Horngren's Cost Accounting: A Managerial Emphasis, 17e by Datar/Rajan Test Bank
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Horngren's Cost Accounting: A Managerial Emphasis, 17e by Datar/Rajan Chapter 1 The Manager and Management Accounting Objective 1.1 1) Management accounting: A) focuses on estimating future revenues, costs, and other measures to forecast activities and their results B) provides information about the company as a whole C) reports information that has occurred in the past that is verifiable and reliable D) provides information that is generally available only on a quarterly or annual basis Answer: A Explanation: A) Management accounting has a forward-looking orientation as opposed to financial accounting which has a historical perspective. Diff: 1 Objective: 1 AACSB: Analytical thinking
2) Managers use management accounting information to: A) help external users such as investors, banks, regulators, and suppliers B) communicate, develop, and implement strategies C) communicate a firm's financial position to investors, banks, regulators, and other outside parties D) ensure that financial statements are consistent with the SEC rules Answer: B Diff: 1 Objective: 1 AACSB: Analytical thinking
3) Financial accounting: A) focuses on the future and includes activities such as preparing next year's operating budget B) must comply with GAAP (generally accepted accounting principles) C) is the process of measuring, analyzing, and reporting financial and nonfinancial information related to the costs of acquiring or using resources in an organization D) is prepared for the use of department heads and other employees Answer: B Diff: 1 Objective: 1 AACSB: Analytical thinking
4) Which of the following would most likely be the user of financial accounting information? A) factory shift supervisor B) distribution manager C) current shareholder D) department manager Answer: C Diff: 1 Objective: 1 AACSB: Analytical thinking
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5) The primary user of management accounting information is a(n): A) the controller B) a shareholder evaluating a stock investment C) bondholder D) external regulator Answer: A Diff: 1 Objective: 1 AACSB: Analytical thinking
6) Financial accounting provides the primary source of information for: A) decision making in the assembly and finishing department B) improving distribution and customer service C) preparing the income statement for shareholders and other external parties D) planning next year's plans and specifically; the operating budget Answer: C Diff: 1 Objective: 1 AACSB: Analytical thinking
7) Which of the following is true of management accounting information? A) It focuses on documenting past business actions of a firm. B) It is prepared based on SEC rules and FASB accounting principles. C) It is prepared for shareholders. D) It helps with the coordination of elements of the value chain. Answer: D Diff: 2 Objective: 1 AACSB: Analytical thinking
8) Which of the following statements refers to management accounting information? A) There are no regulations governing the reports. B) The reports are generally delayed and historical. C) The audience tends to be stockholders, creditors, and tax authorities. D) It primarily measures manager's compensation on reported financial results. Answer: A Diff: 2 Objective: 1 AACSB: Analytical thinking
9) Which of the following groups would be least likely to receive detailed management accounting reports? A) stockholders B) sales managers C) production supervisors D) distribution managers Answer: A Diff: 1 Objective: 1 AACSB: Analytical thinking
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10) Management accounting information typically includes: A) tabulated results of customer satisfaction surveys B) the cost of producing a product C) the percentage of units produced that are defective D) All of these answers are correct. Answer: D Diff: 1 Objective: 1 AACSB: Application of knowledge
11) Cost accounting: A) measures the costs of acquiring or using resources in an organization B) measures the financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization C) coordinates product design, production, and marketing decisions and evaluate a company's performance D) communicates information to investors, banks, regulators, and other outside parties Answer: A Diff: 1 Objective: 1 AACSB: Analytical thinking
12) Which of the following differentiates cost accounting and financial accounting? A) The primary users of cost accounting are the investors, whereas the primary users of financial accounting are the managers. B) Cost accounting deals with product design, production, and marketing strategies, whereas financial accounting deals mainly with pricing of the products. C) Cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization, whereas financial accounting measures financial and nonfinancial information of a company's business transactions. D) Cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties. Answer: D Diff: 2 Objective: 1 AACSB: Analytical thinking
13) Which of the following is true of financial accounting information? A) It is prepared based on cost-benefit analysis. B) It is primarily used by managers to make internal business decisions. C) It focuses on the past-oriented financial performance of a company. D) It only measures the cash transactions of a company. Answer: C Diff: 2 Objective: 1 AACSB: Analytical thinking
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14) The acronym of a central database system that provides inputs to modules and applications that support activities such planning, purchasing, production, distribution, and sales is called: A) ABC B) CRM C) ERP D) VAT Answer: C Diff: 1 Objective: 1 AACSB: Analytical thinking
15) Which of the following is true of cost accounting? A) It is a subset of management accounting and therefore its information is used only to meet the needs of managers. B) It is used only by manufacturers. C) It is part of both management and financial accounting systems. D) The distinction between management accounting and cost accounting is clear-cut. Answer: C Diff: 2 Objective: 1 AACSB: Analytical thinking
16) Which of the following deals with management accounting? A) identifying the costs of acquiring the resources of the company B) developing budgets C) preparing the income statement D) preparing the statement of cash flows Answer: B Diff: 1 Objective: 1 AACSB: Analytical thinking
17) Financial accounting is concerned primarily with: A) external reporting to investors, creditors, and government authorities B) cost planning and cost controls C) product design and marketing strategies D) providing information for strategic and tactical decisions Answer: A Diff: 1 Objective: 1 AACSB: Analytical thinking
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7) Which of the following differentiates marketing from customer service? A) Marketing is the process of promoting and selling products or services to customers or prospective customers, whereas customer service is the process of providing after-sales service to customers. B) Marketing is the process of processing orders and shipping products or services to customers, whereas customer service is the process of providing additional information to customers about the product. C) Marketing is the process of detailed planning, engineering, and testing of products and processes, whereas customer service concentrates on existing customers. D) Marketing is the process of processing orders and shipping products or services to customers, whereas customer service is concerned with choosing the right customer for the product. Answer: A Diff: 2 Objective: 3 AACSB: Analytical thinking
8) ________ is an after-sale support provided to customers. A) Distribution B) Customer service C) Production D) Marketing Answer: B Diff: 1 Objective: 3 AACSB: Analytical thinking
9) ________ is a strategy that integrates people and technology in all business functions to enhance relationships with customers, partners, and distributors. A) Supply-chain analysis B) Customer relationship management C) Value-chain analysis D) Continuous quality improvement Answer: B Diff: 1 Objective: 3 AACSB: Analytical thinking
10) Customer relationship management initiatives use technology to coordinate all: A) advertising and marketing techniques to attract customers B) research activities C) customer-facing activities D) quality control management activities Answer: C Diff: 1 Objective: 3 AACSB: Analytical thinking
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11) ________ describes the flow of goods, services, and information from the purchase of materials to the delivery of products to consumers, regardless of whether those activities occur in the same organization or with other organizations. A) Supply chain B) Production process C) Quality control D) Customer relationship management Answer: A Diff: 1 Objective: 3 AACSB: Analytical thinking
12) Processing orders and shipping products or providing services to customers is known as: A) after-sales services B) distribution C) marketing D) supply chain Answer: B Diff: 1 Objective: 3 AACSB: Analytical thinking
13) ________ is a philosophy in which management improves operations throughout the value chain to deliver products and services that exceed customer expectations. A) Cost-benefit approach B) Customer focus C) Customer relationship management D) Total quality management Answer: D Diff: 1 Objective: 3 AACSB: Analytical thinking
14) Which of the following is an area that customers want to see improved levels of performance? A) higher sales margin B) quality of the product C) lower marginal costs D) profit margins Answer: B Diff: 2 Objective: 3 AACSB: Analytical thinking
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