Examen 1 de Cost Accounting – Flashcards
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The primary user of management accounting information is a(n) ________.
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the controller
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Financial accounting provides the primary source of information for ________.
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preparing the income statement for shareholders
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Which of the following is true of management accounting information?
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It co-ordinates product design, production, and marketing decisions.
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Which of the following statements refers to management accounting information?
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There are no regulations governing the reports.
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Which of the following groups would be least likely to receive detailed management accounting reports?
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stockholders
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Management accounting information typically includes ________
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All of these answers are correct.
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Cost accounting ________.
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measures the costs of acquiring or using resources in an organization
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Which of the following differentiates cost accounting and financial accounting?
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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.
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Which of the following is true of financial accounting information?
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It focuses on the past-oriented financial performance of a company.
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A data warehouse or infobarn ________.
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stores information used by different managers for multiple purposes
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Which of the following is true of cost accounting?
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It provides financial information regarding the cost of acquiring resources.
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Which of the following deals with management accounting?
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developing budgets
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Financial accounting is concerned primarily with ________.
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external reporting to investors, creditors, and government authorities
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Financial accounting provides a historical perspective, whereas management accounting emphasizes ________.
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the future
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An Enterprise Resource Planning System can best be described as ________.
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a single database that collects data and feeds it into applications that support each of the company's business activities, such as purchases, production, distribution, and sales
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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 ________.
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cost management
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Which of the following statements concerning an organization's strategy is true?
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Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives.
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Strategy specifies ________.
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how an organization matches its own capabilities with the opportunities in the marketplace
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Which of the following is not a concern for management accountants in formulating a strategy?
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strategizing compliance with GAAP (Generally Accepted Accounting Principles)
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Strategy is formulated ________.
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by identifying the most important customers
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In designing strategy, a company must match its opportunities in the marketplace with ________.
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its resources and capabilities
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Which of the following statements about customer value is true?
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Creating value for customers is an important part of planning and implementing strategy.
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Place the four business functions in the order they appear along the value chain:
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Design, Production, Marketing, Customer Service
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R&D, production, and customer service are business functions that are all included as part of ________.
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the value chain The value chain is the sequence of business functions in which ________. usefulness is added to the products or services of an organization
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________ is the generation of, and experimentation with, ideas related to new products, services, or processes.
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Research and development
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_______ is the detailed planning and engineering and testing of products, services, or processes.
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Design
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Production is the ________.
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acquisition, coordination, and assembly of resources to produce a product or deliver a service
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Marketing is the ________.
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the manner by which companies promote and sell their products or services to customers or perspective customers
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Which of the following differentiates marketing from customer service?
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Marketing is the process of promoting and selling products or services to customers or prospective customers, whereas customer service is the process of providing after-sales service to customers.
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________ is an after-sale support provided to customers.
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Customer service
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________ is a strategy that integrates people and technology in all business functions to enhance relationships with customers, partners, and distributors.
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Customer relationship management
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Customer relationship management initiatives use technology to coordinate all ________.
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customer-facing activities
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________ describes the flow of goods, services, and information from the purchase of materials to the delivery of products to consumers, regardless of whether those activities occur in the same organization or with other organizations.
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Supply chain
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Processing orders and shipping products or providing services to customers is known as ________.
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distribution
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________ is a philosophy in which management improves operations throughout the value chain to deliver products and services that exceed customer expectations.
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Total quality management
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Which of the following is an area that customers want to see improved levels of performance?
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quality of the product
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Which of the following statements about a company's supply chain is true?
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Management accountants provide information to enhance a company's supply chain.
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Management accounting information helps managers calculate a target cost for a product ________.
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by subtracting from the target price the operating income per unit of product that the company wants to earn
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The ________ function supports the six functions of value-chain analysis.
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controlling
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________ aims to improve operations throughout the value chain and to deliver products and services that exceed customer expectations.
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Total Quality Management
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New-product development time is the time taken by companies to ________.
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create new products and bring them to market
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Customer response time involves ________.
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the speed at which an organization responds to customer requests
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Which of the following is true of sustainability?
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It helps the development and implementation of strategies to achieve long-term financial, social, and environmental goals.
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1) Place the five steps in the decision-making process in the correct order:A = Obtain information B = Make decisions by choosing among alternatives C = Identify the problem and uncertainties D = Implement the decision, evaluate performance, and learn E = Make predictions about the future
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C A E B D
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Which of the following is true of planning in decision making?
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It helps an organization to select goals and strategies.
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The most important planning tool is a ________.
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budget
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A report showing the actual financial results for a period compared to the budgeted financial results for that same period would most likely be called a ________.
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performance report
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A budget ________.
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is an aid to coordinating what needs to be done to execute a plan
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Which of the following is true of planning?
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It makes predictions about the future.
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A budget serves as much as a control tool as a planning tool because ________
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it is a benchmark against which actual performance can be compared
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Which of the following is an example of an extrinsic reward?
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promotions based on performance
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Which of the following is an example of an intrinsic reward?
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recognition of job well done
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Linking rewards to performance ________.
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helps to motivate managers
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Control measures should ________.
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be linked by feedback to help future planning
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A well-conceived plan allows managers the ability to ________.
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take advantage of unforeseen opportunities
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Which of the following statements is true of performance reports?
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The performance report shows actual performance as compared to the budget.
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Management accounting is considered most likely to be successful when it ________.
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is timely
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Which of the following is a guideline used by management accountants to assist in strategic and operational decision making?
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employing a cost-benefit approach
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The scenario that resources should be spent if the expected benefits to the company exceed the expected costs describes ________.
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cost-benefit approach
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Which of the following is true of a budgeting system?
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It compels managers to plan ahead.
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In a cost-benefit approach, managers should spend resources if the ________.
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expected benefits to the company exceed the expected costs
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Technical consideration ________.
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help managers make wise economic decisions by providing them with the desired information
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Which of the following statements about the cost-benefit approach is true?
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In a cost-benefit analysis, both costs and benefits are not easy to measure.
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Which of the following is true of line management?
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It is directly responsible for achieving the goals of the organization.
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Which of the following is true of staff management?
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It provides advice, support, and assistance to line management.
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________ includes providing financial information for reports to managers and shareholders, and overseeing the overall operations of the accounting system.
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Controllership
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________ includes banking and short- and long-term financing, investments, and cash management.
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Treasury management
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Line management includes ________
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distribution managers
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Staff management includes ________.
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management accountants
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Which of the following is a responsibility of the CFO?
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managing short-term and long-term financing
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The ________ is primarily responsible for management accounting and financial accounting.
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controller
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Which of the following reports to the CFO?
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treasurer
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Which of the following is a function of a controller?
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operations administration
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Long-term financing is an integral part of the ________ function in an organization.
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CFO's
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Which of the following issues is addressed by the Sarbanes-Oxley legislation?
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disclosure practices of public corporations
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The Standards of Ethical Conduct for management accountants include concepts related to ________.
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competence, confidentiality, integrity, and credibility
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Which item is an indication of competence under the Standards of Ethical Conduct?
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Maintain an appropriate level of professional expertise by continually developing knowledge and skills.
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Which of the following differentiates confidentiality and credibility under the Standards of Ethical Conduct?
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Confidentiality deals with refraining from the usage of critical information for unethical or illegal advantage, while credibility ensures disclosing the relevant information that would help the intended user's understanding.
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Which item is an indication of integrity under the Standards of Ethical Conduct?
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Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
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Which item is an indication of credibility under the Standards of Ethical Conduct?
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Disclose delays or deficiencies in information, timeliness, processing, or internal controls in
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Ethical challenges for management accountants include ________.
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whether to accept gifts from suppliers, knowing it is an effort to indirectly influence decisions
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Which of the following actions should a management accountant take first in confronting a potential ethical conflict concerning your direct supervisor?
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Follow the organization's procedures concerning resolution of such a conflict.
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If there is an ethical conflict concerning your direct supervisor, you may contact ________.
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board of directors
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If there is an ethical conflict concerning your direct supervisor, when is it appropriate to contact authorities or individuals not employed by the organization?
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when there is a clear violation of the law
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