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Test Bank for Horngren's Cost Accounting A Managerial Emphasis, 9th Canadian Edition, 9e Srikant Datar, Madhav Rajan, Louis Beaubien, Steve Janz
Cost Accounting: A Managerial Emphasis - Cdn. Ed., 9e (Datar)
Chapter 1 The Accountant's Vital Role in Decision Making
1.1 Explain how management accounting data are essential to the process of rational operating and strategic decision making.
1) Cost accounting is guided by generally accepted accounting principles.
Answer: FALSE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 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
2) Managerial accounting and financial accounting both measure and report financial and non-financial information related to the cost of acquiring or utilizing resources.
Answer: FALSE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 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
3) Cost accounting provides information only for financial accounting.
Answer: FALSE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 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
4) Financial accountants are required to follow the generally accepted accounting principles that are used for external financial reporting when preparing reports for internal users.
Answer: TRUE
Diff: 2 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 Evaluates the types of information systems used and the role they play in an organization, 1 / 4
3.1.4 Identifies ethical and privacy issues related to information technology
Skill: Remembering
Objective: LO 1-1
- / 4
5) Managers typically receive reports on cost planning and controls that should be considered for external use only.
Answer: FALSE
Diff: 2 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 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
6) There are three (3) basic business strategies: low cost, premium products, and customer satisfaction.
Answer: FALSE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 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
7) 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 -
3.1.1 Evaluates management information requirements,
3.1.2 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
8) Cost management only involves short-term decisions that attempt to increase value for customers and lower the costs of products or services.
Answer: FALSE
Diff: 1 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 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
- / 4
9) 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 -
3.1.1 Evaluates management information requirements,
3.1.2 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
10) Companies generally follow one strategy: providing a quality product or service at low prices.
Answer: FALSE
Diff: 2 Type: TF
CPA Competencies: Chapter 1 -
3.1.1 Evaluates management information requirements,
3.1.2 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
11) 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 -
3.1.1 Evaluates management information requirements,
3.1.2 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
12) 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 -
3.1.1 Evaluates management information requirements,
3.1.2 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
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