3/9/24, 10:12 AM
6v 6v Test bank for Horngren’s CostAccountingAManagerial Emphasis 17th Glo…
6v 6v 6v 6v v
6 v
6 v
6 6v 6v 6v
Test bank for Horngren’s CostAccounting A
6v 6v 6v 6v 6v 6v
ManagerialEmphasis17thGlobalEditionbySrikant
6v 6v 6v 6v 6v 6v 6v
M. Datar 6v
Horngren's Cost Accounting:A Managerial Emphasis, 17e, Global Edition by Datar/Rajan
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6Chapter 1
v The Manager and Management Accounting
6v 6 v 6v 6v 6v 6v
Objective 1.1 6v
1) Management accounting: 6 v
A) focuses on estimating future revenues, costs, and other measures to forecast activities
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 and their results
v 6v 6v
B) provides i nformation about the company as a whole
6v 6v 6v 6v 6v 6v 6v
C) reports information that has occurred in the past that is verifiable and reliable
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
D) provides information that is generally available only on a quarterly or annual basis
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 Answer: A v 6 v
1
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,3/9/24, 10:12 AM
6v 6v Test bank for Horngren’s CostAccountingAManagerial Emphasis 17th Glo…
6v 6v 6v 6v v
6 v
6 v
6 6v 6v 6v
Explanation: A) Management accounting has a f orward-looking orientation as opposed to
6 v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6financial accounting which has a historical perspective.
v 6v 6v 6v 6v 6v 6v
Diff: 1 6v
Objective: 1 6 v
AACSB: Analytical thinking
6 v 6 v
2) Managers use management accounting i nformation to: 6v 6v 6v 6v 6v
A) help external users such as investors, banks, regulators, and suppliers
6v 6v 6v 6v 6v 6v 6v 6v 6v
B) communicate, develop, and implement strategies 6 v 6 v 6 v 6 v
C) communicate a firmffs financial position to investors, banks, regulators, and other 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 outside parties
v 6v
D) ensure that financial statements are consistent with the SEC rules
6v 6v 6v 6v 6v 6v 6v 6v 6v
Answer: B 6 v
Diff: 1 6v
Objective: 1 6 v
AACSB: Analytical thinking
6 v 6 v
3) Financial accounting: 6 v
A) focuses on the future and includes activities such as preparing next yearffs operating
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 budget v
B) must comply with GAAP (generally accepted accounting principles)
6 v 6 v 6 v 6 v 6 v 6 v 6 v
C) is the process of measuring, analyzing, and reporting financial and nonfinancial
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 information related to the costs of acquiring or using resources in an organization
v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
D) is prepared for the use of department heads and other employees
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
Answer: B 6 v
Diff: 1 6v
Objective: 1 6 v
AACSB: Analytical thinking
6 v 6 v
4) Which of the following would most likely be the user of financial accounting information?
6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v
A) factory shift supervisor 6v 6v
B) distribution manager 6 v
C) current shareholder 6v
D) department manager 6v
6 Answer: C
v 6 v
Diff: 1 6v
Objective: 1 6 v
AACSB: Analytical thinking
6 v 6 v
2
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,3/9/24, 10:12 AM
6v 6v Test bank for Horngren’s CostAccountingAManagerial Emphasis 17th Glo…
6v 6v 6v 6v v
6 v
6 v
6 6v 6v 6v
5) The primary user of management accounting information is a(n):
6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v
A) the controller 6v
B) a shareholder evaluating a stock investment
6v 6v 6v 6v 6v
C) bondholder
D) external regulator 6v
6 Answer: A
v 6 v
Diff: 1 6v
Objective: 1 6 v
AACSB: Analytical thinking 6 v 6 v
6) Financial accounting provides the primary source of information for: 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v
A) decision making in the assembly and finishing department 6 v 6 v 6 v 6 v 6 v 6 v 6 v
B) improving distribution and customer service 6 v 6 v 6 v 6 v
C) preparing the income statement for shareholders and other external parties 6v 6v 6v 6v 6v 6v 6v 6v 6v
D) planning next yearffs plans and specifically; the operating budget 6v 6v 6v 6v 6v 6v 6v 6v
6 Answer: C
v 6 v
Diff: 1 6v
Objective: 1 6 v
AACSB: Analytical thinking 6 v 6 v
7) Which of the following is true of management accounting information?
6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v
A) It focuses on documenting past business actions of a firm.
6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v
B) It is prepared based on SEC rules and FASB accounting principles.
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
C) It is prepared for shareholders.
6v 6v 6v 6v
D) It helps with the coordination of elements of the value chain.
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 Answer: D
v 6 v
Diff: 2 6v
Objective: 1 6 v
AACSB: Analytical thinking 6 v 6 v
8) Which of the following statements refers to management accounting information?
6v 6v 6v 6v 6v 6v 6v 6v 6v
A) There are no regulations governing the reports.
6v 6v 6v 6v 6v 6v
B) The reports are generally delayed and historical.
6v 6v 6v 6v 6v 6v
C) The audience tends to be stockholders, creditors, and tax authorities.
6v 6v 6v 6v 6v 6v 6v 6v 6v
D) It primarily measures managerffs compensation on reported financial results.
6v 6v 6v 6v 6v 6v 6v 6v
6Answer: A
v 6 v
Diff: 2 6v
Objective: 1 6 v
AACSB: Analytical thinking 6 v 6 v
9) Which of the following groups would be least likely to receive detailed management
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 accounting reports?
v 6v
A) stockholders
B) sales managers 6 v
C) production supervisors 6 v
D) distribution managers 6v
6 Answer: A
v 6 v
Diff: 1 6v
Objective: 1 6 v
AACSB: Analytical thinking 6 v 6 v
10) Management accounting information typically includes: 6 v 6 v 6 v 6 v
A) tabulated results of customer satisfaction surveys 6v 6v 6v 6v 6v
B) the cost of producing a product
6v 6v 6v 6v 6v
C) the percentage of units produced that are defective
6v 6v 6v 6v 6v 6v 6v
D) All of these answers are correct.
6v 6v 6v 6v 6v
6 Answer: D
v 6 v
Diff: 1 6v
3
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, 3/9/24, 10:12 AM
6v 6v Test bank for Horngren’s CostAccountingAManagerial Emphasis 17th Glo…
6v 6v 6v 6v v
6 v
6 v
6 6v 6v 6v
Objective: 1 6 v
AACSB: Application of knowledge 6 v 6 v 6 v
11) Cost accounting: 6v
A) measures the costs of acquiring or using resources in an organization 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
B) measures the financial and nonfinancial information that helps managers make 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v
decisions to fulfill the goals of an organization
6 v 6 v 6v 6v 6v 6v 6v 6v
C) coordinates product design, production, and marketing decisions and evaluate a 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 companyffs performance
v 6v
D) communicates i nformation to i nvestors, banks, regulators, and other outside parties 6v 6v 6v 6v 6v 6v 6v 6v 6v
Answer: A 6 v
Diff: 1 6v
Objective: 1 6 v
AACSB: Analytical thinking 6 v 6 v
12) Which of the following differentiates cost accounting and financial accounting?
6v 6v 6v 6v 6v 6v 6v 6v 6v
A) The primary users of cost accounting are the investors, whereas the primary users of
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 financial accounting are the managers.
v 6v 6v 6v 6v
B) Cost accounting deals with product design, production, and marketing strategies,
6v 6v 6v 6v 6v 6v 6v 6v 6v
whereas financial accounting deals mainly with pricing of the products.
6v 6v 6v 6v 6v 6v 6v 6v 6v
C) Cost accounting measures only the financial information related to the costs of acquiring
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 fixed assets in an organization, whereas financial accounting measures financial and
v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 nonfinancial information of a companyffs business transactions.
v 6v 6v 6v 6v 6v 6v
D) Cost accounting measures information related to the costs of acquiring or using
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 resources in an organization, whereas financial accounting measures a financial position of
v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 a company to investors, banks, and external parties.
v 6v 6v 6v 6v 6v 6v 6v
Answer: D 6 v
Diff: 2 6v
Objective: 1 6 v
AACSB: Analytical thinking 6 v 6 v
13) Which of the following is true of financial accounting information?
6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v
A) It is prepared based on cost-benefit analysis.
6 v 6 v 6 v 6 v 6 v 6 v
B) It is primarily used by managers to make internal business decisions.
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
C) It focuses on the past-oriented financial performance of a company.
6v 6v 6v 6v 6v 6v 6v 6v 6v
D) It only measures the c ash transactions of a company.
6v 6v 6v 6v 6v 6v 6v 6v
6 Answer: C
v 6 v
Diff: 2 6v
Objective: 1 6 v
AACSB: Analytical thinking 6 v 6 v
4
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6v 6v Test bank for Horngren’s CostAccountingAManagerial Emphasis 17th Glo…
6v 6v 6v 6v v
6 v
6 v
6 6v 6v 6v
Test bank for Horngren’s CostAccounting A
6v 6v 6v 6v 6v 6v
ManagerialEmphasis17thGlobalEditionbySrikant
6v 6v 6v 6v 6v 6v 6v
M. Datar 6v
Horngren's Cost Accounting:A Managerial Emphasis, 17e, Global Edition by Datar/Rajan
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6Chapter 1
v The Manager and Management Accounting
6v 6 v 6v 6v 6v 6v
Objective 1.1 6v
1) Management accounting: 6 v
A) focuses on estimating future revenues, costs, and other measures to forecast activities
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 and their results
v 6v 6v
B) provides i nformation about the company as a whole
6v 6v 6v 6v 6v 6v 6v
C) reports information that has occurred in the past that is verifiable and reliable
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
D) provides information that is generally available only on a quarterly or annual basis
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 Answer: A v 6 v
1
Copyright © 2021 Pearson Education, Ltd.
6v 6v 6v 6v 6v
about:blank 1/47
,3/9/24, 10:12 AM
6v 6v Test bank for Horngren’s CostAccountingAManagerial Emphasis 17th Glo…
6v 6v 6v 6v v
6 v
6 v
6 6v 6v 6v
Explanation: A) Management accounting has a f orward-looking orientation as opposed to
6 v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6financial accounting which has a historical perspective.
v 6v 6v 6v 6v 6v 6v
Diff: 1 6v
Objective: 1 6 v
AACSB: Analytical thinking
6 v 6 v
2) Managers use management accounting i nformation to: 6v 6v 6v 6v 6v
A) help external users such as investors, banks, regulators, and suppliers
6v 6v 6v 6v 6v 6v 6v 6v 6v
B) communicate, develop, and implement strategies 6 v 6 v 6 v 6 v
C) communicate a firmffs financial position to investors, banks, regulators, and other 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 outside parties
v 6v
D) ensure that financial statements are consistent with the SEC rules
6v 6v 6v 6v 6v 6v 6v 6v 6v
Answer: B 6 v
Diff: 1 6v
Objective: 1 6 v
AACSB: Analytical thinking
6 v 6 v
3) Financial accounting: 6 v
A) focuses on the future and includes activities such as preparing next yearffs operating
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 budget v
B) must comply with GAAP (generally accepted accounting principles)
6 v 6 v 6 v 6 v 6 v 6 v 6 v
C) is the process of measuring, analyzing, and reporting financial and nonfinancial
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 information related to the costs of acquiring or using resources in an organization
v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
D) is prepared for the use of department heads and other employees
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
Answer: B 6 v
Diff: 1 6v
Objective: 1 6 v
AACSB: Analytical thinking
6 v 6 v
4) Which of the following would most likely be the user of financial accounting information?
6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v
A) factory shift supervisor 6v 6v
B) distribution manager 6 v
C) current shareholder 6v
D) department manager 6v
6 Answer: C
v 6 v
Diff: 1 6v
Objective: 1 6 v
AACSB: Analytical thinking
6 v 6 v
2
Copyright © 2021 Pearson Education, Ltd. 6v 6v 6v 6v 6v
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,3/9/24, 10:12 AM
6v 6v Test bank for Horngren’s CostAccountingAManagerial Emphasis 17th Glo…
6v 6v 6v 6v v
6 v
6 v
6 6v 6v 6v
5) The primary user of management accounting information is a(n):
6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v
A) the controller 6v
B) a shareholder evaluating a stock investment
6v 6v 6v 6v 6v
C) bondholder
D) external regulator 6v
6 Answer: A
v 6 v
Diff: 1 6v
Objective: 1 6 v
AACSB: Analytical thinking 6 v 6 v
6) Financial accounting provides the primary source of information for: 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v
A) decision making in the assembly and finishing department 6 v 6 v 6 v 6 v 6 v 6 v 6 v
B) improving distribution and customer service 6 v 6 v 6 v 6 v
C) preparing the income statement for shareholders and other external parties 6v 6v 6v 6v 6v 6v 6v 6v 6v
D) planning next yearffs plans and specifically; the operating budget 6v 6v 6v 6v 6v 6v 6v 6v
6 Answer: C
v 6 v
Diff: 1 6v
Objective: 1 6 v
AACSB: Analytical thinking 6 v 6 v
7) Which of the following is true of management accounting information?
6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v
A) It focuses on documenting past business actions of a firm.
6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v
B) It is prepared based on SEC rules and FASB accounting principles.
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
C) It is prepared for shareholders.
6v 6v 6v 6v
D) It helps with the coordination of elements of the value chain.
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 Answer: D
v 6 v
Diff: 2 6v
Objective: 1 6 v
AACSB: Analytical thinking 6 v 6 v
8) Which of the following statements refers to management accounting information?
6v 6v 6v 6v 6v 6v 6v 6v 6v
A) There are no regulations governing the reports.
6v 6v 6v 6v 6v 6v
B) The reports are generally delayed and historical.
6v 6v 6v 6v 6v 6v
C) The audience tends to be stockholders, creditors, and tax authorities.
6v 6v 6v 6v 6v 6v 6v 6v 6v
D) It primarily measures managerffs compensation on reported financial results.
6v 6v 6v 6v 6v 6v 6v 6v
6Answer: A
v 6 v
Diff: 2 6v
Objective: 1 6 v
AACSB: Analytical thinking 6 v 6 v
9) Which of the following groups would be least likely to receive detailed management
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 accounting reports?
v 6v
A) stockholders
B) sales managers 6 v
C) production supervisors 6 v
D) distribution managers 6v
6 Answer: A
v 6 v
Diff: 1 6v
Objective: 1 6 v
AACSB: Analytical thinking 6 v 6 v
10) Management accounting information typically includes: 6 v 6 v 6 v 6 v
A) tabulated results of customer satisfaction surveys 6v 6v 6v 6v 6v
B) the cost of producing a product
6v 6v 6v 6v 6v
C) the percentage of units produced that are defective
6v 6v 6v 6v 6v 6v 6v
D) All of these answers are correct.
6v 6v 6v 6v 6v
6 Answer: D
v 6 v
Diff: 1 6v
3
Copyright © 2021 Pearson Education, Ltd. 6v 6v 6v 6v 6v
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, 3/9/24, 10:12 AM
6v 6v Test bank for Horngren’s CostAccountingAManagerial Emphasis 17th Glo…
6v 6v 6v 6v v
6 v
6 v
6 6v 6v 6v
Objective: 1 6 v
AACSB: Application of knowledge 6 v 6 v 6 v
11) Cost accounting: 6v
A) measures the costs of acquiring or using resources in an organization 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
B) measures the financial and nonfinancial information that helps managers make 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v
decisions to fulfill the goals of an organization
6 v 6 v 6v 6v 6v 6v 6v 6v
C) coordinates product design, production, and marketing decisions and evaluate a 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 companyffs performance
v 6v
D) communicates i nformation to i nvestors, banks, regulators, and other outside parties 6v 6v 6v 6v 6v 6v 6v 6v 6v
Answer: A 6 v
Diff: 1 6v
Objective: 1 6 v
AACSB: Analytical thinking 6 v 6 v
12) Which of the following differentiates cost accounting and financial accounting?
6v 6v 6v 6v 6v 6v 6v 6v 6v
A) The primary users of cost accounting are the investors, whereas the primary users of
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 financial accounting are the managers.
v 6v 6v 6v 6v
B) Cost accounting deals with product design, production, and marketing strategies,
6v 6v 6v 6v 6v 6v 6v 6v 6v
whereas financial accounting deals mainly with pricing of the products.
6v 6v 6v 6v 6v 6v 6v 6v 6v
C) Cost accounting measures only the financial information related to the costs of acquiring
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 fixed assets in an organization, whereas financial accounting measures financial and
v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 nonfinancial information of a companyffs business transactions.
v 6v 6v 6v 6v 6v 6v
D) Cost accounting measures information related to the costs of acquiring or using
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 resources in an organization, whereas financial accounting measures a financial position of
v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
6 a company to investors, banks, and external parties.
v 6v 6v 6v 6v 6v 6v 6v
Answer: D 6 v
Diff: 2 6v
Objective: 1 6 v
AACSB: Analytical thinking 6 v 6 v
13) Which of the following is true of financial accounting information?
6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v 6 v
A) It is prepared based on cost-benefit analysis.
6 v 6 v 6 v 6 v 6 v 6 v
B) It is primarily used by managers to make internal business decisions.
6v 6v 6v 6v 6v 6v 6v 6v 6v 6v
C) It focuses on the past-oriented financial performance of a company.
6v 6v 6v 6v 6v 6v 6v 6v 6v
D) It only measures the c ash transactions of a company.
6v 6v 6v 6v 6v 6v 6v 6v
6 Answer: C
v 6 v
Diff: 2 6v
Objective: 1 6 v
AACSB: Analytical thinking 6 v 6 v
4
Copyright © 2021 Pearson Education, Ltd. 6v 6v 6v 6v 6v
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