gi
,gi
Cost Accounting, 14e (Horngren/Datar/Rajan)
gi gi gi
Chapter 1 The Accountant's Role in the Organization
gi g i gi gi gi gi gi
Objective 1.1 gi
1) Management accounting:
gi gi
A) focuses on estimating future revenues, costs, and other measures to forecast activities and their
gi gi gi gi gi gi gi gi gi gi gi gi gi gi
results
B) provides information about the company as a whole
gi gi gi gi gi gi gi gi
C) reports information that has occurred in the past that is verifiable and reliable
gi gi gi gi gi gi gi gi gi gi gi gi gi
D) provides information that is generally available only on a quarterly or annual basis
gi gi gi gi gi gi gi gi gi gi gi gi gi
Answer: A g i
Diff: 2 gi
Terms: treasury g i
Objective: 1 g i
AACSB: Reflective thinking g i gi
2) Managers use management accounting information to ________ strategy.
gi gi gi gi gi gi gi gi
A) choose
gi
B) communicate
gi
C) implement
gi
D) All of these answers are correct.
gi gi gi gi gi gi
Answer: D g i
Diff: 1 gi
Terms: total quality management (TQM)
g i gi gi gi
Objective: 1 g i
AACSB: Analytical skills g i gi
3) Financial accounting:
gi gi
A) focuses on the future and includes activities such as preparing next year's operating budget
gi gi gi gi gi gi gi gi gi gi gi gi gi gi
B) must comply with GAAP (generally accepted accounting principles)
gi gi gi gi gi gi gi gi
C) reports include detailed information on the various operating segments of the business such as
gi gi gi gi gi gi gi gi gi gi gi gi gi gi
product lines or departments
gi gi gi
D) is prepared for the use of department heads and other employees
gi gi gi gi gi gi gi gi gi gi gi
Answer: B g i
Diff: 2 gi
Terms: financial accounting
g i gi
Objective: 1 g i
AACSB: Reflective thinking g i gi
1
Copyright © 2012 Pearson Education, Inc. gi gi gi gi gi
,gi
4) The person most likely to use ONLY financial accounting information is a:
gi gi gi gi gi gi gi gi gi gi gi gi
A) factory shift supervisor
gi gi gi
B) vice president of operations
gi gi gi gi
C) current shareholder
gi gi
D) department manager
gi gi
Answer: C g i
Diff: 1 gi
Terms: financial accounting g i gi
Objective: 1 g i
AACSB: Analytical skills g i gi
5) Which of the following people is LEAST likely to use management accounting information?
gi gi gi gi gi gi gi gi gi gi gi gi gi
A) the controller
gi gi
B) a shareholder evaluating a stock investment
gi gi gi gi gi gi
C) the treasurer
gi gi
D) an assembly department supervisor
gi gi gi gi
Answer: B g i
Diff: 1 gi
Terms: treasury g i
Objective: 1 g i
AACSB: Analytical skills g i gi
6) Financial accounting provides the primary source of information for:
gi gi gi gi gi gi gi gi gi
A) decision making in the finishing department
gi gi gi gi gi gi
B) improving customer service
gi gi gi
C) preparing the income statement for shareholders
gi gi gi gi gi gi
D) planning next year's operating budget
gi gi gi gi gi
Answer: C g i
Diff: 2 gi
Terms: financial accounting g i gi
Objective: 1 g i
AACSB: Reflective thinking g i gi
7) Which of the following descriptors refers to management accounting information?
gi gi gi gi gi gi gi gi gi gi
A) It is verifiable and reliable.
gi gi gi gi gi
B) It is driven by rules.
gi gi gi gi gi
C) It is prepared for shareholders.
gi gi gi gi gi
D) It provides reasonable and timely estimates.
gi gi gi gi gi gi
Answer: D g i
Diff: 2 gi
Terms: treasury g i
Objective: 1 g i
AACSB: Reflective thinking g i gi
2
Copyright © 2012 Pearson Education, Inc.
gi gi gi gi gi
,gi
8) Which of the following statements refers to management accounting information?
gi gi gi gi gi gi gi gi gi gi
A) There are no regulations governing the reports.
gi gi gi gi gi gi gi
B) The reports are generally delayed and historical.
gi gi gi gi gi gi gi
C) The audience tends to be stockholders, creditors, and tax authorities.
gi gi gi gi gi gi gi gi gi gi
D) It primarily measures and records business transactions.
gi gi gi gi gi gi gi
Answer: A g i
Diff: 2 gi
Terms: treasury g i
Objective: 1 g i
AACSB: Reflective thinking g i gi
9) Which of the following groups would be LEAST likely to receive detailed management accounting
gi gi gi gi gi gi gi gi gi gi gi gi gi gi
reports?
A) stockholders
gi
B) sales representatives
gi gi
C) production supervisors
gi gi
D) managers
gi
Answer: A g i
Diff: 1 gi
Terms: treasury g i
Objective: 1 g i
AACSB: Analytical skills g i gi
10) Management accounting information includes:
gi gi gi gi
A) tabulated results of customer satisfaction surveys
gi gi gi gi gi gi
B) the cost of producing a product
gi gi gi gi gi gi
C) the percentage of units produced that are defective
gi gi gi gi gi gi gi gi
D) All of these answers are correct.
gi gi gi gi gi gi
Answer: D g i
Diff: 1 gi
Terms: treasury g i
Objective: 1 g i
AACSB: Reflective thinking g i gi
11) Cost accounting:
gi gi
A) provides information on the efficiency of factory labor
gi gi gi gi gi gi gi gi
B) provides information on the cost of servicing commercial customers
gi gi gi gi gi gi gi gi gi
C) provides information on the performance of an operating division
gi gi gi gi gi gi gi gi gi
D) All of these answers are correct.
gi gi gi gi gi gi
Answer: D g i
Diff: 1 gi
Terms: cost accounting g i gi
Objective: 1 g i
AACSB: Reflective thinking g i gi
3
Copyright © 2012 Pearson Education, Inc. gi gi gi gi gi
,gi
Cost Accounting, 14e (Horngren/Datar/Rajan)
gi gi gi
Chapter 1 The Accountant's Role in the Organization
gi g i gi gi gi gi gi
Objective 1.1 gi
1) Management accounting:
gi gi
A) focuses on estimating future revenues, costs, and other measures to forecast activities and their
gi gi gi gi gi gi gi gi gi gi gi gi gi gi
results
B) provides information about the company as a whole
gi gi gi gi gi gi gi gi
C) reports information that has occurred in the past that is verifiable and reliable
gi gi gi gi gi gi gi gi gi gi gi gi gi
D) provides information that is generally available only on a quarterly or annual basis
gi gi gi gi gi gi gi gi gi gi gi gi gi
Answer: A g i
Diff: 2 gi
Terms: treasury g i
Objective: 1 g i
AACSB: Reflective thinking g i gi
2) Managers use management accounting information to ________ strategy.
gi gi gi gi gi gi gi gi
A) choose
gi
B) communicate
gi
C) implement
gi
D) All of these answers are correct.
gi gi gi gi gi gi
Answer: D g i
Diff: 1 gi
Terms: total quality management (TQM)
g i gi gi gi
Objective: 1 g i
AACSB: Analytical skills g i gi
3) Financial accounting:
gi gi
A) focuses on the future and includes activities such as preparing next year's operating budget
gi gi gi gi gi gi gi gi gi gi gi gi gi gi
B) must comply with GAAP (generally accepted accounting principles)
gi gi gi gi gi gi gi gi
C) reports include detailed information on the various operating segments of the business such as
gi gi gi gi gi gi gi gi gi gi gi gi gi gi
product lines or departments
gi gi gi
D) is prepared for the use of department heads and other employees
gi gi gi gi gi gi gi gi gi gi gi
Answer: B g i
Diff: 2 gi
Terms: financial accounting
g i gi
Objective: 1 g i
AACSB: Reflective thinking g i gi
1
Copyright © 2012 Pearson Education, Inc. gi gi gi gi gi
,gi
4) The person most likely to use ONLY financial accounting information is a:
gi gi gi gi gi gi gi gi gi gi gi gi
A) factory shift supervisor
gi gi gi
B) vice president of operations
gi gi gi gi
C) current shareholder
gi gi
D) department manager
gi gi
Answer: C g i
Diff: 1 gi
Terms: financial accounting g i gi
Objective: 1 g i
AACSB: Analytical skills g i gi
5) Which of the following people is LEAST likely to use management accounting information?
gi gi gi gi gi gi gi gi gi gi gi gi gi
A) the controller
gi gi
B) a shareholder evaluating a stock investment
gi gi gi gi gi gi
C) the treasurer
gi gi
D) an assembly department supervisor
gi gi gi gi
Answer: B g i
Diff: 1 gi
Terms: treasury g i
Objective: 1 g i
AACSB: Analytical skills g i gi
6) Financial accounting provides the primary source of information for:
gi gi gi gi gi gi gi gi gi
A) decision making in the finishing department
gi gi gi gi gi gi
B) improving customer service
gi gi gi
C) preparing the income statement for shareholders
gi gi gi gi gi gi
D) planning next year's operating budget
gi gi gi gi gi
Answer: C g i
Diff: 2 gi
Terms: financial accounting g i gi
Objective: 1 g i
AACSB: Reflective thinking g i gi
7) Which of the following descriptors refers to management accounting information?
gi gi gi gi gi gi gi gi gi gi
A) It is verifiable and reliable.
gi gi gi gi gi
B) It is driven by rules.
gi gi gi gi gi
C) It is prepared for shareholders.
gi gi gi gi gi
D) It provides reasonable and timely estimates.
gi gi gi gi gi gi
Answer: D g i
Diff: 2 gi
Terms: treasury g i
Objective: 1 g i
AACSB: Reflective thinking g i gi
2
Copyright © 2012 Pearson Education, Inc.
gi gi gi gi gi
,gi
8) Which of the following statements refers to management accounting information?
gi gi gi gi gi gi gi gi gi gi
A) There are no regulations governing the reports.
gi gi gi gi gi gi gi
B) The reports are generally delayed and historical.
gi gi gi gi gi gi gi
C) The audience tends to be stockholders, creditors, and tax authorities.
gi gi gi gi gi gi gi gi gi gi
D) It primarily measures and records business transactions.
gi gi gi gi gi gi gi
Answer: A g i
Diff: 2 gi
Terms: treasury g i
Objective: 1 g i
AACSB: Reflective thinking g i gi
9) Which of the following groups would be LEAST likely to receive detailed management accounting
gi gi gi gi gi gi gi gi gi gi gi gi gi gi
reports?
A) stockholders
gi
B) sales representatives
gi gi
C) production supervisors
gi gi
D) managers
gi
Answer: A g i
Diff: 1 gi
Terms: treasury g i
Objective: 1 g i
AACSB: Analytical skills g i gi
10) Management accounting information includes:
gi gi gi gi
A) tabulated results of customer satisfaction surveys
gi gi gi gi gi gi
B) the cost of producing a product
gi gi gi gi gi gi
C) the percentage of units produced that are defective
gi gi gi gi gi gi gi gi
D) All of these answers are correct.
gi gi gi gi gi gi
Answer: D g i
Diff: 1 gi
Terms: treasury g i
Objective: 1 g i
AACSB: Reflective thinking g i gi
11) Cost accounting:
gi gi
A) provides information on the efficiency of factory labor
gi gi gi gi gi gi gi gi
B) provides information on the cost of servicing commercial customers
gi gi gi gi gi gi gi gi gi
C) provides information on the performance of an operating division
gi gi gi gi gi gi gi gi gi
D) All of these answers are correct.
gi gi gi gi gi gi
Answer: D g i
Diff: 1 gi
Terms: cost accounting g i gi
Objective: 1 g i
AACSB: Reflective thinking g i gi
3
Copyright © 2012 Pearson Education, Inc. gi gi gi gi gi
