Cost Accounting A Managerial Emphasis 14th Edition By Horngren – Test Bank

ISBN-10: 0132109174 / 0-13-210917-4, ISBN-13: 9780132109178

Chapter 1 The Accountant’s Role in the Organization

 

Objective 1.1

 

1) Management accounting:

 

1. focuses on estimating future revenues, costs, and other measures to forecast activities and their results

 

1. provides information about the company as a whole
2. reports information that has occurred in the past that is verifiable and reliable
3. provides information that is generally available only on a quarterly or annual basis

Answer: A

 

Diff: 2

Terms: treasury

Objective: 1

AACSB: Reflective thinking

 

• Managers use management accounting information to ________ strategy. A) choose

 

1. B) communicate C) implement

 

1. D) All of these answers are correct. Answer: D

 

Diff: 1

Terms: total quality management (TQM)

Objective: 1

AACSB: Analytical skills

 

• Financial accounting:

1. focuses on the future and includes activities such as preparing next year’s operating budget
2. must comply with GAAP (generally accepted accounting principles)

 

1. reports include detailed information on the various operating segments of the business such as product lines or departments

 

1. is prepared for the use of department heads and other employees

 

Answer:  B

Diff: 2

Terms: financial accounting

Objective: 1

AACSB: Reflective thinking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Copyright © 2012 Pearson Education, Inc.

 

 

 

• The person most likely to use ONLY financial accounting information is a: A) factory shift supervisor

 

1. B) vice president of operations C) current shareholder

 

1. D) department manager Answer: C

 

Diff: 1

Terms: financial accounting

Objective: 1

AACSB: Analytical skills

 

• Which of the following people is LEAST likely to use management accounting information? A) the controller

 

1. B) a shareholder evaluating a stock investment C) the treasurer

 

1. D) an assembly department supervisor Answer: B

 

Diff: 1

Terms: treasury

Objective: 1

AACSB: Analytical skills