Test bank for cost accounting 14th edition by horngren datar and rajan. all 23 chapters covered. updated 2025

kc

,kc




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




Objective 1.1 kc




1) Management accounting:
kc kc



A) focuses on estimating future revenues, costs, and other measures to forecast activities and their
kc kc kc kc kc kc kc kc kc kc kc kc kc kc



results
B) provides information about the company as a whole
kc kc kc kc kc kc kc kc



C) reports information that has occurred in the past that is verifiable and reliable
kc kc kc kc kc kc kc kc kc kc kc kc kc



D) provides information that is generally available only on a quarterly or annual basis
kc kc kc kc kc kc kc kc kc kc kc kc kc



Answer: A k c



Diff: 2 kc



Terms: treasury
k c



Objective: 1 k c



AACSB: Reflective thinking
k c kc




2) Managers use management accounting information to ________ strategy.
kc kc kc kc kc kc kc kc



A) choose
kc



B) communicate
kc



C) implement
kc



D) All of these answers are correct.
kc kc kc kc kc kc



Answer: D k c



Diff: 1 kc



Terms: total quality management (TQM)
k c kc kc kc



Objective: 1 k c



AACSB: Analytical skillsk c kc




3) Financial accounting:
kc kc



A) focuses on the future and includes activities such as preparing next year's operating budget
kc kc kc kc kc kc kc kc kc kc kc kc kc kc



B) must comply with GAAP (generally accepted accounting principles)
kc kc kc kc kc kc kc kc



C) reports include detailed information on the various operating segments of the business such as
kc kc kc kc kc kc kc kc kc kc kc kc kc kc



product lines or departments
kc kc kc



D) is prepared for the use of department heads and other employees
kc kc kc kc kc kc kc kc kc kc kc



Answer: B k c



Diff: 2 kc



Terms: financial accounting
k c kc



Objective: 1 k c



AACSB: Reflective thinking
k c kc




1
Copyright © 2012 Pearson Education, Inc.
kc kc kc kc kc

,kc




4) The person most likely to use ONLY financial accounting information is a:
kc kc kc kc kc kc kc kc kc kc kc kc



A) factory shift supervisor
kc kc kc



B) vice president of operations
kc kc kc kc



C) current shareholder
kc kc



D) department manager
kc kc



Answer: C k c



Diff: 1 kc



Terms: financial accounting
k c kc



Objective: 1 k c



AACSB: Analytical skills k c kc




5) Which of the following people is LEAST likely to use management accounting information?
kc kc kc kc kc kc kc kc kc kc kc kc kc



A) the controller
kc kc



B) a shareholder evaluating a stock investment
kc kc kc kc kc kc



C) the treasurer
kc kc



D) an assembly department supervisor
kc kc kc kc



Answer: B k c



Diff: 1 kc



Terms: treasury k c



Objective: 1 k c



AACSB: Analytical skills k c kc




6) Financial accounting provides the primary source of information for:
kc kc kc kc kc kc kc kc kc



A) decision making in the finishing department
kc kc kc kc kc kc



B) improving customer service
kc kc kc



C) preparing the income statement for shareholders
kc kc kc kc kc kc



D) planning next year's operating budget
kc kc kc kc kc



Answer: C k c



Diff: 2 kc



Terms: financial accounting
k c kc



Objective: 1 k c



AACSB: Reflective thinking k c kc




7) Which of the following descriptors refers to management accounting information?
kc kc kc kc kc kc kc kc kc kc



A) It is verifiable and reliable.
kc kc kc kc kc



B) It is driven by rules.
kc kc kc kc kc



C) It is prepared for shareholders.
kc kc kc kc kc



D) It provides reasonable and timely estimates.
kc kc kc kc kc kc



Answer: D k c



Diff: 2 kc



Terms: treasury k c



Objective: 1 k c



AACSB: Reflective thinking k c kc




2
Copyright © 2012 Pearson Education, Inc.
kc kc kc kc kc

,kc




8) Which of the following statements refers to management accounting information?
kc kc kc kc kc kc kc kc kc kc



A) There are no regulations governing the reports.
kc kc kc kc kc kc kc



B) The reports are generally delayed and historical.
kc kc kc kc kc kc kc



C) The audience tends to be stockholders, creditors, and tax authorities.
kc kc kc kc kc kc kc kc kc kc



D) It primarily measures and records business transactions.
kc kc kc kc kc kc kc



Answer: A k c



Diff: 2 kc



Terms: treasury k c



Objective: 1 k c



AACSB: Reflective thinking k c kc




9) Which of the following groups would be LEAST likely to receive detailed management accounting
kc kc kc kc kc kc kc kc kc kc kc kc kc kc



reports?
A) stockholders
kc



B) sales representatives
kc kc



C) production supervisors
kc kc



D) managers
kc



Answer: A k c



Diff: 1 kc



Terms: treasury k c



Objective: 1 k c



AACSB: Analytical skills k c kc




10) Management accounting information includes:
kc kc kc kc



A) tabulated results of customer satisfaction surveys
kc kc kc kc kc kc



B) the cost of producing a product
kc kc kc kc kc kc



C) the percentage of units produced that are defective
kc kc kc kc kc kc kc kc



D) All of these answers are correct.
kc kc kc kc kc kc



Answer: D k c



Diff: 1 kc



Terms: treasury k c



Objective: 1 k c



AACSB: Reflective thinking k c kc




11) Cost accounting:
kc kc



A) provides information on the efficiency of factory labor
kc kc kc kc kc kc kc kc



B) provides information on the cost of servicing commercial customers
kc kc kc kc kc kc kc kc kc



C) provides information on the performance of an operating division
kc kc kc kc kc kc kc kc kc



D) All of these answers are correct.
kc kc kc kc kc kc



Answer: D k c



Diff: 1 kc



Terms: cost accounting k c kc



Objective: 1 k c



AACSB: Reflective thinking k c kc




3
Copyright © 2012 Pearson Education, Inc.
kc kc kc kc kc