Chapter1

1.Financialaccountinginformationisusedfor

a.investmentdecisions.

b.regulatorymeasures.

c.stewardshipevaluation.

d.allofthese.

ANS:DPTS:1DIF:EasyOBJ:1-1

NAT:AACSBCommunication

2.WhichofthefollowingdoesNOTdescribecostmanagementsystem?

a.evaluationofsegmentsorproductswithinthefirm

b.emphasisonthefuture

c.externallyfocused

d.focusoneffectiveuseofresources

ANS:CPTS:1DIF:MediumOBJ:1-1

NAT:AACSBReflective

3.Theprimaryobjectiveofthecostmanagementinformtionsystemistoprovide

a.stockholdersandpotentialinvestorswithusefulinformationfordecisionmaking.

b.banksandothercreditorswithinformationusefulinmakingcreditdecisions.

c.managementwithinformationusefulforplanningandcontrolofoperations.

d.theInternalRevenueServicewithinformationabouttaxableincome.

ANS:CPTS:1DIF:EasyOBJ:1-1

4.whichofthefollowingisacostmanagementsubsystemdesignedtoassigncoststoindividual

productsandservicesandotherobjects,asspecifiedbymanagement

a.financialaccountinginformationsystem

b.operationalcontrolsystem

c.costaccountinginformationsystem

d.alloftheabove

ANS:CPTS:1DIF:MediumOBJ:1-1

NAT:AACSBReflective

5.Whichofthefollowingcostmanagementtoolssupportsthefirm'sconcentrationonthedeliveryof

valuetothecustomer?

a.serviceindustrygrowth

b.globalcompetition

c.preparinganearningsreportfortheSEC

d.value-chainanalysis

ANS:DPTS:1DIF:EasyOBJ:1-2

NAT:AACSBReflective

6.Whichofthefollowingapproacheshaveledtoadvancementsinthemanufacturingenvironment?

a.theoryofconstraints

b.computer-integratedmanufacturing

c.JITmanufacturing

d.allofthese

ANS:DPTS:1DIF:EasyOBJ:1-2

NAT:AACSBReflective

7.InJITmanufacturing,eachoperationproduces

a.onlywhatisnecessaryforthesucceedingoperations.

b.allthatitcantooffsetfixedcosts.

c.afixedpercentageinexcessoforderstoensureadequatequalitystock.

d.allthatitcaninordertobuildinventories.

ANS:APTS:1DIF:MediumOBJ:1-2

NAT:AACSBReflective

8.WhichofthefollowingactivitiesisNOTassociatedwithstrategicanalysisandnewproduct

development?

a.life-cyclecosting

b.targetcosting

c.activity-basedmanagement

d.performancereports

ANS:DPTS:1DIF:MediumOBJ:1-2

NAT:AACSBReflective

9.Apersoninastaffposition

a.isdirectlyinvolvedinproduction.

b.providessupportfbrthelinefunction.

c.isnotactuallyanemployeeofthecompany.

d.allofthese.

ANS:BPTS:1DIF:EasyOBJ:1-3

NAT:AACSBReflective

10.Thechiefaccountingofficerofanorganizationisthe

a.vicepresidentoffinance.

b.internalauditor.

c.treasurer.

d.controller.

ANS:DPTS:1DIF:EasyOBJ:1-3

NAT:AACSBReflective

11.Thesettingofobjectivesandtheidentificationofmethodstoachievethoseobjectivesiscalled

a.planning.

b.controlling.

c.performanceevaluation.

d.decisionmaking.

ANS:APTS:1DIF:EasyOBJ:1-3

NAT:AACSBReflective

12.Principlesofpersonalethicalbehaviorinclude

a.integrity.

b.respectforothers.

c.fairness.

d.allofthese.

ANS:DPTS:1DIF:EasyOBJ:1-4

NAT:AACSBEthics

13.Thestandardsofethicalconductformanagementaccountantsinclude

a.competenceandperformance.

b.integrityandrespectfbrothers.

c.confidentiality,confidence,integrity,andobservance.

d^competence,^onfidentiality,integrity,andcredibility.

ANS:DPTS:1DIF:EasyOBJ:1-4

NAT:AACSBEthics

14.PersonsintheUnitedStateswhoprovideassuranceservicesared