ACCESS Test Bank for Fundamentals of Cost Accounting 7th Edition Lanen
Fundamentals of Cost Accounting Edition 7 by Lanen
CORRECT ANSWERS ARE LOCATED IN THE 2ND HALF OF THIS DOC.
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) The value chain comprises activities from research and development through the production
process but does not include activities related to the distribution of products or services.
⊚ true
⊚ false
2) Administrative functions are not included as part of the value chain because they are
implicitly included in every business function.
⊚ true
⊚ false
3) Under the value chain concept, value-added activities are those that firms perform and that
customers perceive as adding utility to the goods they purchase.
⊚ true
⊚ false
4) The value chain is comprised of the activities that take place only during the production
process.
⊚ true
⊚ false
5) If a poor facility layout exists and work-in-process inventory must be moved during the
production process, the company is likely to be performing some nonvalue-added activities.
⊚ true
⊚ false
6) Cost information is a product with its own customers.
⊚ true
⊚ false
7) Financial accounting information is always sufficient for making operational decisions.
⊚ true
⊚ false
8) Cost accounting information is commonly used in developing financial accounting
information.
⊚ true
⊚ false
Version 1 1
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,ACCESS Test Bank for Fundamentals of Cost Accounting 7th Edition Lanen
Fundamentals of Cost Accounting Edition 7 by Lanen
9) Financial accounting information is designed for decision makers who are directly involved
in the daily management of the firm.
⊚ true
⊚ false
10) It is more important for financial accounting information to be comparable between firms
than to be useful for managerial decision making.
⊚ true
⊚ false
11) Cost accounting information developed for managers to use in making decisions must
comply with generally accepted accounting principles (GAAP) and international financial
reporting standards (IFRS).
⊚ true
⊚ false
12) A cost driver is a factor that causes costs.
⊚ true
⊚ false
13) A cost can be considered a differential cost for one particular course of action but not for
another course of action.
⊚ true
⊚ false
14) A responsibility center can be a department, division, or segment, but not a subsidiary of the
parent company.
⊚ true
⊚ false
15) It is important that the manager assigned to lead a responsibility center be held accountable
for its operations.
⊚ true
⊚ false
16) Budgeting is primarily used to determine year-end bonuses based on managerial and
organizational performance.
⊚ true
⊚ false
Version 1 2
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,ACCESS Test Bank for Fundamentals of Cost Accounting 7th Edition Lanen
Fundamentals of Cost Accounting Edition 7 by Lanen
17) Managers are usually responsible for the revenues needed to achieve the targets set during
the budgeting process, but not the resources consumed to achieve those targets.
⊚ true
⊚ false
18) In general, if activities that do not add value to the company can be eliminated, then costs
associated with them will also be eliminated.
⊚ true
⊚ false
19) Accounting systems are important because they are a primary source of information for
managers.
⊚ true
⊚ false
20) Critical thinking is a systematic process used to analyze a business issue or decision.
⊚ true
⊚ false
21) Data visualization is the systematic evaluation of information to address a decision problem.
⊚ true
⊚ false
22) Big data is defined by the amount of data, the speed the data is generated and made available,
or the variety of data available.
⊚ true
⊚ false
23) Typical ERP systems integrate information systems that link production, purchasing, human
resources, finance, and sales into a single comprehensive information system.
⊚ true
⊚ false
24) Managers face ethical situations on a daily basis, while accountants face them infrequently.
⊚ true
⊚ false
Version 1 3
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, ACCESS Test Bank for Fundamentals of Cost Accounting 7th Edition Lanen
Fundamentals of Cost Accounting Edition 7 by Lanen
25) Compliance with Sarbanes-Oxley does not mean that the manager has met all of his or her
ethical responsibilities.
⊚ true
⊚ false
26) Ethical behavior for an individual depends more on the individual’s personal beliefs than a
firm's code of conduct.
⊚ true
⊚ false
27) Cost accounting information can be used to defraud customers, creditors, and owners.
⊚ true
⊚ false
28) The boundary between what is cost accounting and what belongs in another discipline is
often blurred.
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
29) The set of activities that transforms raw resources into the goods and services end users
purchase and consume is called the:
A) value chain.
B) supply chain.
C) demand chain.
D) cost-benefit analysis.
30) Which of the following activities would not be considered a value-added activity?
A) Production
B) Marketing
C) Accounting
D) Distribution
Version 1 4
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Fundamentals of Cost Accounting Edition 7 by Lanen
CORRECT ANSWERS ARE LOCATED IN THE 2ND HALF OF THIS DOC.
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) The value chain comprises activities from research and development through the production
process but does not include activities related to the distribution of products or services.
⊚ true
⊚ false
2) Administrative functions are not included as part of the value chain because they are
implicitly included in every business function.
⊚ true
⊚ false
3) Under the value chain concept, value-added activities are those that firms perform and that
customers perceive as adding utility to the goods they purchase.
⊚ true
⊚ false
4) The value chain is comprised of the activities that take place only during the production
process.
⊚ true
⊚ false
5) If a poor facility layout exists and work-in-process inventory must be moved during the
production process, the company is likely to be performing some nonvalue-added activities.
⊚ true
⊚ false
6) Cost information is a product with its own customers.
⊚ true
⊚ false
7) Financial accounting information is always sufficient for making operational decisions.
⊚ true
⊚ false
8) Cost accounting information is commonly used in developing financial accounting
information.
⊚ true
⊚ false
Version 1 1
mynursytest.store
,ACCESS Test Bank for Fundamentals of Cost Accounting 7th Edition Lanen
Fundamentals of Cost Accounting Edition 7 by Lanen
9) Financial accounting information is designed for decision makers who are directly involved
in the daily management of the firm.
⊚ true
⊚ false
10) It is more important for financial accounting information to be comparable between firms
than to be useful for managerial decision making.
⊚ true
⊚ false
11) Cost accounting information developed for managers to use in making decisions must
comply with generally accepted accounting principles (GAAP) and international financial
reporting standards (IFRS).
⊚ true
⊚ false
12) A cost driver is a factor that causes costs.
⊚ true
⊚ false
13) A cost can be considered a differential cost for one particular course of action but not for
another course of action.
⊚ true
⊚ false
14) A responsibility center can be a department, division, or segment, but not a subsidiary of the
parent company.
⊚ true
⊚ false
15) It is important that the manager assigned to lead a responsibility center be held accountable
for its operations.
⊚ true
⊚ false
16) Budgeting is primarily used to determine year-end bonuses based on managerial and
organizational performance.
⊚ true
⊚ false
Version 1 2
mynursytest.store
,ACCESS Test Bank for Fundamentals of Cost Accounting 7th Edition Lanen
Fundamentals of Cost Accounting Edition 7 by Lanen
17) Managers are usually responsible for the revenues needed to achieve the targets set during
the budgeting process, but not the resources consumed to achieve those targets.
⊚ true
⊚ false
18) In general, if activities that do not add value to the company can be eliminated, then costs
associated with them will also be eliminated.
⊚ true
⊚ false
19) Accounting systems are important because they are a primary source of information for
managers.
⊚ true
⊚ false
20) Critical thinking is a systematic process used to analyze a business issue or decision.
⊚ true
⊚ false
21) Data visualization is the systematic evaluation of information to address a decision problem.
⊚ true
⊚ false
22) Big data is defined by the amount of data, the speed the data is generated and made available,
or the variety of data available.
⊚ true
⊚ false
23) Typical ERP systems integrate information systems that link production, purchasing, human
resources, finance, and sales into a single comprehensive information system.
⊚ true
⊚ false
24) Managers face ethical situations on a daily basis, while accountants face them infrequently.
⊚ true
⊚ false
Version 1 3
mynursytest.store
, ACCESS Test Bank for Fundamentals of Cost Accounting 7th Edition Lanen
Fundamentals of Cost Accounting Edition 7 by Lanen
25) Compliance with Sarbanes-Oxley does not mean that the manager has met all of his or her
ethical responsibilities.
⊚ true
⊚ false
26) Ethical behavior for an individual depends more on the individual’s personal beliefs than a
firm's code of conduct.
⊚ true
⊚ false
27) Cost accounting information can be used to defraud customers, creditors, and owners.
⊚ true
⊚ false
28) The boundary between what is cost accounting and what belongs in another discipline is
often blurred.
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
29) The set of activities that transforms raw resources into the goods and services end users
purchase and consume is called the:
A) value chain.
B) supply chain.
C) demand chain.
D) cost-benefit analysis.
30) Which of the following activities would not be considered a value-added activity?
A) Production
B) Marketing
C) Accounting
D) Distribution
Version 1 4
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