Exam (elaborations)
Fundamentals of Cost Accounting 7th Edition Lanen Test Bank
- Course
- Business
- Institution
- Accounting
Fundamentals of Cost Accounting 7th Edition Lanen Test Bank
[Show more]
Seller
Follow
Content preview
TEST BANK FUNDAMENTALS OFCOST ACCOUNTING 7TH
EDITION LANEN
,Student name:__________
1) The value chain comprises activities from research and development through the production
process but does not include activities related to the distribution of products or services.
⊚ true
⊚ false
2) Administrative functions are not included as part of the value chain because they are
implicitly included in every business function.
⊚ true
⊚ false
3) Under the value chain concept, value-added activities are those that firms perform and that
customers perceive as adding utility to the goods they purchase.
⊚ true
⊚ false
4) The value chain is comprised of the activities that take place only during the production
process.
⊚ true
⊚ false
5) If a poor facility layout exists and work-in-process inventory must be moved during the
production process, the company is likely to be performing some nonvalue-added activities.
⊚ true
⊚ false
6) Cost information is a product with its own customers.
⊚ true
⊚ false
,7) Financial accounting information is always sufficient for making operational decisions.
⊚ true
⊚ false
8) Cost accounting information is commonly used in developing financial accounting
information.
⊚ true
⊚ false
9) Financial accounting information is designed for decision makers who are directly involved
in the daily management of the firm.
⊚ true
⊚ false
10) It is more important for financial accounting information to be comparable between firms
than to be useful for managerial decision making.
⊚ true
⊚ false
11) Cost accounting information developed for managers to use in making decisions must
comply with generally accepted accounting principles (GAAP) and international financial
reporting standards (IFRS).
⊚ true
⊚ false
12) A cost driver is a factor that causes costs.
⊚ true
⊚ false
13) A cost can be considered a differential cost for one particular course of action but not for
another course of action.
⊚ true
⊚ false
, 14) A responsibility center can be a department, division, or segment, but not a subsidiary of the
parent company.
⊚ true
⊚ false
15) It is important that the manager assigned to lead a responsibility center be held accountable
for its operations.
⊚ true
⊚ false
16) Budgeting is primarily used to determine year-end bonuses based on managerial and
organizational performance.
⊚ true
⊚ false
17) Managers are usually responsible for the revenues needed to achieve the targets set during
the budgeting process, but not the resources consumed to achieve those targets.
⊚ true
⊚ false
18) In general, if activities that do not add value to the company can be eliminated, then costs
associated with them will also be eliminated.
⊚ true
⊚ false
19) Accounting systems are important because they are a primary source of information for
managers.
⊚ true
⊚ false
20) Critical thinking is a systematic process used to analyze a business issue or decision.
⊚ true
⊚ false
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller senje. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
64257 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 15 years now