Question 1

The Controller of a company supervises all the accounting departments and is often viewed as a member of the top management team.

Accepted Answer

The Controller is a key member of the management team and oversees accounting functions like financial reporting, budgeting, auditing, and taxes. The Controller's role is to ensure that the company's financial data is accurate, timely, and compliant with legal and regulatory requirements. They work closely with other executives to formulate strategies, make financial decisions, and monitor performance.

Question 2

The cost management information system is primarily concerned with producing outputs for external users.

Accepted Answer

The cost management information system is primarily concerned with producing outputs for internal users, such as management and employees within the organization.

Question 3

In just-in-time (JIT) manufacturing, each operation produces only what is necessary for the succeeding operations.

Accepted Answer

In JIT manufacturing, the goal is to eliminate waste and produce only what is necessary. Each operation produces only what is needed for the next operation, resulting in efficient and streamlined production processes.

Question 4

Changes in the way business is conducted worldwide have broadened the focus of cost management accounting systems.

Accepted Answer

The statement is correct, as globalization and new business models have led to increased competition and a need for businesses to focus on cost management on a global scale.

Question 5

The service sector of the U. S. economy has decreased in importance as traditional industries have declined in importance.

Accepted Answer

The service sector of the U.S. economy has not decreased in importance but has actually increased in importance. In fact, it is now the largest sector of the U.S. economy, accounting for around 80% of GDP and employment.

Question 6

Business ethics is learning what is right or wrong in the work environment and choosing what is right.

Accepted Answer

Business ethics is indeed about understanding moral principles and applying them in the workplace to determine what is right or wrong in a given situation. It involves making choices that are consistent with the values and principles of the company or industry while also taking into consideration the impact on stakeholders and society as a whole.

Question 7

The cost management information system has two major subsystems: the cost accounting information system and the operational control information system.

Accepted Answer

The cost management information system has two major subsystems, which are the cost accounting information system and the operational control information system.

Question 8

The three broad objectives of financial accounting information systems are to provide information for costing out services and products, planning and control, and decision making.

Accepted Answer

The answer of The three broad objectives of financial accounting...

Question 9

Enterprise resource planning (ERP) software has the objective of providing an integrated system capability and is able to run all the operations of a company.

Accepted Answer

ERP software is designed to integrate different business processes and functions, including financial management, supply chain management, human resources, and customer relationship management, into a single, centralized system. The aim is to provide a comprehensive and cohesive view of a company's operations, enabling better decision-making and improved efficiency.

Question 10

One of the major advances in information technology that affects firms is the emergence of electronic commerce.

Accepted Answer

Electronic commerce, also known as e-commerce, has revolutionized the way businesses operate and interact with customers. It involves the buying and selling of goods and services over the internet, allowing firms to expand their reach, increase accessibility, and enhance efficiency in their operations.

Question 11

The two major subsystems of the accounting information system are the financial accounting information system and the cost management accounting information system.

Accepted Answer

The two major subsystems of the accounting information system are indeed the financial accounting information system and the cost management accounting information system.

Question 12

JIT is a critical part of a more comprehensive approach referred to as Lean Manufacturing.

Accepted Answer

JIT (Just-In-Time) is a core component of Lean Manufacturing, which focuses on eliminating waste, increasing efficiency, and delivering value to customers. Therefore, the statement is true.

Question 13

Positions that have direct responsibility for basic objectives are referred to as staff positions, and those indirectly responsible are called line positions.

Accepted Answer

The statement is reversed. Line positions have direct responsibility for basic objectives, while staff positions have an indirect responsibility.

Question 14

The focus of Lean Manufacturing is to eliminate waste, which is anything that does not add value to the end user (customer).

Accepted Answer

Lean Manufacturing is all about the elimination of waste. This includes any activity, process or resource that doesn't add value to the customer. By constantly trimming waste, organizations can make their processes more efficient and effective, ultimately leading to greater customer satisfaction and improved profitability.

Question 15

Preparing reports for division managers is an activity associated with the cost management information system.

Accepted Answer

Preparing reports for division managers is an important function of the cost management information system to provide them with relevant and timely information for decision-making.

Question 16

The role of cost and management accountants is one of support and teamwork and assistance of those who are responsible for achieving a company's basic objectives.

Accepted Answer

Cost and management accountants are primarily responsible for providing support and assistance to the management team in achieving the company's goals and objectives. They play a vital role in planning, decision-making, control, and performance evaluation by providing relevant and reliable information to the management team. Thus, the statement is true.

Question 17

Evaluating the performance of a segment of the company is an example of planning.

Accepted Answer

Evaluating the performance of a segment of the company is an example of controlling, not planning. Planning involves setting goals and deciding how to achieve them, whereas controlling involves measuring performance, comparing it with goals, and taking corrective action as needed.

Question 18

The process of choosing among competing alternatives is called decision making.

Accepted Answer

This statement is true. The process of making a choice among different options is called decision making.

Question 19

An accounting information system collects, records, summarizes, analyzes, and manages data to transform inputs into information that is provided to users.

Accepted Answer

An accounting information system performs all of these functions to convert data inputs into useful information for users.

Question 20

The Treasurer of a company is responsible for all taxation activities, including dealing with the IRS.

Accepted Answer

The Treasurer is primarily responsible for the company's financial strategy, cash management, and financial forecasting. Taxation activities, including dealings with the IRS, are typically managed by the tax department or Chief Financial Officer (CFO).

Quiz 1: Introduction to Cost Management