Cost Accounting

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1. In an accounting information system, which of the following is NOT a transformational process?

a. collecting data
b. analyzing data
*c. performance reporting
d. summarizing data

2. Which of the following is NOT a process associated with an accounting information system?

*a. auditing existing data
b. collecting and recording data
c. providing information to users
d. analyzing and managing data

3. In an accounting information system, the inputs are usually

a. financial statements.
b. analyzing data.
c. performance reports.
*d. economic events.

4. _______________ is devoted to providing information for external users.

a. Management accounting
*b. Financial accounting
c. Internal accounting
d. Cost accounting

5. Financial accounting information is used for

a. investment decisions.
b. regulatory measures.
c. stewardship evaluation.
*d. all of these.

6. Which of the following is NOT part of the financial accounting information system?

a. filing reports with the SEC
b. reporting a large contingent liability to current and potential shareholders *c. determining the future cashflows of a proposed flexible manufacturing system d. preparing GAAP financial statements

7. Which of the following does NOT describe cost management system?

a. evaluation of segments or products within the firm
b. emphasis on the future
*c. externally focused
d. focus on effective use of resources

8. Cost management reports are prepared

*a. to meet the needs of decision makers within the firm.
b. whenever stockholders request them.
c. according to guidelines prepared by the Securities and Exchange Commission. d. according to financial accounting standards.

9. Which of the following is NOT provided by cost accountants?

a. cost information in accordance with GAAP
b. cost information about processes and activities
*c. financial information for external users
d. cost information about products, customers, and services

10. The primary objective of the cost management information system is to provide

a. stockholders and potential investors with useful information for decision making. b. banks and other creditors with information useful in making credit decisions. *c. management with information useful for planning and control of operations. d. the Internal Revenue Service with information about taxable income.

11. The cost management information system is concerned with

a. reporting financial information according to GAAP.
*b. providing cost information that is used in planning, control, and decision-making. c. reporting to external users.
d. providing financial information to investors.

12. Cost management is the branch of accounting concerned with reporting to

*a. internal managers.
b. stockholders.
c. the government.
d. bankers.

13. _______________ broadens the focus of accounting because it is concerned with factors that drive costs, such as cycle time and process productivity.

a. Cost accounting
*b. Cost management
c. Financial management
d. Financial accounting

14. Cost accounting

a. is concerned with assigning costs to various cost objects. b. attempts to satisfy the costing objectives of both financial accounting and management accounting. c. provides cost information that supports planning, controlling, and decision making. *d. all of these.

15. Which of the following activities is NOT associated with the cost management information system?

a. preparing a cost of quality report
b. preparing a performance report that compares actual costs to budgeted costs c. determining the cost of a customer
*d. using future expected earnings to estimate the price of a share of common stock

16. Which of the following costing activities is associated with the financial accounting system?

a. determining the cost of a department
*b....
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