Deck 1: Introduction to Cost Accounting

Question 1

Financial accounting is highly regulated by rules and regulations.

Answer 1

True

Question 2

Financial accounting is most concerned with addressing the needs of individual departments of the firm.

Answer 2

False

Question 3

Financial accounting is most concerned with meeting the needs of internal users.

Answer 3

False

Question 4

The learning and growth perspective of the balanced scorecard focuses on using an organization's intellectual capital to adapt to or influence customer needs and expectations.

Question 5

An organization's strategy should reflect the organization's core competencies.

Question 6

Managerial accounting is most concerned with addressing the needs of the firm as a whole.

Question 7

The internal business perspective of the balanced scorecard focuses on using an organization's intellectual capital to adapt to or influence customer needs and expectations.

Question 8

Return on investment was used in the 1900's to evaluate business operations.

Question 9

Managerial accounting is most concerned with addressing the needs of individual departments of the firm.

Question 10

Managerial accounting is highly regulated by rules and regulations.

Question 11

An organization's strategy is the guiding force for its mission.

Question 12

Managerial accounting is most concerned with meeting the needs of internal users.

Question 13

Financial accounting is most concerned with addressing the needs of the firm as a whole.

Question 14

Line managers are directly responsible for achieving organizational goals.

Question 15

The learning and growth perspective of the balanced scorecard focuses on using an organization's intellectual capital to adapt to or influence customer needs and expectations.

Question 16

Managerial accounting is most concerned with meeting the needs of external users.

Question 17

Line personnel give assistance to staff employees.

Question 18

Mission statements typically remain unchanged throughout the life of an organization.

Question 19

Cost accounting serves as a bridge between financial and managerial accounting.

Question 20

Financial accounting is most concerned with meeting the needs of external users.

Question 21

The Sarbanes-Oxley Act of 2002 provides legal protection for individuals who report illegal organizational activities to appropriate persons or agencies.

Question 22

The internal business perspective of the balanced scorecard addresses the things that an organization needs to do well to meet customer needs and expectations.

Question 23

The internal business perspective of the balanced scorecard addresses stakeholder concerns about profitability and organizational growth.

Question 24

The learning and growth perspective of the balanced scorecard addresses stakeholder concerns about profitability and organizational growth.

Question 25

The learning and growth perspective of the balanced scorecard addresses how well the organization is doing with regard to important customer criteria.

Question 26

An organization's profitability is an example of a lag indicator.

Question 27

The financial perspective of the balanced scorecard addresses how well the organization is doing with regard to important customer criteria.

Question 28

The financial perspective of the balanced scorecard focuses on using an organization's intellectual capital to adapt to or influence customer needs and expectations.

Question 29

The Foreign Corrupt Practices Act of 1977 provides legal protection for individuals who report illegal organizational activities to appropriate persons or agencies.

Question 30

The customer value perspective of the balanced scorecard addresses the things that an organization needs to do well to meet customer needs and expectations.

Question 31

The learning and growth perspective of the balanced scorecard addresses the things that an organization needs to do well to meet customer needs and expectations.

Question 32

The branch of accounting that is most concerned with addressing the needs of the firm as a whole is ____________________ accounting

Question 33

The customer value perspective of the balanced scorecard addresses stakeholder concerns about profitability and organizational growth.

Question 34

The customer value perspective of the balanced scorecard addresses how well the organization is doing with regard to important customer criteria.

Question 35

The internal business perspective of the balanced scorecard addresses how well the organization is doing with regard to important customer criteria.

Question 36

The financial perspective of the balanced scorecard addresses the things that an organization needs to do well to meet customer needs and expectations.

Question 37

The financial perspective of the balanced scorecard addresses stakeholder concerns about profitability and organizational growth.

Question 38

An organization's return on assets (ROA)is an example of a lead indicator.

Question 39

The branch of accounting that serves as a bridge between financial and managerial accounting is ____________________ accounting.

Question 40

The branch of accounting that is most concerned with addressing the needs of specific departments of the firm is ____________________ accounting

Question 41

Which of the following is not a valid method for determining product cost?

A)arbitrary assignment
B)direct measurement
C)systematic allocation
D)cost-benefit measurement

Question 42

Outcomes that have resulted from past actions are also referred to as ____________________ indicators.

Question 43

Which of the following statements about management or financial accounting is false?

A)Financial accounting must follow GAAP.
B)Management accounting is not subject to regulatory reporting standards.
C)Both management and financial accounting are subject to mandatory recordkeeping requirements.
D)Management accounting should be flexible.

Question 44

The balanced scorecard perspective that focuses on using a firm's intellectual capital to adapt to customer needs through product or service innovations is the ______________________________ perspective.

Question 45

The balanced scorecard perspective that addresses how well the organization is meeting specific customer-based criteria is the ______________________________ perspective.

Question 46

Management accounting

A)is more concerned with the future than is financial accounting.
B)is less concerned with segments of a company than is financial accounting.
C)is more constrained by rules and regulations than is financial accounting.
D)all of the above are true.

Question 47

Modern management accounting can be characterized by its

A)flexibility.
B)standardization.
C)complexity.
D)precision.

Question 48

A function or activity in which an organization seeks to excel above its competitors is a ______________________________.

Question 49

The plan in which an organization indicates how it will fulfill its goals is referred to as a ____________________.

Question 50

The balanced scorecard perspective that addresses concerns about organizational growth is the ____________________ perspective.

Question 51

In comparing financial and management accounting,which of the following more accurately describes management accounting information?

A)historical,precise,useful
B)required,estimated,internal
C)budgeted,informative,adaptable
D)comparable,verifiable,monetary

Question 52

When an organization attempts to "adjust" its profits to meet a specific target,it is guilty of ______________________________.

Question 53

The ___________________________________ restates an organization's strategy into clear and objective performance measures.

Question 54

The way in which authority and responsibility are distributed in an organization is ___________________________________.

Question 55

The expression of what an organization wishes to accomplish and how it will serve its customers is contained in the ______________________________.

Question 56

Management and financial accounting are used for which of the following purposes?

A)internal external
B)external internal
C)internal internal
D)external external

Question 57

One major difference between financial and management accounting is that

A)financial accounting reports are prepared primarily for users external to the company.
B)management accounting is not under the jurisdiction of the Securities and Exchange Commission.
C)government regulations do not apply to management accounting.
D)all of the above are true.

Question 58

The balanced scorecard perspective that addresses things that an organization needs to do well to meet customer needs and expectations is the ______________________________ perspective.

Question 59

Broadly speaking,cost accounting can be defined as a(n)

A)external reporting system that is based on activity-based costs.
B)system used for providing the government and creditors with information about a company's internal operations.
C)internal reporting system that provides product costing and other information used by managers in performing their functions.
D)internal reporting system needed by manufacturers to be in compliance with Cost Accounting Standards Board pronouncements.

Question 60

Data that reflects future financial and non-financial outcomes is referred to as ____________________ indicators.

Question 61

The world has essentially become smaller because of

A)improved technology.
B)trade agreements.
C)better communications systems.
D)all of the above.

Question 62

Which of the following areas is not addressed by an organization's mission statement?

A)the purpose for which the organization exists
B)what the organization wants to accomplish
C)the organization's strategic plan for fulfilling its mission
D)how its products can uniquely meet the needs of its customers.

Question 63

The organization whose primary function is to provide a means to share information among cost and management accountants in the United States is the

A)Internal Revenue Service.
B)American Institute of CPAs.
C)Institute of Management Accountants.
D)Institute of Certified Management Accountants.

Question 64

A long-term plan that fulfills the goals and objectives of an organization is known as a(n)

A)management style.
B)strategy.
C)mission statement.
D)operational mission.

Question 65

Cost accounting is directed toward the needs of

A)regulatory agencies.
B)external users.
C)internal users.
D)stockholders.

Question 66

Financial accounting

A)is primarily concerned with internal reporting.
B)is more concerned with verifiable,historical information than is cost accounting.
C)focuses on the parts of the organization rather than the whole.
D)is specifically directed at management decision-making needs.

Question 67

The balanced scorecard perspective that addresses things that an organization needs to do well to meet customer needs and expectations:

A)learning and growth perspective
B)internal business perspective
C)customer value perspective
D)financial perspective

Question 68

Which of the following statements istrue?

A)Management accounting is a subset of cost accounting.
B)Cost accounting is a subset of both management and financial accounting.
C)Management accounting is a subset of both cost and financial accounting.
D)Financial accounting is a subset of cost accounting.

Question 69

The Institute of Management Accountants issues

A)Statements on Accounting Research for Managers.
B)Statements on Management Accounting.
C)Statements on Managerial and Cost Accounting.
D)Cost Accounting Standards.

Question 70

Which of the following topics is of more concern to management accounting than to cost accounting?

A)generally accepted accounting principles
B)inventory valuation
C)cost of goods sold valuation
D)impact of economic conditions on company operations

Question 71

The balanced scorecard perspective that focuses on using a firm's intellectual capital to adapt to the needs of the market through product or service innovations is the:

A)learning and growth perspective
B)internal business perspective
C)customer value perspective
D)financial perspective

Question 72

Which of the following statements is false?

A)A primary purpose of cost accounting is to determine valuations needed for external financial statements.
B)A primary purpose of management accounting is to provide information to managers for use in planning,controlling,and decision making.
C)The act of converting production inputs into finished products or services necessitates cost accounting.
D)Two primary hallmarks of cost and management accounting are standardization of procedures and use of generally accepted accounting principles.

Question 73

Cost accounting is necessitated by

A)the high degree of conversion found in certain businesses.
B)external reporting requirements for manufacturing companies.
C)management's need to be aware of all production activities.
D)management's need for information to be used for planning and controlling activities.

Question 74

The value chain

A)reflects the production of goods within an organizational context.
B)is concerned with upstream suppliers,but not downstream customers.
C)results when all non-value-added activities are eliminated from a production process.
D)is the foundation of strategic resource management.

Question 75

Cost and management accounting

A)require an entirely separate group of accounts than financial accounting uses.
B)focus solely on determining how much it costs to manufacture a product or provide a service.
C)provide product/service cost information as well as information for internal decision making.
D)are required for business recordkeeping as are financial and tax accounting.

Question 76

The balanced scorecard perspective that addresses how well the organization is meeting specific customer-based criteria is the:

A)learning and growth perspective
B)internal business perspective
C)customer value perspective
D)financial perspective

Question 77

Financial accounting and cost accounting are both highly concerned with

A)preparing budgets.
B)determining product cost.
C)providing managers with information necessary for control purposes.
D)determining performance standards.

Question 78

In a global economy,

A)the trade of goods and services is focused on trade between or among countries on the same continent.
B)the international movement of labor is prohibited except for multilingual persons.
C)the international flows of capital and information are common.
D)all of the above happen in a global economy.

Question 79

The set of processes that convert inputs into services and products that consumers use is called

A)a core competency.
B)an operational plan.
C)the value chain.
D)the product life cycle.

Question 80

Core competencies are not

A)internal functions crucial to the success and survival of a company.
B)attributes that keep a firm from competing.
C)different for every organization.
D)considered influences on corporate strategies.