Introduction to Cost Accounting Quiz
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Questions and Answers

What do managers use cost accounting information for?

  • Make decisions about research and development, production planning, budgeting, pricing, and the products or services to offer customers (correct)
  • Calculate and manage the cost of products
  • Monitor the marketplace to determine the prices customers are willing to pay
  • Understand how revenues and costs behave
  • What helps managers calculate a target cost for a product?

  • Monitoring the marketplace for customer price preferences
  • Management accounting information (correct)
  • Continuous pressure to reduce the cost of products
  • Understanding activities that cause costs to arise
  • What do companies face continuous pressure to reduce?

  • The cost of the products they sell (correct)
  • The number of products they sell
  • The quality of the products they sell
  • The marketing expenses for their products
  • What is used to calculate and manage the cost of products?

    <p>Understanding the activities that cause costs to arise</p> Signup and view all the answers

    What do customers want companies to use to deliver ever-improving levels of performance?

    <p>Value chain and supply chain</p> Signup and view all the answers

    Managers use cost accounting information to make decisions about human resources and marketing.

    <p>False</p> Signup and view all the answers

    Cost accounting is only important for large companies, not small businesses.

    <p>False</p> Signup and view all the answers

    The value chain and supply chain are not important factors for companies to consider in delivering performance.

    <p>False</p> Signup and view all the answers

    Managers must understand the activities that cause costs to arise in order to calculate and manage the cost of products.

    <p>True</p> Signup and view all the answers

    Cost and efficiency are not key factors that customers want companies to focus on.

    <p>False</p> Signup and view all the answers

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