Management And Accounting Web

Management Accounting: Concepts,
Techniques & Controversial Issues

Chapter 1 - Extra MC Questions

James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida

Chapter 1 | MAAW's Textbook Table of Contents

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.

Solution