TEST BANK
Cost Accounting: With Integrated Data Analytics, 2nd Edition
Karen Congo Farmer, Amy Fredin
Includes All Chapters (1 to 18)
Data Analytics Included
• Complete Chapter-by-Chapter Test Bank
• Answers Included for all questions
,Cost Accounting, 2e (Farmer)
Chapter 1 Cost Accounting Has Purpose
MULTIPLE CHOICE
1) An organization's mission is the same as its
A) purpose.
B) vision.
C) objectives.
D) targets.
Answer: A
Explanation: An organization's mission is the same as its purpose. Mission statements are evolving
to encompass purposeful outcomes for customers, local communities, and the environment,
measured with both dollars and sense.
Difficulty: Easy
LO 1: Explore the elements that support a company’s purpose, as well as your own.
Section: 1.1.1 Purpose Is Meaningful
Bloom: Remembering.
AACSB: Knowledge.
AICPA: BC: Strategic perspective.
IMA: Strategy, Planning & Performance.
2) An organization's ________ is its purpose, its reason for existing.
A) mission
B) strategy
C) initiative
D) strategic plan
Answer: A
Explanation: An organization's mission is the same as its purpose. Mission statements are evolving
to encompass purposeful outcomes for customers, local communities, and the environment,
measured with both dollars and sense.
Difficulty: Easy
LO 1: Explore the elements that support a company’s purpose, as well as your own.
Section: 1.1.1 Purpose Is Meaningful
Bloom: Remembering.
AACSB: Knowledge.
AICPA: BC: Strategic perspective.
IMA: Strategy, Planning & Performance.
3) In choosing a strategy, a business begins by undertaking a thorough examination of itself and
the industry within which it operates by performing a ________ analysis.
A) mission and vision statement
B) strategic initiative
C) target objective
1
,D) SWOT
Answer: D
Explanation: In choosing a strategy, a business begins by undertaking a thorough examination of
itself and the industry within which it operates by performing a SWOT analysis.
Difficulty: Easy
LO 1: Explore the elements that support a company’s purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom: Remembering.
AACSB: Knowledge.
AICPA: BC: Strategic perspective.
IMA: Strategy, Planning & Performance.
4) A SWOT analysis allows an organization to assess its
A) strategies, wealth, outlets, and targets.
B) strengths, warnings, outlets, and threats.
C) strengths, weaknesses, opportunities, and threats.
D) strategies, wealth, opportunities, and threats.
Answer: C
Explanation: A SWOT analysis allows an organization to assess its strengths, weaknesses,
opportunities, and threats.
Difficulty: Easy
LO 1: Explore the elements that support a company’s purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom: Understanding.
AACSB: Knowledge.
AICPA: BC: Strategic perspective.
IMA: Strategy, Planning & Performance.
5) A ________ helps an organization, whether for profit or nonprofit, turn its purpose into action
by establishing the direction of the entity.
A) mission statement
B) strategic plan
C) SWOT analysis
D) vision
Answer: B
Explanation: A strategic plan helps an organization, whether for profit or nonprofit, turn its
purpose into action by establishing the direction of the entity.
Difficulty: Easy
LO 1: Explore the elements that support a company’s purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom: Remembering.
AACSB: Knowledge.
AICPA: BC: Strategic perspective.
IMA: Strategy, Planning & Performance.
6) An organization's strategic plan includes the why, where, and how for its existence, as
represented by
A) opportunities, strengths, and weaknesses.
2
, B) opportunities, strengths, and mission.
C) mission, vision, and strategy.
D) mission, strengths, and strategy.
Answer: C
Explanation: An organization's strategic plan includes the why, where, and how for its existence,
as represented by mission, vision, and strategy.
Difficulty: Easy
LO 1: Explore the elements that support a company’s purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom: Remembering.
AACSB: Knowledge.
AICPA: BC: Strategic perspective.
IMA: Strategy, Planning & Performance.
7) Which of the following represent internal factors in the SWOT analysis?
A) Opportunities and threats
B) Strengths and weaknesses
C) Strengths and opportunities
D) Weaknesses and threats
Answer: B
Explanation: Internal factors in the SWOT include strengths and weaknesses which the company
must leverage or remedy to be competitive.
Difficulty: Easy
LO 1: Explore the elements that support a company’s purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom: Remembering.
AACSB: Knowledge.
AICPA: BC: Strategic perspective.
IMA: Strategy, Planning & Performance.
8) What is a narrative that describes what the organization will look like, or a destination to
achieve, by some future date called?
A) SWOT analysis
B) Strategic plan
C) Vision
D) Mission
Answer: C
Explanation: A narrative the describes what the organization will look like, or a destination to
achieve, by some future date is called a vision.
Difficulty: Easy
LO 1: Explore the elements that support a company’s purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom: Remembering.
AACSB: Knowledge.
AICPA: BC: Strategic perspective.
IMA: Strategy, Planning & Performance.
3
Cost Accounting: With Integrated Data Analytics, 2nd Edition
Karen Congo Farmer, Amy Fredin
Includes All Chapters (1 to 18)
Data Analytics Included
• Complete Chapter-by-Chapter Test Bank
• Answers Included for all questions
,Cost Accounting, 2e (Farmer)
Chapter 1 Cost Accounting Has Purpose
MULTIPLE CHOICE
1) An organization's mission is the same as its
A) purpose.
B) vision.
C) objectives.
D) targets.
Answer: A
Explanation: An organization's mission is the same as its purpose. Mission statements are evolving
to encompass purposeful outcomes for customers, local communities, and the environment,
measured with both dollars and sense.
Difficulty: Easy
LO 1: Explore the elements that support a company’s purpose, as well as your own.
Section: 1.1.1 Purpose Is Meaningful
Bloom: Remembering.
AACSB: Knowledge.
AICPA: BC: Strategic perspective.
IMA: Strategy, Planning & Performance.
2) An organization's ________ is its purpose, its reason for existing.
A) mission
B) strategy
C) initiative
D) strategic plan
Answer: A
Explanation: An organization's mission is the same as its purpose. Mission statements are evolving
to encompass purposeful outcomes for customers, local communities, and the environment,
measured with both dollars and sense.
Difficulty: Easy
LO 1: Explore the elements that support a company’s purpose, as well as your own.
Section: 1.1.1 Purpose Is Meaningful
Bloom: Remembering.
AACSB: Knowledge.
AICPA: BC: Strategic perspective.
IMA: Strategy, Planning & Performance.
3) In choosing a strategy, a business begins by undertaking a thorough examination of itself and
the industry within which it operates by performing a ________ analysis.
A) mission and vision statement
B) strategic initiative
C) target objective
1
,D) SWOT
Answer: D
Explanation: In choosing a strategy, a business begins by undertaking a thorough examination of
itself and the industry within which it operates by performing a SWOT analysis.
Difficulty: Easy
LO 1: Explore the elements that support a company’s purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom: Remembering.
AACSB: Knowledge.
AICPA: BC: Strategic perspective.
IMA: Strategy, Planning & Performance.
4) A SWOT analysis allows an organization to assess its
A) strategies, wealth, outlets, and targets.
B) strengths, warnings, outlets, and threats.
C) strengths, weaknesses, opportunities, and threats.
D) strategies, wealth, opportunities, and threats.
Answer: C
Explanation: A SWOT analysis allows an organization to assess its strengths, weaknesses,
opportunities, and threats.
Difficulty: Easy
LO 1: Explore the elements that support a company’s purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom: Understanding.
AACSB: Knowledge.
AICPA: BC: Strategic perspective.
IMA: Strategy, Planning & Performance.
5) A ________ helps an organization, whether for profit or nonprofit, turn its purpose into action
by establishing the direction of the entity.
A) mission statement
B) strategic plan
C) SWOT analysis
D) vision
Answer: B
Explanation: A strategic plan helps an organization, whether for profit or nonprofit, turn its
purpose into action by establishing the direction of the entity.
Difficulty: Easy
LO 1: Explore the elements that support a company’s purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom: Remembering.
AACSB: Knowledge.
AICPA: BC: Strategic perspective.
IMA: Strategy, Planning & Performance.
6) An organization's strategic plan includes the why, where, and how for its existence, as
represented by
A) opportunities, strengths, and weaknesses.
2
, B) opportunities, strengths, and mission.
C) mission, vision, and strategy.
D) mission, strengths, and strategy.
Answer: C
Explanation: An organization's strategic plan includes the why, where, and how for its existence,
as represented by mission, vision, and strategy.
Difficulty: Easy
LO 1: Explore the elements that support a company’s purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom: Remembering.
AACSB: Knowledge.
AICPA: BC: Strategic perspective.
IMA: Strategy, Planning & Performance.
7) Which of the following represent internal factors in the SWOT analysis?
A) Opportunities and threats
B) Strengths and weaknesses
C) Strengths and opportunities
D) Weaknesses and threats
Answer: B
Explanation: Internal factors in the SWOT include strengths and weaknesses which the company
must leverage or remedy to be competitive.
Difficulty: Easy
LO 1: Explore the elements that support a company’s purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom: Remembering.
AACSB: Knowledge.
AICPA: BC: Strategic perspective.
IMA: Strategy, Planning & Performance.
8) What is a narrative that describes what the organization will look like, or a destination to
achieve, by some future date called?
A) SWOT analysis
B) Strategic plan
C) Vision
D) Mission
Answer: C
Explanation: A narrative the describes what the organization will look like, or a destination to
achieve, by some future date is called a vision.
Difficulty: Easy
LO 1: Explore the elements that support a company’s purpose, as well as your own.
Section: 1.1.2 Company Strategy: Turning Purpose into Action
Bloom: Remembering.
AACSB: Knowledge.
AICPA: BC: Strategic perspective.
IMA: Strategy, Planning & Performance.
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