Management Accounting: Concepts, Techniques & Controversial Issues
James R. Martin
Chapter
1
Introduction to Managerial Accounting, Cost Accounting and Cost Management
Systems
Extra MC Questions Solution
1. Which of the following tends to
place more emphasis on managing the process, i.e.,
the way work is done, rather than managing the results?
a. Management accounting.
b. Cost accounting.
c. Cost management.
d. Activity
management.
e. Investment management.
2. Which of the following places
emphasis on a portfolio of interrelated investments?
a. Management accounting.
b. Cost accounting.
c. Cost management.
d. Activity management.
e. Investment
management.
3. Which of these statements is false?
a. The matching
concept requires that a company distinguish between expired and unexpired costs.
b. To say that a cost has expired means that the benefits
associated with the expenditure
have been obtained.
c. Matching
is required for both internal and external reporting.
d. Unexpired costs represent future
benefits.
4. Which of these statements is false?
The
matching concept means,
a. That the cash
outflows for a particular accounting period are charged
against
the cash inflows for that period.
b. The cost of
generating a particular benefit is charged off as an expense in the period in
which the benefit is obtained.
c. Revenue is
recorded when it is earned and expenses are recorded in the
period when the benefit is received.
d. That costs
must be separated into product costs and period costs.
5. Companies that embrace the concepts
and beliefs of individualistic capitalism tend
to emphasize
a. cooperation, specialized workers and merit ratings.
b. competition, cross training and employee empowerment.
c. long run
performance, cooperation and cross training workers.
d. Short run
performance, stockholder interests and specialized workers.
e. None
of these.
6. Companies that embrace the concepts
and beliefs of communitarian capitalism tend to
emphasize
a. cooperation,
specialized workers and merit ratings.
b. competition,
cross training and employee empowerment.
c. long run
performance, cooperation and cross training workers.
d. Short run performance, stockholder interests and
specialized workers.
e. None of these.
7. In traditional cost systems, selling
and administrative costs are treated as
a. product
costs.
b. inventoriable costs.
c. unexpired costs.
d. period costs.
e. None of these
8. Which of the following disciplines
receives the greatest influence from the matching concept?
a. financial
accounting.
b. cost accounting.
c. cost management.
d. activity
management.
e. investment management.
9. Which of the following disciplines
tends to emphasize the way that work is performed as opposed to
the financial outcome?
a. financial accounting.
b. cost accounting.
c. cost management.
d. activity
management
e. investment management.
10. Which of the following disciplines
places the greatest emphasis on auditing general purpose financial
statements?
a. management
accounting.
b. public accounting.
c. governmental accounting.
d. financial accounting.
e. tax accounting
11. Which of the following statements
is true?
a. All unexpired
costs represent assets.
b. All assets represent unexpired costs.
c. All expired
costs represent expenses.
d. a and b.
e. a and c.
12. Which of the statements below is
true with regard to the difference between communitarian capitalism
and individualistic capitalism?
a. An individualistic system includes the profit motive,
while a communitarian system excludes the profit motive.
b. An
individualistic system rewards individuals on the basis of ability and
performance, while a communitarian
system rewards individuals on the
basis of need.
c. An individualistic
system emphasizes competition at all levels as the key to optimizing
performance, while
a
communitarian system places a greater emphasis on cooperation at all levels to
optimize performance.
d. a and b.
e. a and c.
13. Which of the following statements
is true?
a. Communitarian
organizations tend to have fewer layers of management than individualistic
organizations.
b. Employees of
communitarian organizations tend to have more external mobility than employees
of
individualistic organizations.
c. Employees of communitarian organizations tend to be more
loyal to their companies than employees of
individualistic organizations.
d. a and b.
e. a and c.
14. The key difference between socialism and capitalism is the
emphasis placed on
a. cooperation and teamwork.
b. long term growth.
c. property ownership.
d. the profit motive.
e. none of these.
15. Which of these statements is false?
a. The matching concept requires that
we distinguish between expired and unexpired costs.
b. To say that a cost has expired means
that the benefits associated with the expenditure have been obtained.
c. Matching is
required for both internal and external reporting.
d. Unexpired costs represent future
benefits.
e. Expired costs represent expenses.
