Multiple Choice Questions
1. Which of the following statements is true?
a. Production managers find managerial accounting information useful.
b. Marketing managers do not find managerial accounting information useful.
c. Corporate managers rarely consider managerial accounting information in their decision-making process.
d. The costs of managerial accounting information often exceed the benefits.

2. Customers in today’s competitive marketplace demand information about:
a. Product availability
b. Order status
c. Delivery times
d. All of the above

3. Which of the following definitions is correct?
a. Data that are organized and summarized become knowledge.
b. Data that are shared and add value to the company create knowledge.
c. Information that is shared and leveraged such that it creates value is the foundation of knowledge.
d. None of the above statements is correct.

4. Data and knowledge warehouses are examples of:
a. Operating systems
b. Knowledge management tools
c. Accounting information systems
d. Internet facilities

5. Which of the following statements regarding ERP systems is not true?
a. ERP systems provide real-time information to decision makers throughout a company.
b. The ultimate goal of the ERP system is to reduce production costs.
c. ERP systems are costly to implement.
d. The benefits of ERP are not limited to manufacturing companies.

6. Which of the following statements about EDI is not true?
a. EDI increases lead times and reduces processing costs.
b. The Internet has made EDI technology available to a wide range of small and midsize businesses.
c. EDI increases the speed and quality of information exchange.
d. EDI and e-business via the Internet allow suppliers and customers to be brought into an ERP network so that online orders from customers initiate a series of highly integrated transactions.

7. Managerial accounting information is:
a. Generated on the basis of generally accepted accounting principles (GAAP)
b. Used extensively by internal managers for decision-making purposes
c. Commonly shared with external parties such as stockholders
d. Primarily geared toward the preparation of financial statements

8. Operational planning most commonly addresses:
a. Long-term investment decisions related to production equipment
b. Measurement of growth in market share
c. The current quarter’s production requirements
d. Each of the above planning issues