Cost Accounting Foundations and Evolutions 10th Edition Kinney Test Bank.pdf

CHAPTERm1
THEmACCOUNTANT’SmROLEmINmTHEmORGANIZATI
ON

TRUE/FALSE

1. Managementmaccountingminformationmfocusesmonmexternalmreporting.

Answer: False Difficulty: 1 Objective: 1
TermsmtomLearn:
managementmaccountingmManagem
entmaccountingminformationmfocusesmonminternalmreporting.

2. Amgoodmcostmaccountingmsystemmismnarrowlymfocusedmonmamcontinuousmreductionm
ofmcosts.

Answer: False Difficulty: 2 Objective: 1
TermsmtomLearn: costmaccounting
Amgoodmcostmaccountingmsystemmismbroadlymfocusedmtomprovideminformationmthatmhelpsmm
anagersmatmallmlevelsmimplement,mmonitor,mandmevaluatemcompanymstrategies.

3. Modernmcostmaccountingmplaysmamsignificantmroleminmmanagementmdecisionmmaking.

Answer: True Difficulty: 1 Objective: 1
TermsmtomLearn: costmaccounting

4. Thembalancemsheet,mincomemstatement,mandmstatementmofmcashmflowsmaremusedmf
ormfinancialmaccounting,mbutmnotmformmanagementmaccounting.

Answer: False Difficulty: 1 Objective: 1
TermsmtomLearn: financialmaccounting
Thembalancemsheet,mincomemstatement,mandmstatementmofmcashmflowsmaremusedmformfi
nancialmaccountingmandmalsomformmanagementmaccounting.

5. Financialmaccountingmismbroaderminmscopemthanmmanagementmaccounting.

Answer:m m False Difficulty:m m 2
Objective:m1mTermsmtomLearn:
financialmaccounting,mmanagementmaccountin
gmManagementmaccountingmismbroaderminmscopemthanmfinancialmaccounting.

6. Costmaccountingmmeasuresmandmreportsmshort-term,mlong-
term,mfinancial,mandmnonfinancialminformation.

Answer: True Difficulty: 2 Objective: 1
TermsmtomLearn: costmaccounting

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,7. Costmmanagementmprovidesminformationmthatmhelpsmincreasemvaluemformcustomers.

Answer: True Difficulty: 1 Objective: 1
TermsmtomLearn: costmmanagement

8. Anmidealmdatabasemshouldmconsistmofmdatamthatmcouldmbemusedmformamsinglempurp
osemonly.

Answer: False Difficulty: 2 Objective: 1
TermsmtomLearn: managementmaccounting
Anmidealmdatabasemshouldmbemablemtombemusedmformmultiplempurposes.

9. AnmEnterprisemResourcemPlanningm(ERP)mSystemmismamsinglemdatabasemthatmcollec
tsmdatamandmfeedsmintomapplicationsmthatmsupportmeachmofmthemcompany’smbusines
smactivities,msuchmasmpurchases,mproduction,mdistribution,mandmsales.

Answer: True Difficulty: 1 Objective: 1
Termsmto Learn: management accounting

10. Costmaccountingmprovidesminformationmonlymformmanagementmaccountingmpurposes.

Answer: False Difficulty: 1 Objective: 1
TermsmtomLearn: costmaccounting
Costmaccountingmprovidesminformationmformfinancialmaccountingmasmwellmasmformmanage
mentmaccountingmpurposes.

11. Costmmanagementminvolvesmlong-termmandmshort-
termmdecisionsmthatmattemptmtomincreasemvaluemformcustomersmandmlowermcostsm
ofmproductsmormservices.

Answer: True Difficulty: 1 Objective: 1
TermsmtomLearn: costmmanagement

12. Allmstrategiesmshouldmbemevaluatedmregardingmthemresourcesmandmcapabilitiesmofmt
hemcompany.

Answer: True Difficulty: 1 Objective: 2
Termsmto Learn: strategy

13. Thembest-
designedmstrategiesmaremvaluablemwhethermormnotmtheymaremeffectivelymimple
mented.

Answer: False Difficulty: 1 Objective: 2
TermsmtomLearn:
strategymImplementa
tionmismessentialmormthemstrategymismuseless.
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,14. Themkeymtomamcompany’smsuccessmismcreatingmvaluemformcustomersmwhilemdifferentiati
ngmitselfmfrommitsmcompetitors.

Answer: True Difficulty: 1 Objective: 2
Termsmto Learn: strategy

15. Themkeymtomamcompany’smsuccessmismalwaysmtombemthemlowmcostmproducerminmamparticu
larmindustry.

Answer: False Difficulty: 2 Objective: 2
TermsmtomLearn: strategy
Themlowmcostmproducerminmamparticularmindustrymwillmnotmnecessarilymbemsuccessful.

16. Companiesmgenerallymfollowmonemofmtwombasicmstrategies:m1)mprovidingmamqualit
ymproductmormservicematmlowmprices,morm2)mofferingmamuniquemproductmormservicem
oftenmpricedmhighermthanmcompetingmproducts.

Answer: True Difficulty: 2 Objective: 2
Termsmto Learn: strategy

17. Managementmaccountantsmshouldmhavemlittlemormnomroleminmdecidingmonmamcompany
’smstrategy.

Answer: False Difficulty: 1 Objective: 2
TermsmtomLearn: strategy
Managementmaccountantsmshouldmplaymamsignificantmroleminmdecidingmonmamcompany’smstr
ategy.

18. Companiesmcanmdecidemonmanmappropriatemstrategymbasedmstrictlymonminternal
lymavailableminformation.

Answer: False Difficulty: 1 Objective: 2
TermsmtomLearn: strategy
Companiesmmustmobtainmexternalminformationmasmwellmasminternalminformationmtomde
cidemonmanmappropriatemstrategy.

19. Strategicmcostmmanagementmdescribesmcostmmanagementmthatmspecificallymfocusesmo
nmstrategicmissues.

Answer: True Difficulty: 1 Objective: 2
TermsmtomLearn: strategicmcostmmanagement




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, 20. Themsupplymchainmrefersmtomthemsequencemofmbusinessmfunctionsminmwhichmcustom
ermusefulnessmismaddedmtomproductsmormservices.

Answer: False Difficulty: 1 Objective: 3
TermsmtomLearn: supplymchain
Themvaluemchainmrefersmtomthemsequencemofmbusinessmfunctionsminmwhichmcustomermuseful
nessmismaddedmtomproductsmormservices.

21. Anmeffectivemwaymtomcutmcostsmismtomeliminatemactivitiesmthatmdomnotmimprovemt
hemproductmattributesmthatmcustomersmvalue.

Answer: True Difficulty: 1 Objective: 3
TermsmtomLearn: costmmanagement

22. Formoptimalmplanningmsuccessmitmismbestmifmeachmbusinessmfunctionmwithinmthemval
uemchainmismperformedmonematmamtimeminmsequence.

Answer: False Difficulty: 1 Objective: 3
TermsmtomLearn: valuemchain
Optimally,msuccessmismachievedmwhenmtwomormmoremofmthemindividualmbusinessmfunct
ionsmworkmconcurrentlymasmamteam.

23. Formbestmresults,mcostmmanagementmemphasizesmindependentlymcoordinatingmsuppl
ymchainmactivitiesmwithinmyourmcompanymandmnotminterferingmwithmothermcompanie
s.

Answer: False Difficulty: 2 Objective: 3
TermsmtomLearn: costmmanagement
Costmmanagementmemphasizesmintegratingmandmcoordinatingmsupplymchainmactivities
macrossmallmcompaniesmwithinmthemsupplymchain.




24. Technologicalminnovationmhasmledmtomshortermproduct-
lifemcyclesmandmamneedmtombringmnewmproductsmtommarketmmoremrapidly.

Answer: True Difficulty: 1 Objective: 3
TermsmtomLearn: designmofmproducts,mservices,mormprocesses

25. Keymsuccessmfactorsmincludemcost,mquality,mtimeliness,mandminnovation.

Answer: True Difficulty: 1 Objective: 3
Termsmto Learn: valuemchain




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