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

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

1. collecting data
2. analyzing data
3. performance reporting
4. summarizing data
Which of the following is NOT a process associated with an accounting
information system?

1. auditing existing data


2. collecting and recording data
3. providing information to users
4. analyzing and managing data
In an accounting information system, the inputs are usually

1. financial statements.
2. analyzing data.
3. performance reports.
4. economic events.
_______________ is devoted to providing information for external users.

1. Management accounting
2. Financial accounting
3. Internal accounting
4. Cost accounting


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 decisionmaking.
3. reporting to external users.
4. providing financial information to investors.
Cost management is the branch of accounting concerned with reporting
to

1. internal managers.
2. stockholders.
3. the government.
4. bankers.



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

1. investment decisions.

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. OLAP.
2. EDI and supply chain management.
3. CAM.
4. theory of constraints.



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

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

4. administrative services
Which of the following job positions is a line function?

1. financial vice president
2. controller
3. production supervisor
4. treasurer
Which of the following job positions is a staff position?

1. controller
2. production vice president
3. production supervisor


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.
2. internal auditor.
3. treasurer.
4. controller.
The _______________ is the officer responsible for money management and
serves chiefly as the custodian of the organization's funds.

1. planning.
2. control.
3. decision making.
4. both a and c.


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

1. planning.
2. controlling. - Given
3. performance evaluation.
4. decision making.
Comparing actual quality costs with planned quality costs is an example
of

1. planning.
2. controlling.
3. performance evaluation.
4. both b and c.
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.

1. planning.
2. control.
3. internal auditing.
4. both a and c.
The formulation of a program for the accomplishment of a specific purpose is
referred to as

1. controlling.
2. motivating.
3. organizing.
4. planning.
The manager has to decide what tasks are needed and how they should be
accomplished. This statement describes

1. the organization chart.
2. planning.
3. organizing.
4. none of these.
In a performance report,

1. differences between actual costs and allowed costs are always undesirable. Given


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. planning.
2. controlling.

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
situation?

1. controlling
2. continuous improvement - Given
3. planning
4. decision making


Determining the bid your company should submit on a construction contract
is an example of

1. planning.
2. control.
3. decision making.
4. both a and b.
Setting the selling price of a company's product is an example of

1. planning.
2. control.
3. decision making.
4. all of these.
Principles of personal ethical behavior include


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. confidentiality
2. integrity
3. reliability
4. none of these
In resolving an ethical conflict, it is inappropriate to discuss the problem with
the immediate supervisor because of 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