Cost Accounting, 14e (Horngren/Datar/Rajan) Complete Test bank (Solution Manual) Containing All Chapters 1-23/ 4,000 Terms with Answers and Rationales Review.

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Cost Accounting, 14e (Horngren/Datar/Rajan)
Chapter 1 The Accountant's Role in the Organization

Objective 1.1 gh




1) Management accounting:
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A) focuses on estimating future revenues, costs, and other measures to forecast activities and their
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results
B) provides information about the company as a whole
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C) reports information that has occurred in the past that is verifiable and reliable
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D) provides information that is generally available only on a quarterly or annual basis
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Answer: A g h




Diff: 2 gh




Terms: treasury g h




Objective: 1 g h




AACSB: Reflective thinking g h gh




2) Managers use management accounting information to ________ strategy.
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A) choose
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B) communicate
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C) implement
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D) All of these answers are correct.
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Answer: D g h




Diff: 1 gh




Terms: total quality management (TQM)
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Objective: 1 g h




AACSB: Analytical skills g h gh




3) Financial accounting:
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A) focuses on the future and includes activities such as preparing next year's operating budget
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B) must comply with GAAP (generally accepted accounting principles)
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C) reports include detailed information on the various operating segments of the business such as
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product lines or departments gh gh gh




D) is prepared for the use of department heads and other employees
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Answer: B g h




Diff: 2 gh




Terms: financial accounting g h gh




Objective: 1 g h




AACSB: Reflective thinking g h gh




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,4) The person most likely to use ONLY financial accounting information is a:
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A) factory shift supervisor
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B) vice president of operations
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C) current shareholder
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D) department manager
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Answer: C g h




Diff: 1 gh




Terms: financial accounting g h gh




Objective: 1 g h




AACSB: Analytical skills g h gh




5) Which of the following people is LEAST likely to use management accounting information?
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A) the controller
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B) a shareholder evaluating a stock investment
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C) the treasurer
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D) an assembly department supervisor
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Answer: B g h




Diff: 1 gh




Terms: treasury g h




Objective: 1 g h




AACSB: Analytical skills g h gh




6) Financial accounting provides the primary source of information for:
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A) decision making in the finishing department
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B) improving customer service
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C) preparing the income statement for shareholders
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D) planning next year's operating budget
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Answer: C g h




Diff: 2 gh




Terms: financial accounting g h gh




Objective: 1 g h




AACSB: Reflective thinking g h gh




7) Which of the following descriptors refers to management accounting information?
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A) It is verifiable and reliable.
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B) It is driven by rules.
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C) It is prepared for shareholders.
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D) It provides reasonable and timely estimates.
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Answer: D g h




Diff: 2 gh




Terms: treasury g h




Objective: 1 g h




AACSB: Reflective thinking g h gh




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8) Which of the following statements refers to management accounting information?
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A) There are no regulations governing the reports.
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B) The reports are generally delayed and historical.
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C) The audience tends to be stockholders, creditors, and tax authorities.
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D) It primarily measures and records business transactions.
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Answer: A g h




Diff: 2 gh




Terms: treasury g h




Objective: 1 g h




AACSB: Reflective thinking g h gh




9) Which of the following groups would be LEAST likely to receive detailed management accounting
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reports?
A) stockholders
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B) sales representatives
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C) production supervisors
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D) managers
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Answer: A g h




Diff: 1 gh




Terms: treasury g h




Objective: 1 g h




AACSB: Analytical skills g h gh




10) Management accounting information includes:
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A) tabulated results of customer satisfaction surveys
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B) the cost of producing a product
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C) the percentage of units produced that are defective
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D) All of these answers are correct.
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Answer: D g h




Diff: 1 gh




Terms: treasury g h




Objective: 1 g h




AACSB: Reflective thinking g h gh




11) Cost accounting:
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A) provides information on the efficiency of factory labor
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B) provides information on the cost of servicing commercial customers
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C) provides information on the performance of an operating division
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D) All of these answers are correct.
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Answer: D g h




Diff: 1 gh




Terms: cost accounting g h gh




Objective: 1 g h




AACSB: Reflective thinking g h gh




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