Horngren’s Cost Accounting A Managerial Emphasis 17th Global Edition by Srikant M. Datar test bank

Answer:  A
Diff: 1
Objective:  1
AACSB:  Analytical thinking
 
12) Which of the following differentiates cost accounting and financial accounting?
A) The primary users of cost accounting are the investors, whereas the primary users of financial accounting are the managers.
B) Cost accounting deals with product design, production, and marketing strategies, whereas financial accounting deals mainly with pricing of the products.
C) Cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization, whereas financial accounting measures financial and nonfinancial information of a company's business transactions.
D) Cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties.
Answer:  D
Diff: 2
Objective:  1
AACSB:  Analytical thinking
 
13) Which of the following is true of financial accounting information?
A) It is prepared based on cost-benefit analysis.
B) It is primarily used by managers to make internal business decisions.
C) It focuses on the past-oriented financial performance of a company.
D) It only measures the cash transactions of a company.
Answer:  C
Diff: 2
Objective:  1
AACSB:  Analytical thinking
 

 
14) The acronym of a central database system that provides inputs to modules and applications that support activities such planning, purchasing, production, distribution, and sales is called:
A) ABC
B) CRM
C) ERP
D) VAT
Answer:  C
Diff: 1
Objective:  1
AACSB:  Analytical thinking
 
15) Which of the following is true of cost accounting?
A) It is a subset of management accounting and therefore its information is used only to meet the needs of managers.
B) It is used only by manufacturers.
C) It is part of both management and financial accounting systems.
D) The distinction between management accounting and cost accounting is clear-cut.
Answer:  C
Diff: 2
Objective:  1
AACSB:  Analytical thinking
 
16) Which of the following deals with management accounting?
A) identifying the costs of acquiring the resources of the company
B) developing budgets
C) preparing the income statement
D) preparing the statement of cash flows
Answer:  B
Diff: 1
Objective:  1
AACSB:  Analytical thinking
 
17) Financial accounting is concerned primarily with:
A) external reporting to investors, creditors, and government authorities
B) cost planning and cost controls
C) product design and marketing strategies
D) providing information for strategic and tactical decisions
Answer:  A
Diff: 1
Objective:  1
AACSB:  Analytical thinking
 

 
18) Financial accounting provides a historical perspective, whereas management accounting emphasizes:
A) the future
B) past transactions
C) a current perspective
D) reports to shareholders
Answer:  A
Diff: 1
Objective:  1
AACSB:  Analytical thinking
 
19) Rules for measurement and reporting for management accounting:
A) state that information must only be useful to management
B) do not need to follow GAAP but must meet the cost-benefit test
C) must follow GAAP
D) must follow GAAP, IRS rules or government standards
Answer:  B
Diff: 2
Objective:  1
AACSB:  Analytical thinking
 
20) The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as:
A) value chain management
B) enterprise resource planning
C) cost management
D) customer value management
Answer:  C
Diff: 1
Objective:  1
AACSB:  Analytical thinking
 
21) Financial accounting information focuses on internal reporting.
Answer:  FALSE
Explanation:  Management accounting information focuses on internal reporting and financial accounting focuses on external reporting.
Diff: 1
Objective:  1
AACSB:  Analytical thinking
 
22) Cost accounting provides information for both management accounting and financial accounting professionals.
Answer:  TRUE
Diff: 2
Objective:  1
AACSB:  Analytical thinking
 

 
23) Management accounting information and reports do not have to follow set principles or rules such as GAAP but should be useful to its audience and meet the cost/benefit test.