1
Horngrens Cost Accounting A Managerial Emphasis 8th
Canadian Edition Datar Test Bank
Cost Accounting: A Managerial Emphasis – Cdn. Ed., 8e (Horngren)
Chapter 1 The Accountant’s Vital Role in Decision Making
Explain how management accounting data are essential to the process of rational operating
and strategic decision making.
Management accounting is guided by generally accepted accounting principles.
Answer: FALSE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 –
Evaluates management information requirements,
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
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 –
Evaluates management information requirements,
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
Cost accounting provides information for both management and financial accounting.
Answer: TRUE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 –
Evaluates management information requirements,
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
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 –
Evaluates management information requirements,
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<\/p>\n\n\n\n
2
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 –
Evaluates management information requirements,
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
There are three (3) basic business strategies: low cost, premium products, and customer satisfaction.
Answer: FALSE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 –
Evaluates management information requirements,
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
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 –
Evaluates management information requirements,
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
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 –
Evaluates management information requirements,
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<\/p>\n\n\n\n
3
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 –
Evaluates management information requirements,
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
Companies generally follow one of two basic strategies: 1) providing a quality product or service atlow
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 –
Evaluates management information requirements,
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
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 –
Evaluates management information requirements,
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
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 –
Evaluates management information requirements,
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<\/p>\n\n\n\n
4
In what way do managers benefit from the use of a management information system?
Data can be entered at numerous input terminals within the organization.
The managers would not be completely responsible for the information that is entered into the
database system.
The managers could combine or adjust data to answer the questions from particular internal and
external users.
The managers do not benefit, as the information requires technical expertise to retrieve.
Managers can store old documents in hard copy.
Answer: C
Diff: 2 Type: MC
CPA Competencies: Chapter 1 –
Evaluates management information requirements,
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
Financial accounting is concerned primarily with
cost planning and cost controls.
external reporting to investors, government authorities, etc.
profitability analysis.
providing information for strategic and tactical decisions.
providing analysis to facilitate long term decision making.
Answer: B
Diff: 1 Type: MC
CPA Competencies: Chapter 1 –
Evaluates management information requirements,
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
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?
purpose of information
primary users
focus and emphasis
rules of measurement and reporting
time span and type of reports
Answer: B
Diff: 1 Type: MC
CPA Competencies: Chapter 1 –
Evaluates management information requirements,
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<\/p>\n","protected":false},"excerpt":{"rendered":"
1Horngrens Cost Accounting A Managerial Emphasis 8thCanadian Edition Datar Test BankCost Accounting: A Managerial Emphasis – Cdn. Ed., 8e (Horngren)Chapter 1 The Accountant’s Vital Role in Decision MakingExplain how management accounting data are essential to the process of rational operatingand strategic decision making.Management accounting is guided by generally accepted accounting principles.Answer: FALSEDiff: 1 Type: TFCPA […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-115518","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/115518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=115518"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/115518\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=115518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=115518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=115518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}