costCost Test bank Cost Test bank Cost Test bank
Cost Test bank
1. Why do most companies adhere to GAAP for their
basic internal financial statements?
a. GAAP is required by law for publicly held
companies.
b. To use GAAP and another system of reporting
would be too costly for most companies.
c. Accountants are required by their code of ethics to
use GAAP accounting.
d. Accrual accounting provides a uniform method to
measure an organization's financial performance. -
✔✔ANSW✔✔..d. Accrual accounting provides a
uniform method to measure an organization's
financial performance.
2. Which of the following is not true about strategy?
a. It involves matching its capabilities with the
opportunities in the marketplace to accomplish its
objective.
b. It has a short-term focus.
c. It can be implemented through price competition
or product differentiation.
, d. It involves the use of strategic cost management.
- ✔✔ANSW✔✔..b. It has a short-term focus.
3. The value chain
a. involves external companies as well as internal
activities.
b. is the sequence of business functions in which
customer usefulness is added to products or
services.
c. applies only to manufacturing companies.
d. is not relevant in today's cost accounting
environment. - ✔✔ANSW✔✔..b. is the sequence of
business functions in which customer usefulness is
added to products or services.
4. Which of the following is not a key success factor
in a company's effort to deliver increased levels of
performance to the customer?
a. Time
b. Innovation
c. Quality
d. Price reduction - ✔✔ANSW✔✔..d. Price reduction
5. The five-step decision process
a. includes planning and control activities.
b. is performed exclusively by management
accountants.
Cost Test bank
1. Why do most companies adhere to GAAP for their
basic internal financial statements?
a. GAAP is required by law for publicly held
companies.
b. To use GAAP and another system of reporting
would be too costly for most companies.
c. Accountants are required by their code of ethics to
use GAAP accounting.
d. Accrual accounting provides a uniform method to
measure an organization's financial performance. -
✔✔ANSW✔✔..d. Accrual accounting provides a
uniform method to measure an organization's
financial performance.
2. Which of the following is not true about strategy?
a. It involves matching its capabilities with the
opportunities in the marketplace to accomplish its
objective.
b. It has a short-term focus.
c. It can be implemented through price competition
or product differentiation.
, d. It involves the use of strategic cost management.
- ✔✔ANSW✔✔..b. It has a short-term focus.
3. The value chain
a. involves external companies as well as internal
activities.
b. is the sequence of business functions in which
customer usefulness is added to products or
services.
c. applies only to manufacturing companies.
d. is not relevant in today's cost accounting
environment. - ✔✔ANSW✔✔..b. is the sequence of
business functions in which customer usefulness is
added to products or services.
4. Which of the following is not a key success factor
in a company's effort to deliver increased levels of
performance to the customer?
a. Time
b. Innovation
c. Quality
d. Price reduction - ✔✔ANSW✔✔..d. Price reduction
5. The five-step decision process
a. includes planning and control activities.
b. is performed exclusively by management
accountants.
