TEST BANK
Cost Management, 6th Edition
by Don Hansen, Maryanne Mowen, Dan Heitger
SC
O
R
EG
U
ID
ES
,Table of Content
1. Introduction to Cost Management
2. Basic Cost Management Concepts
3. Cost Behavior and Forecasting
4. Unit-Based and Activity-Based Costing Systems
Integrative Mini-Case: Making the Connection Part 1 (Chapters 1–4)
SC
5. Job-Order Costing
6. Process Costing
7. Allocating Costs of Support Departments and Joint Products
O
8. Budgeting for Planning and Control
9. Standard Costing: A Functional-Based Control Approach
R
10. Decentralization: Responsibility Accounting, Performance Evaluation, and
Transfer Pricing
EG
Integrative Mini-Case: Making the Connection Part 2 (Chapters 5–10)
11. Strategic Cost Management
12. Activity-Based Management
13. Strategic-Based Control Systems and the Balanced Scorecard
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14. Quality and Environmental Cost Management
15. Lean Accounting and Productivity Measurement
ID
Integrative Mini-Case: Making the Connection Part 3 (Chapters 11–15)
16. Cost-Volume-Profit Analysis
ES
17. Activity Resource Usage Model and Tactical Decision Making
18. Pricing and Profitability Analysis
19. Capital Investment
20. Inventory Management: Economic Order Quantity, JIT, and the Theory of
Constraints
21. International Issues in Cost Management
,Name: Class: Date:
Test Bankth For
Cost Management 6 Edition by Don R. Hansen, Maryanne M. Mowen, Dan L. Heitger
Chapter 1-21 Answers are at the End of Each Chapter
Chapter 1
Indicate whether the statement is true or false.
SC
1. The service sector of the U.S. economy has decreased in importance as traditional industries have declined in
importance.
a. True
b. False
2. Business ethics is learning what is right or wrong in the work environment and choosing what is right.
O
a. True
b. False
3. Three of the major certifications available to management accountants are a Certificate in Management Accounting, a
R
Certificate in Public Accounting, and a Certificate in Internal Auditing.
a. True
b. False
EG
4. Positions that have direct responsibility for basic objectives are referred to as staff positions, and those indirectly
responsible are called line positions.
a. True
b. False
5. Evaluating the performance of a segment of the company is an example of planning.
U
a. True
b. False
ID
6. The cost management information system has two major subsystems: the cost accounting information system and the
operational control information system.
a. True
b. False
ES
7. Preparing reports for division managers is an activity associated with the cost management information system.
a. True
b. False
8. One of the major advances in information technology that affects firms is the emergence of electronic commerce.
a. True
b. False
9. The role of cost and management accountants is one of support and teamwork and assistance of those who are
responsible for achieving a company's basic objectives.
a. True
Page 1
, Name: Class: Date:
b. False
10. The cost management information system is primarily concerned with producing outputs for external users.
a. True
b. False
11. The examination for obtaining the Certificate in Management Accounting consists of two parts: (1) Technology and
Analytics and (2) Strategic Financial Management.
SC
a. True
b. False
12. The Certificate of Public Accounting does NOT include the right to serve as external auditors.
a. True
b. False
O
13. The treasurer of a company is responsible for all taxation activities, including dealing with the IRS.
a. True
b. False
R
14. JIT is a critical part of a more comprehensive approach referred to as lean manufacturing.
a. True
EG
b. False
15. For each certification, all an applicant has to do is meet specific educational and experience requirements.
a. True
b. False
16. Changes in the way business is conducted worldwide have broadened the focus of cost management accounting
U
systems.
a. True
b. False
ID
17. Divulging company information when NOT legally obligated to do so violates the confidentiality part of the IMA
code of ethics.
a. True
b. False
ES
18. The focus of lean manufacturing is to eliminate waste, which is anything that does not add value to the end user
(customer).
a. True
b. False
19. Firms subject to the Sarbanes-Oxley Act do not have to disclose whether they have a code of ethics for senior
financial officers, nor why.
a. True
b. False
Page 2
Cost Management, 6th Edition
by Don Hansen, Maryanne Mowen, Dan Heitger
SC
O
R
EG
U
ID
ES
,Table of Content
1. Introduction to Cost Management
2. Basic Cost Management Concepts
3. Cost Behavior and Forecasting
4. Unit-Based and Activity-Based Costing Systems
Integrative Mini-Case: Making the Connection Part 1 (Chapters 1–4)
SC
5. Job-Order Costing
6. Process Costing
7. Allocating Costs of Support Departments and Joint Products
O
8. Budgeting for Planning and Control
9. Standard Costing: A Functional-Based Control Approach
R
10. Decentralization: Responsibility Accounting, Performance Evaluation, and
Transfer Pricing
EG
Integrative Mini-Case: Making the Connection Part 2 (Chapters 5–10)
11. Strategic Cost Management
12. Activity-Based Management
13. Strategic-Based Control Systems and the Balanced Scorecard
U
14. Quality and Environmental Cost Management
15. Lean Accounting and Productivity Measurement
ID
Integrative Mini-Case: Making the Connection Part 3 (Chapters 11–15)
16. Cost-Volume-Profit Analysis
ES
17. Activity Resource Usage Model and Tactical Decision Making
18. Pricing and Profitability Analysis
19. Capital Investment
20. Inventory Management: Economic Order Quantity, JIT, and the Theory of
Constraints
21. International Issues in Cost Management
,Name: Class: Date:
Test Bankth For
Cost Management 6 Edition by Don R. Hansen, Maryanne M. Mowen, Dan L. Heitger
Chapter 1-21 Answers are at the End of Each Chapter
Chapter 1
Indicate whether the statement is true or false.
SC
1. The service sector of the U.S. economy has decreased in importance as traditional industries have declined in
importance.
a. True
b. False
2. Business ethics is learning what is right or wrong in the work environment and choosing what is right.
O
a. True
b. False
3. Three of the major certifications available to management accountants are a Certificate in Management Accounting, a
R
Certificate in Public Accounting, and a Certificate in Internal Auditing.
a. True
b. False
EG
4. Positions that have direct responsibility for basic objectives are referred to as staff positions, and those indirectly
responsible are called line positions.
a. True
b. False
5. Evaluating the performance of a segment of the company is an example of planning.
U
a. True
b. False
ID
6. The cost management information system has two major subsystems: the cost accounting information system and the
operational control information system.
a. True
b. False
ES
7. Preparing reports for division managers is an activity associated with the cost management information system.
a. True
b. False
8. One of the major advances in information technology that affects firms is the emergence of electronic commerce.
a. True
b. False
9. The role of cost and management accountants is one of support and teamwork and assistance of those who are
responsible for achieving a company's basic objectives.
a. True
Page 1
, Name: Class: Date:
b. False
10. The cost management information system is primarily concerned with producing outputs for external users.
a. True
b. False
11. The examination for obtaining the Certificate in Management Accounting consists of two parts: (1) Technology and
Analytics and (2) Strategic Financial Management.
SC
a. True
b. False
12. The Certificate of Public Accounting does NOT include the right to serve as external auditors.
a. True
b. False
O
13. The treasurer of a company is responsible for all taxation activities, including dealing with the IRS.
a. True
b. False
R
14. JIT is a critical part of a more comprehensive approach referred to as lean manufacturing.
a. True
EG
b. False
15. For each certification, all an applicant has to do is meet specific educational and experience requirements.
a. True
b. False
16. Changes in the way business is conducted worldwide have broadened the focus of cost management accounting
U
systems.
a. True
b. False
ID
17. Divulging company information when NOT legally obligated to do so violates the confidentiality part of the IMA
code of ethics.
a. True
b. False
ES
18. The focus of lean manufacturing is to eliminate waste, which is anything that does not add value to the end user
(customer).
a. True
b. False
19. Firms subject to the Sarbanes-Oxley Act do not have to disclose whether they have a code of ethics for senior
financial officers, nor why.
a. True
b. False
Page 2
