intro to cost accounting

Question 1

branch of accounting
dealing with the classification, recording,
allocation, summarizing and reporting of current
and prospective costs

Answer 1

cost accounting

Question 2

its purpose is to help managers make decisions to fulfill an organization’s goals

Answer 2

management accounting

Question 3

the primary users are the managers of the organization

Answer 3

management accounting

Question 4

future oriented (budget for 2011 prepared in 2010)

Answer 4

management accounting

Question 5

internal measures and reports do not have to follow GAAP but are based on cost-benefit analysis

Answer 5

management accounting

Question 6

varies from hourly information to 15 to 20 years, with financial and nominal reports on products, departments, territories, and strategies

Answer 6

management accounting

Question 7

designed to influence the behavior of managers and other employees

Answer 7

management accounting

Question 8

purpose of information: communicate organization’s financial position to investors, banks, regulators, and other outside parties

Answer 8

financial accounting

Question 9

primary users: external users such as investors, banks, regulators, and suppliers

Answer 9

financial accounting

Question 10

past oriented (reports on 2010 performance prepared in 2011)

Answer 10

financial accounting

Question 11

financial statements must be prepared in accordance with GAAP and be certified by external, independent auditors

Answer 11

financial accounting

Question 12

annual and quarterly financial reports, primarily on the company as a whole

Answer 12

financial accounting

Question 13

primary reports economic events but also influences behavior because manager’s compensation is often based on reported financial results

Answer 13

financial accounting

Question 14

help management
in gathering the data needed to determine
product costs and thus generate meaningful
financial statements and other reports.

Answer 14

cost accounting procedures