Accounting Information Systems Practice
Questions
Course Introduction
Accounting Information Systems (AIS) explores the design, implementation, and management of information systems that support accounting operations, financial decision-making, and internal controls within organizations. The course covers key topics such as system development processes, database management, internal controls and audit trails, enterprise resource planning (ERP) systems, fraud prevention, and the integration of technology with accounting functions. Students will examine both the theoretical frameworks and practical applications of AIS, gaining insights into how technology enhances accounting processes and supports compliance with regulatory requirements in an increasingly digital business environment.
Recommended Textbook Management Accounting 2nd Edition by
Leslie G. Eldenburg
Available Study Resources on Quizplus
20 Chapters
1520 Verified Questions
1520 Flashcards
Source URL: https://quizplus.com/study-set/3533
Page 2
Chapter 1: The Role of Accounting Information in Management Decision Making
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/70182
Sample Questions
Q1) Accounting information is the only thing managers need to make financial decisions. A)True
B)False Answer: False
Q2) Cost accounting information is used for both external reporting and internal decision making.
A)True
B)False Answer: True
Q3) Management decisions require monitoring over time for all of the following reasons except
A) The economic environment may change
B) New opportunities may become available
C) To motivate employees to follow plans exactly, even if the plan results in poor performance
D) Unforeseen threats may arise
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Cost Concepts, Behaviour and Estimation
Available Study Resources on Quizplus for this Chatper
88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/70181
Sample Questions
Q1) Financial statements usually distinguish between fixed and variable costs.
A)True
B)False
Answer: False
Q2) Milano Company has an average overhead cost per hour of $10.50 at 3,500 machine hours, and at 3,000 hours it is $11.25. The company managers wish to estimate the overhead cost function. What is the variable overhead cost per machine hour?
A) $1.00
B) $2.00
C) $6.00
D) $8.00
Answer: C
Q3) Simple regression analysis output produces a variety of statistics. Which of the following statistics provides information for variable costs?
A) Adjusted R-square
B) P-values for alpha and beta coefficients
C) T-statistic and p-value for the beta coefficient
D) T-statistics for alpha and beta coefficients
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: A Costing Framework and Cost Allocation
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/70180
Sample Questions
Q1) A company must use the same method for allocating all support department costs to operating departments.
A)True
B)False
Answer: True
Q2) The method that allocates support department costs by ignoring all services rendered between support departments is:
A) the direct method
B) the step-down method
C) the reciprocal method
D) the dual-rate method
Answer: A
Q3) Which of these cost drivers is not subjective?
A) benefits received
B) fairness
C) cause and effect
D) all are subjective
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Cost-Volume-Profit Cvp Analysis
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/70179
Sample Questions
Q1) CVP analysis can be used to make decisions about discretionary expenditures, such as
A) Advertising
B) Taxes
C) Direct materials purchases
D) City license fees
Q2) CVP analysis is most likely to be used for which of the following decisions?
A) The amount of discretionary expenditures for the next period
B) The organisational vision
C) The exact level of operations at which the organisation will operate
D) Whether to buy a business segment operating in Germany
Q3) The breakeven point for a service organisation will decrease if
A) The variable cost ratio increases
B) The mix of less profitable services increases
C) The contribution margin ratio increases
D) Fixed costs increase
Q4) Because managers cannot usually be certain about their cost function, they also cannot be certain about the level of sales needed to earn a target profit.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Job Costing Systems
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/70178
Sample Questions
Q1) In a job costing system the accounting entry made at the time job 664 is delivered to the customer is:
A) debit to cost of goods sold; credit to finished goods inventory
B) debit to finished goods inventory; credit to work in process
C) debit to sales; credit to work in process
D) debit to cost of goods sold; credit to work in process
Q2) Overapplied overhead occurs when actual costs are more than the amount of overhead allocated.
A)True
B)False
Q3) Upon inspection Joe's Jumpers found that all the jumpers in Batch #987 had had the sleeves sewn in backwards. One of the new machinists had not been properly trained, which is highly unusual. The jumpers had to be thrown away. This is an example of:
A) scrap
B) rework
C) abnormal spoilage
D) both a and c
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Process Costing Systems
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/70177
Sample Questions
Q1) Macey Ltd uses a weighted-average process costing system. Beginning inventory consists of 6,000 units, 40% complete. Units started are 14,000, completed are 10,000, and ending inventories are 9,000 units, 70% complete. Normal spoilage is 5% of the units inspected. Direct material is added at the 75% point and spoilage inspection occurs at the 80% point. The cost per equivalent unit for materials was $1.00 and $3.00 for conversion costs. The number of equivalent units of material was
A) 20,000
B) 18,000
C) 18,200
D) 11,000
Q2) All spoilage in a process costing system is considered abnormal spoilage. A)True B)False
Q3) Spoilage costs from an unusual natural disaster would be allocated to good units produced in a process costing system.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above.
8
Chapter 7: Absorption, Variable and Throughput Costing
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/70176
Sample Questions
Q1) Throughput costing can be used for I Internal reporting
II External reporting
III Income tax reporting
A) I only
B) II only
C) III only
D) I, II, and III
Q2) Under throughput costing, inventory is valued using
A) Direct materials costs only
B) Prime costs only
C) Variable costs only
D) Conversion costs only
Q3) Supply-based capacity levels include I Normal capacity
II Practical capacity
III Theoretical capacity
A) I and II only
B) I and III only
C) II and III only
D) I, II, and III
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Activity Analysis: Costing and Management
Available Study Resources on Quizplus for this Chatper
96 Verified Questions
96 Flashcards
Source URL: https://quizplus.com/quiz/70175
Sample Questions
Q1) Organisations interested in using activity-based management must first implement an activity-based costing system.
A)True
B)False
Q2) Generally speaking, activity-based costing traces direct costs more accurately than traditional costing.
A)True
B)False
Q3) In general, the risk of measurement error in an ABC system increases when
A) Costs are traced rather than allocated
B) Managers are uncertain about the relationship between costs and cost pools
C) The number of cost pools decreases
D) A company uses a team approach to systems design
Q4) Which of these do managers use in choosing activities and cost drivers to include in an ABC system?
A) Linear programming
B) Simple regression
C) Judgment
D) Activity-based management
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Relevant Costs for Decision Making
Available Study Resources on Quizplus for this Chatper
122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/70174
Sample Questions
Q1) Managers should discontinue a business if which of the following is less than the sum of relevant fixed costs and opportunity costs?
A) Profit
B) Variable cost
C) Total cost
D) Contribution margin
Q2) If idle capacity exists, a special order must cover its full cost to be profitable.
A)True
B)False
Q3) One way to deal with constrained resources is to spend money to alleviate them.
A)True
B)False
Q4) Managers should always emphasise products with the highest total contribution margin.
A)True B)False
Q5) Rapid growth may require a company to outsource certain products or services. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Standard Costs, Flexible Budgets and Variance Analysis
Available Study Resources on Quizplus for this Chatper
104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/70173
Sample Questions
Q1) For overhead variances, the difference between the flexible budget amounts and actual costs incurred is called the
A) Efficiency variance
B) Budget variance
C) Favorable variance
D) Quantity variance
Q2) Mason Ltd uses a standard costing system. Overhead costs are allocated based on direct labor hours. The standard variable overhead and fixed overhead rates are $1 and $5 per direct labor hour, respectively. Data relevant for the current period include: The variable overhead spending variance is
A) $930 Favorable
B) $2,070 Unfavorable
C) $33,000 Unfavorable
D) $33,000 Unfavorable.
Q3) Intentional worker damage is most likely to result in which type of variance?
A) Direct materials price variance
B) Direct materials efficiency variance
C) Direct labor price variance
D) Variable overhead spending variance
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Operational Budgets
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/70172
Sample Questions
Q1) Planning Systems, has forecast the following unit sales and production for the next year, by quarter: A finished unit requires one unit of material A and two units of material
B. There should be enough material on hand at the end of each quarter to meet 20% of the next quarter's production needs. There are no work-in-process inventories. What is the ending inventory for material A for quarter 2?
A) 24
B) 28
C) 30
D) 100
Q2) To overcome possible problems with budgets that are developed only by top level managers, an alternative is to use
A) Mandatory budgets
B) Authoritative budgets
C) Flexible budgets
D) Participative budgets
Q3) Production and inventory budgets form the basis for developing the revenue budget. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Strategy and Control
Available Study Resources on Quizplus for this Chatper
35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/70171
Sample Questions
Q1) Which of these is not a financial performance measure?
A) return on investment
B) share price
C) economic value added
D) none of the above, i.e. all are financial performance measures
Q2) Lean accounting initiatives are based on the belief that only a small fraction of the total time and effort in an organisation actually adds value for the end customer.
A)True
B)False
Q3) The author of many works that attempt to define strategy is:
A) Porter
B) Friedman
C) Johnson
D) Kaplan
Q4) Early writers on strategic management believed that better control would occur within an organisation if the management accounting function was more closely aligned to the financial accounting.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Planning and Budgeting for Strategic Success
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/70170
Sample Questions
Q1) The main advantage of using a rolling budget is:
A) The role of information technology in its preparation
B) Its incorporation of more current information than a static or a flexible budget
C) The reduced need for lower-level input
D) The ease of calculating variances compared to a static or a flexible budget
Q2) The key to managing successfully without budgets, as proposed by the Beyond Budgeting philosophy, is:
A) radical decentralisation and accountability
B) reward systems based on relative performance evaluation
C) a high level of trust among employees
D) all of the above
Q3) Which of the following are compatible with kaizen budgeting?
A) Flexible budgeting
B) Activity-based budgeting
C) Neither a nor b are compatible with kaizen budgeting
D) Both a and b are compatible with kaizen budgeting
Q4) Kaizen budgeting is designed to improve quality and reduce costs over time.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Capital Budgeting and Strategic Investment
Decisions
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/70169
Sample Questions
Q1) If the internal rate of return exceeds the discount rate, the net present value is
A) Zero
B) Less than one
C) Positive
D) Negative
Q2) Sensitivity analysis is usually performed after applying quantitative analysis techniques in a capital budgeting decision.
A)True
B)False
Q3) Inflation refers to the
A) Exchange rate between two different currencies
B) Decline in general purchasing power of a monetary unit
C) Increase in general purchasing power of a monetary unit
D) Time value of money
Q4) Managers should consider qualitative information in making capital budgeting decisions.
A)True
B)False
Page 16
To view all questions and flashcards with answers, click on the resource link above.
Chapter 15: The Strategic Management of Costs and Revenues
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/70168
Sample Questions
Q1) When two or more organisations conspire to set prices above a competitive price, they are engaging in
A) predatory pricing
B) price gouging
C) collusive pricing
D) price discrimination
Q2) Under kaizen costing, accountants forecast
A) Declining prices and establish cost reduction goals to maintain a desired profit margin
B) Cost reduction goals and desired profit margins, then adjust prices accordingly
C) Declining profit margins and establish revenue and cost goals to meet them
D) Increasing profit margins and establish revenue and cost goals to meet them
Q3) Kaizen costing relies on
A) Sales forecasts of prices and volumes
B) Commodity markets
C) Zero-based budgeting processes
D) Classification based on cost behavior
Q4) Give a complete but concise explanation of the target costing cycle. Correct
Chapter 16: Strategic Management Control: a Lean Perspective
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/70167
Sample Questions
Q1) Under a total quality management approach entities that seek only to match the quality of their competitors should reposition themselves as high-quality producers to maxamise their profitability.
A)True
B)False
Q2) In throughput costing which of the following is untrue?
A) Profit is defined as throughput less operating expenses
B) The throughput of a product is its selling price minus its totally variable costs
C) Investment is also called inventory
D) Operating expenses are classified and thought of as direct costs
Q3) It is correct that under a successful just-in-time production and inventory control system:
A) there must be only one supplier
B) distance from the supplier is not an issue as long as the supplier is reliable
C) suppliers will normally make frequent deliveries of small lots of materials
D) all of the above are correct
To view all questions and flashcards with answers, click on the resource link above.
18
Chapter 17: Responsibility Accounting, Performance
Evaluation and Transfer Pricing
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/70166
Sample Questions
Q1) Decision-making based on general knowledge is more likely to occur in this type of organisation
A) Centralised
B) Decentralised
C) Effective
D) Ineffective
Q2) Return on investment is typically calculated as net profit divided by total sales.
A)True
B)False
Q3) Teresa's Taco Ltd had the following results during the most recent year: Sales $500,000; Residual income $5,000; investment turnover 2.5; and a required rate of return of 15%. The return on investment was
A) 15.4%
B) 21.67%
C) 15.25%
D) 17.5%
Q4) In a profit centre, managers' primary goal is to maximise revenues. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: The Balanced Scorecard and Strategy Maps
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/70165
Sample Questions
Q1) Strengths of the balanced scorecard can typically be summarised in three groups. Which of the following is not one of them?
A) Communication and linkages
B) Guidance for improvements
C) Motivation
D) Cost
Q2) Part of strategic decision making is periodically clarifying organisational vision and core competencies.
A)True
B)False
Q3) The balanced scorecard links short-term and long-term performance objectives to organisational vision and strategies.
A)True
B)False
Q4) A balanced scorecard usually contains four perspectives: customer, financial, internal business process, and learning and growth.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 19: Rewards, Incentives and Risk Management
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/70164
Sample Questions
Q1) A manager under-investing in projects that are in shareholder's best interests but which may reduce the manager's own bonus payment, is classed as which type of agency cost?
A) Loss from a poor decision
B) Monitoring cost
C) Loss from incongruent goals
D) Contracting cost
Q2) Which of these is a not a policy in a banking group that would help reduce company risk?
A) Requiring more scrutiny of less successful traders and less of the more successful
B) Requiring all employees to take regular holidays
C) Ensuring that incentive systems don't encourage excessive risk taking
D) None of the above, i.e. all are policies that would help reduce company risk
Q3) Which of these is correct concerning agency theory? Normally the
A) Chief Executive Officer (CEO) is a principal and an agent
B) Chief Executive Officer (CEO) is a principal only
C) Chief Executive Officer (CEO) is an agent only
D) None of the above is correct
To view all questions and flashcards with answers, click on the resource link above.
Chapter 20: Sustainability Management Accounting
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/70163
Sample Questions
Q1) Which of these is a behavioural issue as opposed to a technical issue when implementing sustainability change processes within an organisation?
A) Arriving at suitable objectives in line with sustainability strategies
B) Identifying suitable social and environmental measures for performance evaluation
C) Creating ownership of projects by participants
D) All are behavioural issues
Q2) Rewards for ethical behavior can include I Integrity
II Reputation
III Higher profits
A) I, II, and III
B) I and III only
C) I and II only
D) II only
Q3) Research has shown that if an organisation pursues sustainability, in the long-run this will lead to a drop in its profitability.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 22