Chapter 1 - 3 test 9-29-2016 (2).doc

Chapter 1 - 3 test 9-29-2016 (2).doc - Chapter...

This preview shows 1 out of 2 pages.

Chapter 1—Introduction to Cost Accounting MULTIPLE CHOICE 1. 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 2. 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. 3. 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 4. Which of the following statements is true? 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. 5. 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. 6. 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. 7. 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.
Image of page 1

Subscribe to view the full document.

Image of page 2
You've reached the end of this preview.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern