contact:

Whatsapp +1 (949) 734-4773

 

for the Facebook page click here 

 

for more books  for  ( Test Bank and Solution Manual) click here

 

for the Solution Manual click here 

sample free

 

 

TRUE/FALSE.  Write ‘T’ if the statement is true and ‘F’ if the statement is false.

 

1)

 

Cost accounting is guided by generally accepted accounting principles.

 

1)

 

_______

 

 

 

2)

 

Managerial accounting and financial accounting both measure and report financial and non-financial information related to the cost of acquiring or utilizing resources.

 

2)

 

_______

 

 

 

3)

 

Cost accounting provides information only for financial accounting.

 

3)

 

_______

 

 

 

4)

 

Financial accountants are required to follow the generally accepted accounting principles that are used for external financial reporting when preparing reports for internal users.

 

4)

 

_______

 

 

 

5)

 

Managers typically receive reports on cost planning and controls that should be considered for external use only.

 

5)

 

_______

 

 

 

6)

 

There are three (3) basic business strategies: low cost, premium products, and customer satisfaction.

 

6)

 

_______

 

 

 

7)

 

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.

 

7)

 

_______

 

 

 

8)

 

Cost management only involves short-term decisions that attempt to increase value for customers and lower the costs of products or services.

 

8)

 

_______

 

 

 

9)

 

The key to a company’s success is always to be the low cost producer in a particular industry.

 

9)

 

_______

 

 

 

10)

 

Companies generally follow one strategy: providing a quality product or service at low prices.

 

10)

 

______

 

 

 

11)

 

The Global Reporting Initiative (GRI) is a nonprofit organization established to develop guidelines so that reporting on economic, environmental and social performance by all organizations is as routine and comparable as financial reporting.

 

11)

 

______

 

 

 

12)

 

Corporate social responsibility is now mandatory for all publicly traded companies in Canada.

 

12)

 

______

 

 

 

MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question.

 

13)

 

In what way do managers benefit from the use of a management information system?

 

13)

 

______

 

1. A)

 

The managers could combine or adjust data to answer the questions from particular internal and external users.

 

1. B)

 

Managers can store old documents in hard copy.

 

1. C)

 

The managers do not benefit, as the information requires technical expertise to retrieve.

 

1. D)

 

The managers would not be completely responsible for the information that is entered into the database system.

 

1. E)

 

Data can be entered at numerous input terminals within the organization.

 

 

 

14)

 

Financial accounting is concerned primarily with

 

14)

 

______

 

1. A)

 

providing information for strategic and tactical decisions.

 

1. B)

 

cost planning and cost controls.

 

1. C)

 

providing analysis to facilitate long term decision making.

 

1. D)

 

external reporting to investors, government authorities, etc.

 

1. E)

 

profitability analysis.

 

 

 

15)

 

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?

 

15)

 

______

 

1. A)

 

purpose of information

 

1. B)

 

primary users

 

1. C)

 

focus and emphasis

 

1. D)

 

rules of measurement and reporting

 

1. E)

 

time span and type of reports

 

 

 

16)

 

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?

 

16)

 

______

 

1. A)

 

purpose of information

 

1. B)

 

primary users

 

1. C)

 

focus and emphasis

 

1. D)

 

rules of measurement and reporting

 

1. E)

 

time span and type of reports

 

 

 

17)

 

The text identifies six ways to classify the major differences between Management and Financial Accounting. The statement “Past oriented (reports on 2011 performance prepared in 2012)” is an example of which of the following classes?

 

17)

 

______

 

1. A)

 

purpose of information

 

1. B)

 

primary users

 

1. C)

 

focus and emphasis

 

1. D)

 

rules of measurement and reporting

 

1. E)

 

time span and type of reports

 

 

 

18)

 

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?

 

18)

 

______

 

1. A)

 

purpose of information

 

1. B)

 

primary users

 

1. C)

 

focus and emphasis

 

1. D)

 

rules of measurement and reporting

 

1. E)

 

time span and type of reports

 

 

 

19)

 

Which of the following is something management accountants should do to satisfy their users?

 

19)

 

______

 

1. A)

 

follow generally accepted accounting principles

 

1. B)

 

focus exclusively on internal users

 

1. C)

 

provide specialized information that given users can use

 

1. D)

 

consider only financial measures

 

1. E)

 

focus on planning more than control

 

 

 

20)

 

“Cost management” describes

 

20)

 

______

 

1. A)

 

actions by managers to satisfy customers while maintaining current cost levels.

 

1. B)

 

the actions by managers to increase value for customers while continuously reducing and controlling costs.

 

1. C)

 

the identification of excessive costs in the production process.

 

1. D)

 

ensuring all costs remains constant.

 

1. E)

 

the satisfaction of customers’ needs.

 

 

 

21)

 

Do you agree that prior management decisions affect cost management?

 

21)

 

______

 

1. A)

 

Yes. Managers should always strive to lower the costs incurred last year, as their number 1 priority.

 

1. B)

 

No. Managers should ignore prior management decisions.

 

1. 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.

 

1. D)

 

Yes. Managers should always follow prior management decisions, for example, in the determination of the EOQ.

 

1. E)

 

Yes. The only prior management decisions that can affect cost management going forward, are concerned with employee wages. All other decisions can be changed.

 

 

 

22)

 

Management accounting

 

22)

 

______

 

1. A)

 

is useful for external and internal users.

 

1. B)

 

helps managers make decisions.

 

1. C)

 

is the same as cost accounting.

 

1. D)

 

creates technical reports that require external audit for verification.

 

1. E)

 

helps creditors evaluate the company’s performance.