exam1 ch 1 true or false

Question 1

A primary outcome of managerial accounting is the determination of costs for manufactured items and services.

Answer 1

True

Question 2

Management accounting and financial accounting, while in the same field, are mutually exclusive disciplines.

Answer 2

False

Question 3

Generally Accepted Accounting Principles (GAAP) form the backbone of managerial accounting conventions, and local and/or regional standards and professional judgement allow for variations among practitioners.

Answer 3

False

Question 4

The theory of constraints is used to measure performance.

Answer 4

False

Question 5

A value chain refers to all the activities associated with providing a product or service.

Answer 5

True

Question 6

Firms that use large amounts of direct labour to produce their products are apt to use lean manufacturing.

Answer 6

False