TEST BANK
Cost Management, 6th edition
By Don Hansen, Maryanne Mowen, Dan Heitger
TU
TO
R
G
U
R
U
, Table of Content
1. Introduction to Cost Management
2. Basic Cost Management Concepts
3. Cost Behavior and Forecasting
4. Unit-Based and Activity-Based Costing Systems
Integrative Mini-Case: Making the Connection Part 1 (Chapters 1–4)
5. Job-Order Costing
6. Process Costing
TU
7. Allocating Costs of Support Departments and Joint Products
8. Budgeting for Planning and Control
9. Standard Costing: A Functional-Based Control Approach
10. Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer
Pricing
TO
Integrative Mini-Case: Making the Connection Part 2 (Chapters 5–10)
11. Strategic Cost Management
12. Activity-Based Management
R
13. Strategic-Based Control Systems and the Balanced Scorecard
14. Quality and Environmental Cost Management
15. Lean Accounting and Productivity Measurement
G
Integrative Mini-Case: Making the Connection Part 3 (Chapters 11–15)
16. Cost-Volume-Profit Analysis
U
17. Activity Resource Usage Model and Tactical Decision Making
18. Pricing and Profitability Analysis
R
19. Capital Investment
20. Inventory Management: Economic Order Quantity, JIT, and the Theory of Constraints
U
21. International Issues in Cost Management
,Name: Class: Date:
Test Bankth For
Cost Management 6 Edition by Don R. Hansen, Maryanne M. Mowen, Dan L. Heitger
Chapter 1-21 Answers are at the End of Each Chapter
Chapter 1
Indicate whether the statement is true or false.
1. The service sector of the U.S. economy has decreased in importance as traditional industries have declined in
importance.
TU
a. True
b. False
2. Business ethics is learning what is right or wrong in the work environment and choosing what is right.
a. True
b. False
TO
3. Three of the major certifications available to management accountants are a Certificate in Management Accounting, a
Certificate in Public Accounting, and a Certificate in Internal Auditing.
a. True
b. False
4. Positions that have direct responsibility for basic objectives are referred to as staff positions, and those indirectly
R
responsible are called line positions.
a. True
b. False
G
5. Evaluating the performance of a segment of the company is an example of planning.
a. True
b. False
U
6. The cost management information system has two major subsystems: the cost accounting information system and the
operational control information system.
R
a. True
b. False
U
7. Preparing reports for division managers is an activity associated with the cost management information system.
a. True
b. False
8. One of the major advances in information technology that affects firms is the emergence of electronic commerce.
a. True
b. False
9. The role of cost and management accountants is one of support and teamwork and assistance of those who are
responsible for achieving a company's basic objectives.
a. True
Page 1
, Name: Class: Date:
b. False
10. The cost management information system is primarily concerned with producing outputs for external users.
a. True
b. False
11. The examination for obtaining the Certificate in Management Accounting consists of two parts: (1) Technology and
Analytics and (2) Strategic Financial Management.
a. True
b. False
TU
12. The Certificate of Public Accounting does NOT include the right to serve as external auditors.
a. True
b. False
13. The treasurer of a company is responsible for all taxation activities, including dealing with the IRS.
a. True
TO
b. False
14. JIT is a critical part of a more comprehensive approach referred to as lean manufacturing.
a. True
b. False
R
15. For each certification, all an applicant has to do is meet specific educational and experience requirements.
a. True
b. False
G
16. Changes in the way business is conducted worldwide have broadened the focus of cost management accounting
systems.
a. True
U
b. False
17. Divulging company information when NOT legally obligated to do so violates the confidentiality part of the IMA
R
code of ethics.
a. True
b. False
U
18. The focus of lean manufacturing is to eliminate waste, which is anything that does not add value to the end user
(customer).
a. True
b. False
19. Firms subject to the Sarbanes-Oxley Act do not have to disclose whether they have a code of ethics for senior
financial officers, nor why.
a. True
b. False
Page 2
Cost Management, 6th edition
By Don Hansen, Maryanne Mowen, Dan Heitger
TU
TO
R
G
U
R
U
, Table of Content
1. Introduction to Cost Management
2. Basic Cost Management Concepts
3. Cost Behavior and Forecasting
4. Unit-Based and Activity-Based Costing Systems
Integrative Mini-Case: Making the Connection Part 1 (Chapters 1–4)
5. Job-Order Costing
6. Process Costing
TU
7. Allocating Costs of Support Departments and Joint Products
8. Budgeting for Planning and Control
9. Standard Costing: A Functional-Based Control Approach
10. Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer
Pricing
TO
Integrative Mini-Case: Making the Connection Part 2 (Chapters 5–10)
11. Strategic Cost Management
12. Activity-Based Management
R
13. Strategic-Based Control Systems and the Balanced Scorecard
14. Quality and Environmental Cost Management
15. Lean Accounting and Productivity Measurement
G
Integrative Mini-Case: Making the Connection Part 3 (Chapters 11–15)
16. Cost-Volume-Profit Analysis
U
17. Activity Resource Usage Model and Tactical Decision Making
18. Pricing and Profitability Analysis
R
19. Capital Investment
20. Inventory Management: Economic Order Quantity, JIT, and the Theory of Constraints
U
21. International Issues in Cost Management
,Name: Class: Date:
Test Bankth For
Cost Management 6 Edition by Don R. Hansen, Maryanne M. Mowen, Dan L. Heitger
Chapter 1-21 Answers are at the End of Each Chapter
Chapter 1
Indicate whether the statement is true or false.
1. The service sector of the U.S. economy has decreased in importance as traditional industries have declined in
importance.
TU
a. True
b. False
2. Business ethics is learning what is right or wrong in the work environment and choosing what is right.
a. True
b. False
TO
3. Three of the major certifications available to management accountants are a Certificate in Management Accounting, a
Certificate in Public Accounting, and a Certificate in Internal Auditing.
a. True
b. False
4. Positions that have direct responsibility for basic objectives are referred to as staff positions, and those indirectly
R
responsible are called line positions.
a. True
b. False
G
5. Evaluating the performance of a segment of the company is an example of planning.
a. True
b. False
U
6. The cost management information system has two major subsystems: the cost accounting information system and the
operational control information system.
R
a. True
b. False
U
7. Preparing reports for division managers is an activity associated with the cost management information system.
a. True
b. False
8. One of the major advances in information technology that affects firms is the emergence of electronic commerce.
a. True
b. False
9. The role of cost and management accountants is one of support and teamwork and assistance of those who are
responsible for achieving a company's basic objectives.
a. True
Page 1
, Name: Class: Date:
b. False
10. The cost management information system is primarily concerned with producing outputs for external users.
a. True
b. False
11. The examination for obtaining the Certificate in Management Accounting consists of two parts: (1) Technology and
Analytics and (2) Strategic Financial Management.
a. True
b. False
TU
12. The Certificate of Public Accounting does NOT include the right to serve as external auditors.
a. True
b. False
13. The treasurer of a company is responsible for all taxation activities, including dealing with the IRS.
a. True
TO
b. False
14. JIT is a critical part of a more comprehensive approach referred to as lean manufacturing.
a. True
b. False
R
15. For each certification, all an applicant has to do is meet specific educational and experience requirements.
a. True
b. False
G
16. Changes in the way business is conducted worldwide have broadened the focus of cost management accounting
systems.
a. True
U
b. False
17. Divulging company information when NOT legally obligated to do so violates the confidentiality part of the IMA
R
code of ethics.
a. True
b. False
U
18. The focus of lean manufacturing is to eliminate waste, which is anything that does not add value to the end user
(customer).
a. True
b. False
19. Firms subject to the Sarbanes-Oxley Act do not have to disclose whether they have a code of ethics for senior
financial officers, nor why.
a. True
b. False
Page 2
