STRAT COST CHAP 1

Which of the following is false?

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

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

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

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

Which of the following statements is correct?

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

• To take advantage of changing market opportunities, the annual budget should be strictly enforced.

• Linking rewards to performance is a major deterrent to good management performance.

• An important strategic decision is making the correct investments in productive assets.

All of the following statements are true except:

• A budget is a tool used to plan and express strategy.

• Financial accounting reports financial and nonfinancial information that helps managers implement company strategies.

• Feedback links planning and control.

• Control includes deciding what feedback to provide that will help with future decision making.

All of the following statements are false except:

• Attention-directing activities should focus on cost-reduction opportunities, and not on value-adding opportunities.

• For strategic decisions, scorekeeping is the most prominent role played by management accounting.

• A budget may be used as a planning tool, but not as a control tool.

• Management accountants often are simultaneously doing problem-solving, scorekeeping, and attention-directing activities.

Management accounting

• focuses on estimating future revenues, costs, and other measures to forecast activities and their results.

• provides information about the company as a whole.

• reports information that has occurred in the past that is verifiable and reliable.

• provides information that is generally available only on a quarterly or annual basis.

The person MOST likely to use management accounting information is a(n)

• banker evaluating a credit application.

• shareholder evaluating a stock investment.

• governmental taxing authority.

• assembly department supervisor.

Which of the following description refers to management accounting information?

• It is verifiable and reliable.

• It is driven by rules.

• It is prepared for shareholders.

• It provides reasonable and timely estimates.

Which of the following groups would be LEAST likely to receive detailed management accounting reports?

• Stockholders

• Sales representatives

• Production supervisors

• Managers

Management accounting information includes

• tabulated results of customer satisfaction surveys.

• the cost of producing a product.

• the percentage of units produced that are defective.

• all of the above.

Which of the following types of information are used in management accounting?

• Financial information

• Nonfinancial information

• Information focused on the long term

• All of the above