Horngren Chapter 1 Cost Accounting
Managerial Accounting - (correct Answer) - accounting used to provide information and analyses to
managers inside the organization to assist them in decision making
based on cost benefit analysis NOT GAAP
Future oriented (budget for 2019 prepared last year)
Financial Accounting - (correct Answer) - has a focus on the financial information that is given to external
parties:
Past oriented: reports on 2018 performance prepared in the following year
GAAP and certified by external, independent auditors.
cost accounting - (correct Answer) - measures, analyzes and reports financial and nonfinancial
information related to the costs of acquiring or using resources in an organization
financial or managerial accounting? - (correct Answer) - help managers make decision to fulfill an
organizations goals
who are the primary users in management accounting? - (correct Answer) - managers of the organization
who are the primary users in financial accounting? - (correct Answer) - external users such as investors
banks regulators and suppliers
Time span and type of reports-management accounting - (correct Answer) - varies from hourly to 15-20
years, financial and non-financial reports on products, departments, territories, and strategies
Time span and type of reports- financial accounting - (correct Answer) - annual and quarterly financial
reports, primarily on the company as a whole
two strategies management accounting - (correct Answer) - cost leadership and product differentiation
Strategic Cost Management - (correct Answer) - cost management that specifically focuses on strategic
issues
Cost Leadership - (correct Answer) - a strategy that aims to provide a product or service at as low a price
as possible to a broad audience
Management Accounting Information - (correct Answer) - who are the best customers and how can we
deliver value to them?
what substitutes exist and how do they differ from our own?
most critical capability?
Managerial Accounting - (correct Answer) - accounting used to provide information and analyses to
managers inside the organization to assist them in decision making
based on cost benefit analysis NOT GAAP
Future oriented (budget for 2019 prepared last year)
Financial Accounting - (correct Answer) - has a focus on the financial information that is given to external
parties:
Past oriented: reports on 2018 performance prepared in the following year
GAAP and certified by external, independent auditors.
cost accounting - (correct Answer) - measures, analyzes and reports financial and nonfinancial
information related to the costs of acquiring or using resources in an organization
financial or managerial accounting? - (correct Answer) - help managers make decision to fulfill an
organizations goals
who are the primary users in management accounting? - (correct Answer) - managers of the organization
who are the primary users in financial accounting? - (correct Answer) - external users such as investors
banks regulators and suppliers
Time span and type of reports-management accounting - (correct Answer) - varies from hourly to 15-20
years, financial and non-financial reports on products, departments, territories, and strategies
Time span and type of reports- financial accounting - (correct Answer) - annual and quarterly financial
reports, primarily on the company as a whole
two strategies management accounting - (correct Answer) - cost leadership and product differentiation
Strategic Cost Management - (correct Answer) - cost management that specifically focuses on strategic
issues
Cost Leadership - (correct Answer) - a strategy that aims to provide a product or service at as low a price
as possible to a broad audience
Management Accounting Information - (correct Answer) - who are the best customers and how can we
deliver value to them?
what substitutes exist and how do they differ from our own?
most critical capability?
