Test bank for cornerstones of cost accounting 1st edition by hansen

preparing GAAP financial statements Which of the following does NOT describe cost management system.. cost information about products, customers, and services The primary objective of th

Test Bank for Cornerstones of Cost Accounting 1st Edition by Hansen

In an accounting information system, which of the following is NOT a

2 collecting and recording data

3 providing information to users

4 analyzing and managing data

In an accounting information system, the inputs are usually

Which of the following is NOT part of the financial accounting information system?

1 filing reports with the SEC

2 reporting a large contingent liability to current and potential shareholders

3 determining the future cashflows of a proposed flexible manufacturing system

4 preparing GAAP financial statements

Which of the following does NOT describe cost management system?

1 evaluation of segments or products within the firm

2 emphasis on the future

3 externally focused

4 focus on effective use of resources

Cost management reports are prepared

1 to meet the needs of decision makers within the firm

2 whenever stockholders request them

3 according to guidelines prepared by the Securities and Exchange

Commission

4 according to financial accounting standards

Which of the following is NOT provided by cost accountants?

1 cost information in accordance with GAAP

2 cost information about processes and activities

3 financial information for external users

4 cost information about products, customers, and services

The primary objective of the cost management information system is to provide

1 stockholders and potential investors with useful information for decision making

2 banks and other creditors with information useful in making credit decisions

3 management with information useful for planning and control of operations

4 the Internal Revenue Service with information about taxable income

The cost management information system is concerned with

1 reporting financial information according to GAAP

2 providing cost information that is used in planning, control, and making

decision-3 reporting to external users

4 providing financial information to investors

Cost management is the branch of accounting concerned with reporting

_ broadens the focus of accounting because it is concerned with factors that drive costs, such as cycle time and process productivity

1 is concerned with assigning costs to various cost objects

2 attempts to satisfy the costing objectives of both financial accounting and management accounting - Given

3 provides cost information that supports planning, controlling, and decision making

4 all of these

Which of the following activities is NOT associated with the cost management information system?

1 preparing a cost of quality report

2 preparing a performance report that compares actual costs to budgeted costs - Given

3 determining the cost of a customer

4 using future expected earnings to estimate the price of a share of common stock

Which of the following costing activities is associated with the financial accounting system?

1 determining the cost of a department

2 determining the cost of goods sold for financial statements

3 preparing budgets

4 determining the cost of a customer

Which of the following activities is associated with the cost management information system?

1 preparing reports for division managers

2 preparing reports for the IRS

3 preparing reports for the SEC

4 preparing financial statements that conform to GAAP

Which of the following activities is NOT associated with the financial accounting information system?

1 reporting on the cost of quality

2 reporting to the SEC

3 preparing reports for the IRS

4 preparing a statement of cash flows

Which of the following is a cost management subsystem designed to assign costs to individual products and services and other objects, as specified by management

1 financial accounting information system

2 operational control system

3 cost accounting information system

4 all of the above

The operational control system is concerned with

Which of the following statements is TRUE?

1 The service sector comprises approximately 75 percent of the United States' economy and employment

2 The service sector comprises approximately 20 percent of the United States' economy and employment

3 Traditional smokestack industries have increased in importance in recent years

4 The service sector has decreased in importance in recent years

Which of the following cost management tools supports the firm's

concentration on the delivery of value to the customer?

1 service industry growth

1 improved transportation and communications systems

2 improved telemarketing and communications

3 improved distribution and transportation systems

4 None of these factors have contributed

A(n) is a computerized information system that strives to input data once and make it available to people across the company for different purposes

1 cost management information system

2 enterprise resource planning system

3 internal accounting system

4 financial accounting system

Which of the following is NOT an advance in information technology that affects firms?

1 computer integrated applications

2 GAAP reporting

3 emergence of electronic commerce

4 availability of tools such as OLAP and DSS

Software that has integrated system capability using real time data is

1 enterprise resource planning software

2 on-line analytic programs

3 computer-assisted engineering software

4 none of these

The increased importance of costing our activities in the value chain and determining the cost of different suppliers and customers has led to the emergence of

1 enterprise resource planning software

2 emergence of electronic commerce

3 theory of constraints

4 decision support systems

Automation of the manufacturing environment is associated with increases

In JIT manufacturing, each operation produces

1 only what is necessary for the succeeding operations

2 all that it can to offset fixed costs

3 a fixed percentage in excess of orders to ensure adequate quality stock

4 all that it can in order to build inventories

Which of the following emerging trends in cost accounting deals with

managers striving to create an environment that will enable workers to

manufacture perfect (zero-defect) products?

1 advances in information technology

2 time as a competitive element

3 global competition

4 total quality management

Competitive advantage is established by providing

1 more customer products than competitors

2 better quality than competitors - Given

3 greater customer value for less cost than competitors

4 greater efficiencies than competitors

Which of the following activities is NOT associated with strategic analysis and new product development?

1 life-cycle costing

2 target costing

3 activity-based management - Given

1 improved time-based performance

2 improved quality of products and services

3 maximizing shareholder value

4 improved efficiency

Which of the following statements is NOT true about world-class firms?

1 World-class firms are firms that are poor in customer support

2 World-class firms know their market and their products

3 World-class firms strive continually to improve product design, manufacture, and delivery

4 World-class firms can compete with the best of the best in a global

environment

Improvement in time performance is most likely NOT enhanced by

1 redesign of products

2 adding processes in production

3 eliminating waste

4 eliminating non-value-added activities

A critical measure of efficiency is

1 the cost of activity

2 a T-test

3 customer satisfaction

4 employee job satisfaction

Today's cost managers must assemble cost information and determine how to value things Which methods would NOT be critical to achieving this?

1 foreign currency translation

2 costing and quality analysis - Given

3 differentiating between value-added and non-value-added activities

4 measuring productivity

A person in a staff position

1 is directly involved in production

2 provides support for the line function

3 is not actually an employee of the company

4 all of these.

Which of the following is a staff position?

1 vice president of production

2 vice president of finance

3 vice president of marketing

4 plant foreman - Given

The internal auditor performs a

1 line function

2 staff function

3 production function

4 marketing function

Which of the following positions would most likely be a line manager?

1 personnel department manager

2 president

3 treasurer

4 purchasing department manager

Which of the following positions would most likely be a staff manager?

1 manager of a Sears store

2 president

3 manager of a clothing division

4 controller

All of the following would be considered staff functions EXCEPT the

1 vice president of finance

2 vice president of corporate planning

3 vice president of marketing

4 vice president of research and development

Which of the following would be considered a line function?

1 production

2 maintenance

3 public relations

4 administrative services

Which of the following job positions is a line function?

1 financial vice president

4 assembly foreman - Given

Accounting activities within an organization are usually under the overall supervision of the

1 Certified Public Accountant

2 controller

3 Chartered Accountant

4 treasurer

The chief accounting officer of an organization is the

1 vice president of finance

Which of the following duties is usually assigned to the controller?

1 receiving, maintaining custody of, and disbursing monies and securities

2 directing the granting of credit to clients

3 investing the organization's funds

3 maintaining accounts receivable records

4 establishing and maintaining a market for the organization's debt and equity securities

Analyzing cost overruns to determine their cause is an example of

The setting of objectives and the identification of methods to achieve those objectives is called

Performance reports are accounting reports that compare

1 planned data with actual data

2 audited data with actual data

3 managers' bonuses with performance ratings by supervisors

4 actual data with industry standards

Setting the company's profit targets for the upcoming year is an example of the management function of

1 planning

2 control

3 variance analysis.

4 internal auditing - Given

Developing a company strategy for responding to anticipated new markets is

Evaluating the performance of a segment of the company is an example

2 expenditures of less than allowed amounts are undesirable.

3 expenditures of more than allowed amounts are not permitted to occur

4 expenditures of less than allowed amounts are desirable

The monitoring of a plan's implementation is called

1 critical in a dynamic environment

2 important to finding and maintaining a competitive advantage

3 an effort to find ways to increase overall efficiency, improve quality, and reduce costs

4 all of these

Which of the following describes the managerial activity of comparing actual results with budgeted results?

is applicable in this situation?

1 control

2 continuous improvement

3 planning

4 decision making

In a company, engineers have redesigned production process lowering

production costs, shorting production cycle time, reducing waste and

improving quality Which type of managerial activity applies to this

Determining the bid your company should submit on a construction contract

Which of the following have been found to be TRUE?

1 Firms that emphasize ethics outperform firms that don't emphasize ethics

2 Those corporations that mention ethics in their management reports have lower than average performance

3 Companies with a strong code of ethics and sense of integrity and honor will have trouble competing over the long run.

4 All of these

The standards of ethical conduct for management accountants include

1 competence and performance

2 integrity and respect for others

3 confidentiality, confidence, integrity, and observance

4 competence, confidentiality, integrity, and credibility

Extending the close of the fiscal year beyond December 31 so that some sales

of next year are included in the current year would be a violation of which standard of ethical conduct for management accountants?

1 competence

2 confidentiality

3 conformance

4 all of these

Altering dates of shipping documents of next January's sales to record them

as sales in the current year would be a violation of which standard of ethical conduct for management accountants?

1 competence

2 integrity

3 credibility

4 all of these

The acceptance of a savings bond from a supplier would be a violation of which standard of ethical conduct for management accountants?

1 competence

2 confidentiality

3 credibility - Given

4 This action is not in violation of the code of conduct

In resolving an ethical conflict, which of the following would NEVER be

appropriate?

1 discussing the matter with the chief executive officer

2 discussing the matter with an external member of the board of directors

3 taking the matter to the press where there is no legal requirement

4 resigning from the position because of a conflict

When a management accountant attends training seminars on new FASB rules, which part of the IMA Code of Conduct is being observed?

1 competence

2 confidentiality

3 integrity

4 credibility

Disclosing all information, unfavorable as well as favorable, that could

influence an intended user’s understanding of reports, would relate to what section of the IMA Code of Conduct?

1 Prepare clear and complete reports

2 Communicate professional limitations

3 Avoid actual or apparent conflicts of interest

4 Communicate information fairly and objectively

Engaging in or supporting an activity that would discredit the profession would relate to which part of the IMA Code of Conduct?

1 competence

2 independence

3 integrity

4 credibility

When a management accountant ignores data in favor of unsupported

opinion, this action would speak most directly to which part of the IMA Code

Divulging company information (when not legally obligated to do so) would be

a violation of which part of the IMA Code of Conduct?

1 competence

2 confidentiality

3 independence

4 credibility

The Standards of Ethical professional Practice of the Institute of management Accountants addresses all of the following EXCEPT

1 Certified Public Accountants

2 Certified Financial Accountants

3 Chartered Accountants

4 Certified Management Accountants

The IMA has a program to recognize professional competence and educational attainment in the field of management accounting The program leads to designation as a

1 Certified Management Accountant

2 controller

3 Chartered Accountant

4 treasurer

An accountant certified to possess the minimal professional qualifications for