Cost Accounting 15th Edition题库Test Bank(8)

Objective 1.4

1) Place the five steps in the decision-making process in the correct order:

A) C D B E A B) E D A B C C) C A E B D D) A E B D C Answer: C

Diff: 2 Objective: 4

AACSB: Analytical thinking

A = Obtain information

B = Make decisions by choosing among alternatives C = Identify the problem and uncertainties

D = Implement the decision, evaluate performance, and learn E = Make predictions about the future

2) Which of the following is true of planning in decision making? A) It helps an organization to select goals and strategies. B) It improves the quality of products. C) It helps in evaluating performance.

D) It helps in the analysis of actual performance. Answer: A

Diff: 1 Objective: 4

AACSB: Analytical thinking

3) The most important planning tool is a ________. A) performance evaluation report B) fishbone diagram C) control chart D) budget Answer: D

Diff: 2 Objective: 4

AACSB: Analytical thinking

4) 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 ________. A) strategic plan

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B) management forecast C) performance report D) revised plan Answer: C

Diff: 2 Objective: 4

AACSB: Analytical thinking

5) A budget ________.

A) is the qualitative expression of a proposed plan of action by management B) is an aid to coordinating what needs to be done to execute a plan C) helps in identifying problems and uncertainties D) promotes production automation Answer: B

Diff: 2 Objective: 4

AACSB: Analytical thinking

6) Which of the following is true of planning? A) It makes predictions about the future.

B) It assumes the functional hierarchy of any business is linear. C) It improves the quality of products. D) It evaluates customer feedback Answer: A

Diff: 1 Objective: 4

AACSB: Analytical thinking

7) A budget serves as much as a control tool as a planning tool because ________. A) it aids in the coordination and communication among various business functions B) it helps to evaluate customer needs and feedback

C) it is a benchmark against which actual performance can be compared D) it helps.to make predictions about the future Answer: C

Diff: 2 Objective: 4

AACSB: Analytical thinking

8) Which of the following is an example of an extrinsic reward? A) receiving a high rating on customer service B) appreciation mail from a customer C) promotions based on performance D) verbal appreciation from CEO Answer: C

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Diff: 1 Objective: 4

AACSB: Application of knowledge

9) Which of the following is an example of an intrinsic reward? A) bonuses paid to employees B) recognition of job well done C) promotions based on performance D) salaries paid to employees Answer: B

Diff: 1 Objective: 4

AACSB: Application of knowledge

10) Linking rewards to performance ________. A) helps to motivate managers

B) allows companies to charge premium prices C) should only be based on financial information D) enhances agency costs Answer: A

Diff: 2 Objective: 4

AACSB: Analytical thinking

11) Control measures should ________.

A) be set and not changed until the next budget cycle B) be set by excluding nonfinancial information

C) be kept confidential from employees so that competitors don't have an opportunity to gain a competitive advantage

D) be linked by feedback to help future planning Answer: D

Diff: 2 Objective: 4

AACSB: Analytical thinking

12) A well-conceived plan allows managers the ability to ________. A) not make decisions again until the next planning session B) keep lower-level managers from implementing change

C) underestimate costs so that actual operating results will be favorable when comparisons are made

D) take advantage of unforeseen opportunities Answer: D

Diff: 2 Objective: 4

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AACSB: Analytical thinking

13) Which of the following statements is true of performance reports?

A) The performance report shows actual performance as compared to the budget. B) The performance report depicts the performance of a firm's competitors.

C) The performance report compares only the budgeted performance over the years. D) The performance report contains no actual results due to confidentiality. Answer: A

Diff: 2 Objective: 4

AACSB: Analytical thinking

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14) Management accounting is considered most likely to be successful when it ________. A) helps creditors evaluate the company's performance B) helps investors improve their decisions C) is timely

D) is relevant and reported annually Answer: C

Diff: 2 Objective: 4

AACSB: Analytical thinking

15) The last step in the decision-making process is to make decisions by choosing among alternatives. Answer: FALSE

Explanation: The last step in the decision-making process is to implement the decision, evaluate performance, and learn.

Diff: 1 Objective: 4

AACSB: Analytical thinking

16) One of the steps in planning is evaluating the performance and taking corrective measures. Answer: FALSE

Diff: 2 Objective: 4

AACSB: Analytical thinking

17) A budget helps to control activities by adhering to the prescribed plan. Answer: TRUE

Diff: 1 Objective: 4

AACSB: Analytical thinking

18) To take advantage of changing market opportunities, the annual budget should be strictly enforced. Answer: FALSE

Explanation: To take advantage of changing market opportunities, the annual budget should be updated to reflect those changes.

Diff: 2 Objective: 4

AACSB: Analytical thinking

19) A budget is a qualitative expression of a plan. Answer: FALSE

Explanation: Explanation: A budget is a quantitative expression of a plan.

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