Chapter 1 test bank with answers Horngren's Cost Accounti
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ng: A Managerial Emphasis, 16th Global Edition
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Principles of Management Accounting (University of Queensland)
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DownloadedcbycOmarcMaswadehc()
,CostcAccounting:cAcManagerialcEmphasis,c16e,cGlobalcEditionc(Horngren)
Chapt er1cTheMa na
gera ndMa nage me ntAc count i
ng
1
.1 Obj
ect
ive1
.1
) Ma
1 nagementacc
ount
ing
.cA)f oc us
esone st
imati
ngfuturerevenues,cost
s,a
ndothermeasurestofor
ecastact
ivit
iesandtheirres
ult
sc c B)pr ovide sinfor
ma t
ionaboutthec ompa nyasawholecC)r eportsi
nfor
ma ti
ont hathasocc
ur redinth
epastthati sver i
fia
bleandrel
iablecD)providesinf
ormati
onthati
sge ner
all
yavai
lableonlyonaquar t
erlyoran
nualbasis
Answe r:A
Explanation:Ma nagementaccounti
ngha saforwa r
d-
l
ookingorie nta
tiona soppos
edtofn
ianci
alca c
counti
ngwhichha
sahist
orica
lpers
pec
ti
ve.
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ersc c c B)communi c
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im'sfinanc
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tor
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nd
ot
herout
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iesc c c c D)ensurethatfina
nci
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ati
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stcompl ywi t
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es sofmeasur
ing,anal
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D)ex
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orc Ans w
er:A
1
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tme ntcB)i mpr
oving
di
stri
but
ionandcustomerse
rvi
cec c C)prepari
ngt heincomest
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dersandotherexternalpart
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y;t
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ccount
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nfor
mat
ion?c
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ngpastbusinessac
tionsofafir
m.
B)Itisprepare
dbasedonSECr ul
esandF ASBaccounti
ngpr inc
ipl
es.c C)I
tispr
epa
redf
or
sharehol
ders
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menta
ccount
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nfor
mat
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tionsgover
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regeneral
lydel
ayedandhi
stor
ica
l.c c C)Theaudi
encet
e ndst
obestockhol
der
s,c
reditors,andtaxauthori
ti
es.c c D)Itpri
ma r
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uresmanager
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ationonrep
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esults
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0) Ma
nage
menta
ccount
ingi
nfor
mat
iont
ypi
cal
lyi
ncl
ude
s
.cA)tabulat
edres
ult
sofcust
omersat
is
fac
tions
urve
ysc B)t
hec ost
ofproduci
ngapr oductcC)t
hepe rc
ent
ageofunit
sproduc
edthatared
ef
ect
ivecD)Allofthe
seanswe
r sar
ecorr
ect
.
Answe r
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ec
ti
ve:1
AACSB:Appl i
cat
ionofknowl
edge
1
1) Costacc
ount
ing
.cA)me
asur
est
hec
ost
sofac
qui
ri
ngorus
ingr
esour
cesi
nanor
gani
za
t
ion
2
Copyrightc©c2018cPearsoncEducation,cLtd.
DownloadedcbycOmarcMaswadehc()
, B)me asurest
hefinancia
landnonfinanc
iali
nfor
ma t
iont
hathel
psmanage
rsma kedeci
si
onst oful
fil
lthec c goa
l
sofanor ga
niz
ati
onc C)c oordi
nat
e spr
oductdesi
gn,pr
oducti
on,
andma rket
ingdeci
si
onsa ndevaluat
eac omp
any'
sc c pe rf
or ma nce
D)communi c
ate
si nforma t
iont
oinvest
ors,
banks,
regul
at
ors,
andothe
routsi
depart
iesc c c A
nswe r
:A
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choft
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oll
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ngdi
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rent
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esc
osta
ccount
ingandfinanc
iala
ccount
ing
?c A)Thepr
ima
ryu
sersofc osta c c
ount ingar et
hei nvestors,whe r
east hepr i
ma ryusersoffinanci
alca ccount i
nga reth
ema na gers.
B) Costa ccount ingde al
swi thpr oduc tdesign,production, andma rket
ings t
rat
egies
,whe r e
a sfinanci
alc c a
c
countingde alsma i
nlywi thpricingoft heproduc t
s.
C) Co staccount ingme as ure
sonl ythefina
nc i
alinformat ionrelat
edtothec ost
sofa c
qui r
ingfixe da ss
etsi
nc a n
organi zati
on, whe r
easfinanciala c
count i
ngme asuresfinancialandnonfinanc i
alinf
or ma ti
onofacc ompany'sb
usinesst r
ansa ctions.
D) Co staccount ingme a suresinf ormationrelat
edt othec ost
sofa c
quiri
ngorus ingresour c
e si na nc or
ganizati
on, whe reasfina nci
alacc ountingme a
s ure
safinancialpos iti
onofac ompa nytoinvestors,banks ,c andext
ernalp
art
ies.
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3) Whi
choft
hef
oll
owi
ngi
str
ueoffina
nci
ala
ccount
ingi
nfor
mat
ion?cA
)Itispr epa redbas e
donc ost-
benefitanalysi
s.
B)Itispri
ma r
il
yus edbyma nage
rstoma keinte
rnalbus
ine
ssde
cis
ions.c c c c
C)Itfocus esont hepast-
orientedfinanci a
lperformanc eofac ompa ny .cD)Itonl
yme a
suresthec a
sht r
a nsactionsofac ompany .
Ans we r
:CcDi f
:2cObj
ec
ti
ve:1
AACSB:Ana lyt
ica
lthi
nki
ng
3
Copyrightc©c2018cPearsoncEducation,cLtd.
DownloadedcbycOmarcMaswadehc()
c c c c c c c c
ng: A Managerial Emphasis, 16th Global Edition
c c c c c c
Principles of Management Accounting (University of Queensland)
c c c c c c
StuDocuciscnotcsponsoredcorcendorsedcbycanyccollegecorcuniversity
DownloadedcbycOmarcMaswadehc()
,CostcAccounting:cAcManagerialcEmphasis,c16e,cGlobalcEditionc(Horngren)
Chapt er1cTheMa na
gera ndMa nage me ntAc count i
ng
1
.1 Obj
ect
ive1
.1
) Ma
1 nagementacc
ount
ing
.cA)f oc us
esone st
imati
ngfuturerevenues,cost
s,a
ndothermeasurestofor
ecastact
ivit
iesandtheirres
ult
sc c B)pr ovide sinfor
ma t
ionaboutthec ompa nyasawholecC)r eportsi
nfor
ma ti
ont hathasocc
ur redinth
epastthati sver i
fia
bleandrel
iablecD)providesinf
ormati
onthati
sge ner
all
yavai
lableonlyonaquar t
erlyoran
nualbasis
Answe r:A
Explanation:Ma nagementaccounti
ngha saforwa r
d-
l
ookingorie nta
tiona soppos
edtofn
ianci
alca c
counti
ngwhichha
sahist
orica
lpers
pec
ti
ve.
Diff:
1cObj
ect
ive
:1
AACSB:Ana lyti
calt
hinki
ng
) Ma
2 na
ger
sus
emana
gementac
count
ingi
nfor
mat
iont
o
.cA)he l
pexte
rnaluserss uc
ha sinve
stor
s, ba
nks,re
gul a
tor
s,andsuppli
ersc c c B)communi c
ate
,deve
l
op,andimplementstr
a t
e giescC)communi c at
eafr
im'sfinanc
ialpos
iti
ontoinves
tors,banks
,re
gula
tor
s,a
nd
ot
herout
sidepart
iesc c c c D)ensurethatfina
nci
als t
a t e
me ntsar
ec onsi
ste
ntwi ththeSECr ul
es
Answer:BcDif
:1cObj
ec
ti
ve:1
AACSB:Ana lyt
ica
lthi
nki
ng
)F
3 i
nanc
ialac
count
ing
.cA)f oc usesonthefutureandincludesact
ivit
iessuchaspr e
pa r
ingnextyear
'sope r
ati
ngbudge tc c B)mu
stcompl ywi t
hGAAP( general
lyacc
epteda c
countingpr i
nci
ples)c C)istheproc
es sofmeasur
ing,anal
yz i
ng,an
dreportingfinanci
ala
ndnonfinanci
ali
nformati
onr e
late
dt oc c c thecos
tsofacqui
ringorusingresour
cesina nor
ganiza
tionc c D)i spreparedfortheus eofdepartme ntheadsandot heremploye es
Ans wer:BcDi f
:1cObj
ec
ti
ve:1
AACSB:Ana lyt
ica
lthi
nki
ng
) Whi
4 choft
hef
oll
owi
ngwoul
dmos
tli
kel
ybet
heus
eroffinanc
iala
ccount
ingi
nfor
mat
ion?c A)
fa
ctorys hi
ftsuper
vis
or
B)dist
ri
buti
onma na
gerc c C)c
urrentsharehol
dercD)de par
tmentmana gercAns we r:
C
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ect
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calt
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) Thepr
5 imar
yus
erofmana
geme
ntac
count
ingi
nfor
mat
ioni
sa(
n)
.cA)t hec ont
rol
ler
B)ashare
hol dereva
luati
ngast
ocki
nve
stme
ntc C)bondhol
der
D)ex
ter
nalregulat
orc Ans w
er:A
1
Copyrightc©c2018cPearsoncEducation,cLtd.
DownloadedcbycOmarcMaswadehc()
,Diff:
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ect
ive
:1
AACSB:Ana lyti
calt
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6 i
nanc
iala
ccount
ingpr
ovi
dest
hepr
ima
rys
our
ceofi
nfor
mat
ionf
or
.cA)de cis
ionma ki
nginthea sse
mbl yandfinis
hingdepar
tme ntcB)i mpr
oving
di
stri
but
ionandcustomerse
rvi
cec c C)prepari
ngt heincomest
atementf orshare
hol
dersandotherexternalpart
iescD)planningnextyear'
spla
nsandspec
ific
all
y;t
heope
ra
tingbudge
tc c c c Answer:C
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ect
ive
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) Whi
7 choft
hef
oll
owi
ngi
str
ueofmana
geme
nta
ccount
ingi
nfor
mat
ion?c
A)I tfoc
usesondocume nti
ngpastbusinessac
tionsofafir
m.
B)Itisprepare
dbasedonSECr ul
esandF ASBaccounti
ngpr inc
ipl
es.c C)I
tispr
epa
redf
or
sharehol
ders
.
D)Ithe l
pswit
hthec
oor
dina
ti
onofel
ement
softheva
luecha
in.c
c c c An swer:D
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8 choft
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oll
owi
ngs
tat
eme
ntsr
efe
rst
oma
nage
menta
ccount
ingi
nfor
mat
ion?c c
A)The r
ear enor egula
tionsgover
ningthereports
.
B)Ther eportsa
regeneral
lydel
ayedandhi
stor
ica
l.c c C)Theaudi
encet
e ndst
obestockhol
der
s,c
reditors,andtaxauthori
ti
es.c c D)Itpri
ma r
il
yme as
uresmanager
'scompens
ationonrep
ort
edfinancialr
esults
.c c Ans wer :A
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ect
ive
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calt
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) Whi
9 choft
hef
oll
owi
nggr
oupswoul
dbel
eas
tli
kel
ytor
ece
ivede
tai
le
dma
nage
menta
ccount
ingc c r
eports?
A) st
ockhol
derscB)sal
esma
nagerscC)product
ionsuper
visor
scD)dist
ri
buti
onma na
ge
rsc Ans wer:A
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ect
ive
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AACSB:Ana lyti
calt
hinki
ng
1
0) Ma
nage
menta
ccount
ingi
nfor
mat
iont
ypi
cal
lyi
ncl
ude
s
.cA)tabulat
edres
ult
sofcust
omersat
is
fac
tions
urve
ysc B)t
hec ost
ofproduci
ngapr oductcC)t
hepe rc
ent
ageofunit
sproduc
edthatared
ef
ect
ivecD)Allofthe
seanswe
r sar
ecorr
ect
.
Answe r
:DcDif
:1cObj
ec
ti
ve:1
AACSB:Appl i
cat
ionofknowl
edge
1
1) Costacc
ount
ing
.cA)me
asur
est
hec
ost
sofac
qui
ri
ngorus
ingr
esour
cesi
nanor
gani
za
t
ion
2
Copyrightc©c2018cPearsoncEducation,cLtd.
DownloadedcbycOmarcMaswadehc()
, B)me asurest
hefinancia
landnonfinanc
iali
nfor
ma t
iont
hathel
psmanage
rsma kedeci
si
onst oful
fil
lthec c goa
l
sofanor ga
niz
ati
onc C)c oordi
nat
e spr
oductdesi
gn,pr
oducti
on,
andma rket
ingdeci
si
onsa ndevaluat
eac omp
any'
sc c pe rf
or ma nce
D)communi c
ate
si nforma t
iont
oinvest
ors,
banks,
regul
at
ors,
andothe
routsi
depart
iesc c c A
nswe r
:A
Diff:
1cObj
ect
ive
:1
AACSB:Ana lyti
calt
hinki
ng
1
2) Whi
choft
hef
oll
owi
ngdi
fe
rent
iat
esc
osta
ccount
ingandfinanc
iala
ccount
ing
?c A)Thepr
ima
ryu
sersofc osta c c
ount ingar et
hei nvestors,whe r
east hepr i
ma ryusersoffinanci
alca ccount i
nga reth
ema na gers.
B) Costa ccount ingde al
swi thpr oduc tdesign,production, andma rket
ings t
rat
egies
,whe r e
a sfinanci
alc c a
c
countingde alsma i
nlywi thpricingoft heproduc t
s.
C) Co staccount ingme as ure
sonl ythefina
nc i
alinformat ionrelat
edtothec ost
sofa c
qui r
ingfixe da ss
etsi
nc a n
organi zati
on, whe r
easfinanciala c
count i
ngme asuresfinancialandnonfinanc i
alinf
or ma ti
onofacc ompany'sb
usinesst r
ansa ctions.
D) Co staccount ingme a suresinf ormationrelat
edt othec ost
sofa c
quiri
ngorus ingresour c
e si na nc or
ganizati
on, whe reasfina nci
alacc ountingme a
s ure
safinancialpos iti
onofac ompa nytoinvestors,banks ,c andext
ernalp
art
ies.
Ans we r:DcDi f
:2cObj
ec
ti
ve:1
AACSB:Ana lyt
ica
lthi
nki
ng
1
3) Whi
choft
hef
oll
owi
ngi
str
ueoffina
nci
ala
ccount
ingi
nfor
mat
ion?cA
)Itispr epa redbas e
donc ost-
benefitanalysi
s.
B)Itispri
ma r
il
yus edbyma nage
rstoma keinte
rnalbus
ine
ssde
cis
ions.c c c c
C)Itfocus esont hepast-
orientedfinanci a
lperformanc eofac ompa ny .cD)Itonl
yme a
suresthec a
sht r
a nsactionsofac ompany .
Ans we r
:CcDi f
:2cObj
ec
ti
ve:1
AACSB:Ana lyt
ica
lthi
nki
ng
3
Copyrightc©c2018cPearsoncEducation,cLtd.
DownloadedcbycOmarcMaswadehc()
