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,TEST BANK FOR st st
Cost Management 6th Edition by Don R. Hansen, Maryanne M. Mowen, Dan L. Heitger
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Chapter 1-21 Answers are at the End of Each Chapter
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Chapter 1 st
Indicate whether the statement is true or false.
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1. The service sector of the U.S. economy has decreased in importance as traditional industries have declined in i
st st st st st st st st st st st st st st st st st
mportance.
a. True
b. False
2. Business ethics is learning what is right or wrong in the work environment and choosing what is right.
st st st st st st st st st st st st st st st st st
a. True
b. False
3. Three of the major certifications available to management accountants are a Certificate in Management Accounting, a
st st st st st st st st st st st st st st st st
Certificate in Public Accounting, and a Certificate in Internal Auditing.
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a. True
b. False
4. Positions that have direct responsibility for basic objectives are referred to as staff positions, and those indirectly
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responsible are called line positions.
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a. True
b. False
5. Evaluating the performance of a segment of the company is an example of planning.
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a. True
b. False
6. The cost management information system has two major subsystems: the cost accounting information system and the
st st st st st st st st st st st st st st st st
operational control information system.
st st st
a. True
b. False
7. Preparing reports for division managers is an activity associated with the cost management information system.
st st st st st st st st st st st st st st
a. True
b. False
8. One of the major advances in information technology that affects firms is the emergence of electronic commerce.
st st st st st st st st st st st st st st st st
a. True
b. False
9. The role of cost and management accountants is one of support and teamwork and assistance of those who are
st st st st st st st st st st st st st st st st st st st
responsible for achieving a company's basic objectives.
st st st st st st
a. True
Pagest2
, b. False
10. The cost management information system is primarily concerned with producing outputs for external users.
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a. True
b. False
11. The examination for obtaining the Certificate in Management Accounting consists of two parts: (1) Technology and
st st st st st st st st st st st st st st st st
Analytics and (2) Strategic Financial Management.
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a. True
b. False
12. The Certificate of Public Accounting does NOT include the right to serve as external auditors.
st st st st st st st st st st st st st st
a. True
b. False
13. The treasurer of a company is responsible for all taxation activities, including dealing with the IRS.
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a. True
b. False
14. JIT is a critical part of a more comprehensive approach referred to as lean manufacturing.
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a. True
b. False
15. For each certification, all an applicant has to do is meet specific educational and experience requirements.
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a. True
b. False
16. Changes in the way business is conducted worldwide have broadened the focus of cost management accounting
st st st st st st st st st st st st st st st st
systems.
a. True
b. False
17. Divulging company information when NOT legally obligated to do so violates the confidentiality part of the IMA
st st st st st st st st st st st st st st st st st
code of ethics.
st st
a. True
b. False
18. The focus of lean manufacturing is to eliminate waste, which is anything that does not add value to the end user
st st st st st st st st st st st st st st st st st st st st st
(customer).
a. True
b. False
19. Firms subject to the Sarbanes-
st st st st
Oxley Act do not have to disclose whether they have a code of ethics for senior financial officers, nor why.
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a. True
b. False
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, 20. Enterprise resource planning (ERP) software has the objective of providing an integrated system capability and is able t
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o run all the operations of a company.
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a. True
b. False
21. The three broad objectives of financial accounting information systems are to provide information for costing out
st st st st st st st st st st st st st st st st
services and products, planning and control, and decision making.
st st st st st st st st
a. True
b. False
22. An accounting information system collects, records, summarizes, analyzes, and manages data to transform inputs into
st st st st st st st st st st st st st st st
information that is provided to users. st st st st st
a. True
b. False
23. The Institute of Management Accountants has established ethical standards for management accountants.
st st st st st st st st st st st
a. True
b. False
24. The controller of a company supervises all the accounting departments and is often viewed as a member of the top
st st st st st st st st st st st st st st st st st st st st
management team. st
a. True
b. False
25. Employee and customer loyalty are NOT a result of a strong code of ethics.
st st st st st st st st st st st st st
a. True
b. False
26. The process of choosing among competing alternatives is called decision making.
st st st st st st st st st st
a. True
b. False
27. In just-in-time (JIT) manufacturing, each operation produces only what is necessary for the succeeding operations.
st st st st st st st st st st st st st st
a. True
b. False
28. In resolving an ethical conflict, it would be appropriate to take the matter to the press where there's no legal
st st st st st st st st st st st st st st st st st st st st
requirement.
a. True
b. False
29. The Certified Internal Auditor must pass a comprehensive examination designed to ensure technical competence and
st st st st st st st st st st st st st st st
have two years' work experience.
st st st st
a. True
b. False
30. The two major subsystems of the accounting information system are the financial accounting information system and
st st st st st st st st st st st st st st st st
the cost management accounting information system.
st st st st st
Pagest4
,TEST BANK FOR st st
Cost Management 6th Edition by Don R. Hansen, Maryanne M. Mowen, Dan L. Heitger
st st st st st st st st st st st st st
Chapter 1-21 Answers are at the End of Each Chapter
st st st st st st st st st
Chapter 1 st
Indicate whether the statement is true or false.
st st st st st st st
1. The service sector of the U.S. economy has decreased in importance as traditional industries have declined in i
st st st st st st st st st st st st st st st st st
mportance.
a. True
b. False
2. Business ethics is learning what is right or wrong in the work environment and choosing what is right.
st st st st st st st st st st st st st st st st st
a. True
b. False
3. Three of the major certifications available to management accountants are a Certificate in Management Accounting, a
st st st st st st st st st st st st st st st st
Certificate in Public Accounting, and a Certificate in Internal Auditing.
st st st st st st st st st
a. True
b. False
4. Positions that have direct responsibility for basic objectives are referred to as staff positions, and those indirectly
st st st st st st st st st st st st st st st st st
responsible are called line positions.
st st st st
a. True
b. False
5. Evaluating the performance of a segment of the company is an example of planning.
st st st st st st st st st st st st st
a. True
b. False
6. The cost management information system has two major subsystems: the cost accounting information system and the
st st st st st st st st st st st st st st st st
operational control information system.
st st st
a. True
b. False
7. Preparing reports for division managers is an activity associated with the cost management information system.
st st st st st st st st st st st st st st
a. True
b. False
8. One of the major advances in information technology that affects firms is the emergence of electronic commerce.
st st st st st st st st st st st st st st st st
a. True
b. False
9. The role of cost and management accountants is one of support and teamwork and assistance of those who are
st st st st st st st st st st st st st st st st st st st
responsible for achieving a company's basic objectives.
st st st st st st
a. True
Pagest2
, b. False
10. The cost management information system is primarily concerned with producing outputs for external users.
st st st st st st st st st st st st st
a. True
b. False
11. The examination for obtaining the Certificate in Management Accounting consists of two parts: (1) Technology and
st st st st st st st st st st st st st st st st
Analytics and (2) Strategic Financial Management.
st st st st st
a. True
b. False
12. The Certificate of Public Accounting does NOT include the right to serve as external auditors.
st st st st st st st st st st st st st st
a. True
b. False
13. The treasurer of a company is responsible for all taxation activities, including dealing with the IRS.
st st st st st st st st st st st st st st st
a. True
b. False
14. JIT is a critical part of a more comprehensive approach referred to as lean manufacturing.
st st st st st st st st st st st st st st
a. True
b. False
15. For each certification, all an applicant has to do is meet specific educational and experience requirements.
st st st st st st st st st st st st st st st
a. True
b. False
16. Changes in the way business is conducted worldwide have broadened the focus of cost management accounting
st st st st st st st st st st st st st st st st
systems.
a. True
b. False
17. Divulging company information when NOT legally obligated to do so violates the confidentiality part of the IMA
st st st st st st st st st st st st st st st st st
code of ethics.
st st
a. True
b. False
18. The focus of lean manufacturing is to eliminate waste, which is anything that does not add value to the end user
st st st st st st st st st st st st st st st st st st st st st
(customer).
a. True
b. False
19. Firms subject to the Sarbanes-
st st st st
Oxley Act do not have to disclose whether they have a code of ethics for senior financial officers, nor why.
st st st st st st st st st st st st st st st st st st st
a. True
b. False
Pagest3
, 20. Enterprise resource planning (ERP) software has the objective of providing an integrated system capability and is able t
st st st st st st st st st st st st st st st st st
o run all the operations of a company.
st st st st st st st
a. True
b. False
21. The three broad objectives of financial accounting information systems are to provide information for costing out
st st st st st st st st st st st st st st st st
services and products, planning and control, and decision making.
st st st st st st st st
a. True
b. False
22. An accounting information system collects, records, summarizes, analyzes, and manages data to transform inputs into
st st st st st st st st st st st st st st st
information that is provided to users. st st st st st
a. True
b. False
23. The Institute of Management Accountants has established ethical standards for management accountants.
st st st st st st st st st st st
a. True
b. False
24. The controller of a company supervises all the accounting departments and is often viewed as a member of the top
st st st st st st st st st st st st st st st st st st st st
management team. st
a. True
b. False
25. Employee and customer loyalty are NOT a result of a strong code of ethics.
st st st st st st st st st st st st st
a. True
b. False
26. The process of choosing among competing alternatives is called decision making.
st st st st st st st st st st
a. True
b. False
27. In just-in-time (JIT) manufacturing, each operation produces only what is necessary for the succeeding operations.
st st st st st st st st st st st st st st
a. True
b. False
28. In resolving an ethical conflict, it would be appropriate to take the matter to the press where there's no legal
st st st st st st st st st st st st st st st st st st st st
requirement.
a. True
b. False
29. The Certified Internal Auditor must pass a comprehensive examination designed to ensure technical competence and
st st st st st st st st st st st st st st st
have two years' work experience.
st st st st
a. True
b. False
30. The two major subsystems of the accounting information system are the financial accounting information system and
st st st st st st st st st st st st st st st st
the cost management accounting information system.
st st st st st
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