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

Multiple Choice Questions-Page 1
In an accounting information system, the inputs are usually
1.

financial statements.

2.

analyzing data.

3.

performance reports.

4.

economic events.

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.

auditing existing data

2.

collecting and recording data

3.

providing information to users

4.

analyzing and managing data

____________________ is any form of commerce that is executed using
information and communications technology.
1.

ERP

2.

OLAP

3.

electronic commerce

4.



3.

determining the future cashflows of a proposed flexible manufacturing system

4.

preparing GAAP financial statements

Which of the following cost management tools supports the firm's
concentration on the delivery of value to the customer?
1.

service industry growth

2.

global competition

3.

preparing an earnings report for the SEC

4.

value-chain analysis

Automation of the manufacturing environment is associated with increases in
1.


summarizing data


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 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.


evaluation of segments or products within the firm

2.

emphasis on the future


3.

externally focused

4.

focus on effective use of resources

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.

OLAP.

2.

EDI and supply chain management.

3.

CAM.


Cost management

3.

Financial management

4.

Financial accounting


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.

Financial accounting information is used for
1.


all of these.

Which of the following activities is NOT significant to the advancement of
information technology?
1.

enterprise resource planning software

2.

emergence of electronic commerce


3.

theory of constraints

4.

decision support systems

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.

1.

computer integrated applications

2.

GAAP reporting

3.

emergence of electronic commerce

4.

availability of tools such as OLAP and DSS


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


stockholders.

3.

the government.

4.

bankers.

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.


4.

none of these.

95 Free Test Bank for Cornerstones of Cost Accounting
1st Edition by Hansen Multiple Choice Questions-Page 2
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.


Accounting activities within an organization are usually under the overall
supervision of the
1.

Certified Public Accountant.


1.

more customer products than competitors.

2.

better quality than competitors.

3.

greater customer value for less cost than competitors.

4.

greater efficiencies than competitors.

The _______________ is the officer responsible for money management and
serves chiefly as the custodian of the organization's funds.
1.

Certified Public Accountant

2.

controller


3.

Chartered Accountant


3.

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

4.

all that it can in order to build inventories.

Currently, the activity found LEAST often within the controller's department is
1.

updating the general ledger.

2.

budget preparation.

3.

maintaining accounts receivable records.

4.

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

The chief accounting officer of an organization is the
1.

vice president of finance.


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

Which of the following positions would most likely be a line manager?
1.

personnel department manager

2.

president

3.

treasurer

vice president of finance

3.

vice president of marketing

4.

plant foreman

Comparing actual quality costs with planned quality costs is an example of
1.

planning.

2.

controlling.

3.

performance evaluation.

4.

both b and c.

All of the following would be considered staff functions EXCEPT the
1.


marketing function.

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.

Total quality management emphasizes
1.

zero defects.

2.

continual improvement.

3.



2.

computer-integrated manufacturing

3.

JIT manufacturing

4.

all of these

Which of the following would be considered a line function?
1.

production

2.

maintenance

3.

public relations

4.

administrative services



3.

activity-based management

4.

performance reports.

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.

Today's cost managers must assemble cost information and determine how to
value things. Which methods would NOT be critical to achieving this?
1.


treasurer

The setting of objectives and the identification of methods to achieve those
objectives is called
1.

planning.

2.

controlling.

3.

performance evaluation.

4.

decision making.

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



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.

95 Free Test Bank for Cornerstones of Cost Accounting
1st Edition by Hansen Multiple Choice Questions-Page 3
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.

competence

2.

confidentiality

3.

strategic cost management

4.

integrity

The formulation of a program for the accomplishment of a specific purpose is
referred to as
1.

controlling.

2.

motivating.

3.

organizing.

4.


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

The certification sponsored by the Institute of Management Accountants that
emphasizes economics, finance, management, financial accounting and
reporting, management reporting, and decision analysis is the
1.

CPA.

2.

CMA.

3.

CIA.

4.

all of these.

The IMA has a program to recognize professional competence and

internal auditing.

4.

both a and c.

Continuous improvement is
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.

Persons in the United States who provide assurance services are designated
as
1.

Certified Public Accountants.

2.

1.

competence and performance.

2.

integrity and respect for others.

3.

confidentiality, confidence, integrity, and observance.

4.

competence, confidentiality, integrity, and credibility.

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

2.

continuous improvement

3.

planning

4.

decision making

Which of the following relates to the credibility 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.



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
of Conduct?
1.

competence

2.

confidentiality

3.

independence

4.

credibility

The manager has to decide what tasks are needed and how they should be
accomplished. This statement describes
1.




In a performance report,
1.

differences between actual costs and allowed costs are always undesirable.

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.

Inspecting units produced to determine if they meet specifications is an
example of
1.

planning.

2.

control.

3.

competence