Chapter 1 Accounting Tb

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CHAPTER 1
THE ACCOUNTANT’S ROLE IN THE
ORGANIZATION

TRUE/FALSE

1.Management accounting information focuses on external reporting.

Answer:FalseDifficulty:1Objective:1
Terms to Learn:management accounting
Management accounting information focuses on internal reporting.

2.A good cost accounting system is narrowly focused on a continuous reduction of costs.

Answer:FalseDifficulty:2Objective:1
Terms to Learn:cost accounting
A good cost accounting system is broadly focused to provide information that helps managers at all levels implement, monitor, and evaluate company strategies.

3.Modern cost accounting plays a significant role in management decision making.

Answer:TrueDifficulty:1Objective:1
Terms to Learn:cost accounting

4.The balance sheet, income statement, and statement of cash flows are used for financial accounting, but not for management accounting.

Answer:FalseDifficulty:1Objective:1
Terms to Learn:financial accounting
The balance sheet, income statement, and statement of cash flows are used for financial accounting and also for management accounting.

5.Financial accounting is broader in scope than management accounting.

Answer:FalseDifficulty:2Objective:1
Terms to Learn:financial accounting, management accounting Management accounting is broader in scope than financial accounting.

6.Cost accounting measures and reports short-term, long-term, financial, and nonfinancial information.

Answer:TrueDifficulty:2Objective:1
Terms to Learn:cost accounting

7.Cost management provides information that helps increase value for customers.

Answer:TrueDifficulty:1Objective:1
Terms to Learn:cost management

8.An ideal database should consist of data that could be used for a single purpose only.

Answer:FalseDifficulty:2Objective:1
Terms to Learn:management accounting
An ideal database should be able to be used for multiple purposes.

9.An Enterprise Resource Planning (ERP) System is a single database that collects data and feeds into applications that support each of the company’s business activities, such as purchases, production, distribution, and sales.

Answer:TrueDifficulty:1Objective:1
Terms to Learn:management accounting

10.Cost accounting provides information only for management accounting purposes.

Answer: FalseDifficulty:1Objective:1
Terms to Learn:cost accounting
Cost accounting provides information for financial accounting as well as for management accounting purposes.

11.Cost management involves long-term and short-term decisions that attempt to increase value for customers and lower costs of products or services.

Answer:TrueDifficulty:1Objective:1
Terms to Learn:cost management

12.All strategies should be evaluated regarding the resources and capabilities of the company.

Answer:TrueDifficulty:1Objective:2
Terms to Learn:strategy

13.The best-designed strategies are valuable whether or not they are effectively implemented.

Answer:FalseDifficulty:1Objective:2
Terms to Learn:strategy
Implementation is essential or the strategy is useless.

14.The key to a company’s success is creating value for customers while differentiating itself from its competitors.

Answer:TrueDifficulty:1Objective:2
Terms to Learn:strategy

15.The key to a company’s success is always to be the low cost producer in a particular industry.

Answer:FalseDifficulty:2Objective:2
Terms to Learn:strategy
The low cost producer in a particular industry will not necessarily be successful.

16.Companies generally follow one of two basic strategies: 1) providing a quality product or service at low prices, or 2) offering a unique product or service often priced...
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