133Test bank for cost accounting a managerial emphasis 6th edition

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133Test Bank for Cost Accounting A Managerial Emphasis 6th Edition

True False Questions - Free Text Questions - Multiple Choice Questions

Which of the following is true concerning the value chain of business

functions?

1 A) Managers should always proceed sequentially through the value chain, since distribution, for example, cannot occur before production is completed

2 B) Senior managers from individual parts of the value chain do not have a

responsibility in deciding on the organization's overall strategy

3 C) An organization can only realize gains from having individual parts of the value chain work sequentially

4 D) The value chain refers to the value added to the customer from marketing

5 E) Senior managers from individual parts of the value chain have a responsibility in deciding how resources are to be obtained and used, and how rewards are to be given

Do you agree that prior management decisions affect cost management?

1 A) Yes Managers should always follow prior management decisions, for example, in the determination of the EOQ

2 B) No Managers should ignore prior management decisions

3 C) Yes Managers should always strive to lower the costs incurred last year, as their number 1 priority

4 D) Yes The only prior management decisions that can affect cost management going forward, are concerned with employee wages All other decisions can be changed

5 E) Yes Prior management decisions can affect any area of the business operations, and commit the organization to the subsequent or continued incurrence of costs in such areas as material handling, and plant construction, for example.

The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as

1 A) value chain management

2 B) enterprise resource planning

3 C) cost management

4 D) customer value management

5 E) management information system

The value chain is the

1 A) sequence of business functions in which value is deducted from the products or services of an organization

2 B) sequence of business functions in which value is proportionately added to the products or services of an organization

3 C) process by which products and services are critiqued for their value

4 D) sequence of business functions in which customer usefulness is added to the products or services of an organization

5 E) sequence of functions in which value is added at specific target areas of

improvement

Financial accounting

1 A) focuses on the future and includes activities such as preparing next year's operatingbudget

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

3 C) reports include detailed information on the various operating segments of the business such as product lines or departments

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

5 E) is primarily concerned with profitability analysis

is a strategy that integrates people and technology in all business functions to enhance relationships with customers, partners, and

1 A) the qualitative expression of a plan

2 B) an aid in controlling income

3 C) the quantitative expression of a plan of action by management

4 D) the quantitative expression of a plan and an aid in controlling income

5 E) an aid in coordinating and implementing a plan.

Developing a new web site to display and demonstrate the company's

products would be part of which value chain function?

1 A) research and development

2 B) design of products, services, and processes

1 A) Research and development

2 B) Design of products, services, or processes

3 C) Production

4 D) Marketing

5 E) Quality control

The text identifies six ways to classify the major differences between

Management and Financial Accounting The "managers of the organization" is

an example of which of the following classes of differences?

1 A) Purpose of information

2 B) Primary users

3 C) Focus and emphasis

4 D) Rules of measurement and reporting

5 E) Time span and type of reports

is a philosophy in which management improves operations

throughout the value chain to deliver products and services that exceed customer expectations

1 A) Cost-benefit approach

2 B) Customer focus

3 C) Customer relationship management

4 D) Total quality management

4 D) inventory management activities

5 E) aspects of strategy implementation

Companies use the term customer relationship management (CRM) to

describe

1 A) a strategy that integrates people and technology in all business functions to enhance relationships with customers

2 B) a strategy that integrates people and technology in all business functions to

enhance relationships with customers and partners

3 C) a strategy that integrates people and technology in all business functions to

enhance relationships with customers, partners, and distributors

4 D) a strategy that integrates people and technology in a few business functions to enhance relationships with customers, partners, and distributors

5 E) a strategy that integrates people and technology in a few business functions to enhance relationships with customers and partners

In what way do managers benefit from the use of a database, or "data

warehouse"?

1 A) Data can be entered at numerous input terminals within the organization

2 B) The managers would not be completely responsible for the information that is entered into the database system

3 C) The managers could combine or adjust these data to answer the questions from particular internal and external users

4 D) The managers do not benefit, as the information requires technical expertise to retrieve

5 E) Managers can store old documents in hard copy

is an operational activity that is essential to corporate performance

1 A) Customer focus

2 B) A key success factor

3 C) Continuous improvement

4 D) Supply chain

3 C) a key success factor.

4 D) a strategic marketing focus

5 E) total value chain or supply chain analysis

Management accounting

1 A) helps creditors evaluate the company's performance

2 B) helps managers make decisions

3 C) is useful for external and internal users

4 D) creates technical reports that require external audit for verification

5 E) is the same as cost accounting

Financial accounting is concerned primarily with

1 A) cost planning and cost controls

2 B) external reporting to investors, government authorities, etc

3 C) profitability analysis

4 D) providing information for strategic and tactical decisions

5 E) providing analysis to facilitate long term decision making

Whose perceptions of the company's products or services are the most important to the manager?

1 A) board of directors' perception

2 B) customers' perception

3 C) president's perception

4 D) stockholders' perception

5 E) competitors' perception

The text identifies six ways to classify the major differences between

Management and Financial Accounting The statement "Communicate

organization's financial position to external users" is an example of which of the following classes?

1 A) Purpose of information

2 B) Primary users

3 C) Focus and emphasis

4 D) Rules of measurement and reporting

5 E) Time span and type of reports

There is many aspects of a company that managers should focus on Which

of the following sets describes key success factors for managers in terms of delivering performance to customers?

1 A) cost and efficiency, time, quality, innovation

2 B) cost and efficiency, quality, innovation

3 C) cost and efficiency, shareholder value, quality, innovation

4 D) cost and efficiency, management by exception, quality, innovation

5 E) cost and efficiency, budgeting, quality, innovation

Management accounting

1 A) measures, analyzes, and reports financial and nonfinancial information to internal managers

2 B) provides information about the company as a whole

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

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

5 E) must follow generally accepted accounting principles

The value chain is the sequence of business functions in which

1 A) value is deducted from the products or services of an organization

2 B) value is proportionately added to the products or services of an organization

3 C) rational experimentation is performed to enhance product compatibility

4 D) products and services are evaluated with respect to their value to the supply chain

5 E) usefulness is added to the products or services of an organization

describe(s) the flow of goods, services, and information from the purchase of materials to the delivery of products to consumers, regardless of whether those activities occur in the same organization or with other

organizations.

1 A) Supply chain

2 B) Key success factors

3 C) Continuous improvement

4 D) Customer focus

The text identifies six ways to classify the major differences between

Management and Financial Accounting The statement "Past oriented (reports

on 2011 performance prepared in 2012)" is an example of which of the

following classes?

1 A) Purpose of information

2 B) Primary users

3 C) Focus and emphasis

4 D) Rules of measurement and reporting

5 E) Time span and type of reports

R&D, production, and customer service are business functions that are all included as part of

1 A) the value chain

2 B) benchmarking

3 C) marketing

4 D) the supply chain

5 E) the company strategy

Determining the number of components to put into a computer monitor is an example of which of the following value chain functions?

1 A) research and development

2 B) design of products, services, and processes

2 B) standard procedures to ensure quality products

3 C) incremental changes for improved performance

4 D) the demand created for products and services

5 E) that a company's financial procedures are in compliance with GAAP

To be successful a company should be

2 B) consider only financial measures

3 C) focus exclusively on internal users

4 D) follow generally accepted accounting principles

5 E) focus on planning more than control

What aspect of business analysis focuses on the sequence of business functions?

The text identifies six ways to classify the major differences between

Management and Financial Accounting The statement "Varies from hourly to

15 to 20 years" is an example of which of the following classes of

differences?

1 A) Purpose of information

2 B) Primary users

3 C) Focus and emphasis

4 D) Rules of measurement and reporting

5 E) Time span and type of reports

An Enterprise Resource Planning System can best be described as

1 A) a collection of programs that use a variety of unconnected databases

2 B) a single database that collects data and feeds it into applications that support each

of the company's business activities, such as purchases, production, distribution, and sales

3 C) a database that is primarily used by a purchasing department to determine the correct amount of a particular supply item to purchase

4 D) a sophisticated means of linking two or more companies to facilitate their planning processes

5 E) exception reporting system for plant managers

Place the five business functions in the order they appear along the value chain: A = Customer service B = Design C = Distribution D = Production E = Research and Development

"Cost management" describes

1 A) the actions by managers to increase value for customers while continuously reducing and controlling costs

2 B) the identification of excessive costs in the production process

3 C) the satisfaction of customers' needs.

4 D) actions by managers to satisfy customers while maintaining current cost levels

5 E) ensuring all costs remains constant

In designing strategy, a company must match the opportunities and threats in the marketplace with

1 A) those of the CFO (Chief Financial Officer)

2 B) its resources and capabilities

3 C) branding opportunities

4 D) capabilities of current suppliers

5 E) its competitors

Enterprise Resource Planning software (ERP)

1 A) integrates data and provide managers with reports that highlight the

interdependence of different business activities

2 B) facilitates "Easy Reporting for Proposals."

3 C) provides financial reports for each separate enterprise in a conglomerate

4 D) is used only by plant managers to create "Exceptional Reports for Production."

5 E) is free software downloaded over the Internet

73 FreeTest Bank for Cost Accounting A Managerial

Emphasis 6th Canadian Edition by Horngren Mutiple

Choice Questions - Page 2

An accountant that agrees with the company president to defer the

recognition of a revenue is in a breach of which of the following dimensions

of professional conduct?

1 A) conduct that is detrimental to the best interests of the public or harms the integrity ofthe accounting profession

2 B) conduct that contravenes an act, the regulations, or the bylaws

3 C) conduct that displays a lack of competence

4 D) failure or refusal to co-operate in a practice review

5 E) participating in a conflict of interest

The primary criterion when faced with a resource allocation decision is

1 A) cost minimization

2 B) reduction in the amount of time required to perform a particular job

3 C) achievement of organizational goals

4 D) how well the alternative options help achieve organizational goals in relation to the costs incurred

5 E) improving information flow

The process of preparing a budget

1 A) enhances coordination and communication across business functions

2 B) increases accounting efficiencies

3 C) reduces overcapacity

4 D) promotes production automation

5 E) enhances coordination and communication external to the value chain.

The is primarily responsible for the quality of the information supplied in both internal and external reports

1 A) COO (Chief Operating Officer)

2 B) CIO (Chief Information Officer)

1 A) Identify the problem and uncertainties

2 B) Obtain information

3 C) Make predictions about the future

4 D) Provide feedback

5 E) Make decisions by choosing among alternatives

An example of a staff management function would be

1 A) determining that new equipment is required

2 B) preparing operating cost estimates for proposed new equipment

3 C) developing quality standards for production

4 D) ensuring that environmental standards are met

5 E) being responsible for attaining a set level of plant income.

Once a plan is implemented, the control process

1 A) ensures that managers follow the pre-existing plan

2 B) should allow the originating manager(s) to keep lower-level managers from making changes

3 C) should be flexible

4 D) should be followed rigidly

5 E) requires top management permission to change

Which of the following individuals focuses on reporting and interpreting relevant financial information used to manage the company?

1 A) chief financial officer

2 B) controller

3 C) line management

4 D) treasurer

5 E) accounting manager

Control measures should

1 A) be set and not changed until the next budget cycle

2 B) be flexible to allow for employees who are slackers

3 C) be kept confidential from employees so that competitors don't have an opportunity

to gain a competitive advantage

4 D) be linked by feedback to planning

5 E) provide continuous feedback.

Which of the following would likely constitute a breach of ethics for a

management accountant?

1 A) to omit pertinent information from a report because it is personally unfavourable

2 B) to consider disclosing confidential information in order to further your own career

3 C) to consider disclosing confidential information (ie gained from a third party) in order

to assist your employer / client

4 D) to report the unethical actions of another party, with the expectation that this will further your own career

includes reporting and interpreting information that helps managers

to focus on operating problems, imperfections, inefficiencies, and

opportunities

1 A) Scorekeeping

2 B) Control

The person(s) directly responsible for the attainment of organizational

objectives is/are

1 A) staff management

2 B) line management

3 C) both staff and line management

4 D) the chief financial officer

5 E) the internal auditor

Corporate governance

1 A) relates to the role of the corporate governor

2 B) comprises activities undertaken to ensure legal compliance with laws

3 C) is legislated by the federal government

4 D) relates only to the regulations provided by the Canadian Securities Administrators

5 E) is a voluntary system of compliance approved by each company's board of

directors

A well-conceived plan allows managers to have the ability to

1 A) stay with the pre-existing plan when things start to change for the better

2 B) leave the system and let the plan continue on its own

3 C) underestimate the costs so that actual operating results will be favourable when comparisons are made

4 D) take advantage of unforeseen opportunities

5 E) stay the course regardless of the outcome

A report showing the actual financial results for a period compared to the budgeted financial results for that same period would most likely be called a

1 A) strategic plan

2 B) management forecast

3 C) performance report

4 D) revised plan

5 E) comparative income statement

Collecting information to follow through on how actual performance

compares to planned or budgeted performance is referred to as

Which of the following statements about the cost-benefit approach is true?

1 A) Resources should be spent if they are expected to better attain company goals in relation to the expected costs of these resources

2 B) In a cost-benefit analysis, both costs and benefits are easy to obtain

3 C) Resources should be spent if the costs of a decision outweigh the benefits of the decision