Cost Accounting 17th Edition |Latest Update
2025|Questions and Answers 100% Verified
_____________________________________________________________________________________
Technical consideration ________.
A) help managers make wise economic decisions by providing them with the desired information
B) focuses on encouraging individuals to do their jobs better
C) focuses on compensating the managers for good performance
D) emphasize on different costs for different purposes
A) help managers make wise economic decisions by providing them with the desired information
Which of the following statements about the cost-benefit approach is true?
A) Resources should be spent if the expected costs exceed the expected benefits of the company.
B) In a cost-benefit analysis, both costs and benefits are not easy to measure.
C) Resources should be spent if the costs of a decision outweigh the benefits of the decision.
D) A cost-benefit approach would not be appropriate for a decision to install a budgeting system.
B) In a cost-benefit analysis, both costs and benefits are not easy to measure
Exact quantification of costs and benefits is not always possible when making a decision.
TRUE or FALSE
TRUE
The technical considerations of budgeting encourage managers and other employees to strive for
achieving the goals of the organization.
TRUE or FALSE
FALSE
A cost concept used for the purposes of external reporting will always be appropriate for internal
reporting.
TRUE or FALSE
FALSE
Explanation: A cost concept used for the purposes of external reporting may not be appropriate for
internal, routine reporting. For external reporting, GAAP requires costs to be fully expenses in the year
they are incurred. However, those costs could be capitalized and than amortized or written off as
expenses over several years.
Accounting methods for internal reporting purposes are specified by Generally Accepted Accounting
Principles (GAAP).
TRUE or FALSE
,FALSE
Which of the following is true of line management?
A) It is directly responsible for achieving the goals of the organization.
B) It is responsible of management accounting functions.
C) It provides advice, support, and assistance to staff management.
D) It only includes the top level management.
A) It is directly responsible for achieving the goals of the organization.
Which of the following is true of staff management?
A) It plans income taxes, sales taxes, and international taxes.
B) It is directly responsible for achieving the goals of the organization.
C) It provides advice, support, and assistance to line management.
D) It controls the main business functions such as production and marketing
C) It provides advice, support, and assistance to line management.
________ includes providing financial information for reports to managers and shareholders, and
overseeing the overall operations of the accounting system.
A) Risk management
B) Treasury management
C) Controllership
D) Strategic planning
C) Controllership
________ includes banking and short- and long-term financing, investments, and cash management.
A) Risk management
B) Strategic planning
C) Controllership
D) Treasury management
D) Treasury management
Line management includes ________.
A) distribution managers
B) human-resource managers
C) information-technology managers
D) management-accounting managers
A) distribution managers
Staff management includes ________.
A) manufacturing managers
B) management accountants
C) purchasing managers
D) distribution managers
B) management accountants
, Which of the following is a responsibility of the CFO?
A) budget funds for a plant upgrade
B) managing short-term and long-term financing
C) investing in new equipment
D) conducting internal audit
B) managing short-term and long-term financing
The ________ is primarily responsible for management accounting and financial accounting.
A) COO (Chief Operating Officer)
B) CIO (Chief Information Officer)
C) treasurer
D) controller
D) controller
Which of the following reports to the CFO?
A) external auditor
B) distribution manager
C) production manager
D) treasurer
D) treasurer
Which of the following is a function of a controller?
A) operations administration
B) controlling the stock price
C) communication with the shareholders
D) interest-rate risk management
A) operations administration
Arrangement of long-term financing is an integral part of the ________ function in an organization.
A) CFO's
B) controller's
C) auditor's
D) president's
A) CFO's
Line management is directly responsible for attaining the goals of the organization.
TRUE or FALSE
TRUE
Staff management, such as management accountants and information technology and human
resources management, provides advice, support, and assistance to line management.
TRUE or FALSE
TRUE
2025|Questions and Answers 100% Verified
_____________________________________________________________________________________
Technical consideration ________.
A) help managers make wise economic decisions by providing them with the desired information
B) focuses on encouraging individuals to do their jobs better
C) focuses on compensating the managers for good performance
D) emphasize on different costs for different purposes
A) help managers make wise economic decisions by providing them with the desired information
Which of the following statements about the cost-benefit approach is true?
A) Resources should be spent if the expected costs exceed the expected benefits of the company.
B) In a cost-benefit analysis, both costs and benefits are not easy to measure.
C) Resources should be spent if the costs of a decision outweigh the benefits of the decision.
D) A cost-benefit approach would not be appropriate for a decision to install a budgeting system.
B) In a cost-benefit analysis, both costs and benefits are not easy to measure
Exact quantification of costs and benefits is not always possible when making a decision.
TRUE or FALSE
TRUE
The technical considerations of budgeting encourage managers and other employees to strive for
achieving the goals of the organization.
TRUE or FALSE
FALSE
A cost concept used for the purposes of external reporting will always be appropriate for internal
reporting.
TRUE or FALSE
FALSE
Explanation: A cost concept used for the purposes of external reporting may not be appropriate for
internal, routine reporting. For external reporting, GAAP requires costs to be fully expenses in the year
they are incurred. However, those costs could be capitalized and than amortized or written off as
expenses over several years.
Accounting methods for internal reporting purposes are specified by Generally Accepted Accounting
Principles (GAAP).
TRUE or FALSE
,FALSE
Which of the following is true of line management?
A) It is directly responsible for achieving the goals of the organization.
B) It is responsible of management accounting functions.
C) It provides advice, support, and assistance to staff management.
D) It only includes the top level management.
A) It is directly responsible for achieving the goals of the organization.
Which of the following is true of staff management?
A) It plans income taxes, sales taxes, and international taxes.
B) It is directly responsible for achieving the goals of the organization.
C) It provides advice, support, and assistance to line management.
D) It controls the main business functions such as production and marketing
C) It provides advice, support, and assistance to line management.
________ includes providing financial information for reports to managers and shareholders, and
overseeing the overall operations of the accounting system.
A) Risk management
B) Treasury management
C) Controllership
D) Strategic planning
C) Controllership
________ includes banking and short- and long-term financing, investments, and cash management.
A) Risk management
B) Strategic planning
C) Controllership
D) Treasury management
D) Treasury management
Line management includes ________.
A) distribution managers
B) human-resource managers
C) information-technology managers
D) management-accounting managers
A) distribution managers
Staff management includes ________.
A) manufacturing managers
B) management accountants
C) purchasing managers
D) distribution managers
B) management accountants
, Which of the following is a responsibility of the CFO?
A) budget funds for a plant upgrade
B) managing short-term and long-term financing
C) investing in new equipment
D) conducting internal audit
B) managing short-term and long-term financing
The ________ is primarily responsible for management accounting and financial accounting.
A) COO (Chief Operating Officer)
B) CIO (Chief Information Officer)
C) treasurer
D) controller
D) controller
Which of the following reports to the CFO?
A) external auditor
B) distribution manager
C) production manager
D) treasurer
D) treasurer
Which of the following is a function of a controller?
A) operations administration
B) controlling the stock price
C) communication with the shareholders
D) interest-rate risk management
A) operations administration
Arrangement of long-term financing is an integral part of the ________ function in an organization.
A) CFO's
B) controller's
C) auditor's
D) president's
A) CFO's
Line management is directly responsible for attaining the goals of the organization.
TRUE or FALSE
TRUE
Staff management, such as management accountants and information technology and human
resources management, provides advice, support, and assistance to line management.
TRUE or FALSE
TRUE
