Quiz 1: Introduction to Cost Accounting

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

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

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

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

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

Financial accounting is highly regulated by rules and regulations.

Managerial accounting is highly regulated by rules and regulations.

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

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

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

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

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

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

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

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

Line managers are directly responsible for achieving organizational goals.

Line personnel give assistance to staff employees.

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.

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.

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.

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

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

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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

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

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

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

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

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

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

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

Management and financial accounting are used for which of the following purposes? A)internal external B)external internal C)internal internal D)external external

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.

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.

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.

Modern management accounting can be characterized by its A)flexibility. B)standardization. C)complexity. D)precision.

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

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.

Cost accounting is directed toward the needs of A)regulatory agencies. B)external users. C)internal users. D)stockholders.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

The world has essentially become smaller because of A)improved technology. B)trade agreements. C)better communications systems. D)all of the above.

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.

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.

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.

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

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

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

The balanced scorecard perspective that addresses concerns about organizational growth is the: A)learning and growth perspective B)internal business perspective C)customer value perspective D)financial perspective

A managerial accountant who communicates information objectively is exercising which of the following standards? A)objectivity B)integrity C)competence D)confidentiality

A managerial accountant who prepares clear reports and recommendations after analyzing relevant facts is exercising which of the following standards? A)objectivity B)integrity C)competence D)confidentiality

Cost accounting standards A)are legal standards set by the Institute of Management Accountants for use in all manufacturing and professional businesses. B)are set by the Cost Accounting Standards Board and are legally binding on all manufacturers,but not service organizations. C)do not exist except for those legal pronouncements for companies bidding or pricing cost-related contracts with the government. D)are developed by the Cost Accounting Standards Board,issued by the Institute of Management Accountants,and are legally binding on CMAs.

Which of the following U.S.legislation relates to bribes being offered to foreign officials? A)Racketeer Influenced and Corrupt Organizations Act B)Foreign Illegal Activities Act C)Foreign Corrupt Practices Act D)Federal Bribery and Corrupt Practices Act

The Institute of Management Accountants' Code of Ethics A)is a legally enforceable contract with all management accountants. B)should be viewed as a goal for professional behavior. C)is a legally enforceable contract with all CPAs. D)provides ways to measure departures from ethical behavior.

The Foreign Corrupt Practices Act is directed at A)U.S.corporations operating overseas. B)foreign businesses operating in the U.S. C)all businesses dealing with U.S.consumers. D)all U.S.businesses with operations in foreign countries.

The ethical standards established for management accountants are in the areas of A)competence,licensing,reporting,and education. B)budgeting,cost allocation,product costing,and insider trading. C)competence,confidentiality,integrity,and credibility. D)disclosure,communication,decision making,and planning.

Which ethical standard is violated by an accountant who accepts a gift from a client A)Credibility B)Confidentiality C)Competence D)Integrity

Which ethical standard has been violated if an accountant fails to prepare financial statements according to industry standards? A)Competence B)Confidentiality C)Integrity D)Credibility

Which ethical standard is violated when an accountant uses information from a financial statement he is preparing to advise a relative of a stock purchase? A)Competence B)Confidentiality C)Integrity D)Credibility

Which ethical standard has been violated if an accountant fails to disclose relevant information pertaining to a financial statement? A)Competence B)Confidentiality C)Integrity D)Credibility

On what needs do (1)management accounting and (2)financial accounting focus?

What are the functions of a mission statement?

Define value chain and provide a graphic of the interacting flows of information within the value chain.

Distinguish between lead indicators and lag indicators,and provide an example of each.Which of these indicators is a better guide for strategic planning?

List and explain the four perspective of the balanced scorecard (BSC).

What four areas are covered by the Standards of Ethical Conduct for Certified Management Accountants? How are these areas defined?