Question 1

A management method by which the organization seeks to excel on all dimensions of quality is called

Accepted Answer

A) customer relationship management. 
B) distribution chain. 
C) total quality management. 
D) cost of quality. 
A) customer relationship management. 
B) distribution chain. 
C) total quality management. 
D) cost of quality. C

Question 2

A cost driver is a factor that causes costs.A cost driver is a factor that causes costs.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following statements is false?

Accepted Answer

A) In essence,the value chain and the supply chain are similar;each creates something for which the customer is willing to pay. 
B) Accounting systems are important because they provide all the information for decisions commonly made by managers. 
C) The supply or distribution chain is a linked set of organizations that exchange goods and services in combination to provide a final product or service to the customer. 
D) Eliminating nonvalue-added activities always reduces costs without affecting the value of the product to customers. 
A) In essence,the value chain and the supply chain are similar;each creates something for which the customer is willing to pay. 
B) Accounting systems are important because they provide all the information for decisions commonly made by managers. 
C) The supply or distribution chain is a linked set of organizations that exchange goods and services in combination to provide a final product or service to the customer. 
D) Eliminating nonvalue-added activities always reduces costs without affecting the value of the product to customers. B

Question 4

The primary objective of financial accounting is

Accepted Answer

A) profitability analysis. 
B) providing information for management decision making. 
C) cost planning and cost controls. 
D) reporting to investors,creditors,and government authorities. 
A) profitability analysis. 
B) providing information for management decision making. 
C) cost planning and cost controls. 
D) reporting to investors,creditors,and government authorities.

Question 5

The individual who would most likely use only financial accounting information in making decisions is a

Accepted Answer

A) vice president of marketing. 
B) factory supervisor. 
C) department manager. 
D) company stockholder. 
A) vice president of marketing. 
B) factory supervisor. 
C) department manager. 
D) company stockholder.

Question 6

The just-in-time (JIT)method of production focuses on

Accepted Answer

A) increasing sales revenue. 
B) reducing inventories. 
C) increasing customer service. 
D) reducing operating expenses. 
A) increasing sales revenue. 
B) reducing inventories. 
C) increasing customer service. 
D) reducing operating expenses.

Question 7

Customer satisfaction is an example of a non-financial performance measure.Very few customer satisfaction measures are financial in nature.

Accepted Answer

A) True 
 B)False

Question 8

Financial accounting

Accepted Answer

A) focuses on the future. 
B) must comply with GAAP (generally accepted accounting principles). 
C) reports include detailed information on the various operating segments of the business. 
D) is prepared for the use of management. 
A) focuses on the future. 
B) must comply with GAAP (generally accepted accounting principles). 
C) reports include detailed information on the various operating segments of the business. 
D) is prepared for the use of management.

Question 9

Surf Boards,Inc.had the following summarized results for the month ending July 30:   Assume that an additional 10 surfboards were sold at the regular price,during additional store opening hours.What is the most appropriate conclusion in the report to management?

Accepted Answer

A) The budget should be updated to take into account the change. 
B) The additional hours were needed,as net income increased. 
C) An analysis of the differential costs of the additional store hours should be undertaken prior to drawing a conclusion as to the success of the change. 
D) All of these. 
A) The budget should be updated to take into account the change. 
B) The additional hours were needed,as net income increased. 
C) An analysis of the differential costs of the additional store hours should be undertaken prior to drawing a conclusion as to the success of the change. 
D) All of these.

Question 10

Which of the following statements concerning the value chain is false?

Accepted Answer

A) The goal of a value chain is to find areas where a company can either add value or reduce cost. 
B) The value chain focuses on the entire production process,as well as the sale of the product and service after the sale. 
C) If a company cannot compete in a specific area of the value chain,it might outsource that portion of the value chain to another entity which can perform it better. 
D) Successful firms are ones that operate within the entire value chain,thereby overseeing every aspect of the value chain for the customer. 
A) The goal of a value chain is to find areas where a company can either add value or reduce cost. 
B) The value chain focuses on the entire production process,as well as the sale of the product and service after the sale. 
C) If a company cannot compete in a specific area of the value chain,it might outsource that portion of the value chain to another entity which can perform it better. 
D) Successful firms are ones that operate within the entire value chain,thereby overseeing every aspect of the value chain for the customer.

Question 11

The ________ is primarily responsible for cost accounting and financial accounting.

Accepted Answer

A) COO (Chief Operating Officer) 
B) CIO (Chief Information Officer) 
C) treasurer 
D) controller 
A) COO (Chief Operating Officer) 
B) CIO (Chief Information Officer) 
C) treasurer 
D) controller

Question 12

The field of accounting that depends on generally accepted accounting principles (GAAP)is called

Accepted Answer

A) cost accounting. 
B) financial accounting. 
C) managerial accounting. 
D) responsibility accounting. 
A) cost accounting. 
B) financial accounting. 
C) managerial accounting. 
D) responsibility accounting.

Question 13

Which field of accounting emphasizes relevancy over comparability?

Accepted Answer

A) Cost accounting 
B) Financial accounting 
C) Responsibility accounting 
D) International accounting 
A) Cost accounting 
B) Financial accounting 
C) Responsibility accounting 
D) International accounting

Question 14

Ethical behavior depends more on a firm's code of conduct than the individual's personal beliefs.Codes of conduct look good on paper,but ultimately much of ethical behavior comes from an individual's personal beliefs.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following could be considered part of the value chain in a service firm?

Accepted Answer

A) Inspection of product 
B) Advertising 
C) Raw materials 
D) Distribution 
A) Inspection of product 
B) Advertising 
C) Raw materials 
D) Distribution

Question 16

The cost accounting system that minimizes wasteful or unnecessary transaction processes is

Accepted Answer

A) performance measure. 
B) benchmarking. 
C) budgeting. 
D) responsibility center. 
E) lean accounting. 
A) performance measure. 
B) benchmarking. 
C) budgeting. 
D) responsibility center. 
E) lean accounting.

Question 17

All of the following individuals would report to the Chief Financial Officer (CFO)except the

Accepted Answer

A) controller. 
B) internal auditor. 
C) production manager. 
D) treasurer. 
A) controller. 
B) internal auditor. 
C) production manager. 
D) treasurer.

Question 18

Moving of inventory is an example of a(n)

Accepted Answer

A) cost-benefit analysis. 
B) value-added activity. 
C) activity-based cost. 
D) nonvalue-added activity. 
A) cost-benefit analysis. 
B) value-added activity. 
C) activity-based cost. 
D) nonvalue-added activity.

Question 19

Benchmarking is a continuous process of measuring a company's products,services,or activities against competitors' performance.This is the definition of benchmarking.

Accepted Answer

A) True 
 B)False

Question 20

(CMA adapted)Cost drivers are

Accepted Answer

A) activities that cause costs to increase as the activity increases. 
B) accounting techniques and practices used to control costs. 
C) accounting reimbursements used to evaluate whether performance is proceeding according to plan. 
D) a mechanical basis,such as machine hours,computer time,or factory square footage,used to assign costs to activities. 
A) activities that cause costs to increase as the activity increases. 
B) accounting techniques and practices used to control costs. 
C) accounting reimbursements used to evaluate whether performance is proceeding according to plan. 
D) a mechanical basis,such as machine hours,computer time,or factory square footage,used to assign costs to activities.

A management method by which the organization seeks to excel on all dimensions of quality is called

A cost driver is a factor that causes costs.A cost driver is a factor that causes costs.

Which of the following statements is false?

The primary objective of financial accounting is

The individual who would most likely use only financial accounting information in making decisions is a

The just-in-time (JIT)method of production focuses on

Customer satisfaction is an example of a non-financial performance measure.Very few customer satisfaction measures are financial in nature.

Financial accounting

Surf Boards,Inc.had the following summarized results for the month ending July 30: Assume that an additional 10 surfboards were sold at the regular price,during additional store opening hours.What is the most appropriate conclusion in the report to management?

Which of the following statements concerning the value chain is false?

The ________ is primarily responsible for cost accounting and financial accounting.

The field of accounting that depends on generally accepted accounting principles (GAAP)is called

Which field of accounting emphasizes relevancy over comparability?

Ethical behavior depends more on a firm's code of conduct than the individual's personal beliefs.Codes of conduct look good on paper,but ultimately much of ethical behavior comes from an individual's personal beliefs.

Which of the following could be considered part of the value chain in a service firm?

The cost accounting system that minimizes wasteful or unnecessary transaction processes is

All of the following individuals would report to the Chief Financial Officer (CFO)except the

Moving of inventory is an example of a(n)

Benchmarking is a continuous process of measuring a company's products,services,or activities against competitors' performance.This is the definition of benchmarking.

(CMA adapted)Cost drivers are

Cost Concepts and Behavior

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

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Exam 1: Cost Accounting: Information for Decision Making

A management method by which the organization seeks to excel on all dimensions of quality is called

A cost driver is a factor that causes costs.A cost driver is a factor that causes costs.

Which of the following statements is false?

The primary objective of financial accounting is

The individual who would most likely use only financial accounting information in making decisions is a

The just-in-time (JIT)method of production focuses on

Customer satisfaction is an example of a non-financial performance measure.Very few customer satisfaction measures are financial in nature.

Financial accounting

Surf Boards,Inc.had the following summarized results for the month ending July 30: Assume that an additional 10 surfboards were sold at the regular price,during additional store opening hours.What is the most appropriate conclusion in the report to management?

Which of the following statements concerning the value chain is false?

The ________ is primarily responsible for cost accounting and financial accounting.

The field of accounting that depends on generally accepted accounting principles (GAAP)is called

Which field of accounting emphasizes relevancy over comparability?

Ethical behavior depends more on a firm's code of conduct than the individual's personal beliefs.Codes of conduct look good on paper,but ultimately much of ethical behavior comes from an individual's personal beliefs.

Which of the following could be considered part of the value chain in a service firm?

The cost accounting system that minimizes wasteful or unnecessary transaction processes is

All of the following individuals would report to the Chief Financial Officer (CFO)except the

Moving of inventory is an example of a(n)

Benchmarking is a continuous process of measuring a company's products,services,or activities against competitors' performance.This is the definition of benchmarking.

(CMA adapted)Cost drivers are

Cost Concepts and Behavior

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

Filters