ELABORATED COST (CH1 MC)
TEST BANK
Cost Accounting, 14e (Horngren/Datar/Rajan)
Chapter 1 The Accountant's Role in the Organization
Objective 1.1 - CORRECT ANSWER -
1) Management accounting:
A) focuses on estimating future revenues, costs, and other measures to forecast activities and their
results
B) provides information about the company as a whole
C) reports information that has occurred tin tthe tpast tthat tis tverifiable tand treliable
D) provides tinformation tthat tis tgenerally tavailable tonly ton ta tquarterly tor tannual
tbasis tAnswer: tA
Diff: t2
Terms:
ttreasury
tObjective: t1
AACSB: tReflective tthinking t- tCORRECT tANSWER t-
2) Managers tuse tmanagement taccounting tinformation tto t strategy.
A) choose
B) communicate
C) implement
,D) All tof tthese tanswers tare
tcorrect. tAnswer: tD
Diff: t1
Terms: ttotal tquality tmanagement t(TQM)
tObjective: t1
AACSB: tAnalytical tskills t- tCORRECT tANSWER t-
3) Financial taccounting:
A) focuses ton tthe tfuture tand tincludes tactivities tsuch tas tpreparing tnext tyear's toperating tbudget
B) must tcomply twith tGAAP t(generally taccepted taccounting tprinciples)
C) reports tinclude tdetailed tinformation ton tthe tvarious toperating tsegments tof tthe tbusiness
tsuch tas tproduct tlines tor tdepartments
D) is tprepared tfor tthe tuse tof tdepartment theads tand tother
temployees tAnswer: tB
Diff: t2
Terms: tfinancial taccounting
tObjective: t1
AACSB: tReflective tthinking t- tCORRECT tANSWER t-
4) The tperson tmost tlikely tto tuse tONLY tfinancial taccounting tinformation tis ta:
A) factory tshift tsupervisor
B) vice tpresident tof toperations
C) current tshareholder
D) department
tmanager tAnswer: tC
Diff: t1
, Terms: tfinancial taccounting
tObjective: t1
AACSB: tAnalytical tskills t- tCORRECT tANSWER t-
5) Which tof tthe tfollowing tpeople tis tLEAST tlikely tto tuse tmanagement taccounting tinformation?
A) the tcontroller
B) a tshareholder tevaluating ta tstock tinvestment
C) the ttreasurer
D) an tassembly tdepartment
tsupervisor tAnswer: tB
Diff: t1
Terms:
ttreasury
tObjective: t1
AACSB: tAnalytical tskills t- tCORRECT tANSWER t-
6) Financial taccounting tprovides tthe tprimary tsource tof tinformation tfor:
A) decision tmaking tin tthe tfinishing tdepartment
B) improving tcustomer tservice
C) preparing tthe tincome tstatement tfor tshareholders
D) planning tnext tyear's toperating
tbudget tAnswer: tC
Diff: t2
Terms: tfinancial taccounting
tObjective: t1
AACSB: tReflective tthinking t- tCORRECT tANSWER t-
TEST BANK
Cost Accounting, 14e (Horngren/Datar/Rajan)
Chapter 1 The Accountant's Role in the Organization
Objective 1.1 - CORRECT ANSWER -
1) Management accounting:
A) focuses on estimating future revenues, costs, and other measures to forecast activities and their
results
B) provides information about the company as a whole
C) reports information that has occurred tin tthe tpast tthat tis tverifiable tand treliable
D) provides tinformation tthat tis tgenerally tavailable tonly ton ta tquarterly tor tannual
tbasis tAnswer: tA
Diff: t2
Terms:
ttreasury
tObjective: t1
AACSB: tReflective tthinking t- tCORRECT tANSWER t-
2) Managers tuse tmanagement taccounting tinformation tto t strategy.
A) choose
B) communicate
C) implement
,D) All tof tthese tanswers tare
tcorrect. tAnswer: tD
Diff: t1
Terms: ttotal tquality tmanagement t(TQM)
tObjective: t1
AACSB: tAnalytical tskills t- tCORRECT tANSWER t-
3) Financial taccounting:
A) focuses ton tthe tfuture tand tincludes tactivities tsuch tas tpreparing tnext tyear's toperating tbudget
B) must tcomply twith tGAAP t(generally taccepted taccounting tprinciples)
C) reports tinclude tdetailed tinformation ton tthe tvarious toperating tsegments tof tthe tbusiness
tsuch tas tproduct tlines tor tdepartments
D) is tprepared tfor tthe tuse tof tdepartment theads tand tother
temployees tAnswer: tB
Diff: t2
Terms: tfinancial taccounting
tObjective: t1
AACSB: tReflective tthinking t- tCORRECT tANSWER t-
4) The tperson tmost tlikely tto tuse tONLY tfinancial taccounting tinformation tis ta:
A) factory tshift tsupervisor
B) vice tpresident tof toperations
C) current tshareholder
D) department
tmanager tAnswer: tC
Diff: t1
, Terms: tfinancial taccounting
tObjective: t1
AACSB: tAnalytical tskills t- tCORRECT tANSWER t-
5) Which tof tthe tfollowing tpeople tis tLEAST tlikely tto tuse tmanagement taccounting tinformation?
A) the tcontroller
B) a tshareholder tevaluating ta tstock tinvestment
C) the ttreasurer
D) an tassembly tdepartment
tsupervisor tAnswer: tB
Diff: t1
Terms:
ttreasury
tObjective: t1
AACSB: tAnalytical tskills t- tCORRECT tANSWER t-
6) Financial taccounting tprovides tthe tprimary tsource tof tinformation tfor:
A) decision tmaking tin tthe tfinishing tdepartment
B) improving tcustomer tservice
C) preparing tthe tincome tstatement tfor tshareholders
D) planning tnext tyear's toperating
tbudget tAnswer: tC
Diff: t2
Terms: tfinancial taccounting
tObjective: t1
AACSB: tReflective tthinking t- tCORRECT tANSWER t-
