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CostAccounting-Chapter1 Quiz

This document contains a quiz on cost accounting concepts with multiple choice, true/false, and fill in the blank questions. The quiz covers topics such as users of accounting information, causes of pressure to reduce costs, the production process, strategic planning, budgets, and standards of ethical conduct for management accountants.

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accountant1025
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12K views5 pages

CostAccounting-Chapter1 Quiz

This document contains a quiz on cost accounting concepts with multiple choice, true/false, and fill in the blank questions. The quiz covers topics such as users of accounting information, causes of pressure to reduce costs, the production process, strategic planning, budgets, and standards of ethical conduct for management accountants.

Uploaded by

accountant1025
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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COST ACCOUNTING – Chapter I Quiz

I - Multiple Choices.

1. Which one of the following would be considered a user of management accounting


information?

a. Creditors
b. Controller
c. Suppliers
d. Stockholders

2. Which of the following would be considered an external user of the firm's accounting
information?

a. President
b. Controller
c. Stockholder
d. Sales Manager

3. Which of the following is a cause of the pressure on companies to continually attempt to


reduce costs?

a. Increased global competition


b. Government pressure
c. Ethical guidelines published by the Institute of Management Accountants
d. None of the above.

4. Acquiring, coordinating, and assembling resources to produce a product or deliver a service


is known as

a. research and development.


b. production.
c. marketing.
d. All of the above.

5. Which of the following is NOT normally considered part of a company's value chain?

a. Inspection
b. Research and development
c. Production
d. Marketing

6. Planning involves all of the following except for

a. implementing the decisions.


b. predicting results under various alternatives.
c. selecting organizations' goals.
d. communicating the goals to the organization.
7. The planning process and the control process are linked by

a. Budgets
b. Marketing
c. Feedback
d. Predictions

8. For strategic decisions and planning decisions, the role that is most prominent is the

a. problem-solving role
b. attention-directing role
c. scorekeeping role
d. implementation role

9. The chief financial officer is also known as the

a. staff accountant
b. auditor
c. finance director
d. controller

10. Which of the following Standards of Ethical Conduct for Management Accountants would a
management accountant violate if he or she went to a newspaper with a report of a possible
ethical violation at their company?

a. Objectivity
b. Confidentiality
c. Competence
d. Integrity

II. True or False

1. Management and financial accounting have the same goals.


2. Cost accounting provides information for only financial accounting purposes.
3. An Enterprise Resource Planning (ERP) system is a database that is used primarily by a
purchasing department.
4. A strategy specifies how an organization matches its own capabilities with opportunities in
the marketplace.
5. Customer value is of such importance to a firm that it appears on both the balance sheet and
the income statement.
6. The budget is the qualitative expression of the proposed management plan of action.
7. An example of the cost-benefit approach is that the resources should be spent if they will
better attain the company's goal in relation to the expected costs of those resources.
8. A performance report compares budgeted financial results to actual financial results in the
same period.
9. A budget is both a planning tool and a control tool.
10. A management accountant should review a company's internal procedures when faced with a
potential ethical conflict.
III. Fill in the Blanks.

1. ______ accounting systems provide information for management accounting and financial
accounting.

a. Cash
b. Cost
c. Budget
d. Accrual

2. An ideal database that consists of small, detailed bits of information that can be used for
multiple purposes is called a ______.

a. Budget
b. performance report
c. balance sheet
d. data warehouse

3. _____ specifies how an organization matches its own capabilities with the marketplace
opportunities to accomplish its objectives

a. Marketing
b. Feedback
c. Strategy
d. Budget

4. Managers match their knowledge of the ______ and ______ that exist in the industry with
the resources and capabilities of their company.

a. opportunities, strengths
b. strengths, threats
c. strengths, weaknesses
d. opportunities, threats

5. The control process involves taking actions that ______ the planning process decisions.

a. Predict
b. Implement
c. Select
d. Communicate

6. ______ involves accumulating data and reporting results to all management levels that
describe how the organization is doing.

a. Scorekeeping
b. Planning
c. Problem solving
d. Attention directing

7. A ______ compares actual results for a period with planned results for that same period.

a. performance report
b. budget
c. balance sheet
d. data warehouse
8. An important guideline in helping management accountants provide the most value when
problem solving is to recognize the ______ considerations as well as the technical
considerations.

a. Expense
b. Behavioral
c. Benefit
d. Cost

9. The ______ is responsible for the management and financial accounting information provided
for decision-making purposes.

a. Auditor
b. Treasurer
c. finance director
d. controller

10. An example of the characteristic of ______ would be to avoid actual or apparent conflicts of
interest.

a. Integrity
b. Objectivity
c. Competence
d. Confidentiality
ANSWERS.

I. Multiple Choices.

1. b. Controller
2. c. Stockholder
3. a. Increased global competition
4. b. production
5. a. Inspection
6. a. implementing the decisions.
7. c. Feedback
8. a. problem-solving role
9. c. finance director
10. b. Confidentiality

II. True or False

1. False. Management accounting and financial accounting have different goals.


2. False. Cost accounting provides information for management accounting in addition to
information for financial accounting.
3. False. An Enterprise Resource Planning (ERP) system is a single integrated planning system
used by many functional areas in an organization.
4. True. A strategy does show how an organization matches its own capabilities with
opportunities in the marketplace.'
5. False. Customer value is of extreme importance to a firm but does not appear on any
financial statement.
6. False. The budget is a QUANTITATIVE expression of the proposed management plan of
action.
7. True. The cost-benefit approach attempts to compare the costs of a decision to the benefits
of a decision.
8. True. A performance report compares budget to actual.
9. True. The budget is a proposed plan of action in financial terms. The budget is compared to
actual performance in order to control the firm.
10. True. A management accountant should always seek out company procedures to see what
is considered to be an ethical violation as well as to see what procedures the company
requires its employees to follow in the case of a possible ethical violation.

III. Fill in the blanks

1. b. Cost
2. d. data warehouse
3. c. Strategy
4. d. Opportunities, threats
5. b. Implement
6. a. Scorekeeping
7. a. performance report
8. b. Behavioral
9. d. controller
10. a. Integrity

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