D Structural cost drivers Which of the following statements best defines a goal for an organization.. C Adopt a cost effective plan for providing new products and services to customers
Trang 1Test Bank for Managerial Accounting 6th Edition by
Hartgraves
True-False Questions
Most costs are actually incurred as a result of activity cost
drivers
1 True
2 False
Value Chain Analysis concerns the study of value-producing
activities, stretching from basic raw materials to the final consumer of a product or service
1 True
2 False
The best criterion for determining if a given action or choice is
ethical is to determine if it is legal, because all legal
actions are inherently ethical
1 True
2 False
A primary goal of managerial accounting is to provide
information to investment managers who analyze a
company’s stock for external investors
1 True
2 False
An organization’s mission is best described as the basic
purpose toward which activities are directed
1 True
2 False
Trang 2The decision to use both fulltime and part time employees
during the holiday season is an example of a strategic cost driver
1 True
2 False
All costs have at least one primary cost driver
1 True
2 False
Competition among companies normally takes place only on
the dimension of price/cost
1 True
2 False
Managers who prepare and/or have responsibility for
managerial accounting information rarely encounter choices that have questionable ethical dimensions or overtones
1 True
2 False
One of the companies to first employ a successful cost
leadership strategy was Carnegie Steel Company
1 True
2 False
Multiple Choice Questions-Page 1
Which of the following departments often found in a
merchandising organization would be classified as a line department?
1 A) Maintenance
2 B) Human Resources
Trang 33 C) Payroll
4 D) Home Furnishings
Which of the following phrases is most descriptive of
managerial accounting?
1 A) Often used to state corporate goals
2 B) May be subjective
3 C) Typically prepared quarterly or annually
4 D) Keeps records of assets and liabilities
This is an organizational cost driver for a discount department
store chain:
1 A) The decision to price lower than a key competitor
2 B) The decision to rearrange merchandise within a store
3 C) The decision to issue a purchase order for raw materials
4 D) The decision to sale product globally versus only domestically
Product or service differentiation involves:
1 A) Any changes made to a product or service
2 B) The use of new technologies in manufacturing
3 C) Shifting sales to growing markets
4 D) Creating something that is perceived as unique and worth a premium price
According to Michael Porter, which of the following is an
example of cost leadership as a business strategy?
1 A) A regional beer brewer that caters to local tastes
2 B) A glass manufacturer utilizing research and development to identify new applications for glass and ceramics
3 C) An online bookseller utilizing the Internet to differentiate itself from traditional
booksellers
4 D) A manufacturer focused on designing and building corporate jet aircraft
Trang 4The process of making the organization into a well-ordered
whole is referred to as:
1 A) Organizing
2 B) Controlling
3 C) Motivating
4 D) Planning
_ are fundamental choices about the size and
scope of operations and about technologies employed in delivering products or services to customers
1 A) Activities
2 B) Management systems
3 C) Organizational strategies
4 D) Structural cost drivers
Which of the following statements best defines a goal for an
organization?
1 A) Increase next year’s sales by 10 percent over current year sales
2 B) Providing high quality products and services to customers
3 C) Adopt a cost effective plan for providing new products and services to customers
4 D) Become the world’s largest provider of consumer goods
Delegating responsibility and authority to employees in an
organization is an example of:
1 A) Planning
2 B) Organizing
3 C) Controlling
4 D) Motivating
Examples of activity cost drivers include all of the following
except:
1 A) Inspecting incoming raw materials
2 B) Machine time spent working on a product
3 C) Deciding how to arrange raw materials inventory within the warehouse
Trang 54 D) Receiving (loading) raw materials into the warehouse
Strategic Position Analysis is best defined as:
1 A) The process of making the organization into a well ordered whole
2 B) Fundamental choices about the size and scope of operations and technologies
3 C) The formulation of a program for a specific goal
4 D) An organization’s basic way of competing to sell products and services
Which of the following statements best defines a strategy for an
organization?
1 A) Increase next year’s sales by 10 percent over current year sales
2 B) Providing high quality products and services to customers
3 C) Adopt a cost effective plan for providing new products and services to customers
4 D) Become the world’s largest provider of consumer goods
Managerial accounting must conform to which of the following
standards?
1 A) Generally Accepted Accounting Principles (GAAP)
2 B) International Financial Reporting Standards (IFRS)
3 C) Internal Revenue Service tax code
4 D) None of the above
Which of the following descriptions best describes the process
of controlling?
1 A) Comparing the budget with actual results
2 B) Preparing a budget for an organization that meets sales goals for the upcoming year
3 C) Delegating authority to employees to address customer complaints
4 D) Assigning managers to different regional centers to facilitate distribution of goods to customers
In order to be useful to managers, management accounting
reports:
1 A) Should be prepared according to the stated Institute of Management Accounting guidelines
Trang 62 B) Should be prepared according to Generally Accepted Accounting Principals
3 C) Should be prepared to meet the specific needs of decision makers
4 D) Should not be prepared prior to the end of a fiscal reporting period
Financial accounting information is least useful in providing:
1 A) Aggregate information about an organization’s assets, obligations and performance
2 B) Information for stating corporate wide goals
3 C) Information for internal decision makers
4 D) Periodic reports for shareholders
According to Michael Porter, which of the following is an
example of product or service differentiation as a
business strategy?
1 A) A regional beer brewer that caters to local tastes
2 B) An automobile manufacturer that focuses on the rapid introduction of technological change in new automobile design
3 C) An online bookseller utilizing the Internet to differentiate itself from traditional booksellers
4 D) A manufacturer focused on designing and building corporate jet aircraft
_ are specific units of work performed to serve
customer needs that consume costly resources
1 A) Activity cost drivers
2 B) Customer cost drivers
3 C) Organizational cost drivers
4 D) Structural cost drivers
Managerial accounting is primarily focused on:
1 A) Providing information for internal and external users
2 B) Providing general purpose financial statements
3 C) Providing special-purpose information and reports
4 D) Following generally accepted accounting principles
Trang 7Managerial accounting is primarily focused on:
1 A) Providing creditors information on the status of their loans
2 B) Providing investors with useful information for valuing securities
3 C) Providing the Internal Revenue Service with information to determine the amount of taxes owed
4 D) Providing managers with relevant information to help achieve organizational goals
Which of the following is not one of the three strategic positions
that Porter views as leading to business success?
1 A) Market niche
2 B) Cost leadership
3 C) All things to all people
4 D) Product or service differentiation
Which of the following statements best defines the mission of
an organization?
1 A) Increase next year’s sales by 10 percent over current year sales
2 B) Become the world’s largest provider of consumer goods
3 C) Adopt cost effective plan for providing new products and services to customers
4 D) Providing high quality products and services to customers
Which of the following is not a component of strategic cost
management?
1 A) Ratio analysis
2 B) Value chain analysis
3 C) Cost driver analysis
4 D) Strategic position analysis
The process of ensuring that results agree with plans is referred
to as:
1 A) Controlling
2 B) Decision making
3 C) Organizing
Trang 84 D) Planning
The process of selecting strategies to achieve goals is often
referred to as:
1 A) Controlling
2 B) Organizing
3 C) Motivating
4 D) Planning
Ethics deals with:
1 A) The propriety of a course of action
2 B) The fitness of a course of action
3 C) The moral quality of a course of action
4 D) All of the above
Financial accounting is primarily focused on:
1 A) Providing the Internal Revenue Service with information to determine the amount of taxes owed
2 B) Providing managers with relevant information to help achieve organizational goals
3 C) Providing investors with useful information for valuing securities
4 D) Providing information for internal users
A decision to work closely with a limited number of suppliers
for the purpose of ensuring that the proper materials are available at the optimal time is an example of:
1 A) A batch level cost driver
2 B) An activity cost driver
3 C) An organizational cost driver
4 D) A structural cost driver
The act of delegating authority for implementing plans to other
managers and employees can be viewed as an aspect of:
1 A) Controlling
2 B) Decision making
Trang 93 C) Organizing
4 D) Planning
To compete on the basis of price, the seller must most carefully
manage:
1 A) Service
2 B) Product development
3 C) Cost
4 D) Quality
Ethical behavior:
1 A) Always involves choosing between actions that are clearly right or wrong
2 B) Is best guided by a policy of placing corporate performance above individual ends
3 C) Is best described as any actions that are permitted by law
4 D) Is not guided by well-defined rules and is often subjective
A goal is best defined as:
1 A) The mission of an organization
2 B) The implementation of specific ideas
3 C) The fundamental purpose of an organization
4 D) A definable and measurable objective
Which of the following phrases is most descriptive of financial
accounting?
1 A) May measure time or customer satisfaction
2 B) Future oriented
3 C) Subject to cost-benefit analysis
4 D) Highly aggregated statements
World-class companies must continuously struggle to improve
performance in the dimension(s) of:
1 A) Price/cost
2 B) Service
3 C) Quality
Trang 104 D) All of the above
The three analyses that comprise strategic cost management
include each of the following except:
1 A) Ratio analysis
2 B) Cost driver analysis
3 C) Strategic position analysis
4 D) Value chain analysis
Which of the following descriptions best describes the process
of planning?
1 A) Comparing the budget with actual results
2 B) Delegating authority to employees to address customer complaints
3 C) Preparing a budget for an organization that meets sales goals for the upcoming year
4 D) Assigning managers to different regional centers to facilitate distribution of goods to customers
63 Free Test Bank for Managerial Accounting 6th Edition
by Hartgraves Multiple Choice Questions-Page 2
Which of the following best defines a structural cost driver?
1 A) Fundamental choices about the size and scope of operations and technologies employed in delivering products or services to customers
2 B) Choices concerning the organization of activities and the involvement of persons inside and outside the organization in decision making
3 C) Specific units of work performed to serve customer needs that consume costly resources
4 D) The process of ensuring that results agree with plans
Which of the following phrases is primarily relevant to
managerial accounting as opposed to financial
accounting?
1 A) Preparing periodic financial statements
2 B) Calculating earnings per share for shareholders
3 C) Helping managers make decisions
Trang 114 D) Summarizing information about past events
Codes of ethics are limited to which of the following types of
organizations:
1 A) Professional organizations and associations
2 B) For-profit organizations
3 C) Not-for-Profit organizations
4 D) All of the above
Which of the following is an example of an organizational cost
driver?
1 A) Deciding how to arrange raw materials inventory within a warehouse
2 B) Inspecting incoming raw materials
3 C) Determining the best location for a manufacturing facility
4 D) Receiving raw materials into the warehouse
5 E) None of the above
Corporate social responsibility would include all of the
following elements except:
1 A) Providing quality daycare for young dependents of an organization
2 B) Estimating the cost of environmental clean-up upon the ultimate disposal of an asset
3 C) Limiting the return on investment to investors
4 D) Donating employee time for community service
From a managerial accounting standpoint, which of the
following areas of the Sarbanes-Oxley Act of 2002 (SOX) are most pertinent?
1 A) External Auditing Standards
2 B) Review of internal controls
3 C) Codes of ethics for financial officers
4 D) Penalties for fraud
Which of the following phrases is primarily relevant to financial
accounting as opposed to managerial accounting?
1 A) Analyzing cost drivers
Trang 122 B) Helping managers to make decisions
3 C) Evaluating a company’s strategic position
4 D) Conforming to external standards
Which of the following best describes corporate governance?
1 A) The system of policies, processes, laws, and regulations that affect the way a company is directed and controlled
2 B) The moral quality, fitness, or propriety of a course of action that can injure or benefit people
3 C) What is permitted under the law
4 D) Understanding the difference between right and wrong
Which of the following best describes ethics?
1 A) The system of policies, processes, laws, and regulations that affect the way a company is directed and controlled
2 B) The moral quality, fitness, or propriety of a course of action that can injure or benefit people
3 C) What is permitted under the law
4 D) Understanding the difference between right and wrong
To stay competitive in the express delivery business, both
Federal Express and United Parcel Service most compete against each other based on which of the following?
1 A) Price/Cost
2 B) Service
3 C) Quality
4 D) All of the above
Ethics deals will all of the following except:
1 A) The fitness of a course of action
2 B) The moral quality of a course of action
3 C) The legal responsibility under law
4 D) The propriety of a course of action
Trang 13Which of the following can be considered to be unethical
behavior?
1 A) Forecasting the amount of ending inventory on hand at the end of a budgetary period
2 B) Transferring ending inventory to another warehouse in another geographic location
3 C) Keeping inventory that is unlikely to be used so as to avoid recording a loss
4 D) Building up inventory in anticipation of increased sales in the next accounting period
Which of the following can be considered to be unethical
behavior?
1 A) Assigning direct labor costs to Contract A and Contract B using different rates for different employees
2 B) Assigning different direct material costs to Contract A and Contract B based on usage
3 C) Assigning overhead costs to Contract A based on labor hours and Contract B based
on machine hours
4 D) Assigning costs of Contract A to Contract B to avoid an unfavorable performance report on Contract A
A code of ethics should include which of the following
elements?
1 A) Definition
2 B) Purpose
3 C) Enforcement
4 D) All of the above
Which of the following can be considered to be unethical
behavior?
1 A) Forecasting raw material requirements for next months production forecast
2 B) Purchasing raw materials from a relative or friend rather than seeking bids
3 C) Inspecting incoming raw materials from a supplier
4 D) Working closely with a limited number of suppliers