Chapter 01 - Introduction to Cost Management
1. An accounting information system collects, records, summarizes, analyzes, and manages data to transform inputs into
information that is provided to users.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CMGT.HANS.26.1-1 - LO: 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - BB-Global
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Remembering
DATE CREATED: 5/9/2025 5:25 AM
DATE MODIFIED: 5/9/2025 5:25 AM
2. The two major subsystems of the accounting information system are the financial accounting information system and
the cost management accounting information system.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CMGT.HANS.26.1-1 - LO: 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - BB-Global
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Remembering
DATE CREATED: 5/9/2025 5:25 AM
DATE MODIFIED: 5/9/2025 5:25 AM
Page 1
,Chapter 01 - Introduction to Cost Management
3. The cost management information system is primarily concerned with producing outputs for external users.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CMGT.HANS.26.1-1 - LO: 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - BB-Global
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Remembering
DATE CREATED: 5/9/2025 5:25 AM
DATE MODIFIED: 5/9/2025 5:25 AM
4. The three broad objectives of financial accounting information systems are to provide information for costing out
services and products, planning and control, and decision making.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CMGT.HANS.26.1-1 - LO: 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - BB-Global
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Remembering
DATE CREATED: 5/9/2025 5:25 AM
DATE MODIFIED: 5/9/2025 5:25 AM
Page 2
,Chapter 01 - Introduction to Cost Management
5. For financial accounting, the nature of the inputs and the rules and conventions governing processes are defined by
the SEC and the FASB.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CMGT.HANS.26.1-1 - LO: 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - BB-Global
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Remembering
DATE CREATED: 5/9/2025 5:25 AM
DATE MODIFIED: 5/9/2025 5:25 AM
6. The cost management information system has two major subsystems: the cost accounting information system and
the operational control information system.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CMGT.HANS.26.1-1 - LO: 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - BB-Global
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Remembering
DATE CREATED: 5/9/2025 5:25 AM
DATE MODIFIED: 5/9/2025 5:25 AM
Page 3
, Chapter 01 - Introduction to Cost Management
7. Operational control is concerned with what activities should be performed and assessing how well they are
performed.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CMGT.HANS.26.1-2 - LO: 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - BB-Global
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Remembering
DATE CREATED: 5/9/2025 5:25 AM
DATE MODIFIED: 5/9/2025 5:25 AM
8. The changes in the service sector add to the demand for innovative and relevant cost management information.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CMGT.HANS.26.1-2 - LO: 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-09 - FN-Leveraging Technology
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Remembering
DATE CREATED: 5/9/2025 5:25 AM
DATE MODIFIED: 5/9/2025 5:25 AM
Page 4
1. An accounting information system collects, records, summarizes, analyzes, and manages data to transform inputs into
information that is provided to users.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CMGT.HANS.26.1-1 - LO: 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - BB-Global
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Remembering
DATE CREATED: 5/9/2025 5:25 AM
DATE MODIFIED: 5/9/2025 5:25 AM
2. The two major subsystems of the accounting information system are the financial accounting information system and
the cost management accounting information system.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CMGT.HANS.26.1-1 - LO: 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - BB-Global
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Remembering
DATE CREATED: 5/9/2025 5:25 AM
DATE MODIFIED: 5/9/2025 5:25 AM
Page 1
,Chapter 01 - Introduction to Cost Management
3. The cost management information system is primarily concerned with producing outputs for external users.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CMGT.HANS.26.1-1 - LO: 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - BB-Global
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Remembering
DATE CREATED: 5/9/2025 5:25 AM
DATE MODIFIED: 5/9/2025 5:25 AM
4. The three broad objectives of financial accounting information systems are to provide information for costing out
services and products, planning and control, and decision making.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CMGT.HANS.26.1-1 - LO: 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - BB-Global
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Remembering
DATE CREATED: 5/9/2025 5:25 AM
DATE MODIFIED: 5/9/2025 5:25 AM
Page 2
,Chapter 01 - Introduction to Cost Management
5. For financial accounting, the nature of the inputs and the rules and conventions governing processes are defined by
the SEC and the FASB.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CMGT.HANS.26.1-1 - LO: 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - BB-Global
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Remembering
DATE CREATED: 5/9/2025 5:25 AM
DATE MODIFIED: 5/9/2025 5:25 AM
6. The cost management information system has two major subsystems: the cost accounting information system and
the operational control information system.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CMGT.HANS.26.1-1 - LO: 1
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - BB-Global
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Remembering
DATE CREATED: 5/9/2025 5:25 AM
DATE MODIFIED: 5/9/2025 5:25 AM
Page 3
, Chapter 01 - Introduction to Cost Management
7. Operational control is concerned with what activities should be performed and assessing how well they are
performed.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CMGT.HANS.26.1-2 - LO: 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - BB-Global
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Remembering
DATE CREATED: 5/9/2025 5:25 AM
DATE MODIFIED: 5/9/2025 5:25 AM
8. The changes in the service sector add to the demand for innovative and relevant cost management information.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CMGT.HANS.26.1-2 - LO: 2
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-09 - FN-Leveraging Technology
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Remembering
DATE CREATED: 5/9/2025 5:25 AM
DATE MODIFIED: 5/9/2025 5:25 AM
Page 4
