361-Chapter-1-MC-Solutions

Chapter1—IntroductiontoCostAccountingMULTIPLECHOICE1.Incomparingfinancialandmanagementaccounting,whichofthefollowingmoreaccuratelydescribesmanagementaccountinginformation?a.historical,precise,usefulb.required,estimated,internalc.budgeted,informative,adaptabled.comparable,verifiable,monetaryANS:CPTS:1DIF:EasyOBJ:1-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting2.Managementandfinancialaccountingareusedforwhichofthefollowingpurposes?ManagementaccountingFinancialaccountinga.internalexternalb.externalinternalc.internalinternald.externalexternalANS:APTS:1DIF:EasyOBJ:1-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting3.Onemajordifferencebetweenfinancialandmanagementaccountingisthata.financialaccountingreportsarepreparedprimarilyforusersexternaltothecompany.b.managementaccountingisnotunderthejurisdictionoftheSecuritiesandExchangeCommission.c.governmentregulationsdonotapplytomanagementaccounting.d.alloftheabovearetrue.ANS:DPTS:1DIF:EasyOBJ:1-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting4.Whichofthefollowingstatementsaboutmanagementorfinancialaccountingisfalse?a.FinancialaccountingmustfollowGAAP.b.Managementaccountingisnotsubjecttoregulatoryreportingstandards.c.Bothmanagementandfinancialaccountingaresubjecttomandatoryrecordkeepingrequirements.d.Managementaccountingshouldbeflexible.ANS:CPTS:1DIF:EasyOBJ:1-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,ReportingChapter125.Managementaccountinga.ismoreconcernedwiththefuturethanisfinancialaccounting.b.islessconcernedwithsegmentsofacompanythanisfinancialaccounting.c.ismoreconstrainedbyrulesandregulationsthanisfinancialaccounting.d.alloftheabovearetrue.ANS:APTS:1DIF:EasyOBJ:1-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting6.Modernmanagementaccountingcanbecharacterizedbyitsa.flexibility.b.standardization.c.complexity.d.precision.ANS:APTS:1DIF:EasyOBJ:1-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting7.Whichofthefollowingisnotavalidmethodfordeterminingproductcost?a.arbitraryassignmentb.directmeasurementc.systematicallocationd.cost-benefitmeasurementANS:DPTS:1DIF:ModerateOBJ:1-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting8.Broadlyspeaking,costaccountingcanbedefinedasa(n)a.externalreportingsystemthatisbasedonactivity-basedcosts.b.systemusedforprovidingthegovernmentandcreditorswithinformationaboutacompany'sinternaloperations.c.internalreportingsystemthatprovidesproductcostingandotherinformationusedbymanagersinperformingtheirfunctions.d.internalreportingsystemneededbymanufacturerstobeincompliancewithCostAccountingStandardsBoardpronouncements.ANS:CPTS:1DIF:EasyOBJ:1-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting9.Costaccountingisdirectedtowardtheneedsofa.regulatoryagencies.b.externalusers.c.internalusers.d.stockholders.ANS:CPTS:1DIF:EasyOBJ:1-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,ReportingChapter1310.Costaccountingisnecessitatedbya.thehighdegreeofconversionfoundincertainbusinesses.b.externalreportingrequirementsformanufacturingcompanies.c.management'sneedtobeawareofallproductionactivities.d.management'sneedforinformationtobeusedforplanningandcontrollingactivities.ANS:APTS:1DIF:ModerateOBJ:1-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting11.Financialaccountinga.isprimarilyconcernedwithinternalreporting.b.ismoreconcernedwithverifiable,historicalinformationthaniscostaccounting.c.focusesonthepartsoftheorganizationratherthanthewhole.d.isspecificallydirectedatmanagementdecision-makingneeds.ANS:BPTS:1DIF:EasyOBJ:1-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting12.Financialaccountingandcostaccountingarebothhighlyconcernedwitha.preparingbudgets.b.determiningproductcost.c.providingmanagerswithinformationnecessaryforcontrolpurposes.d.determiningperformancestandards.ANS:BPTS:1DIF:EasyOBJ:1-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting13.Whichofthefollowingtopicsisofmoreconcerntomanagementaccountingthantocostaccounting?a.generallyacceptedaccountingprinciplesb.inventoryvaluationc.costofgoodssoldvaluationd.impactofeconomicconditionsoncompanyoperationsANS:DPTS:1DIF:ModerateOBJ:1-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting14.Costandmanagementaccountinga.requireanentirelyseparategroupofaccountsthanfinancialaccountinguses.b.focussolelyondetermininghowmuchitcoststomanufactureaproductorprovideaservice.c.provideproduct/servicecostinformationaswellasinformationforinternaldecisionmaking.d.arerequiredforbusinessrecordkeepingasarefinancialandtaxaccounting.ANS:CPTS:1DIF:EasyOBJ:1-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,ReportingChapter1415.Whichofthefollowingstatementsistrue?a.Managementaccountingisasubsetofcostaccounting.b.Costa