Managerial and Cost Accounting Chapter 1 Written

True or False: The Sarbanes Oxley Act of 2002 (SOX) imposes stricter requirements for financial reporting and internal controls and stricter consequences for those who engage in financial statement misconduct and other white collar crimes.

True

True or False: Most business decisions are now based on gut feelings and hunches, rather than being data-driven.

False

True or False: Critical Thinking can be improved by asking yourself a series of questions about any issue or problem you encounter. These questions, for example, include: What is the objective? What data will I need? What assumptions am I making? Is my conclusion logical?

True

True or False: The triple bottom line assesses company performance on three factors: people (social impact), planet (environmental impact), and profit (economic impact)

True

True or False: Manufacturing makes up the largest sector of the U.S. economy

False

True or False: The globalization of business has little bearing on management accounting.

False

True or False: Computer systems that integrate all of a company’s worldwide functions into one database known as Integrated Worldwide Systems (IWSs).

False

True or False: Managers’ three primary responsibilities are planning, directing and controlling.

True

True or False: Management Accounting is geared toward external stakeholders, such as investors and creditors.

False

True or False: Management accountants often work in cross-functional teams throughout the organization.

True

True or False: The internal audit function reports to the audit committee of the board of directors.

True

True or False: Management accountants are now more often looked upon as internal business advisors rather than “bean counters” recording historical transactions.

True

True or False: Management accountants should be technically proficient, but they don’t need strong oral and written communication skills.

False

True or False: Management Accountants should be proficient in excel.

True

True or False: The association of International Certified Professional Accountants (AICPA) issues the Certified Management Accountant (CMA) certification.

False