Cost accounting chapter 1 HW

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

TRUE

Cost accounting serves as a bridge between financial and managerial accounting. Select one: True False

True

Financial accounting is highly regulated by rules and regulations. Select one: True False

True

Return on investment was used in the 1900's to evaluate business operations. Select one: True False

True

Which ethical standard has been violated if an accountant fails to prepare financial statements according to industry standards? Select one: a. Competence b. Confidentiality c. Integrity d. Credibility

a. Competence

A managerial accountant who communicates information objectively is exercising which of the following standards? Select one: a. objectivity b. confidentiality c. integrity d. competence

a. objectivity

Cost and management accounting Select one: a. provide product/service cost information as well as information for internal decision making. b. are required for business recordkeeping as are financial and tax accounting. c. require an entirely separate group of accounts than financial accounting uses. d. focus solely on determining how much it costs to manufacture a product or provide a service.

a. provide product/service cost information as well as information for internal decision making.

A long-term plan that fulfills the goals and objectives of an organization is known as a(n) Select one: a. strategy. b. operational mission. c. management style. d. mission statement.

a. strategy.

In a global economy, Select one: a. all of the above happen in a global economy. b. the international flows of capital and information are common. c. the international movement of labor is prohibited except for multilingual persons. d. the trade of goods and services is focused on trade between or among countries on the same continent.

b. the international flows of capital and information are common.

The set of processes that convert inputs into services and products that consumers use is called Select one: a. an operational plan. b. the value chain. c. a core competency. d. the product life cycle.

b. the value chain.

The organization whose primary function is to provide a means to share information among cost and management accountants in the United States is the Select one: a. American Institute of CPAs. b. Institute of Certified Management Accountants. c. Institute of Management Accountants. d. Internal Revenue Service.

c. Institute of Management Accountants.

In comparing financial and management accounting, which of the following more accurately describes management accounting information? Select one: a. historical, precise, useful b. comparable, verifiable, monetary c. budgeted, informative, adaptable d. required, estimated, internal

c. budgeted, informative, adaptable

Financial accounting and cost accounting are both highly concerned with Select one: a. providing managers with information necessary for control purposes. b. determining performance standards. c. determining product cost. d. preparing budgets.

c. determining product cost.

Cost accounting is necessitated by Select one: a. management's need for information to be used for planning and controlling activities. b. external reporting requirements for manufacturing companies. c. the high degree of conversion found in certain businesses. d. management's need to be aware of all production activities.

c. the high degree of conversion found in certain businesses.

Which of the following statements is true? Select one: a. Financial accounting is a subset of cost accounting. b. Management accounting is a subset of cost accounting. c. Management accounting is a subset of both cost and financial accounting. d. Cost accounting is a subset of both management and financial accounting.

d. Cost accounting is a subset of both management and financial accounting.

Which of the following is not a valid method for determining product cost? Select one: a. direct measurement b. systematic allocation c. arbitrary assignment d. cost-benefit measurement

d. cost-benefit measurement

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

d. do not exist except for those legal pronouncements for companies bidding or pricing cost-related contracts with the government.

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 needed by manufacturers to be in compliance with Cost Accounting Standards Board pronouncements. d. internal reporting system that provides product costing and other information used bymanagers in performing their functions.

d. internal reporting system that provides product costing and other information used bymanagers in performing their functions.

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. Select one: True False

False

The learning and growth perspective of the balanced scorecard addresses stakeholder concerns about profitability and organizational growth. Select one: True False

False

An organization's return on assets (ROA) is an example of a lead indicator. Select one: True False

False

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

False

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

False

Which of the following statements is false? Select one: a. Two primary hallmarks of cost and management accounting are standardization of procedures and use of generally accepted accounting principles. b. A primary purpose of cost accounting is to determine valuations needed for external financial statements. c. The act of converting production inputs into finished products or services necessitates cost accounting. d. A primary purpose of management accounting is to provide information to managers for use in planning, controlling, and decision making.

a. Two primary hallmarks of cost and management accounting are standardization of procedures and use of generally accepted accounting principles.

One major difference between financial and management accounting is that Select one: a. all of the above are true. b. management accounting is not under the jurisdiction of the Securities and Exchange Commission. c. government regulations do not apply to management accounting. d. financial accounting reports are prepared primarily for users external to the company.

a. all of the above are true.