Fundamentals of Cost Accounting 7e William Lanen, Shannon Anderson, Michael Maher
(Test Bank All Chapters, 100% Original Verified A+ Grade)
Student name:__________
1) The value chain comprises activities from research and development through the production
process but does not include activities related to the distribution of products or services.
⊚ true
⊚ false
2) Administrative functions are not included as part of the value chain because they are
implicitly included in every business function.
⊚ true
⊚ false
3) Under the value chain concept, value-added activities are those that firms perform and that
customers perceive as adding utility to the goods they purchase.
⊚ true
⊚ false
4) The value chain is comprised of the activities that take place only during the production
process.
⊚ true
⊚ false
5) If a poor facility layout exists and work-in-process inventory must be moved during the
production process, the company is likely to be performing some nonvalue-added activities.
⊚ true
⊚ false
6) Cost information is a product with its own customers.
⊚ true
⊚ false
Version 1 1
,7) Financial accounting information is always sufficient for making operational decisions.
⊚ true
⊚ false
8) Cost accounting information is commonly used in developing financial accounting
information.
⊚ true
⊚ false
9) Financial accounting information is designed for decision makers who are directly involved
in the daily management of the firm.
⊚ true
⊚ false
10) It is more important for financial accounting information to be comparable between firms
than to be useful for managerial decision making.
⊚ true
⊚ false
11) Cost accounting information developed for managers to use in making decisions must
comply with generally accepted accounting principles (GAAP) and international financial
reporting standards (IFRS).
⊚ true
⊚ false
12) A cost driver is a factor that causes costs.
⊚ true
⊚ false
13) A cost can be considered a differential cost for one particular course of action but not for
another course of action.
⊚ true
⊚ false
Version 1 2
,14) A responsibility center can be a department, division, or segment, but not a subsidiary of the
parent company.
⊚ true
⊚ false
15) It is important that the manager assigned to lead a responsibility center be held accountable
for its operations.
⊚ true
⊚ false
16) Budgeting is primarily used to determine year-end bonuses based on managerial and
organizational performance.
⊚ true
⊚ false
17) Managers are usually responsible for the revenues needed to achieve the targets set during
the budgeting process, but not the resources consumed to achieve those targets.
⊚ true
⊚ false
18) In general, if activities that do not add value to the company can be eliminated, then costs
associated with them will also be eliminated.
⊚ true
⊚ false
19) Accounting systems are important because they are a primary source of information for
managers.
⊚ true
⊚ false
20) Critical thinking is a systematic process used to analyze a business issue or decision.
⊚ true
⊚ false
Version 1 3
, 21) Data visualization is the systematic evaluation of information to address a decision problem.
⊚ true
⊚ false
22) Big data is defined by the amount of data, the speed the data is generated and made available,
or the variety of data available.
⊚ true
⊚ false
23) Typical ERP systems integrate information systems that link production, purchasing, human
resources, finance, and sales into a single comprehensive information system.
⊚ true
⊚ false
24) Managers face ethical situations on a daily basis, while accountants face them infrequently.
⊚ true
⊚ false
25) Compliance with Sarbanes-Oxley does not mean that the manager has met all of his or her
ethical responsibilities.
⊚ true
⊚ false
26) Ethical behavior for an individual depends more on the individual’s personal beliefs than a
firm's code of conduct.
⊚ true
⊚ false
27) Cost accounting information can be used to defraud customers, creditors, and owners.
⊚ true
⊚ false
Version 1 4
(Test Bank All Chapters, 100% Original Verified A+ Grade)
Student name:__________
1) The value chain comprises activities from research and development through the production
process but does not include activities related to the distribution of products or services.
⊚ true
⊚ false
2) Administrative functions are not included as part of the value chain because they are
implicitly included in every business function.
⊚ true
⊚ false
3) Under the value chain concept, value-added activities are those that firms perform and that
customers perceive as adding utility to the goods they purchase.
⊚ true
⊚ false
4) The value chain is comprised of the activities that take place only during the production
process.
⊚ true
⊚ false
5) If a poor facility layout exists and work-in-process inventory must be moved during the
production process, the company is likely to be performing some nonvalue-added activities.
⊚ true
⊚ false
6) Cost information is a product with its own customers.
⊚ true
⊚ false
Version 1 1
,7) Financial accounting information is always sufficient for making operational decisions.
⊚ true
⊚ false
8) Cost accounting information is commonly used in developing financial accounting
information.
⊚ true
⊚ false
9) Financial accounting information is designed for decision makers who are directly involved
in the daily management of the firm.
⊚ true
⊚ false
10) It is more important for financial accounting information to be comparable between firms
than to be useful for managerial decision making.
⊚ true
⊚ false
11) Cost accounting information developed for managers to use in making decisions must
comply with generally accepted accounting principles (GAAP) and international financial
reporting standards (IFRS).
⊚ true
⊚ false
12) A cost driver is a factor that causes costs.
⊚ true
⊚ false
13) A cost can be considered a differential cost for one particular course of action but not for
another course of action.
⊚ true
⊚ false
Version 1 2
,14) A responsibility center can be a department, division, or segment, but not a subsidiary of the
parent company.
⊚ true
⊚ false
15) It is important that the manager assigned to lead a responsibility center be held accountable
for its operations.
⊚ true
⊚ false
16) Budgeting is primarily used to determine year-end bonuses based on managerial and
organizational performance.
⊚ true
⊚ false
17) Managers are usually responsible for the revenues needed to achieve the targets set during
the budgeting process, but not the resources consumed to achieve those targets.
⊚ true
⊚ false
18) In general, if activities that do not add value to the company can be eliminated, then costs
associated with them will also be eliminated.
⊚ true
⊚ false
19) Accounting systems are important because they are a primary source of information for
managers.
⊚ true
⊚ false
20) Critical thinking is a systematic process used to analyze a business issue or decision.
⊚ true
⊚ false
Version 1 3
, 21) Data visualization is the systematic evaluation of information to address a decision problem.
⊚ true
⊚ false
22) Big data is defined by the amount of data, the speed the data is generated and made available,
or the variety of data available.
⊚ true
⊚ false
23) Typical ERP systems integrate information systems that link production, purchasing, human
resources, finance, and sales into a single comprehensive information system.
⊚ true
⊚ false
24) Managers face ethical situations on a daily basis, while accountants face them infrequently.
⊚ true
⊚ false
25) Compliance with Sarbanes-Oxley does not mean that the manager has met all of his or her
ethical responsibilities.
⊚ true
⊚ false
26) Ethical behavior for an individual depends more on the individual’s personal beliefs than a
firm's code of conduct.
⊚ true
⊚ false
27) Cost accounting information can be used to defraud customers, creditors, and owners.
⊚ true
⊚ false
Version 1 4
