(Test Bank) Cost Accounting, Foundations & Evolutions

Kinney, 10

Business

Test Bank

10th Edition

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Test Bank for Cost Accounting, Foundations & Evolutions, The downloadable file consists of 834 pages, and the total size of the file is 9.49 MB. Purchase now only for highly discounted price.

Author(s): Kinney

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Cambridge Business Publishers, 2021 Test Bank, Chapter 1 1-1 Chapter 1—Introduction to Cost Accounting TRUE/FALSE 1. Return on investment was used in the 1900’s to evaluate business operations. ANS: T PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 2. Financial accounting is most concerned with meeting the needs of internal users. ANS: F PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 3. Financial accounting is most concerned with meeting the needs of external users. ANS: T PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 4. Managerial accounting is most concerned with meeting the needs of internal users. ANS: T PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 5. Managerial accounting is most concerned with meeting the needs of external users. ANS: F PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 6. Financial accounting is highly regulated by rules and regulations. ANS: T PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 7. Managerial accounting is highly regulated by rules and regulations. ANS: F PTS: 1 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 8. Financial accounting is most concerned with addressing the needs of the firm as a whole. ANS: T PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 9. Managerial accounting is most concerned with addressing the needs of the firm as a whole. ANS: F PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge ©Cambridge Business Publishers, 2021 1-2 Cost Accounting, 10th Edition 10. Financial accounting is most concerned with addressing the needs of individual departments of the firm. ANS: F PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 11. Managerial accounting is most concerned with addressing the needs of individual departments of the firm. ANS: T PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 12. Cost accounting serves as a bridge between financial and managerial accounting. ANS: T PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 13. Mission statements typically remain unchanged throughout the life of an organization. ANS: F PTS: 0 DIF: Easy OBJ: 1-2 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 14. An organization’s strategy should reflect the organization’s core competencies. ANS: T PTS: 0 DIF: Easy OBJ: 1-2 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 15. An organization’s strategy is the guiding force for its mission. ANS: F PTS: 0 DIF: Easy OBJ: 1-2 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 16. Line managers are directly responsible for achieving organizational goals. ANS: T PTS: 0 DIF: Easy OBJ: 1-2 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 17. Line personnel give assistance to staff employees. ANS: F PTS: 0 DIF: Easy OBJ: 1-2 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 18. The learning and growth perspective of the balanced scorecard focuses on using an organization’s intellectual capital to adapt to or influence customer needs and expectations. ANS: T PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 19. The internal business perspective of the balanced scorecard focuses on using an organization’s intellectual capital to adapt to or influence customer needs and expectations. ANS: F PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge Cambridge Business Publishers, 2021 Test Bank, Chapter 1 1-3 20. The learning and growth perspective of the balanced scorecard focuses on using an organization’s intellectual capital to adapt to or influence customer needs and expectations. ANS: T PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 21. The financial perspective of the balanced scorecard focuses on using an organization’s intellectual capital to adapt to or influence customer needs and expectations. ANS: F PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 22. The internal business perspective of the balanced scorecard addresses the things that an organization needs to do well to meet customer needs and expectations. ANS: T PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 23. The learning and growth perspective of the balanced scorecard addresses the things that an organization needs to do well to meet customer needs and expectations. ANS: F PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 24. The customer value perspective of the balanced scorecard addresses the things that an organization needs to do well to meet customer needs and expectations. ANS: F PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 25. The financial perspective of the balanced scorecard addresses the things that an organization needs to do well to meet customer needs and expectations. ANS: F PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 26. The customer value perspective of the balanced scorecard addresses how well the organization is doing with regard to important customer criteria. ANS: T PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 27. The learning and growth perspective of the balanced scorecard addresses how well the organization is doing with regard to important customer criteria. ANS: F PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 28. The internal business perspective of the balanced scorecard addresses how well the organization is doing with regard to important customer criteria. ANS: F PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge ©Cambridge Business Publishers, 2021 1-4 Cost Accounting, 10th Edition 29. The financial perspective of the balanced scorecard addresses how well the organization is doing with regard to important customer criteria. ANS: F PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 30. The financial perspective of the balanced scorecard addresses stakeholder concerns about profitability and organizational growth. ANS: T PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 31. The learning and growth perspective of the balanced scorecard addresses stakeholder concerns about profitability and organizational growth. ANS: F PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 32. The internal business perspective of the balanced scorecard addresses stakeholder concerns about profitability and organizational growth. ANS: F PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 33. The customer value perspective of the balanced scorecard addresses stakeholder concerns about profitability and organizational growth. ANS: F PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 34. An organization’s return on assets (ROA) is an example of a lead indicator. ANS: F PTS: 0 DIF: Easy OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 35. An organization’s profitability is an example of a lag indicator. ANS: T PTS: 0 DIF: Easy OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 36. The Sarbanes-Oxley Act of 2002 provides legal protection for individuals who report illegal organizational activities to appropriate persons or agencies. ANS: T PTS: 0 DIF: Easy OBJ: 1-5 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 37. The Foreign Corrupt Practices Act of 1977 provides legal protection for individuals who report illegal organizational activities to appropriate persons or agencies. ANS: F PTS: 0 DIF: Easy OBJ: 1-5 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge Cambridge Business Publishers, 2021 Test Bank, Chapter 1 1-5 COMPLETION 1. The branch of accounting that is most concerned with addressing the needs of the firm as a whole is accounting ANS: financial PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 2. The branch of accounting that is most concerned with addressing the needs of specific departments of the firm is accounting ANS: managerial PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 3. The branch of accounting that serves as a bridge between financial and managerial accounting is accounting. ANS: cost PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 4. The expression of what an organization wishes to accomplish and how it will serve its customers is contained in the . ANS: mission statement PTS: 0 DIF: Easy OBJ: 1-2 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 5. The plan in which an organization indicates how it will fulfill its goals is referred to as a . ANS: strategy PTS: 0 DIF: Easy OBJ: 1-2 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 6. A function or activity in which an organization seeks to excel above its competitors is a . ANS: core competency. PTS: 0 DIF: Easy OBJ: 1-2 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge ©Cambridge Business Publishers, 2021 1-6 Cost Accounting, 10th Edition 7. The way in which authority and responsibility are distributed in an organization is . ANS: organizational structure PTS: 0 DIF: Easy OBJ: 1-2 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 8. The balanced scorecard perspective that focuses on using a firm’s intellectual capital to adapt to customer needs through product or service innovations is the ________ perspective. ANS: learning and growth PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 9. The balanced scorecard perspective that addresses things that an organization needs to do well to meet customer needs and expectations is the ________ perspective. ANS: internal business PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 10. The balanced scorecard perspective that addresses how well the organization is meeting specific customer-based criteria is the perspective. ANS: customer value PTS: 0 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 11. The balanced scorecard perspective that addresses concerns about organizational growth is the perspective. ANS: financial PTS: 1 DIF: Moderate OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 12. The restates an organization’s strategy into clear and objective performance measures. ANS: balanced scorecard PTS: 0 DIF: Easy OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 13. Outcomes that have resulted from past actions are also referred to as indicators. ANS: lag PTS: 0 DIF: Easy OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge Cambridge Business Publishers, 2021 Test Bank, Chapter 1 1-7 14. Data that reflects future financial and non-financial outcomes is referred to as ________ indicators. ANS: lead PTS: 0 DIF: Easy OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 15. When an organization attempts to “adjust” its profits to meet a specific target, it is guilty of ________. ANS: earnings management PTS: 0 DIF: Easy OBJ: 1-5 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge ©Cambridge Business Publishers, 2021 1-8 Cost Accounting, 10th Edition MULTIPLE CHOICE 1. In comparing financial and management accounting, which of the following more accurately describes management accounting information? a. historical, precise, useful b. required, estimated, internal c. budgeted, informative, adaptable d. comparable, verifiable, monetary ANS: C PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 2. Management and financial accounting are used for which of the following purposes? Management accounting Financial accounting a. internal external b. external internal c. internal internal d. external external ANS: A PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 3. One major difference between financial and management accounting is that a. financial accounting reports are prepared primarily for users external to the company. b. management accounting is not under the jurisdiction of the Securities and Exchange Commission. c. government regulations do not apply to management accounting. d. all of the above are true. ANS: D PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 4. Which of the following statements about management or financial accounting is false? a. Financial accounting must follow GAAP. b. Management accounting is not subject to regulatory reporting standards. c. Both management and financial accounting are subject to mandatory recordkeeping requirements. d. Management accounting should be flexible. ANS: C PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge Cambridge Business Publishers, 2021 Test Bank, Chapter 1 1-9 5. Management accounting a. is more concerned with the future than is financial accounting. b. is less concerned with segments of a company than is financial accounting. c. is more constrained by rules and regulations than is financial accounting. d. all of the above are true. ANS: A PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 6. Modern management accounting can be characterized by its a. flexibility. b. standardization. c. complexity. d. precision. ANS: A PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 7. Which of the following is not a valid method for determining product cost? a. arbitrary assignment b. direct measurement c. systematic allocation d. cost-benefit measurement ANS: D PTS: 0 DIF: Moderate OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 8. Broadly speaking, cost accounting can be defined as a(n) a. external reporting system that is based on activity-based costs. b. system used for providing the government and creditors with information about a company's internal operations. c. internal reporting system that provides product costing and other information used by managers in performing their functions. d. internal reporting system needed by manufacturers to be in compliance with Cost Accounting Standards Board pronouncements. ANS: C PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge ©Cambridge Business Publishers, 2021 1-10 Cost Accounting, 10th Edition 9. Cost accounting is directed toward the needs of a. regulatory agencies. b. external users. c. internal users. d. stockholders. ANS: C PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 10. Cost accounting is necessitated by a. the high degree of conversion found in certain businesses. b. external reporting requirements for manufacturing companies. c. management's need to be aware of all production activities. d. management's need for information to be used for planning and controlling activities. ANS: A PTS: 0 DIF: Moderate OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 11. Financial accounting a. is primarily concerned with internal reporting. b. is more concerned with verifiable, historical information than is cost accounting. c. focuses on the parts of the organization rather than the whole. d. is specifically directed at management decision-making needs. ANS: B PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 12. Financial accounting and cost accounting are both highly concerned with a. preparing budgets. b. determining product cost. c. providing managers with information necessary for control purposes. d. determining performance standards. ANS: B PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge Cambridge Business Publishers, 2021 Test Bank, Chapter 1 1-11 13. Which of the following topics is of more concern to management accounting than to cost accounting? a. generally accepted accounting principles b. inventory valuation c. cost of goods sold valuation d. impact of economic conditions on company operations ANS: D PTS: 0 DIF: Moderate OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 14. Cost and management accounting a. require an entirely separate group of accounts than financial accounting uses. b. focus solely on determining how much it costs to manufacture a product or provide a service. c. provide product/service cost information as well as information for internal decision making. d. are required for business recordkeeping as are financial and tax accounting. ANS: C PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 15. Which of the following statements is true? a. Management accounting is a subset of cost accounting. b. Cost accounting is a subset of both management and financial accounting. c. Management accounting is a subset of both cost and financial accounting. d. Financial accounting is a subset of cost accounting. ANS: B PTS: 0 DIF: Moderate OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge ©Cambridge Business Publishers, 2021 1-12 Cost Accounting, 10th Edition 16. Which of the following statements is false? a. A primary purpose of cost accounting is to determine valuations needed for external financial statements. b. A primary purpose of management accounting is to provide information to managers for use in planning, controlling, and decision making. c. The act of converting production inputs into finished products or services necessitates cost accounting. d. Two primary hallmarks of cost and management accounting are standardization of procedures and use of generally accepted accounting principles. ANS: D PTS: 0 DIF: Moderate OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 17. The organization whose primary function is to provide a means to share information among cost and management accountants in the United States is the a. Internal Revenue Service. b. American Institute of CPAs. c. Institute of Management Accountants. d. Institute of Certified Management Accountants. ANS: C PTS: 0 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 18. The Institute of Management Accountants issues a. Statements on Accounting Research for Managers. b. Statements on Management Accounting. c. Statements on Managerial and Cost Accounting. d. Cost Accounting Standards. ANS: B PTS: 1 DIF: Easy OBJ: 1-1 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 19. Core competencies are not a. internal functions crucial to the success and survival of a company. b. attributes that keep a firm from competing. c. different for every organization. d. considered influences on corporate strategies. ANS: B PTS: 0 DIF: Easy OBJ: 1-2 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge Cambridge Business Publishers, 2021 Test Bank, Chapter 1 1-13 20. A long-term plan that fulfills the goals and objectives of an organization is known as a(n) a. management style. b. strategy. c. mission statement. d. operational mission. ANS: B PTS: 0 DIF: Easy OBJ: 1-2 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 21. Which of the following areas is not addressed by an organization’s mission statement? a. the purpose for which the organization exists b. what the organization wants to accomplish c. the organization’s strategic plan for fulfilling its mission d. how its products can uniquely meet the needs of its customers. ANS: C PTS: 0 DIF: Moderate OBJ: 1-2 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 22. The world has essentially become smaller because of a. improved technology. b. trade agreements. c. better communications systems. d. all of the above. ANS: D PTS: 0 DIF: Easy OBJ: 1-3 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 23. The set of processes that convert inputs into services and products that consumers use is called a. a core competency. b. an operational plan. c. the value chain. d. the product life cycle. ANS: C PTS: 0 DIF: Easy OBJ: 1-3 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge ©Cambridge Business Publishers, 2021 1-14 Cost Accounting, 10th Edition 24. The value chain a. reflects the production of goods within an organizational context. b. is concerned with upstream suppliers, but not downstream customers. c. results when all non-value-added activities are eliminated from a production process. d. is the foundation of strategic resource management. ANS: D PTS: 0 DIF: Moderate OBJ: 1-3 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 25. In a global economy, a. the trade of goods and services is focused on trade between or among countries on the same continent. b. the international movement of labor is prohibited except for multilingual persons. c. the international flows of capital and information are common. d. all of the above happen in a global economy. ANS: C PTS: 0 DIF: Moderate OBJ: 1-3 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 26. The balanced scorecard perspective that focuses on using a firm’s intellectual capital to adapt to the needs of the market through product or service innovations is the: a. learning and growth perspective b. internal business perspective c. customer value perspective d. financial perspective ANS: A PTS: 0 DIF: Easy OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 27. The balanced scorecard perspective that addresses things that an organization needs to do well to meet customer needs and expectations: a. learning and growth perspective b. internal business perspective c. customer value perspective d. financial perspective ANS: B PTS: 0 DIF: Easy OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge Cambridge Business Publishers, 2021 Test Bank, Chapter 1 1-15 28. The balanced scorecard perspective that addresses how well the organization is meeting specific customer-based criteria is the: a. learning and growth perspective b. internal business perspective c. customer value perspective d. financial perspective ANS: C PTS: 0 DIF: Easy OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 29. The balanced scorecard perspective that addresses concerns about organizational growth is the: a. learning and growth perspective b. internal business perspective c. customer value perspective d. financial perspective ANS: D PTS: 0 DIF: Easy OBJ: 1-4 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 30. A managerial accountant who communicates information objectively is exercising which of the following standards? a. objectivity b. integrity c. competence d. confidentiality ANS: A PTS: 0 DIF: Moderate OBJ: 1-5 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge 31. A managerial accountant who prepares clear reports and recommendations after analyzing relevant facts is exercising which of the following standards? a. objectivity b. integrity c. competence d. confidentiality ANS: C PTS: 0 DIF: Moderate OBJ: 1-5 NAT: BUSPROG: Reflective Thinking LOC: Blooms: Knowledge