优质CostAccounting14EChapter01

1、Cost Accounting, 14e(Horngren/Datar/Rajan)Chapter 1 The Accountants Role in the OrganizationObjective 1.11) Management accounting:A) focuses on estimating future revenues, costs, and other measures to forecast activities and their resultsB) provides information about the company as a wholeC) reports

2、 information that has occurred in the past that is verifiable and reliableD) provides information that is generally available only on a quarterly or annual basisAnswer: ADiff: 2Terms: treasuryObjective: 1AACSB: Reflective thinking2) Managers use management accounting information to strategy.A) choos

3、eB) communicateC) implementD) All of these answers are correct.Answer: DDiff: 1Terms: total quality management (TQM)Objective: 1AACSB: Analytical skills3) Financial accounting:A) focuses on the future and includes activities such as preparing next years operating budgetB) must comply with GAAP (gene

4、rally accepted accounting principles)C) reports include detailed information on the various operating segments of the business such as product lines or departmentsD) is prepared for the use of department heads and other employeesAnswer: BDiff: 2Terms: financial accountingObjective: 1AACSB: Reflectiv

5、e thinking14) The person most likely to use ONLY financial accounting information is a:A) factory shift supervisorB) vice president of operationsC) current shareholderD) department managerAnswer: CDiff: 1Terms: financial accountingObjective: 1AACSB: Analytical skills5) Which of the following people

6、is LEAST likely to use management accounting information?A) the controllerB) a shareholder evaluating a stock investmentC) the treasurerD) an assembly department supervisorAnswer: BDiff: 1Terms: treasuryObjective: 1AACSB: Analytical skills6) Financial accounting provides the primary source of inform

7、ation for:A) decision making in the finishing departmentB) improving customer serviceC) preparing the income statement for shareholdersD) planning next years operating budgetAnswer: CDiff: 2Terms: financial accountingObjective: 1AACSB: Reflective thinking7) Which of the following descriptors refers

8、to management accounting information?A) It is verifiable and reliable.B) It is driven by rules.C) It is prepared for shareholders.D) It provides reasonable and timely estimates.Answer: DDiff: 2Terms: treasuryObjective: 1AACSB: Reflective thinking28) Which of the following statements refers to manage

9、ment accounting information?A) There are no regulations governing the reports.B) The reports are generally delayed and historical.C) The audience tends to be stockholders, creditors, and tax authorities.D) It primarily measures and records business transactions.Answer: ADiff: 2Terms: treasuryObjecti

10、ve: 1AACSB: Reflective thinking9) Which of the following groups would be LEAST likely to receive detailed management accounting reports?A) stockholdersB) sales representativesC) production supervisorsD) managersAnswer: ADiff: 1Terms: treasuryObjective: 1AACSB: Analytical skills10) Management account

11、ing information includes:A) tabulated results of customer satisfaction surveysB) the cost of producing a productC) the percentage of units produced that are defectiveD) All of these answers are correct.Answer: DDiff: 1Terms: treasuryObjective: 1AACSB: Reflective thinking11) Cost accounting:A) provid

12、es information on the efficiency of factory laborB) provides information on the cost of servicing commercial customersC) provides information on the performance of an operating divisionD) All of these answers are correct.Answer: DDiff: 1Terms: cost accountingObjective: 1AACSB: Reflective thinking312

13、) Which of the following types of information are used in management accounting?A) financial informationB) nonfinancial informationC) information focused on the long termD) All of these answers are correct.Answer: DDiff: 2Terms: treasuryObjective: 1AACSB: Reflective thinking13) Modern cost accountin

14、g plays a role in:A) planning new productsB) evaluating operational processesC) controlling costsD) All of these answers are correct.Answer: DDiff: 1Terms: cost accountingObjective: 1AACSB: Reflective thinking14) A data warehouse or infobarn:A) is reserved for exclusive use by the CFOB) is primarily

15、 used for financial reporting purposesC) stores information used by different managers for multiple purposesD) gathers only nonfinancial informationAnswer: CDiff: 1Terms: cost accountingObjective: 1AACSB: Reflective thinking15) Cost accounting provides all of the following EXCEPT:A) information for

16、management accounting and financial accountingB) pricing information from marketing studiesC) financial information regarding the cost of acquiring resourcesD) nonfinancial information regarding the cost of operational efficienciesAnswer: BDiff: 2Terms: cost accountingObjective: 1AACSB: Reflective t

17、hinking416) Management accounting includes all of the following EXCEPTA) implementing strategiesB) developing budgetsC) preparing special studies and forecastsD) preparing the statement of cash flowsAnswer: DDiff: 1Terms: treasuryObjective: 1AACSB: Reflective thinking17) Financial accounting is conc

18、erned primarily with:A) external reporting to investors, creditors, and government authoritiesB) cost planning and cost controlsC) profitability analysisD) providing information for strategic and tactical decisionsAnswer: ADiff: 2Terms: financial accountingObjective: 1AACSB: Reflective thinking18) F

19、inancial accounting provides a historical perspective, whereas management accounting emphasizes:A) the futureB) past transactionsC) a current perspectiveD) reports to shareholdersAnswer: ADiff: 1Terms: financial accountingObjective: 1AACSB: Reflective thinking19) An Enterprise Resource Planning Syst

20、em can best be described as:A) a collection of programs that use a variety of unconnected databasesB) a single database that collects data and feeds it into applications that support each of the companys business activities, such as purchases, production, distribution, and salesC) a database that is

21、 primarily used by a purchasing department to determine the correct amount of a particular supply item to purchaseD) a sophisticated means of linking two or more companies to facilitate their planning processes Answer: BDiff: 1Terms: cost accountingObjective: 1AACSB: Use of Information Technology520

22、) 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:A) value chain managementB) enterprise resource planningC) cost managementD) customer value managementAnswer: C

23、Diff: 1Terms: cost managementObjective: 1AACSB: Analytical skills21) Management accounting information focuses on external reporting. Answer: FALSEExplanation: Management accounting information focuses oninternal reporting. Diff: 1Terms: treasury Objective: 1 AACSB: Reflective thinking22) Cost manag

24、ement is narrowly focused on a continuous reduction of costs. Answer: FALSEExplanation: Cost management is broadly focused to provide information that helps managers at all levels implement, monitor, and evaluate company strategies.Diff: 2Terms: cost managementObjective: 1AACSB: Analytical skills23)

25、 Managers always require the information in an accounting system to be presented in the same format. Answer: FALSEExplanation: Individual managers often require the information in an accounting system to be presented or reported differently.Diff: 1Terms: treasury Objective: 1 AACSB: Analytical skill

26、s24) Modern cost accounting takes the perspective that collecting cost information is a function of the management decisions being made.Answer: TRUEDiff: 1Terms: cost accounting Objective: 1AACSB: Analytical skills6Copyright ? 2012 Pearson Educati on, I nc.25) The balance sheet, income statement, an

27、d statement of cash flows are used for financial accounting, and also for management accounting.Answer: TRUEDiff: 1Terms: financial accountingObjective: 1AACSB: Analytical skills26) Financial accounting is broader in scope than management accounting.Answer: FALSEExplanation: Management accounting is

28、 broader in scope than financial accounting. Diff: 2Terms: financial accounting, management accountingObjective: 1AACSB: Reflective thinking27) Cost accounting measures and reports short-term, long-term, financial, and non financial information. Answer: TRUEDiff: 2Terms: cost accountingObjective: 1A

29、ACSB: Reflective thinking28) Cost management provides information that helps increase value for customers. Answer: TRUEDiff: 1Terms: cost managementObjective: 1AACSB: Reflective thinking29) Management accounting has to strictly follow the rules of generally accepted accounting principles for the pur

30、poses of measurement and reporting.Answer: FALSE Explanation: Internal measures and reports do not have to follow GAAP.Diff: 1Terms: treasuryObjective: 1AACSB: Ethical reasoning30) An ideal database should store information in a way that allows different managers to access the information they need.

31、Answer: TRUEDiff: 1Terms: treasuryObjective: 1AACSB: Reflective thinking31) An Enterprise Resource Planning (ERP) System is a single database that collects data and feeds into applications that support each of the companys business activities, such as purchases, production, distribution, and sales.7

32、Copyright ? 2012 Pearson Education, Inc.Answer: TRUEDiff: 1Terms: treasuryObjective: 1AACSB: Use of Information Technology32) Cost accounting provides information only for management accounting purposes. Answer: FALSEExplanation: Cost accounting provides information for financial accounting as well

33、as for management accounting purposes.Diff: 1Terms: cost accountingObjective: 1AACSB: Reflective thinking33) Cost management involves long-term and short-term decisions that attempt to increase value for customers and lower costs of products or services.Answer: TRUEDiff: 1Terms: cost managementObjec

34、tive: 1AACSB: Reflective thinking34) For each report listed below, identify whether the major purpose of the report is for (1) routine internal reporting, (2) nonroutine internal reporting, or for (3) external reporting to investors and other outside parties.Item:a. study detailing sale information

35、of the top-ten selling productsb. weekly report of total sales generated by each store in the metropolitan areac. annual Report sent to shareholdersd. monthly report comparing budgeted sales by store to actual sales Answer:a. (2) nonroutine internal reportingb. (1) routine internal reportingc. (3) e

36、xternal reporting to investors and other outside partiesd. (1) routine internal reportingDiff: 2Terms: treasuryObjective: 1AACSB: Analytical skills835) Describe management accounting and financial accounting.Answer: Management accounting provides information to internal decision makers of the busine

37、ss such as top executives, managers, sales representatives, and production supervisors. Its purpose is to help managers predict and evaluate future results. Reports are generated often and usually broken down into smaller reporting divisions such as department or product line. There are no rules to

38、be complied with since these reports are for internal use only. Management accounting embraces more extensively such topics as the development and implementation of strategies and policies, budgeting, special studies and forecasts, influence on employee behavior, and nonfinancial as well as financia

39、l information.Financial accounting, by contrast, provides information to external decision makers such as investors and creditors. Its purpose is to present a fair picture of the financial condition of the company. Reports are generated quarterly or annually and report on the company as a whole. The

40、 financial statements must comply with GAAP (generally accepted accounting principles). A CPA audits, or verifies, that the GAAP are being followed.Diff: 2Terms: treasury Objective: 1 AACSB: Reflective thinking36) Is financial accounting or management accounting more useful to an operations manager?

41、 Why? Answer: Management accounting is more useful to an operations manager because management accounting reports operating results by department or unit rather than for the company as a whole, it includes financial as well as nonfinancial data such as on-time deliveries and cycle times, and it incl

42、udes quantitative as well as qualitative data such as the type of rework that was needed on defective units. Diff: 3 Terms: treasury Objective: 1 AACSB: Reflective thinking37) Is it possible to have an active cost management program without an Enterprise Resource Planning (ERP) System?Answer: Yes, a

43、n active cost management program can occur without an Enterprise Resource Planning (ERP) System. Cost management is a philosophy that guides management in their short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services. Cost mana

44、gement is not dependent on any particular system or database, but it is rather an overall philosophy of operation.Diff: 2Terms: cost management Objective: 1AACSB: Reflective thinking938) What competitive advantage could a company obtain from a successful cost management program? Answer: There are th

45、ree broad outcomes from a successful cost management program: 1) costs are reduced with no loss in customer value. In this scenario, a company might gain a competitive advantage by lowering its price with no loss in profit, or maintain the same price and increase profit; 2) customer value is increas

46、ed with no change in costs. This scenario might increase customer satisfaction resulting in increased customer loyalty and perhaps increase the overall demand for the product; 3) customer value might be increased while costs are reduced simultaneously. This scenario would result in the benefits desc

47、ribed in both 1) and 2).Diff: 2Terms: cost managementObjective: 1AACSB: Reflective thinkingObjective 1.21) Which of the following statements concerning an organizations strategy is NOT true?A) Strategy specifies how an organization matches its own capabilities with the opportunities in the marketpla

48、ce to accomplish its objectives.B) Management accountants provide input to help managers formulate strategy.C) A good strategy will always overcome poor implementation.D) Businesses usually follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or

49、 service priced higher than the competition.Answer: CDiff: 2Terms: total quality management (TQM)Objective: 2AACSB: Analytical skills2) Strategy specifies:A) how an organization matches its own capabilities with the opportunities in the marketplaceB) standard procedures to ensure quality productsC)

50、incremental changes for improved performanceD) the demand created for products and servicesAnswer: ADiff: 2Terms: total quality management (TQM)Objective: 2AACSB: Reflective thinking3) Which of the following is NOT one of the questions management accountants might attempt to help answer in the formu

51、lation of strategy?A) Who are our most important customers?B) What substitute products exist in the marketplace?C) Does the strategy comply with GAAP (Generally Accepted Accounting Principles)?D) Will adequate cash be available to implement the strategy?Answer: CDiff: 2Terms: total quality managemen

52、t (TQM)Objective: 2AACSB: Analytical skills104) Strategy is formulated by answering all of the following EXCEPT:A) Who are our most important customers?B) Is industry demand growing or shrinking?C) Will our external auditors certify our strategy?D) How sensitive are purchasers to price, quality, and

53、 service?Answer: CDiff: 3Terms: total quality management (TQM)Objective: 2AACSB: Analytical skills5) In designing strategy, a company must match the opportunities and threats in the marketplace with:A) those of the CFO (Chief Financial Officer)B) its resources and capabilitiesC) branding opportuniti

54、esD) capabilities of current suppliersAnswer: BDiff: 2Terms: total quality management (TQM)Objective: 2AACSB: Analytical skills6) Which of the following statements about customer value is NOT true?A) Customer value is shown in a corporations balance sheet.B) Creating value for customers is an import

55、ant part of planning and implementing strategy.C) How our product delivers customer value should be determined as part of a companys strategy formulation.D) It is possible to simultaneously lower cost and increase customer value.Answer: ADiff: 1Terms: total quality management (TQM)Objective: 2AACSB:

56、 Analytical skills7) Strategy does NOT specify how an organization matches its capabilities with the opportunities in the marketplace.Answer: FALSEExplanation: Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives.D

57、iff: 1Terms: total quality management (TQM)Objective: 2AACSB: Reflective thinking118) Southwest Airlines is an example of a company that pursues a product differentiation strategy. Answer: FALSEExplanation: Southwest Airlines pursues a cost leadership strategy.Diff: 1Terms: total quality management (TQM)Objective: 2AACSB: Analytical skills9) The best-designed strategies are valuable whether or not they ar