Accounting for Decision Making and Control Jerald Zimmerman 10e - Test Bank

Chapter 01 Test Bank – Static Key 1. The firm's information system:

A. is always a single integrated system
B. includes only financial information
C. may include other information such as customer satisfaction surveys, in addition to financial information D. is less important as a firm grows in size
E. 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

2. Identify all the correct statements:

A. Managers naturally seek to maximize shareholders' wealth
B. Managers act in their own interests, and so there is no way to align their interests with those of the owners
C. To motivate managers in non-profit firms, no employee incentives are needed
D. To align the interests of managers and owners, owners must design systems to monitor and reward management behavior that increases the firm's profits
E. 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

Multiple Choice Questions