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Test Bank For Fundamentals of Cost Accounting, 7th Edition All Chapters - 9781264100842
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Test Bank For Fundamentals of Cost Accounting, 7th Edition All Chapters
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Test Bank for Fundamentals of Cost Accounting - 7e - Lanen - Chapter 01 Testbank - Algorithmic and Static 1) The value chain comprises activities from research and development through the production process but does not include activities related to the distribution of products or services. ⊚ true ⊚ false 2) Administrative functions are not included as part of the value chain because they are implicitly included in every business function. ⊚ true ⊚ false 3) Under the value chain concept, value -added activities are those that firms perform and that customers perceive as adding utility to the goods they purchase. ⊚ true ⊚ false 4) The value chain is comprised of the activities that take place only during the production process. ⊚ true ⊚ false 5) If a poor facility layout exists and work -in-process inventory must be moved during the production process, the compan y is likely to be performing some nonvalue -added activities. ⊚ true ⊚ false 6) Cost information is a product with its own customers. ⊚ true ⊚ false 7) Financial accounting information is always sufficient for making operational decisions. ⊚ true ⊚ false 8) Cost accounting information is commonly used in developing financial accounting information. ⊚ true ⊚ false 1 Test Bank for Fundamentals of Cost Accounting - 7e - Lanen - Chapter 01 Testbank - Algorithmic and Static 9) Financial accounting information is designed for decision makers who are directly involved in the daily management of the firm. ⊚ true ⊚ false 10) It is more important for fi nancial accounting information to be comparable between firms than to be useful for managerial decision making. ⊚ true ⊚ false 11) Cost accounting information developed for managers to use in making decisions must comply with generally accepted accounting princip les (GAAP) and international financial reporting standards (IFRS). ⊚ true ⊚ false 12) A cost driver is a factor that causes costs. ⊚ true ⊚ false 13) A cost can be considered a differential cost for one particular course of action but not for another course of action. ⊚ true ⊚ false 14) A responsibility center can be a department, division, or segment, but not a subsidiary of the parent company. ⊚ true ⊚ false 15) It is important that the manager assigned to lead a responsibility center be held accountable for its operations. ⊚ true ⊚ false 2 Test Bank for Fundamentals of Cost Accounting - 7e - Lanen - Chapter 01 Testbank - Algorithmic and Static 16) Budgeting is primarily used to determine year -end bonuses based on managerial and organizational performance. ⊚ true ⊚ false 17) Managers are usually responsible for the revenues needed to achieve the targets set during the budgeting process, but not the resources consumed to achieve those targets. ⊚ true ⊚ false 18) In general, if activities that do not add value to the company can be eliminated, then costs associated with them will also be eliminated. ⊚ true ⊚ false 19) Accounting systems are important because they are a primary source of information for managers. ⊚ true ⊚ false 20) Critical thinking is a systematic process used to analyze a business issue or decision. ⊚ true ⊚ false 21) Data visualization is the systematic evaluation of information to address a decision problem. ⊚ true ⊚ false 22) Big data is defined by the amount of data, the speed the data is generated and made available, or the variety of data available. ⊚ true ⊚ false 23) Typical ERP systems integrate information systems that link production, purchasing, human resources, finance, and sales into a single comprehensive information system. ⊚ true ⊚ false 3The benefits of buying summaries with Stuvia:
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