QUESTION GLOBAL ID: GCID-E7BW-1TBP-CTTU-Y3DF-GCHD-Q3DD-8Y41-4CUR-GRH1-43UR-GO4N-43UG-
GOHN-43JW-GAHU-1CTT-GIDI-GWN8-EPRW-EMMN-CRHD-ECUG-GITD-RA3A-
CASU-KCBU-8RSU-YCJS-GOSU-C3JZ-CCSS-NCB1-GEAS-NPJT-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
140. The certification sponsored by the Institute of Management Accountants that emphasizes economics, finance,
management, financial accounting and reporting, management reporting, and decision analysis is the
a. CPA
b. CMA
c. CIA
d. all of these
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.1-5 - LO: 01.05
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-07 - Cost Management
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:26 AM
DATE MODIFIED: 10/7/2016 9:26 AM
QUESTION ID: JFND-GO33-GINU-1C4N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-CTTU-Y3DF-GCHD-Q3DD-8Y41-4CUR-GRH1-43UR-GO4N-43UG-
GOHN-43JW-GAHU-1CTT-GIDI-GWN8-EPRW-EMJA-GFUD-NAUF-CW5G-CPTO-
GOSS-RQJW-CRSU-1CTO-GOSS-KCB1-GHSU-GCJU-GRAD-1QBS-E7JI-YT4D-JFNN-
Chapter 1
Copyright Cengage Learning. Powered by Cognero. Page 78
4OTI-GO4W-NQNBEE
141. Explain the relationship between the Cost Management System and the Financial Accounting System.
ANSWER: The cost management system is concerned with producing information for the company's
internal users and is designed to meet management objectives. A cost management system
has three broad objectives - to provide information on: costing of products and services,
planning and control activities, and decision making activities.
A financial accounting system is mainly concerned with producing information for the
company's external users. Financial accounting information is used for investment decisions,
stewardship evaluation, activity monitoring and regulatory measures. The rules that govern a
financial accounting system are defined by the Securities Exchange commission (SEC) and
the Financial Accounting Standards Board (FASB). Outputs of a financial accounting system
include the basic financial statements which include the income statement, balance sheet ,
and the statement of cash flows and the statement of owner's equity or the statement of
retained earnings.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.1-1 - LO: 01.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-07 - Cost Management
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 10 min.
DATE CREATED: 10/7/2016 9:26 AM
DATE MODIFIED: 1/2/2017 3:06 AM
QUESTION ID: JFND-GO33-GINU-1C4B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-CTTU-Y3DF-GCHD-Q3DD-8Y41-4CUR-GRH1-43UR-GO4N-43UG-
GOHN-43JW-GAHU-1CTT-GIDI-GWN8-EPRW-EMJW-GE4U-GPJZ-CO4S-N3TS-GASU-
QA3A-CRSS-KAUF-GOSU-NPTS-GASU-CPMN-CRHS-RAJW-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
142. Describe the two major subsystems of the Cost Management System and briefly summarize their importance.
ANSWER: A cost management system consists of two major sub-systems: a cost accounting system and
an operational control system. The cost accounting system is designed to assign costs to
individual products or services. A cost accounting system must assign costs in order to value
inventory and determine the cost of goods sold.
The operational control system is designed to provide accurate timely feedback concerning
performance of managers and others. Operational control is also designed to evaluate
activities that should be performed and how well they are performed. The operational control
system should be designed to provide opportunities for continuous quality improvement.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
Chapter 1
Copyright Cengage Learning. Powered by Cognero. Page 79
LEARNING OBJECTIVES: COCM.HANS.18.1-1 - LO: 01.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-08 - Information Management
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 10 min.
DATE CREATED: 10/7/2016 9:26 AM
DATE MODIFIED: 1/17/2017 7:30 AM
QUESTION ID: JFND-GO33-GINU-1C33