COST ACCOUNTING 14TH EDITION BY HORNGREN, DATAR ,RAJAN TEST BANK

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Cost Accounting, 14e (Horngren/Datar/Rajan)
Chapter 1 The Accountant's Role in the Organization

Objective 1.1 UB




1) Management accounting:
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A) focuses on estimating future revenues, costs, and other measures to forecast activities and the
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ir
results
B) provides information about the company as a whole
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C) reports information that has occurred in the past that is verifiable and reliable
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D) provides information that is generally available only on a quarterly or annual basis
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Answer: A U B



Diff: 2 UB



Terms: treasury
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Objective: Reflective
AACSB: 1 thinking
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2) Managers use management accounting information to ________ strategy.
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A) choose
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B) communicate
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C) implement
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D) All of these answers are correct.
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Answer: D U B



Diff: 1 UB



Terms: total quality management (TQM)
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Objective: 1 U B



AACSB: Analytical skills
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3) Financial accounting:
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A) focuses on the future and includes activities such as preparing next year's operating budget
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B) must comply with GAAP (generally accepted accounting principles)
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C) reports include detailed information on the various operating segments of the business such
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as
product lines or departments
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D) is prepared for the use of department heads and other employees
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Answer: B U B



Diff: 2 UB



Terms: financial accounting
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Objective: 1 U B



AACSB: Reflective thinking
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4) The person most likely to use ONLY financial accounting information is
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a: factory shift supervisor
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B) vice president of operations
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C) current shareholder
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D) department manager
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Answer: C U B



Diff: 1UB



Terms: financial accounting
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Objective: 1 U B



AACSB: Analytical skillsU B UB




5) Which of the following people is LEAST likely to use management accounting information
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? the controller
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B) a shareholder evaluating a stock investment
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C) the treasurer
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D) an assembly department supervisor
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Answer: B U B



Diff: 1UB



Terms: treasury U B



Objective: 1 U B



AACSB: Analytical skillsU B UB




6) Financial accounting provides the primary source of information for
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: decision making in the finishing department
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B) improving customer service
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C) preparing the income statement for shareholders
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D) planning next year's operating budget
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Answer: C U B



Diff: 2UB



Terms: financial accounting
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Objective: 1 U B



AACSB: Reflective thinking
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7) Which of the following descriptors refers to management accounting information
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? It is verifiable and reliable.
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B) It is driven by rules.
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C) It is prepared for shareholders.
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D) It provides reasonable and timely estimates.
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Answer: D U B



Diff: 2UB



Terms: treasury U B



Objective: 1 U B



AACSB: Reflective thinking
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8) Which of the following statements refers to management accounting information
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A)? There are no regulations governing the reports.
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B) The reports are generally delayed and historical.
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C) The audience tends to be stockholders, creditors, and tax authorities
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.
D) It primarily measures and records business transactions.
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Answer: A U B



Diff: 2 UB



Terms: treasury U B



Objective: 1 U B



AACSB: Reflective thinking
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9) Which of the following groups would be LEAST likely to receive detailed management accounti
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ng
reports?
A) stockholders
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B) sales representatives
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C) production supervisors
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D) managers
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Answer: A U B



Diff: 1 UB



Terms: treasury U B



Objective: 1 U B



AACSB: Analytical skills U B UB




10) Management accounting information includes:
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A) tabulated results of customer satisfaction surveys
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B) the cost of producing a product
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C) the percentage of units produced that are defective
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D) All of these answers are correct.
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Answer: D U B



Diff: 1 UB



Terms: treasury U B



Objective: 1 U B



AACSB: Reflective thinking
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11) Cost accounting:
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A) provides information on the efficiency of factory labor
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B) provides information on the cost of servicing commercial customer
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s
C) provides information on the performance of an operating division
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D) All of these answers are correct.
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Answer: D U B



Diff: 1 UB



Terms: cost accounting
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Objective: Reflective
AACSB: 1 thinking
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