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Cost Accounting: A Managerial Emphasis - Cdn. Ed., 9e (Horngren)
Chapter 1 The Accountant's Vital Role in Decision Making
1 Explain how management accounting data are essential to the process of rational operating
and strategic decision making.
1) Management accounting is guided by generally accepted accounting principles.
Answer: FALSE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
2) Managerial accounting and cost accounting both measure and report financial and non-
financial information relating to the cost of acquiring or utilizing resources.
Answer: TRUE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
3) Cost accounting provides information for both management and financial accounting.
Answer: TRUE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
4) Management accountants are required to follow the generally accepted accounting
principles that are used for external financial reporting when preparing reports for internal
users.
Answer: FALSE
Diff: 2 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
1
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,Full download please contact or qidiantiku.com
5) Managers typically receive reports on cost planning and controls that should be
considered for internal use only.
Answer: TRUE
Diff: 2 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
6) There are three (3) basic business strategies: low cost, premium products, and customer
satisfaction.
Answer: FALSE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
7) Companies with a strategy of low prices compete on their ability to offer unique new
products or services that are priced higher than their competition.
Answer: FALSE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
8) Cost management involves long-term and short-term decisions that attempt to increase
value for customers and lower costs of products or services.
Answer: TRUE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
2
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,Full download please contact or qidiantiku.com
9) The key to a company's success is always to be the low cost producer in a particular
industry.
Answer: FALSE
Explanation: The low cost producer in a particular industry will not necessarily be
successful.
Diff: 2 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Understanding
Objective: LO 1-1
10) 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
Diff: 2 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
11) The Global Reporting Initiative (GRI) is a nonprofit organization established to develop
guidelines so that reporting on economic, environmental and social performance by all
organizations is as routine and comparable as financial reporting.
Answer: TRUE
Diff: 2 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
12) Corporate social responsibility is now mandatory for all publicly traded companies in
Canada.
Answer: FALSE
Explanation: Corporate social responsibility (CSR) is the voluntary integration of social
and environmental concerns into business decisions.
Diff: 2 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
3
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, Full download please contact or qidiantiku.com
13) In what way do managers benefit from the use of a management information system?
A) Data can be entered at numerous input terminals within the organization.
B) The managers would not be completely responsible for the information that is entered
into the database system.
C) The managers could combine or adjust data to answer the questions from particular
internal and external users.
D) The managers do not benefit, as the information requires technical expertise to retrieve.
E) Managers can store old documents in hard copy.
Answer: C
Diff: 2 Type: MC
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Understanding
Objective: LO 1-1
14) Financial accounting is concerned primarily with
A) cost planning and cost controls.
B) external reporting to investors, government authorities, etc.
C) profitability analysis.
D) providing information for strategic and tactical decisions.
E) providing analysis to facilitate long term decision making.
Answer: B
Diff: 1 Type: MC
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
15) The text identifies six ways to classify the major differences between management and
financial accounting. The "managers of the organization" is an example of which of the
following classes of differences?
A) purpose of information
B) primary users
C) focus and emphasis
D) rules of measurement and reporting
E) time span and type of reports
Answer: B
Diff: 1 Type: MC
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
4
Full download please contact or qidiantiku.com
Cost Accounting: A Managerial Emphasis - Cdn. Ed., 9e (Horngren)
Chapter 1 The Accountant's Vital Role in Decision Making
1 Explain how management accounting data are essential to the process of rational operating
and strategic decision making.
1) Management accounting is guided by generally accepted accounting principles.
Answer: FALSE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
2) Managerial accounting and cost accounting both measure and report financial and non-
financial information relating to the cost of acquiring or utilizing resources.
Answer: TRUE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
3) Cost accounting provides information for both management and financial accounting.
Answer: TRUE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
4) Management accountants are required to follow the generally accepted accounting
principles that are used for external financial reporting when preparing reports for internal
users.
Answer: FALSE
Diff: 2 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
1
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,Full download please contact or qidiantiku.com
5) Managers typically receive reports on cost planning and controls that should be
considered for internal use only.
Answer: TRUE
Diff: 2 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
6) There are three (3) basic business strategies: low cost, premium products, and customer
satisfaction.
Answer: FALSE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
7) Companies with a strategy of low prices compete on their ability to offer unique new
products or services that are priced higher than their competition.
Answer: FALSE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
8) Cost management involves long-term and short-term decisions that attempt to increase
value for customers and lower costs of products or services.
Answer: TRUE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
2
Full download please contact or qidiantiku.com
,Full download please contact or qidiantiku.com
9) The key to a company's success is always to be the low cost producer in a particular
industry.
Answer: FALSE
Explanation: The low cost producer in a particular industry will not necessarily be
successful.
Diff: 2 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Understanding
Objective: LO 1-1
10) 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
Diff: 2 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
11) The Global Reporting Initiative (GRI) is a nonprofit organization established to develop
guidelines so that reporting on economic, environmental and social performance by all
organizations is as routine and comparable as financial reporting.
Answer: TRUE
Diff: 2 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
12) Corporate social responsibility is now mandatory for all publicly traded companies in
Canada.
Answer: FALSE
Explanation: Corporate social responsibility (CSR) is the voluntary integration of social
and environmental concerns into business decisions.
Diff: 2 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
3
Full download please contact or qidiantiku.com
, Full download please contact or qidiantiku.com
13) In what way do managers benefit from the use of a management information system?
A) Data can be entered at numerous input terminals within the organization.
B) The managers would not be completely responsible for the information that is entered
into the database system.
C) The managers could combine or adjust data to answer the questions from particular
internal and external users.
D) The managers do not benefit, as the information requires technical expertise to retrieve.
E) Managers can store old documents in hard copy.
Answer: C
Diff: 2 Type: MC
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Understanding
Objective: LO 1-1
14) Financial accounting is concerned primarily with
A) cost planning and cost controls.
B) external reporting to investors, government authorities, etc.
C) profitability analysis.
D) providing information for strategic and tactical decisions.
E) providing analysis to facilitate long term decision making.
Answer: B
Diff: 1 Type: MC
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
15) The text identifies six ways to classify the major differences between management and
financial accounting. The "managers of the organization" is an example of which of the
following classes of differences?
A) purpose of information
B) primary users
C) focus and emphasis
D) rules of measurement and reporting
E) time span and type of reports
Answer: B
Diff: 1 Type: MC
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization,
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
4
Full download please contact or qidiantiku.com
