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

B

,B




Cost Accounting, 14e (Horngren/Datar/Rajan)
B B B



Chapter 1 The Accountant's Role in the Organization
B B B B B B B




Objective 1.1 B




1) Management accounting:
B B



A) focuses on estimating future revenues, costs, and other measures to forecast activities and their
B B B B B B B B B B B B B B



results
B) provides information about the company as a whole
B B B B B B B B



C) reports information that has occurred in the past that is verifiable and reliable
B B B B B B B B B B B B B



D) provides information that is generally available only on a quarterly or annual basis
B B B B B B B B B B B B B



Answer: A B



Diff: 2 B



Terms: treasury B



Objective: 1 B



AACSB: Reflective thinkingB B




2) Managers use management accounting information to ________ strategy.
B B B B B B B B



A) choose
B



B) communicate
B



C) implement
B



D) All of these answers are correct.
B B B B B B



Answer: D B



Diff: 1 B



Terms: total quality management (TQM)
B B B B



Objective: 1 B



AACSB: Analytical skills B B




3) Financial accounting:
B B



A) focuses on the future and includes activities such as preparing next year's operating budget
B B B B B B B B B B B B B B



B) must comply with GAAP (generally accepted accounting principles)
B B B B B B B B



C) reports include detailed information on the various operating segments of the business such as
B B B B B B B B B B B B B B



product lines or departments
B B B



D) is prepared for the use of department heads and other employees
B B B B B B B B B B B



Answer: B B



Diff: 2 B



Terms: financial accounting
B B



Objective: 1 B



AACSB: Reflective thinkingB B




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B B B B B

,B




4) The person most likely to use ONLY financial accounting information is a:
B B B B B B B B B B B B



A) factory shift supervisor
B B B



B) vice president of operations
B B B B



C) current shareholder
B B



D) department manager
B B



Answer: C B



Diff: 1 B



Terms: financial accounting B B



Objective: 1 B



AACSB: Analytical skills B B




5) Which of the following people is LEAST likely to use management accounting information?
B B B B B B B B B B B B B



A) the controller
B B



B) a shareholder evaluating a stock investment
B B B B B B



C) the treasurer
B B



D) an assembly department supervisor
B B B B



Answer: B B



Diff: 1 B



Terms: treasury B



Objective: 1 B



AACSB: Analytical skills B B




6) Financial accounting provides the primary source of information for:
B B B B B B B B B



A) decision making in the finishing department
B B B B B B



B) improving customer service
B B B



C) preparing the income statement for shareholders
B B B B B B



D) planning next year's operating budget
B B B B B



Answer: C B



Diff: 2 B



Terms: financial accounting B B



Objective: 1 B



AACSB: Reflective thinking B B




7) Which of the following descriptors refers to management accounting information?
B B B B B B B B B B



A) It is verifiable and reliable.
B B B B B



B) It is driven by rules.
B B B B B



C) It is prepared for shareholders.
B B B B B



D) It provides reasonable and timely estimates.
B B B B B B



Answer: D B



Diff: 2 B



Terms: treasury B



Objective: 1 B



AACSB: Reflective thinking B B




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B B B B B

,B




8) Which of the following statements refers to management accounting information?
B B B B B B B B B B



A) There are no regulations governing the reports.
B B B B B B B



B) The reports are generally delayed and historical.
B B B B B B B



C) The audience tends to be stockholders, creditors, and tax authorities.
B B B B B B B B B B



D) It primarily measures and records business transactions.
B B B B B B B



Answer: A B



Diff: 2 B



Terms: treasury B



Objective: 1 B



AACSB: Reflective thinking B B




9) Which of the following groups would be LEAST likely to receive detailed management accounting
B B B B B B B B B B B B B B



reports?
A) stockholders
B



B) sales representatives
B B



C) production supervisors
B B



D) managers
B



Answer: A B



Diff: 1 B



Terms: treasury B



Objective: 1 B



AACSB: Analytical skills B B




10) Management accounting information includes:
B B B B



A) tabulated results of customer satisfaction surveys
B B B B B B



B) the cost of producing a product
B B B B B B



C) the percentage of units produced that are defective
B B B B B B B B



D) All of these answers are correct.
B B B B B B



Answer: D B



Diff: 1 B



Terms: treasury B



Objective: 1 B



AACSB: Reflective thinking B B




11) Cost accounting:
B B



A) provides information on the efficiency of factory labor
B B B B B B B B



B) provides information on the cost of servicing commercial customers
B B B B B B B B B



C) provides information on the performance of an operating division
B B B B B B B B B



D) All of these answers are correct.
B B B B B B



Answer: D B



Diff: 1 B



Terms: cost accounting B B



Objective: 1 B



AACSB: Reflective thinking B B




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B B B B B