Test bank for Cost management 6th edition A Strategic Emphasis All Chapters covered COMPLETE GUIDE WITH RATIONALES 100% VERIFIED A+ GRADE ASSURED!!!!NEW LATEST UPDATE!!!!!!

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Cost Management 6th Edition by Don R. Hansen, Maryanne M. Mowen, Dan L. Heitger
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Chapter 1-21 Answers are at the End of Each Chapter
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Indicate whether the statement is true or false.
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1. The service sector of the U.S. economy has decreased in importance as traditional industries have declined in i
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mportance.
a. True
b. False

2. Business ethics is learning what is right or wrong in the work environment and choosing what is right.
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a. True
b. False

3. Three of the major certifications available to management accountants are a Certificate in Management Accounting, a
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Certificate in Public Accounting, and a Certificate in Internal Auditing.
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a. True
b. False

4. Positions that have direct responsibility for basic objectives are referred to as staff positions, and those indirectly r
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esponsible are called line positions.
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a. True
b. False

5. Evaluating the performance of a segment of the company is an example of planning.
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a. True
b. False

6. The cost management information system has two major subsystems: the cost accounting information system and the
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operational control information system.
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a. True
b. False

7. Preparing reports for division managers is an activity associated with the cost management information system.
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a. True
b. False

8. One of the major advances in information technology that affects firms is the emergence of electronic commerce.
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a. True
b. False

9. The role of cost and management accountants is one of support and teamwork and assistance of those who are r
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esponsible for achieving a company's basic objectives.
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a. True
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b. False

10. The cost management information system is primarily concerned with producing outputs for external users.
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a. True
b. False

11. The examination for obtaining the Certificate in Management Accounting consists of two parts: (1) Technology and
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Analytics and (2) Strategic Financial Management.
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a. True
b. False

12. The Certificate of Public Accounting does NOT include the right to serve as external auditors.
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a. True
b. False

13. The treasurer of a company is responsible for all taxation activities, including dealing with the IRS.
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a. True
b. False

14. JIT is a critical part of a more comprehensive approach referred to as lean manufacturing.
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a. True
b. False

15. For each certification, all an applicant has to do is meet specific educational and experience requirements.
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a. True
b. False

16. Changes in the way business is conducted worldwide have broadened the focus of cost management accounting s
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ystems.
a. True
b. False

17. Divulging company information when NOT legally obligated to do so violates the confidentiality part of the IMA c
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ode of ethics.
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a. True
b. False

18. The focus of lean manufacturing is to eliminate waste, which is anything that does not add value to the end user (
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customer).
a. True
b. False

19. Firms subject to the Sarbanes-
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Oxley Act do not have to disclose whether they have a code of ethics for senior financial officers, nor why.
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a. True
b. False


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20. Enterprise resource planning (ERP) software has the objective of providing an integrated system capability and is able t
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o run all the operations of a company.
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a. True
b. False

21. The three broad objectives of financial accounting information systems are to provide information for costing out s
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ervices and products, planning and control, and decision making.
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a. True
b. False

22. An accounting information system collects, records, summarizes, analyzes, and manages data to transform inputs into i
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nformation that is provided to users. AS AS AS AS AS




a. True
b. False

23. The Institute of Management Accountants has established ethical standards for management accountants.
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a. True
b. False

24. The controller of a company supervises all the accounting departments and is often viewed as a member of the top
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management team. AS




a. True
b. False

25. Employee and customer loyalty are NOT a result of a strong code of ethics.
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a. True
b. False

26. The process of choosing among competing alternatives is called decision making.
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a. True
b. False

27. In just-in-time (JIT) manufacturing, each operation produces only what is necessary for the succeeding operations.
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a. True
b. False

28. In resolving an ethical conflict, it would be appropriate to take the matter to the press where there's no legal r
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equirement.
a. True
b. False

29. The Certified Internal Auditor must pass a comprehensive examination designed to ensure technical competence and
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have two years' work experience.
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a. True
b. False

30. The two major subsystems of the accounting information system are the financial accounting information system and t
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he cost management accounting information system.
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a. True
b. False

Indicate the answer choice that best completes the statement or answers the question.
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31. Which of the following are Standards of Ethical Conduct for Management Accountants?
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a. perseverance and creativity AS AS




b. determination and respect for others AS AS AS AS




c. discipline, confidence, competitive, and observance AS AS AS AS




d. competence, confidentiality, integrity, resolution of ethical conflict, and credibility
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32. The system is an integrated system capable of providing access to real-
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time data from the various functional areas of a company.
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a. financial management information AS AS




b. enterprise resource planning AS AS




c. lean accounting management AS AS




d. operational control information AS AS




33. Which of the following statements is TRUE?
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a. Firms that emphasize ethics outperform firms that don't emphasize ethics.
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b. Those corporations that mention ethics in their management reports have lower than average performance.
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c. Companies with a strong code of ethics and sense of integrity and honor will have trouble competing over the l
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ong run. AS




d. All of these choices AS AS AS




34. In an accounting information system, which of the following is NOT a process that transforms inputs into information t
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hat is provided to users?
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a. collecting data AS




b. analyzing data AS




c. performance reporting AS




d. summarizing data AS




35. Staff positions are positions that are
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a. directly involved in both financial and nonfinancial measures of efficiency of an organization.
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b. supportive in nature and have only indirect responsibility for an organization's basic objectives.
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c. supportive in nature and indirectly assess the overall cost impact of product designs over a product's life cycle.
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d. directly responsible for carrying out the basic objectives of an organization.
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36. The primary objective of the cost management information system is to provide
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a. stockholders and potential investors with useful information for decision making.
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b. banks and other creditors with information useful in making credit decisions.
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c. management with information useful for planning and control of operations.AS AS AS AS AS AS AS AS AS




d. the Internal Revenue Service with information about taxable income.
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37. Total quality management emphasizes
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a. zero defects. AS




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