Accounting Information Systems Test
Questions
Course Introduction
Accounting Information Systems (AIS) explores the integration of accounting principles and information technology, focusing on the design, implementation, and management of computerized accounting systems. The course covers topics such as transaction processing cycles, internal controls, cybersecurity risks, database management, and enterprise resource planning (ERP) systems. Students learn how AIS supports organizational decision-making, enhances reporting accuracy, and ensures compliance with regulatory standards. Practical assignments and case studies provide hands-on experience in analyzing system requirements, evaluating risks, and applying technical solutions to real-world accounting challenges.
Recommended Textbook
Management Accounting for Business 6th Edition by Colin Drury
Available Study Resources on Quizplus
15 Chapters
1373 Verified Questions
1373 Flashcards
Source URL: https://quizplus.com/study-set/3579
Page 2
Chapter 1: Introduction to Management Accounting
Available Study Resources on Quizplus for this Chatper
78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/71072
Sample Questions
Q1) Performance reports are accounting reports that compare
A) planned data with actual data.
B) audited data with actual data.
C) managers' bonuses with performance ratings by supervisors.
D) actual data with industry standards.
Answer: A
Q2) Which of the following statements correctly distinguishes between financial and management accounting?
A) Management accounting reports on the whole organization.
B) Financial accounting is oriented toward the future.
C) Financial accounting is primarily concerned with providing information for internal users.
D) Management accounting is oriented more toward the planning and control aspects of management.
Answer: D
Q3) Discuss the change in composition of total manufacturing costs during the last century, using the three major cost categories: direct materials, direct labour, and manufacturing overhead.
Answer: 11ea86f5_e8e7_3fab_a652_09644ef21c24_TB3532_00
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: An Introduction to Cost Terms and Concepts
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/71073
Sample Questions
Q1) TEK, Inc., is considering whether to replace a production machine with a newer model of the same machine. If TEK keeps the old machine, the trade-in value of the old equipment is an example of a(n)
A) sunk cost
B) opportunity cost
C) avoidable cost
D) imputed cost
Answer: B
Q2) Which of the following cost behaviour patterns are unrelated to unit activity?
A) fixed costs
B) variable costs
C) step costs
D) mixed costs
Answer: A
Q3) A supervisor's salary of £2,000 per month is an example of a
A) fixed cost.
B) variable cost.
C) step cost.
D) mixed cost.
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
121 Verified Questions
121 Flashcards
Source URL: https://quizplus.com/quiz/71074
Sample Questions
Q1) Boss Company currently leases a delivery van from Check Enterprises for a fee of £250 per month plus £0.40 per mile. Management is evaluating the desirability of switching to a modern, fuel-efficient van, which can be leased from David, SA., for a fee of £600 per month plus £0.05 per mile. All operating costs and fuel are included in the rental fees. In general,
A) a lease from David, SA., is economically preferable to a lease from Check Enterprises regardless of the monthly use.
B) a lease from Check Enterprises is economically preferable below 1,000 miles per month.
C) a lease from Check Enterprises is economically preferable to a lease from David, SA., regardless of the monthly use.
D) a lease from Check Enterprises is economically preferable above 1,000 miles per month.
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Measuring Relevant Costs and Revenues for Decision-Making
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/71075
Sample Questions
Q1) The Titanic hit an iceberg and sank. In deciding whether or not to salvage the ship, its book value is a(n)
A) relevant cost.
B) sunk cost.
C) opportunity cost.
D) discretionary cost.
Q2) Which of the following statements is true when making a decision between two alternatives?
A) Variable costs may not be relevant when the decision alternatives have the same activity levels.
B) Variable costs are not relevant when the decision alternatives have different activity levels.
C) Sunk costs are always relevant.
D) Fixed costs are never relevant.
Q3) Which item is not an example of a sunk cost?
A) materials needed for production
B) purchase cost of machinery
C) depreciation
D) All are sunk costs.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Pricing Decisions and Profitability Analysis
Available Study Resources on Quizplus for this Chatper
62 Verified Questions
62 Flashcards
Source URL: https://quizplus.com/quiz/71076
Sample Questions
Q1) Segment margin is equal to sales less
A) variable costs.
B) variable costs and direct fixed costs.
C) variable costs and indirect fixed costs.
D) cost of goods sold.
Q2) Cost-based pricing has traditionally been important because:
A) cost data are available.
B) cost-based prices are defensible.
C) revenues must exceed costs if the firm is to remain in business.
D) of all of the above.
Q3) Which of the following stages is characterized by rapid increases in sales and production?
A) Introduction
B) Growth
C) Maturity
D) Decline
Q4) List some of the pros and cons of target costing.
Q5) Discuss the limitation of profit measurement.
Q6) Provide a short critique of cost-based pricing. What are the four major drawbacks to this pricing approach?
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Capital Investment Decisions
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/71077
Sample Questions
Q1) A firm has £2,000,000 of long-term bonds paying 8 percent interest and £8,000,000 of common stock. The firm is considered to be of average risk with the return to the stockholders estimated to be 14 percent. If the company's tax rate is 40 percent, what is the firm's weighted average cost of capital?
A) 12.80%
B) 12.16%
C) 8.32%
D) none of the above
Q2) Ducky Pizza Restaurant purchases a van to deliver pizzas to their customers. The van costs £28,000 and is projected to increase revenues by £10,000 a year and to increase costs by £4,500. The payback period for this van is
A) 2.8 years
B) 6.2 years
C) 5.1 years
D) 0.4 years
Q3) Describe capital investment in the advanced manufacturing environment.
Q4) Explain what a capital investment decision is and distinguish between independent and mutually exclusive capital investment decisions.
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Cost Assignment
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/71078
Sample Questions
Q1) _____ refers to the assignment of indirect costs to cost objects.
A) Allocation
B) Direct tracing
C) Physical observation
D) Cost management
Q2) Compare/contrast cost assignment and cost allocation. Be sure to include direct assignment (tracing) and driver tracing in your discussion.
Q3) Which of the following is a key consideration in selecting an allocation base?
A) The allocation base should have an indirect association with the cost objective.
B) The allocation base should be difficult to measure.
C) There should be logical association between the allocation base and the incidence of costs.
D) The allocation base should be out of the control of management.
Q4) A possible causal factor to use when allocating cafeteria costs would be
A) number of square feet.
B) number of direct labour hours.
C) number of employees.
D) appraised value of square footage.
Q5) Define the terms cost objectives, cost pools, and allocation bases.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Activity-Based Costing
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/71079
Sample Questions
Q1) Refer to Figure 1 in the previous question. What is the cost of resource usage?
A) £300,000
B) £240,000
C) £30
D) £60,000
Q2) Products might consume overhead in different proportions due to A) differences in product size.
B) differences in setup times.
C) differences in product complexity.
D) all of the above.
Q3) When selecting an activity driver, a company should consider A) the cost of measurement.
B) the time of the year.
C) the cause and effect between the activity driver and the cost pool.
D) both a and C
Q4) Identify Cooper and Kaplan's four categories of activities and provide a brief description of each category.
Q5) What is cross-subsidization and when is it most likely to occur?
Q6) Describe the unit level approach to cost behaviour analysis. Discuss the appropriateness of this approach.
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: The Budgeting Process
Available Study Resources on Quizplus for this Chatper
120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/71080
Sample Questions
Q1) In the traditional budget process, budget cutting is undertaken
A) through across the board cuts.
B) by identifying and eliminating nonvalue-added activities.
C) by eliminating unused capacity.
D) All of the above are correct.
Q2) Which of the following is an example of a committed fixed cost?
A) the cost Coca-Cola pays for a billboard along the interstate
B) the cost of manufacturing equipment
C) the cost of training employees
D) the cost of developing new products
Q3) Which of the following is an advantage of the budgeting process?
A) Budgeting provides resource information for decision making.
B) Budgeting provides a standard for performance evaluation.
C) Budgeting improves communication and coordination within the organization.
D) all of the above
Q4) Define budgeting and control. How are budgets used in planning? How are budgets used to control? What are some of the reasons for budgeting?
Q5) Compare and contrast the incremental budgetary approach to the zero-base budgeting approach to budgeting.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Management Control Systems
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/71081
Sample Questions
Q1) Goal congruence means
A) there is alignment of organizational and managerial goals.
B) the organization is aligned to the needs of the environment.
C) the organization is aligned to shareholder goals.
D) there is no divergence between organization and stockholder goals.
Q2) If the static budget variance for materials is £200 F and the budgeted cost for materials is £52,000, then the actual cost of materials is
A) £52,000.
B) £52,200.
C) £51,200.
D) £51,800.
Q3) _____ are awards made when performance is maintained or exceeds a specific measure.
A) Bonuses
B) Stock options
C) Profit sharing
D) Gain sharing
Q4) Define responsibility accounting and describe four types of responsibility centres.
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Standard Costing and Variance Analysis
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/71082
Sample Questions
Q1) Refer to Figure 7. Orient's variable overhead efficiency variance would be
A) £1,200 unfavorable
B) £3,600 unfavorable
C) £4,800 unfavorable
D) £4,800 favorable
Q2) Refer to Figure 5. Ebola's variable overhead efficiency variance would be
A) £4,000 favorable
B) £4,000 unfavorable
C) £8,000 favorable
D) £12,000 unfavorable
Q3) The two variances for variable overhead are
A) spending (expenditure) and efficiency variances
B) spending and budget variances
C) budget and volume variances
D) budget and efficiency variances
Q4) The standard fixed overhead rate is calculated as
A) Actual fixed overhead/Actual activity
B) Budgeted fixed overhead/Budgeted activity
C) Budgeted fixed overhead/Actual activity
D) Budgeted overhead/Budgeted activity
13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Divisional Financial Performance Measurement
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/71083
Sample Questions
Q1) Refer to Figure 5 above. Asset turnover for the Candy Division is
A) .23
B) .28
C) .30
D) .34
Q2) _____ exists when the major functions of organization are controlled by top management.
A) Decentralization
B) Centralization
C) Optimization
D) An unfavorable overhead variance
Q3) Refer to Figure 5 above. Return on investment for the Candy Division is
A) 30.0%
B) 16.0%
C) 12.0%
D) 15.83%
Q4) What problems do owners face in encouraging goal congruence of managers? What is a stock option? How can stock options encourage goal congruence?
Q5) Why do firms decentralize?
Q6) Compare and contrast decentralization and centralization.
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Transfer Pricing in Divisionalized Companies
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/71084
Sample Questions
Q1) A selling division produces components for a buying division that is considering accepting a special order for the products it produces. The selling division has excess capacity. The minimum price the selling division would be willing to accept is
A) the selling division's variable costs
B) the buying division's outside purchase price
C) the price that would allow the buying division to cover its incremental cost of the special order
D) the price that would allow the selling division to maintain its current ROI
Q2) Refer to Figure 5 above. If the selling division did NOT have excess capacity, the minimum transfer price the selling division would be willing to accept would be
A) £50
B) £80
C) £130
D) £180
Q3) Discuss the advantages of decentralization in a multinational company.
Q4) What is the role of transfer pricing in a decentralized firm?
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Cost Management
Available Study Resources on Quizplus for this Chatper
156 Verified Questions
156 Flashcards
Source URL: https://quizplus.com/quiz/71085
Sample Questions
Q1) Product life-cycle costs do NOT include which of the following?
A) development costs
B) production costs
C) costs of logistics support
D) All of the above are life-cycle costs.
Q2) Under JIT, the number and magnitude of direct fixed costs
A) decreases
B) increases
C) stays the same
D) are eliminated
Q3) Reengineering is another name for
A) product innovation
B) process innovation
C) process improvement
D) product improvement
Q4) What is kaizen costing? How does activity analysis help reduce costs?
Q5) Describe how activity-based management and activity-based costing systems differ.
Q6) What is responsibility accounting? Compare and contrast financial-based responsibility accounting with activity-based responsibility accounting.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Strategic Performance Management
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/71086
Sample Questions
Q1) The five key core objectives of the customer perspective of the Balanced Scorecard do NOT include which of the following?
A) increase market share
B) increase customer satisfaction
C) increase customer retention
D) increase customer contact
Q2) _____ are outcome measures that are expressed in monetary terms.
A) Objective measures
B) External measures
C) Financial measures
D) Lag measures
Q3) Unlike tangible products, services have the characteristic of perishability. This means that services
A) may lose their value over time
B) may lose their value due to improper conservation
C) cannot be stored for future use
D) none of the above
Q4) Strategic-based performance measures are balanced measures. Give examples of four types of balanced measures.
To view all questions and flashcards with answers, click on the resource link above. Page 17