Chapter 1 Cost Accounting Information
for Decision Making
Which of the following is NOT and example of a cost of holding inventory?
Set-up
Obsolescence
Storage Space
Insurance - answersSet-up
The performance of key suppliers and business partners are often evaluated using
_____. - answersPerformance measures
A product costing method that is more detailed and complicated than conventional
costing methods but provides more accurate cost numbers is known as _____ _____
costing. - answersactivity based
Which of the following are true?
It is important to know how the cost data will be used before making a decisions.
"One size fits all" does not apply to cost accounting.
Different decisions often require different cost data.
"One size fits all" applies to cost accounting. - answersIt is important to know how the
cost data will be used before making a decisions.
"One size fits all" does not apply to cost accounting.
Different decisions often require different cost data.
Each responsibility center in an organization typically has _____ as its financial plan for
the revenues and resources needed to carry out its tasks and meet its financial goals. -
answersBudget
Which of the following are true?
Most organizations do not need cost accounting.
Changes in business areas must adapt to cost accounting methods.
Developments in information technology have almost eliminated manual bookkeeping.
Many industries are placing more emphasis on cost control. - answersDevelopments in
information technology have almost eliminated manual bookkeeping.
Many industries are placing more emphasis on cost control.
Managers can identify strategic advantages in the marketplace using information about
the cost of activities and ______. - answersThe value chain
, The most serious problems with accounting systems appear to occur when managers
attempt to use accounting information that was developed for ______ decision making. -
answersExternal
The important criterion of cost accounting information is that the information is ______. -
answersRelevant
Financial accounting information is used by ______. - answersCreditors, government
agencies, and investors
Which of the following are true?
Many industries are placing more emphasis on control.
Most organizations do no need cost accounting.
Changes in business areas must adapt to cost accounting methods.
Developments in information technology have almost eliminated manual bookkeeping. -
answersMany industries are placing more emphasis on control.
Developments in information technology have almost eliminated manual bookkeeping.
Which of the following is NOT a nonvalue-added activity?
Quality checks
Delivery of the product
Moving inventory
Reworking defective units - answersDelivery of the product
Which of the following is not part of a firm's distribution chain?
Employees
Customers
Distributors - answersEmployees
In 2002, Congress passed the ______ ______ Act in an effort to address some serious
problems of corporate governance. - answersSarbanes Oxley
True or False: Cost accounting systems prevent unethical behavior. - answersFalse
Treasurer - answersConducts business with banks and other financial institutions.
Internal Auditor - answersEnsures compliance with laws, regulations, and company
policies and procedures.
Cost Accountant - answersWorks with financial and operation managers to provide
relevant information for decisions.
CFO - answersManages entire finance and accounting function.
A metric that indicates how well and individual, business unit, or product is working is
call ______ ______. - answersPerformance Measure
for Decision Making
Which of the following is NOT and example of a cost of holding inventory?
Set-up
Obsolescence
Storage Space
Insurance - answersSet-up
The performance of key suppliers and business partners are often evaluated using
_____. - answersPerformance measures
A product costing method that is more detailed and complicated than conventional
costing methods but provides more accurate cost numbers is known as _____ _____
costing. - answersactivity based
Which of the following are true?
It is important to know how the cost data will be used before making a decisions.
"One size fits all" does not apply to cost accounting.
Different decisions often require different cost data.
"One size fits all" applies to cost accounting. - answersIt is important to know how the
cost data will be used before making a decisions.
"One size fits all" does not apply to cost accounting.
Different decisions often require different cost data.
Each responsibility center in an organization typically has _____ as its financial plan for
the revenues and resources needed to carry out its tasks and meet its financial goals. -
answersBudget
Which of the following are true?
Most organizations do not need cost accounting.
Changes in business areas must adapt to cost accounting methods.
Developments in information technology have almost eliminated manual bookkeeping.
Many industries are placing more emphasis on cost control. - answersDevelopments in
information technology have almost eliminated manual bookkeeping.
Many industries are placing more emphasis on cost control.
Managers can identify strategic advantages in the marketplace using information about
the cost of activities and ______. - answersThe value chain
, The most serious problems with accounting systems appear to occur when managers
attempt to use accounting information that was developed for ______ decision making. -
answersExternal
The important criterion of cost accounting information is that the information is ______. -
answersRelevant
Financial accounting information is used by ______. - answersCreditors, government
agencies, and investors
Which of the following are true?
Many industries are placing more emphasis on control.
Most organizations do no need cost accounting.
Changes in business areas must adapt to cost accounting methods.
Developments in information technology have almost eliminated manual bookkeeping. -
answersMany industries are placing more emphasis on control.
Developments in information technology have almost eliminated manual bookkeeping.
Which of the following is NOT a nonvalue-added activity?
Quality checks
Delivery of the product
Moving inventory
Reworking defective units - answersDelivery of the product
Which of the following is not part of a firm's distribution chain?
Employees
Customers
Distributors - answersEmployees
In 2002, Congress passed the ______ ______ Act in an effort to address some serious
problems of corporate governance. - answersSarbanes Oxley
True or False: Cost accounting systems prevent unethical behavior. - answersFalse
Treasurer - answersConducts business with banks and other financial institutions.
Internal Auditor - answersEnsures compliance with laws, regulations, and company
policies and procedures.
Cost Accountant - answersWorks with financial and operation managers to provide
relevant information for decisions.
CFO - answersManages entire finance and accounting function.
A metric that indicates how well and individual, business unit, or product is working is
call ______ ______. - answersPerformance Measure
