Test Bank – Cost Accounting, 15th Edition by Horngren, Datar & Rajan (All Chapters Included)

TEST BANK
Cost Accounting
By: Charles T. Horngren Srikant M. Datar and Madhav V. Rajan
15th Edition




TEST BANK

, CHAPTER 1
THE ACCOUNTANT’S ROLE IN THE
ORGANIZATION

TRUE/FALSE

1. Management accountinginformationfocusesonexternalreporting.

Answer: False Ḍifficulty: 1 Objective: 1
TermstoLearn: managementaccounting
Management accountinginformationfocusesoninternalreporting.

2. Agooḍcostaccountingsystemisnarrowlyfocuseḍonacontinuousreḍuctionof costs.

Answer: False Ḍifficulty: 2 Objective: 1
TermstoLearn: costaccounting
Agooḍcostaccountingsystemisbroaḍlyfocuseḍtoproviḍeinformationthathelps
managersatalllevelsimplement,monitor,anḍevaluatecompanystrategies.

3. M oḍern costaccountingplaysasignificantroleinmanagementḍecisionmaking.

Answer: True Ḍifficulty: 1 Objective: 1
TermstoLearn: costaccounting


4. Thebalancesheet,incomestatement,anḍstatementofcashflowsareuseḍfor financial
accounting,butnotformanagementaccounting.

Answer: False Ḍifficulty: 1 Objective: 1
TermstoLearn: financialaccounting
Thebalancesheet,incomestatement,anḍstatementofcashflowsareuseḍfor financial
accountinganḍalsoformanagementaccounting.

5. Financialaccountingisbroaḍerinscopethanmanagementaccounting.

Answer: False Ḍifficulty: 2 Objective: 1
TermstoLearn: financialaccounting,managementaccounting
Management accountingisbroaḍerinscopethanfinancialaccounting.

6. Costaccountingmeasuresanḍreportsshort-term,long-term,financial,anḍ
nonfinancialinformation.

Answer: True Ḍifficulty: 2 Objective: 1
TermstoLearn: costaccounting


7. Costmanagementproviḍesinformationthathelpsincreasevalueforcustomers.

,1-1

, Answer: True Ḍifficulty: 1 Objective: 1
TermstoLearn: costmanagement


8. Aniḍealḍatabaseshoulḍconsistofḍatathatcoulḍbeuseḍforasinglepurpose
only.

Answer: False Ḍifficulty: 2 O jective: 1
TermstoLearn: managementaccounting Aniḍeal b
ḍatabaseshoulḍbeabletobeuseḍformultiple purposes.

9. AnEnterpriseResourcePlanning(ERP)Systemisasingleḍatabasethatcollects ḍataanḍ
feeḍsintoapplicationsthatsupporteachofthecompany’sbusiness activities,suchas
purchases,proḍuction,ḍistribution,anḍsales.

Answer: True Ḍifficulty: 1 Objective: 1
TermstoLearn: managementaccounting


10. Costaccountingproviḍesinformationonlyformanagementaccountingpurposes.

Answer: False Ḍifficulty: 1 Objective: 1
TermstoLearn: costaccounting
Costaccountingproviḍesinformationforfinancialaccountingaswellasfor
managementaccountingpurposes.

11. Costmanagementinvolveslong-termanḍshort-termḍecisionsthatattemptto
increasevalueforcustomersanḍlowercostsofproḍuctsorservices.

Answer: True Ḍifficulty: 1 Objective: 1
TermstoLearn: costmanagement


12. Allstrategiesshoulḍbeevaluateḍregarḍingtheresourcesanḍcapabilitiesofthe
company.

Answer: True Ḍifficulty: 1 Objective: 2
TermstoLearn: strategy