Ch01_Guan CM_AISE TB - Chapter 1Introduction to Cost...

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Chapter 1—Introduction to Cost Management MULTIPLE CHOICE 1. _______________ is devoted to providing information for external users. a. Management accounting b. Financial accounting c. Internal accounting d. Cost accounting ANS: B PTS: 1 OBJ: 1-1 2. Financial accounting is primarily concerned with providing financial reports to all of the following EXCEPT a. creditors such as banks and other financial institutions. b. creditors such as suppliers. c. stockholders of the company. d. management of the firm. ANS: D PTS: 1 OBJ: 1-1 3. Which of the following is NOT part of the financial accounting information system? a. filing reports with the SEC. b. reporting a large contingent liability to current and potential shareholders. c. determining the future cashflows of a proposed flexible manufacturing system. d. preparing GAAP financial statements. ANS: C PTS: 1 OBJ: 1-1 4. Which of the following does NOT describe management accounting? a. evaluation of segments or products within the firm b. emphasis on the future c. externally focused d. focus on effective use of resources ANS: C PTS: 1 OBJ: 1-1 5. Which of the following is NOT a process associated with an accounting information system? a. auditing existing data b. collecting and recording data c. providing information to users d. analyzing and managing data ANS: A PTS: 1 OBJ: 1-1 6. Costing of products and services is an objective of a company’s: a. Cost management system b. EDI system c. Financial accounting system d. all of the above ANS: A PTS: 1 OBJ: 1-1 7. Financial accounting information is used for: This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher.
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a. investment decisions b. regulatory measures c. stewardship evaluation d. all of the above ANS: D PTS: 1 OBJ: 1-1 8. The cost accounting system is designed to: a. provide information for external users b. provide accurate and timely feedback c. assign costs to individual products and services d. all of the above ANS: C PTS: 1 OBJ: 1-1 9. The operational control system is concerned with: a. investment decisions b. what activities should be performed and assessing how well they are performed c. consumption of productive resources by individual products d. none of the above ANS: B PTS: 1 OBJ: 1-1 10. Which of the following is NOT an objective of the cost management system? a. Decision making b. Costing of products, services, and other objects of interest to management c. Stewardship evaluation d. Planning and control ANS: C PTS: 1 OBJ: 1-1 11. An example of a managerial decision that would require cost information is: a. make a component internally or buy it from a supplier b. accept a special order for a product c. discontinuation of a product line d. all of the above ANS: D PTS: 1 OBJ: 1-1 12. Management accounting reports are prepared a. to meet the needs of decision makers within the firm. b.
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Ch01_Guan CM_AISE TB - Chapter 1Introduction to Cost...

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