TEST BANK FOR HORNGREN'S COST ACCOUNTING A Managerial Emphasis 16th Edition By Datar and Rajan

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) A budget can serve as: 1)
A) a control tool B) a planning and control tool
C) a basis for preparing financial statements D) a planning tool
Answer: B
Explanation: A)
B)
C)
D)
2) Which item is NOT an indication of confidentiality under the CIMA Code of Ethics? 2)
A) Refrain from using confidential information for unethical or illegal advantage.
B) Keep information confidential except when disclosure is authorised or legally required.
C) Inform all relevant parties regarding appropriate use of confidential information.
D) All of the above indicate confidentiality.
Answer: D
Explanation: A)
B)
C)
D)
3) ________ is an operational factor that directly affects the economic viability of the organisation. 3)
A) Customer focus B) Continuous improvement
C) Supply chain D) Design of products, services or processes
Answer: D
Explanation: A)
B)
C)
D)
4) A data warehouse or infobarn: 4)
A) is reserved for exclusive use by the CFO
B) stores information used by different managers for multiple purposes
C) gathers only non- financial information
D) is primarily used for financial reporting purposes
Answer: B
Explanation: A)
B)
C)
D)
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5) Which of the following issues is NOT addressed by the Sarbanes- Oxley legislation? 5)
A) improving internal control
B) disclosure practices of public corporations
C) corporate governance
D) disclosure practices of private companies
Answer: D
Explanation: A)
B)
C)
D)
6) Financial accounting: 6)
A) reports include detailed information on the various operating segments of the business such
as product lines or departments
B) focuses on the future and includes activities such as preparing next year's operating budget
C) is prepared for the use of department heads and other employees
D) must comply with GAAP (generally accepted accounting principles)
Answer: D
Explanation: A)
B)
C)
D)
7) ________ is the after- sale support provided to customers. 7)
A) Marketing B) Customer service
C) Distribution D) Production
Answer: B
Explanation: A)
B)
C)
D)
8) Customers generally demand improved performance related to: 8)
A) both reduced costs and increased quality
B) lower costs, improved quality, and improved customer service
C) reduced costs
D) All of these answers are correct.
Answer: D
Explanation: A)
B)
C)
D)
9) Managers use management accounting information to ________ strategy. 9)
A) implement B) choose
C) communicate D) All of these answers are correct.
Answer: D
Explanation: A)
B)
C)
D)
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10) 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:
10)
A) revised plan B) strategic plan
C) management forecast D) performance report
Answer: D
Explanation: A)
B)
C)
D)
11) Planning consists of all of these areas EXCEPT: 11)
A) deciding how to attain the desired goals
B) predicting results under various alternatives
C) selecting organisational goals
D) evaluating performance
Answer: D
Explanation: A)
B)
C)
D)
12) Examples of the Chief Management Accountant's functions include all EXCEPT: 12)
A) planning B) operations administration
C) investor relations D) budgeting
Answer: C
Explanation: A)
B)
C)
D)
13) Management accounting is considered successful when it: 13)
A) is accurate
B) is relevant and reported annually
C) helps creditors evaluate the company's performance
D) helps managers improve their decisions
Answer: D
Explanation: A)
B)
C)
D)
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14) Place the four business functions in the order they appear along