d. interpersonal e. diagnostic ANSWER: d 33. Lindsey is often intimidated and uncomfortable with her superiors. Lindsey needs to develop her _____ skills to beable to communicate easily with her superiors. a. time management b. spatial c. interpersonal d. conceptual e. diagnostic ANSWER: c 34. Kelly, a manager, studied the performances of the various business units of her organization. After making anassessment, Maria came to the conclusion that the overall costs of the organization can be reduced by integrating thefunctions of two of the business units. This scenario illustrates Kelly's _____ skills. a. technical b. time management c. social d. interpersonal e. conceptual ANSWER: e 35. _____ skills refer to the abilities of managers to visualize the most appropriate response to a situation. a. Social b. Interpersonal c. Technical d. Diagnostic e. Communication ANSWER: d 36. _____ skills refer to a manager's abilities to both effectively convey ideas and information to others and effectivelyreceive ideas and information from others. a. Technical b. Abstract c. Communication d. Diagnostic e. Conceptual ANSWER: c 37. When a manager writes an email to his employees that provides details about the upcoming annual company picnic,he is most likely to be using his _____ skills .a. conceptual b. technical c. communication d. abstract e. spatial ANSWER: c 38. Quynh, a manager, has postponed the task of preparing a report as she has realized that she needs to meet a supplier immediately. This scenario illustrates Quynh's _____ skills. a. conceptual b. spatial c. time management d. technical e. abstract ANSWER: c 39. Jordon, a manager, realizes that many employees are leaving the organization. He identifies inconvenient worktimings and some of the new employment policies as the causes. Jordon decides to introduce better policies andflexible work timings to reduce employee turnover. This scenario illustrates Jordon's _____ skills. a. mechanical b. technical c. diagnostic d. spatial e. time management ANSWER: c 40. _____ skills refer to a manager's ability to prioritize work, to work efficiently, and to delegate work appropriately. a. Diagnostic b. Commanding c. Decision-making d. Time-management e. Conceptual ANSWER: d 41. A manager who uses the scientific approach to management when making decisions is most likely rely on a. instincts. b. stereotypes .c. personal experience. d. intuition. e. logic. ANSWER: e 42. A _____ is a conceptual framework for organizing knowledge and providing a blueprint for action. a. strateg b. mnemonic c. prediction d. theory e. doctrine ANSWER: d 43. When employees deliberately work at a slower pace than their capabilities, it is called a. soldiering. b. persevering. c. controlling. d. planning. e. deceiving. ANSWER: a 44. Scientific management focuses on a. improving the performance of individual workers. b. increasing employee turnover. c. analyzing the external rather than the internal environment of an organization. d. encouraging soldiering among employees. e. increasing overhead costs. ANSWER: a 45. Lillian Gilbreth was one of the earliest advocates of a. the contingency perspective. b. scientific management. c. administrative management. d. Theory X and Theory Y. e. the Hawthorne studies. ANSWER: b 46. The first person to identify the managerial functions of planning, organizing, leading, and controlling was a. Elton Mayo .b. Lillian Gilbreth. c. Henri Fayol. d. Hugo Munsterberg. e. Mary Parker Follett. ANSWER: c 47. Which of the following focuses on the management of the entire firm as opposed to the jobs of individual workers? a. The Contingency perspective b. Scientific management c. Administrative management d. Theory X e. The behavioral management perspective