Chapter 1: Cost Accounting_Information for Decision Making

Question 1

Is part of set of activities that transforms raw resources into goods and services to end user.

Answer 1

Value chain

Question 2

The creation and development of ideas related to new products, services or processes.

Answer 2

Research and Development

Question 3

The process of delivering products or services to customers.

Answer 3

Distribution

Question 4

The process of informing potential customers about the attributes of products or services that leads to their sale.

Answer 4

Marketing and Sales

Question 5

The acquisition of goods and services needed to produce a good or service

Answer 5

Purchasing

Question 6

The collection and assembly of resources to produce a product or deliver a service.

Answer 6

Production

Question 7

The detailed development and engineering of products, services, or processes.

Answer 7

Design

Question 8

Firms buy resources from suppliers.

Answer 8

Supply Chain

Question 9

Firms also sell their products to distributors and customers.

Answer 9

Distribution Chain

Question 10

is designed for decision makers who are not directly involved in the daily management of the firm.

Answer 10

Financial Accounting

Question 11

Designed for managers

Answer 11

Cost Accounting

Question 12

Is commonly used in developing financial accounting information, but we are concerned primarily with its use by managers to make decisions.

Answer 12

Cost Accounting

Question 13

Products are assembled or services are performed, information is needed to control and improve operations.

Answer 13

Production Level

Question 14

This information is more strategic in nature and typically is provided on a monthly, quarterly, or annual basis.

Answer 14

Executive Level

Question 15

Financial information is used to assess the company’s overall performance.

Answer 15

Executive Level

Question 16

Where managers supervise work and make operating decisions, cost information is used to identify problems by highlighting when some aspect of operations is different from expectations.

Answer 16

Middle management level

Question 17

Manages liquid assets; Conducts business with banks and other financial institutions; Oversees public issues of stock and debt.

Answer 17

Treasurer

Question 18

Plans and designs information and incentive systems.

Answer 18

Controller

Question 19

Manages entire finance and accounting function

Answer 19

Chief Financial Officer (CFO)

Question 20

Who must work with the users (or customers) of cost accounting information to provide the best possible information for managerial purposes.

Answer 20

Cost accountant

Question 21

Records, measures, estimates, and analyzes costs; Works with financial and operational manager to provide relevant information decisions.

Answer 21

Cost Accountant

Question 22

Ensures compliance with laws, regulations, and company polices and procedures; Provides consulting and auditing services within the firm.

Answer 22

Internal Auditor

Question 23

Why do managers want to eliminate nonvalue-added activities?

Answer 23

activities cause costs.

Question 24

The concept of considering both the cost and benefits of a proposal.

Answer 24

Cost-benefit analysis

Question 25

Applies equally to deciding whesether to implement a new cost accounting system.

Answer 25

Cost-benefit analysis

Question 26

An organization of any but the smallest size divides responsibility for specific functions among its employees.

Answer 26

Organizational units

Question 27

Is the systematic evaluation of information to address a decision problem.

Answer 27

Data Analytics

Question 28

Refers to how the results of the analysis are summarized and presented to decision - makers.

Answer 28

Data Visualization

Question 29

Is a financial plan for the revenues and resources needed to carry out its tasks and meet its finacial goals.

Answer 29

Budgeting

Question 30

Helps managers decide wheteher thier goals can be achieved and if not, what modifications are necessary.

Answer 30

Budgeting