Test bank For Cost Accounting Exam I
study guide 1st Edition by Farmer
Determining the total compensation of the CEO of a Public Company - ANSFinancial
Accounting System
Issuing a quarterly earnings report - ANSFinancial Accounting System
Determining the unit product cost using TDABC - ANSCost Management Information System
calculating the number of units that must be sold to break even - ANSCost Management
Information System
Preparing a required report for the SEC - ANSFinancial Accounting System
Preparing a sales budget - ANSCost Management Information System
Using cost and revenue information to decide whether to keep, or drop, a product line -
ANSCost Management Information System
Preparing an annual statement of financial position that conforms to generally accepted
accounting principles - ANSFinancial Accounting System
using cost and revenue information to decide whether to invest in a new production system or
not - ANSCost Management Information System
reducing costs by improving the overall quality of a product - ANSCost Management Information
System
using a debt-equity ratio an liquidity ratios from a balance sheet to assess the likelihood of
bankruptcy - ANSFinancial Accounting System
Using a public company's financial statements to decide whether or not to buy its stock -
ANSFinancial Accounting System
Eliminating a non-value-added activity - ANSplanning and control
Determining how much it costs to perform a heart transplant - ANSCosting of service
,Calculating the cost of inspecting components from an outside supplier - ANSCosting of
product/activity
developing and using budgeted income statement for a division - ANSplanning and control
eliminating the need to inspect by improving the quality of products and processes -
ANSplanning and control
Determining whether selling a product at split-off is more profitable than processing it further
before selling it - ANSDecision making
Calculating the cost of producing an e-book - ANScosting of product
using a trend report on quality costs to assess the effectiveness of a quality improvement
program - ANSplanning and control
Determining the units that must be sold to break even - ANSdecision making
Calculating the cost to perform a tooth extraction - ANScosting of service
Determining the total cost of moving goods - ANScosting of an activity
Using JIT purchasing and manufacturing to significantly reduce inventories - ANSPlanning and
control
Using unit product cost to help develop a bid price - ANSdecision making
The objective of the cost management information system is to provide information for -
ANSplanning and control
Which of the following statements regarding the financial accounting information system is true?
- ANSIt is primarily concerned with producing outputs such as balance sheet and income
statement for external users.
Which of the following statements regarding the cost management system is true - ANSit is
primarily concerned with producing outputs for internal users using inputs and processes
needed to satisfy management objectives.
Legal disputes can be settled by identifying, recording, settling, extracting, reporting, and
verifying past financial data in an activity know as - ANSforensic accounting
Which of the following statements regarding the theory of constraints is true? - ANSit is a
thinking process that begins by recognizing that all resource are finite.
, Which of the following manufacturing approaches stives to produce a product only when it is
needed and only in the quantities demanded by the customers? - ANSJust-in-time
manufacturing approach
searching for ways to increase overall efficiency by reducing waste, improving quality and
reducing costs is a function with an organization that is known as - ANScontinuous improvement
positions that are supportive in nature and have only indirect responsibility for an organization's
basic objectives are called - ANSstaff positions
a controller of a company is responsible for - ANSboth internal and external accounting
requirements
James and Kate are both managers in a company. During a conversation, Kate tells James that
she was informed by Maya, the vice president of finance that James might be laid off next
month. In this scenario, which of the following ethical principles is violated by Kate? -
ANSConfidentiality
which of the following ethical principles dictates that a cost accountant, when faced with
unethical issues, should follow the established policies of the organization? - ANSResolution of
ethical conflict
Daisy Inc., a manufacturing company, is planning to invest in new equipment. Thomas, the cost
accounting manager, was in favor as the investment had seemed profitable by his calculations.
Later, he realized that some of his assumptions were impractical, and the investment would not
be as profitable as he had thought. He refrained from disclosing this information to
management. In this scenario, which of the following ethical principles did Thomas violate? -
ANSCredibility
According to the integrity standard, each member has a responsibility to - ANSabstain from
engaging in or supporting any activity that might discredit the profession.
What are the components of an accounting information system? - ANSInterrelated manual and
computer parts and uses processes such as collecting, recording, summarizing, analyzing, and
managing data to transform inputs into information that is provided to users.
Which of the following statements regarding the cost management information system is true? -
ANSit is primarily concerned with producing outputs for internal users using inputs and
processes need to satisfy management objectives.
the objective of the cost management system is to provide information for - ANSplanning and
control
study guide 1st Edition by Farmer
Determining the total compensation of the CEO of a Public Company - ANSFinancial
Accounting System
Issuing a quarterly earnings report - ANSFinancial Accounting System
Determining the unit product cost using TDABC - ANSCost Management Information System
calculating the number of units that must be sold to break even - ANSCost Management
Information System
Preparing a required report for the SEC - ANSFinancial Accounting System
Preparing a sales budget - ANSCost Management Information System
Using cost and revenue information to decide whether to keep, or drop, a product line -
ANSCost Management Information System
Preparing an annual statement of financial position that conforms to generally accepted
accounting principles - ANSFinancial Accounting System
using cost and revenue information to decide whether to invest in a new production system or
not - ANSCost Management Information System
reducing costs by improving the overall quality of a product - ANSCost Management Information
System
using a debt-equity ratio an liquidity ratios from a balance sheet to assess the likelihood of
bankruptcy - ANSFinancial Accounting System
Using a public company's financial statements to decide whether or not to buy its stock -
ANSFinancial Accounting System
Eliminating a non-value-added activity - ANSplanning and control
Determining how much it costs to perform a heart transplant - ANSCosting of service
,Calculating the cost of inspecting components from an outside supplier - ANSCosting of
product/activity
developing and using budgeted income statement for a division - ANSplanning and control
eliminating the need to inspect by improving the quality of products and processes -
ANSplanning and control
Determining whether selling a product at split-off is more profitable than processing it further
before selling it - ANSDecision making
Calculating the cost of producing an e-book - ANScosting of product
using a trend report on quality costs to assess the effectiveness of a quality improvement
program - ANSplanning and control
Determining the units that must be sold to break even - ANSdecision making
Calculating the cost to perform a tooth extraction - ANScosting of service
Determining the total cost of moving goods - ANScosting of an activity
Using JIT purchasing and manufacturing to significantly reduce inventories - ANSPlanning and
control
Using unit product cost to help develop a bid price - ANSdecision making
The objective of the cost management information system is to provide information for -
ANSplanning and control
Which of the following statements regarding the financial accounting information system is true?
- ANSIt is primarily concerned with producing outputs such as balance sheet and income
statement for external users.
Which of the following statements regarding the cost management system is true - ANSit is
primarily concerned with producing outputs for internal users using inputs and processes
needed to satisfy management objectives.
Legal disputes can be settled by identifying, recording, settling, extracting, reporting, and
verifying past financial data in an activity know as - ANSforensic accounting
Which of the following statements regarding the theory of constraints is true? - ANSit is a
thinking process that begins by recognizing that all resource are finite.
, Which of the following manufacturing approaches stives to produce a product only when it is
needed and only in the quantities demanded by the customers? - ANSJust-in-time
manufacturing approach
searching for ways to increase overall efficiency by reducing waste, improving quality and
reducing costs is a function with an organization that is known as - ANScontinuous improvement
positions that are supportive in nature and have only indirect responsibility for an organization's
basic objectives are called - ANSstaff positions
a controller of a company is responsible for - ANSboth internal and external accounting
requirements
James and Kate are both managers in a company. During a conversation, Kate tells James that
she was informed by Maya, the vice president of finance that James might be laid off next
month. In this scenario, which of the following ethical principles is violated by Kate? -
ANSConfidentiality
which of the following ethical principles dictates that a cost accountant, when faced with
unethical issues, should follow the established policies of the organization? - ANSResolution of
ethical conflict
Daisy Inc., a manufacturing company, is planning to invest in new equipment. Thomas, the cost
accounting manager, was in favor as the investment had seemed profitable by his calculations.
Later, he realized that some of his assumptions were impractical, and the investment would not
be as profitable as he had thought. He refrained from disclosing this information to
management. In this scenario, which of the following ethical principles did Thomas violate? -
ANSCredibility
According to the integrity standard, each member has a responsibility to - ANSabstain from
engaging in or supporting any activity that might discredit the profession.
What are the components of an accounting information system? - ANSInterrelated manual and
computer parts and uses processes such as collecting, recording, summarizing, analyzing, and
managing data to transform inputs into information that is provided to users.
Which of the following statements regarding the cost management information system is true? -
ANSit is primarily concerned with producing outputs for internal users using inputs and
processes need to satisfy management objectives.
the objective of the cost management system is to provide information for - ANSplanning and
control
