THE ACCOUNTANT�S ROLE IN THE

THE ACCOUNTANT�S ROLE IN THE - CHAPTER 1 THE...

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CHAPTER 1 THE ACCOUNTANT’S ROLE IN THE ORGANIZATION TRUE/FALSE 1. Management accounting information focuses on external reporting. Answer: True/False 2. A good cost accounting system is narrowly focused on a continuous reduction of costs. Answer: True/False 3. Modern cost accounting plays a significant role in management decision making. Answer: True/False 4. Financial accounting is broader in scope than management accounting. Answer: True/False 5. Cost accounting measures and reports short-term, long-term, financial, and nonfinancial information. Answer: True/False 6. Cost accounting provides information only for management accounting purposes. Answer: True/False 7. The key to a company’s success is always to be the low cost producer in a particular industry. Answer: True/False 8. Companies generally follow one of two basic strategies: 1) providing a quality product or service at low prices, or 2) offering a unique product or service often priced higher than competing products. Answer: True/False 1-1
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9. The supply chain refers to the sequence of business functions in which customer usefulness is added to products or services. Answer: True/False 10. An effective way to cut costs is to eliminate activities that do not improve the product attributes that customers value. Answer: True/False 11. For optimal planning success it is best if each business function within the value chain is performed one at a time in sequence. Answer: True/False 12. For best results, cost management emphasizes independently coordinating supply chain activities within your company and not interfering with other companies. Answer: True/False 13. Value chain refers to its value to the employee. Answer: True/False 14. Tracking what is happening in other companies is illegal. Answer: True/False 15. A bottleneck occurs when the work to be performed exceeds the available capacity. Answer: True/False 16. To take advantage of changing market opportunities, the annual budget should be strictly enforced. Answer: True/False 17. Financial accounting reports financial and nonfinancial information that helps managers implement company strategies. 1-2
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Answer: True/False 18. Attention-directing activities should focus on cost-reduction opportunities, and not on valued-adding opportunities. Answer: True/False 19. For strategic decisions, scorekeeping is the most prominent role played by management accounting. Answer: True/False 20. It is generally easy to quantify expected benefits and costs when applying the cost-benefit approach. Answer: True/False 21. The purpose of a budget is strictly technical. It does not influence behavior. Answer: True/False 22. Generally accepted accounting principles (GAAP) require that the same accounting methods be used for both internal and external reporting. Answer:
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This note was uploaded on 03/08/2012 for the course ACC 4304 taught by Professor Ralultapia during the Spring '10 term at Texas State.

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THE ACCOUNTANT�S ROLE IN THE - CHAPTER 1 THE...

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