Cost Accounting A Managerial Emphasis 5th Canadian Edition by Horngren
While maintaining all the technical coverage of previous editions, Cost Accounting, Fifth Canadian Edition now has added a new, increased focus on how cost accounting can affect decision making and has a strategic function in business. Critical thinking and a strategic approach to cost accounting are now given greater prominence alongside the technical coverage.
Free Test Bank for Cost Accounting A Managerial Emphasis 5th Canadian Edition Part 2 by Horngren
Test Bank for Cost Accounting A Managerial Emphasis 5th Canadian Edition Part 1 by Horngren
The problem-solving function is the accumulation of data and reporting reliable results to all levels of management.
True
False
In the value chain, Research and Development is the detailed planning and engineering of products, services, or processes.
True
False
The cost-benefit approach is the primary consideration for choosing amongst alternatives.
True
False
Management by exception concentrates on improving areas that are operating as expected.
True
False
Which of the following is not something management accountants should do to satisfy their users?
A) consider financial as well as non-financial measures
B) continuously strives to provide better quality information faster, and at a lower cost
C) provide specialized information that given users can use
D) provides relevant information efficiently and on a timely basis
E) focus exclusively on internal users
Management accounting is guided by generally accepted accounting principles.
True
False
Management accounting
A) must be simple and easily understood.
B) helps creditors evaluate the company's performance.
C) helps managers make decisions.
D) is useful for external and internal users.
E) all of the above
Scorekeeping, attention directing, and problem solving abilities are three of the most important functions of management accountants.
True
False
In "CIM" plants, ________ give instructions that are automatically set up.
A) competitors
B) engineers
C) computers
D) plant managers
E) customers
Companies with a strategy of low prices compete on their ability to offer unique new products or services that are priced higher than their competition.
True
False
Financial accounting is concerned primarily with
A) providing analysis to facilitate long term decision making.
B) providing information for strategic and tactical decisions.
C) external reporting to investors, government authorities, etc.
D) cost planning and cost controls.
E) profitability analysis.
Control includes the performance evaluation of personnel and operations.
True
False
Value chain and supply chain are two (2) terms describing the same set of business functions.
True
False
An accountant, as a member of a professional organization, must follow only those ethical requirements as are prescribed by the organization they belong to, such as the Society of Management Accountants of Canada.
True
False
Line management exists to provide advice and assistance to staff departments.
True
False
Management accountants are not required to follow the generally accepted accounting principles that are used for external financial reporting when preparing reports for internal users.
True
False
Managers typically receive reports on cost planning and controls that should be considered for internal use only.
True
False
In the value chain, Research and Development generates and experiments with new ideas related to new products.
True
False
In what way do managers benefit from the use of a database, or "data warehouse"?
A) Data can be entered at numerous input terminals within the organization.
B) Managers can store old documents in hard copy.
C) The managers could combine or adjust these data to answer the questions from particular internal and external users.
D) The managers would not be completely responsible for the information that is entered into the database system.
E) Managers could generate their own reports.
The value chain includes the following functions: research and development; design of products, services, or processes; production; marketing; distribution; customer service; and management satisfaction.
True
False
Do you agree that prior management decisions affect cost management?
A) Yes. Managers should always follow prior management decisions, for example, in the determination of the EOQ.
B) No. Managers should ignore prior management decisions.
C) Yes. Prior management decisions can affect any area of the business operations, and commit the organization to the subsequent or continued incurrence of costs in such areas as material handling, and plant construction, for example.
D) Yes. The only prior management decisions that can affect cost management going forward, are concerned with employee wages. All other decisions can be changed.
E) Yes. Managers should always strive to lower the costs incurred last year, as their number 1 priority.
Sub-contracting a business function is part of supply chain management.
Information used to project budgeted amounts does not include non-financial information.
True
False
The text identifies six ways to classify the major differences between Management and Financial Accounting. The statement "Communicate organization's financial position to external users" is an example of which of the following classes?
A) Primary users
B) Purpose of information
C) Focus and emphasis
D) Rules of measurement and reporting
E) Time span and type of reports
Managerial accounting and cost accounting both measure and report financial and non-financial information relating to the cost of acquiring or utilizing resources.
True
False
The text identifies six ways to classify the major differences between Management and Financial Accounting. The statement "Past oriented (reports on 2010 performance prepared in 2011)" is an example of which of the following classes?
A) Focus and emphasis
B) Purpose of information
C) Rules of measurement and reporting
D) Time span and type of reports
E) Primary users
There are 8 business functions in the value chain.
True
False
A budget is a quantitative expression of a proposed plan of action by management.
True
False
As users of the information produced by management accounting systems, managers are forced to revaluate the design and operation of these systems.
True
False
Customers are expecting higher levels of quality and are less tolerant of low quality than in the past.
True
False
The controller is also called the CFO.
True
False
Planning is choosing goals, predicting results under various alternative ways of achieving those goals, and then deciding how to attain the desired goals.
True
False
"Cost management" describes
A) actions by managers to satisfy customers while maintaining current cost levels.
B) the satisfaction of customers' needs.
C) the actions by managers to increase value for customers while continuously reducing and controlling costs.
D) the identification of excessive costs in the production process.
E) ensuring all costs remains constant.
CMA's are required to follow the formal codes of ethical conduct provided by the Accounting Standards Board.
True
False
Cost accounting provides information for both management and financial accounting.
True
False
The text identifies six ways to classify the major differences between Management and Financial
Accounting. The statement "Varies from hourly to 15 to 20 years" is an example of which of the
following classes of differences?
A) Purpose of information
B) Primary users
C) Rules of measurement and reporting
D) Time span and type of reports
E) Focus and emphasis
There are three (3) basic business strategies; low cost, premium products, and customer satisfaction.
True
False
The text identifies six ways to classify the major differences between Management and Financial
Accounting. The "managers of the organization" is an example of which of the following classes of
differences?
A) Focus and emphasis
B) Rules of measurement and reporting
C) Time span and type of reports
D) Primary users
E) Purpose of information
Variance refers to the difference between planned and budgeted amounts.
True
False
Key success factors directly affect customer satisfaction, such as quality, time, and innovative products and services.
True
False
A profession is distinguished by certain characteristics. "An outlook that is essentially objective" is not one of these characteristics.
True
False