Solutions for Fundamentals of Cost Accounting, 12th Edition by William Lanen.pdf

FundamentalsnofnCostnAccountingnEditionn7nbynLanenn
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1n
CORRECTnANSWERSnAREnLOCATEDnINnTHEn2NDnHALFnOFnTHISnDOC.n
TRUE/FALSEn-nWriten'T'nifnthenstatementnisntruenandn'F'nifnthenstatementnisnfalse.n
1)nThenvaluenchainncomprisesnactivitiesnfromnresearchnandndevelopmentnthroughnthenprodu
ctionn
processnbutndoesnnotnincludenactivitiesnrelatedntonthendistributionnofnproductsnornservices.n
⊚ntruen
⊚nfalsen
n

2)nAdministrativenfunctionsnarennotnincludednasnpartnofnthenvaluenchainnbecausentheynaren
implicitlynincludedninneverynbusinessnfunction.n
⊚ntruen
⊚nfalsen
n

3)nUndernthenvaluenchainnconcept,nvalue-
addednactivitiesnarenthosenthatnfirmsnperformnandnthatn
customersnperceivenasnaddingnutilityntonthengoodsntheynpurchase.n
⊚ntruen
⊚nfalsen
n

4)nThenvaluenchainnisncomprisednofnthenactivitiesnthatntakenplacenonlynduringnthenproductionn
process.n
⊚ntruen
⊚nfalsen
n

5)nIfnanpoornfacilitynlayoutnexistsnandnwork-in-processninventorynmustnbenmovednduringnthen
productionnprocess,nthencompanynisnlikelyntonbenperformingnsomennonvalue-
addednactivities.n
⊚ntruen
⊚nfalsen
n

6)nCostninformationnisnanproductnwithnitsnownncustomers.n
⊚ntruen
⊚nfalsen
n

7)nFinancialnaccountingninformationnisnalwaysnsufficientnfornmakingnoperationalndecisions.n
⊚ntruen
⊚nfalsen
n

8)nCostnaccountingninformationnisncommonlynusedninndevelopingnfinancialnaccountingn
information.n

,⊚ntruen
⊚nfalsen
n

ACCESSnTestnBanknfornFundamentalsnofnCostnAccountingn7thnEditionnLanen
nursytestbank.store
FundamentalsnofnCostnAccountingnEditionn7nbynLanenn
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9)nFinancialnaccountingninformationnisndesignednforndecisionnmakersnwhonarendirectlyninvol
vedn
innthendailynmanagementnofnthenfirm.n
⊚ntruen
⊚nfalsen
n

10)nItnisnmorenimportantnfornfinancialnaccountingninformationntonbencomparablenbetweennfir
msn
thanntonbenusefulnfornmanagerialndecisionnmaking.n
⊚ntruen
⊚nfalsen
n

11)nCostnaccountingninformationndevelopednfornmanagersntonuseninnmakingndecisionsnmustn
complynwithngenerallynacceptednaccountingnprinciplesn(GAAP)nandninternationalnfinancialn
reportingnstandardsn(IFRS).n
⊚ntruen
⊚nfalsen
n

12)nAncostndrivernisnanfactornthatncausesncosts.n
⊚ntruen
⊚nfalsen
n

13)nAncostncannbenconsiderednandifferentialncostnfornonenparticularncoursenofnactionnbutnnotnf
orn
anotherncoursenofnaction.n
⊚ntruen
⊚nfalsen
n

14)nAnresponsibilityncenterncannbenandepartment,ndivision,nornsegment,nbutnnotnansubsidiaryn
ofnthen
parentncompany.n
⊚ntruen
⊚nfalsen
n

15)nItnisnimportantnthatnthenmanagernassignedntonleadnanresponsibilityncenternbenheldnaccou

,ntablen
fornitsnoperations.n
⊚ntruen
⊚nfalsen
n

16)nBudgetingnisnprimarilynusedntondeterminenyear-endnbonusesnbasednonnmanagerialnandn
organizationalnperformance.n
⊚ntruen
⊚nfalsen
n

ACCESSnTestnBanknfornFundamentalsnofnCostnAccountingn7thnEditionnLanen
nursytestbank.store
FundamentalsnofnCostnAccountingnEditionn7nbynLanenn
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17)nManagersnarenusuallynresponsiblenfornthenrevenuesnneededntonachieventhentargetsnsetndu
ringn
thenbudgetingnprocess,nbutnnotnthenresourcesnconsumedntonachieventhosentargets.n
⊚ntruen
⊚nfalsen
n

18)nInngeneral,nifnactivitiesnthatndonnotnaddnvaluentonthencompanyncannbeneliminated,nthennco
stsn
associatednwithnthemnwillnalsonbeneliminated.n
⊚ntruen
⊚nfalsen
n

19)nAccountingnsystemsnarenimportantnbecausentheynarenanprimarynsourcenofninformationnfo
rn
managers.n
⊚ntruen
⊚nfalsen
n

20)nCriticalnthinkingnisnansystematicnprocessnusedntonanalyzenanbusinessnissuenorndecision.n
⊚ntruen
⊚nfalsen
n

21)nDatanvisualizationnisnthensystematicnevaluationnofninformationntonaddressnandecisionnpro
blem.n
⊚ntruen
⊚nfalsen
n

22)nBigndatanisndefinednbynthenamountnofndata,nthenspeednthendatanisngeneratednandnmadenav

, ailable,n
ornthenvarietynofndatanavailable.n
⊚ntruen
⊚nfalsen
n

23)nTypicalnERPnsystemsnintegrateninformationnsystemsnthatnlinknproduction,npurchasing,nh
umann
resources,nfinance,nandnsalesnintonansinglencomprehensiveninformationnsystem.n
⊚ntruen
⊚nfalsen
n

24)nManagersnfacenethicalnsituationsnonnandailynbasis,nwhilenaccountantsnfacenthemninfreque
ntly.n
⊚ntruen
⊚nfalsen
n

ACCESSnTestnBanknfornFundamentalsnofnCostnAccountingn7thnEditionnLanen
nursytestbank.store
FundamentalsnofnCostnAccountingnEditionn7nbynLanenn
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4n
25)nCompliancenwithnSarbanes-
Oxleyndoesnnotnmeannthatnthenmanagernhasnmetnallnofnhisnornhern
ethicalnresponsibilities.n
⊚ntruen
⊚nfalsen
n

26)nEthicalnbehaviornfornannindividualndependsnmorenonnthenindividual’snpersonalnbeliefsnth
annan
firm'sncodenofnconduct.n
⊚ntruen
⊚nfalsen
n

27)nCostnaccountingninformationncannbenusedntondefraudncustomers,ncreditors,nandnowners.n
⊚ntruen
⊚nfalsen
n

28)nThenboundarynbetweennwhatnisncostnaccountingnandnwhatnbelongsninnanotherndisciplinen
isn
oftennblurred.n
⊚ntruen
⊚nfalsen
n