Exam 1: Cost Accounting: Information for Decision Making

Managers do not make decisions about future events based on:

Cost accounting is broader in scope than financial accounting.Cost accounting is broader in scope than financial accounting.

Place the four components in the order they appear along the value chain: A = Customer service;B = Design;C = Distribution;and D = Production.

Cost accounting is an integral part of the ________ function in an organization.

Financial accounting receives information only from cost accounting activity.Financial accounting receives information from other areas as well as from cost accounting activity.

All of the following are examples of total quality management practices except

Financial accounting provides a historical perspective,while cost accounting emphasizes

The value chain is the order of business components in which:

(CMA adapted)The process of creating a formal plan and translating goals into a quantitative format is referred to as

Financial accounting information is designed for decision-makers who are directly involved in the daily management of the firm.Financial accounting is designed for external parties;cost accounting is designed for managers.

Managers face ethical situations on a daily basis,while accountants face them infrequently.Professional accountants,managers,and business owners face ethical situations on an everyday basis.

Cost accounting plays a significant role in management decision making.Cost accounting provides the primary information from which to make decisions.

Al's Brake Shop had sales revenues and operating costs in 2014 of $650,000 and $525,000,respectively.In 2015,Al's plans to expand the services it provides to customers to include lubrication services.Revenues are expected to increase by $85,000 and operating costs by $50,000 as a result of this expansion.Assuming that there are no changes to the existing brake business,operating profits would be expected to increase during 2015 by

Cost accounting provides all of the following with the exception of

Two alternatives,identified X and Y,are under consideration at Hayden Corporation.Costs associated with the alternatives are listed below. What is the differential cost of Alternative Y over Alternative X?

Examples of the controller's functions include all except

Cost data can be used for one managerial decision but not for another managerial decision.One principle of cost accounting is that different decisions often require different cost data.

Which of the following is not an ethical standard of competence in the Standards of Ethical Conduct for Management Accountants?

A person who makes unethical decisions in their personal life is likely to make unethical decisions in their professional life.Ethics are a result of an internal moral compass.

Under the value chain concept,instead of perceiving whether individual activities in the chain add value,customers only consider the overall utility of the goods or services they purchase.Under the value chain concept,the value-added activities are those that the customer perceives as adding utility to the goods or services they purchase.