TEST BANK
Cost Accounting: With Integrated Data
Analytics, 1st Edition by Farmer & Fredin
Chapters 1- 18
,
, CHAPTER 1
COST ACCOUNTING HAS PURPOSE
CHAPTER LEARNING OBJECTIVES
1. Explore the elements that support a company’s purpose, as well as your own.
2. Connect the purpose of cost accounting with the role of accountants in organizations.
3. Outline the frameworks, including ethics, that guide the profession.
*4. Increase your chances of success by becoming a lifelong learner.
Current count is:
Knowledge: 106
Comprehension: 5
Application: 0
Analysis: 0
Evaluation: 0
Synthesis: 0
Total: 111
Number and percentage of questions:
Easy: 27 questions, 24 percent (target of 25%)
Medium: 74 questions, 66 percent (target of 65%)
Hard: 10 questions, 9 percent (target of 10%)
Question types:
Multiple Choice: 93
Exercises: 18
, 1-2 Test Bank for Cost Accounting, First Edition
MULTIPLE CHOICE QUESTIONS
1. A helps an organization, whether for profit or nonprofit, turn its purpose into
action by establishing the direction of the entity.
a. mission statement
b. strategic plan
c. SWOT analysis
d. vision
Ans: B, LO 1, Bloom: K, Difficulty: Medium, AACSB: Analytic, AICPA: FC: Measurement, Analysis, and Interpretation, IMA: Business Acumen &
Operations: Operational Knowledge.
Solution: A strategic plan helps an organization, whether for profit or nonprofit, turn its purpose into action by establishing the direction of the entity.
2. An organization’s strategic plan includes its why, where and how for its purpose represented
by
a. opportunities, strengths and weaknesses.
b. opportunities, strengths, and mission.
c. mission, vision, and strategy.
d. mission, strengths, and strategy.
Ans: C, LO 1, Bloom: K, Difficulty: Medium, AACSB: Analytic, AICPA: FC: Measurement, Analysis, and Interpretation, IMA: Business Acumen &
Operations: Operational Knowledge.
Solution: An organization’s strategic plan includes its why, where, and how for its purpose represented by mission, vision, and strategy.
3. In choosing a strategy, a business begins by undertaking a thorough examination of itself and
the industry within which it operates by performing a analysis.
a. mission and vision statement
b. strategic initiative
c. target objective
d. SWOT
Ans: D, LO 1, Bloom: K, Difficulty: Medium, AACSB: Analytic, AICPA: FC: Measurement Analysis and Interpretation, IMA: Business Acumen & Operations:
Operational Knowledge.
Solution: In choosing a strategy, a business begins by undertaking a thorough examination of itself and the industry within which it operates by performing a
SWOT analysis.
4. An organization’s is its purpose; its reason for existing.
a. mission
b. strategy
c. initiative
d. strategic plan
Ans: A, LO 1, Bloom: K, Difficulty: Medium, AACSB: Analytic, AICPA: FC: Measurement, Analysis, and Interpretation, IMA: IMA: Business Acumen &
Operations: Operational Knowledge.
Solution: An organization’s mission is its purpose, its reason for existing.
5. A SWOT analysis allows an organization to assess its
a. strategies, wealth, outlets, and targets.
b. strengths, warnings, outlets, and threats.
c. strengths, weaknesses, opportunities, and threats.
d. strategies, wealth, opportunities, and threats.
Ans: C, LO 1, Bloom: C, Difficulty: Easy, AACSB: Analytic, AICPA: FC: Measurement, Analysis, and Interpretation, IMA: Business Acumen & Operations:
Operational Knowledge.
Solution: A SWOT analysis allows an organization to assess its strengths, weaknesses, opportunities, and threats.
