Fundamentals of Cost Accounting 4th Edition by Lanen
Fundamentals of Cost Accountingprovides a direct, realistic, and efficient way to learn cost accounting, integrated with new technology learning tools. Fundamentals is short (approximately 700 pages) making it easy to cover in one semester. The authors have kept the text concise by focusing on the key concepts students need to master. The Decision opening vignettes and Business Application boxes show realistic applications of these concepts throughout. All chapters conclude with a Debrief that links the topics in the chapter to the decision problem faced by the manager in the opening vignette. Comprehensive end-of-chapter material provides students with all the practice they need to fully learn each concept.McGraw-Hill Connect Accounting Plus provides students every advantage as they strive to understand the key concepts of cost accounting and its role in business. Connect Accounting Plus offers a complete digital solution with a robust online learning and homework management system, an integrated media-rich eBook, assignable end-of-chapter material, algorithmic functionality, and reporting capabilities.
Contained within Connect Accounting is McGraw-Hill’s adaptive learning system, LearnSmart, which is designed to help students learn faster, study more efficiently, and retain more knowledge for greater success.
Free Test Bank for Fundamentals of Cost Accounting 4th Edition Part 2 by Lanen
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Test Bank for Fundamentals of Cost Accounting 4th Edition Part 1 by Lanen
Cost accounting information can be used by managers to defraud customers, creditors, and owners.
True
False
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.
True
False
A cost can be considered a differential cost for one particular course of action but not for another course of action.
True
False
(CMA adapted) An accounting system that collects financial and operating data on the basis of the underlying nature and extent of cost drivers is
A. full-absorption costing.
B. activity-based costing.
C. variable costing.
D. benchmarking.
During 2013, the JKL Restaurant had sales revenues and food costs of $800,000 and
$600,000, respectively. During 2014, JKL plans to introduce a new menu item that is expected
to increase sales revenues by $100,000 and food costs by $40,000. Assuming no changes are
expected for the other food items, operating profits for 2013 are expected to increase by
A. $260,000.
B. $100,000.
C. $60,000.
D. $40,000.
Financial accounting information is designed for decision-makers who are directly involved in the daily management of the firm.
True
False
Administrative functions are not included as part of the value chain because they are implicitly included in every business function.
True
False
The field of accounting that depends on generally accepted accounting principles (GAAP) is called
A. cost accounting.
B. financial accounting.
C. managerial accounting.
D. responsibility accounting.
E. international accounting.
Which of the following statements is false?
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.
Cost accounting provides information only for cost accounting purposes.
True
False
A value chain consists of the major subassemblies that add value to a product.
True
False
Which of the following is a nonvalue-added activity?
A. Product design
B. Customer service
C. Research and development
D. Rework of defective items
It is more important for financial accounting information to be comparable between firms than to be useful for managerial decision-making.
True
False
Cost accounting information developed for managers to use in making decisions must comply with generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS).
True
False
Cost accounting plays a significant role in management decision making.
True
False
(CMA adapted) The process of creating a formal plan and translating goals into a quantitative format is referred to as
A. budgeting.
B. benchmarking.
C. cost-benefit analysis.
D. value-added analysis.
E. activity-based costing.:
Which field of accounting emphasizes relevancy over comparability?
A. Cost accounting
B. Financial accounting
C. Responsibility accounting
D. International accounting
The set of activities that transforms raw resources into the goods and services of an organization is called:
A. Value chain.
B. Supply chain.
C. Demand chain.
D. Cost-benefit analysis.
It is important that the manager assigned to lead a responsibility center be held accountable for its operations.
True
False
Ethical behavior depends more on a firm's code of conduct than the individual's personal beliefs.
True
False
The lean thinking model focuses on reducing defects to as close to zero as possible.
True
False
The Value chain is comprised of the activities that take place during the production process.
True
False
(CMA adapted) Cost drivers are
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.
Financial accounting receives information only from cost accounting activity.
True
False
Benchmarking is a continuous process of measuring a company's products, services, or activities against competitors' performance.
True
False
Cost data can be used for one managerial decision but not for another managerial decision.
True
False
Which of the following activities would not be considered a value-added activity?
A. Production
B. Marketing
C. Accounting
D. Distribution
Managers do not make decisions about future events based on:
A. Perfect information.
B. Estimated information.
C. Actual information.
D. Financial information.
Activity-based costing (ABC) is a management tool that focuses on the continuous improvement of all dimensions of a business.
True
False
A cost driver is a factor that causes costs.
True
False
A person who makes unethical decisions in their personal life is likely to make unethical decisions in their professional life.
True
False
Financial accounting provides financial and nonfinancial information that helps managers in the decision making process.
True
False
Customer satisfaction is an example of a non-financial performance measure.
True
False
The value chain comprises activities from research and development through the production process, but does not include activities related to the distribution of products or services.
True
False
Cost accounting is broader in scope than financial accounting.
True
False
Managers face ethical situations on a daily basis, while accountants face them infrequently.
True
False
Managers are usually responsible for the revenues needed to achieve the targets set during the budgeting process, but not the resources consumed to achieve those targets.
True
False
Budgeting is primarily used to determine year-end bonuses based on managerial and organizational performance.
True
False
The just-in-time (JIT) method of production focuses on
A. increasing sales revenue.
B. reducing inventories.
C. increasing customer service.
D. reducing operating expenses.
E. increasing product quality.
A responsibility center can be a department, division, or segment, but not a subsidiary of the parent company.
True
False