Question 1
Question 1 text
Managerial accounting is different from financial accounting in that
Answer
Question 1 answers
Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization.
Managerial accounting never includes nonmonetary information.
Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.
Managerial accounting is used extensively by investors, whereas financial accounting is used only by creditors.
Managerial accounting is mainly used to set stock prices.
1 points
Question 2
Question 2 text
Which of the following items represents a difference between financial and managerial accounting?
Answer
Question 2 answers
Users of the information.
Flexibility of practices.
Timeliness and time dimension of the information reported.
Nature of the information.
All of these.
1 points
Question 3
Question 3 text
A direct cost is a cost that is:
Answer
Question 3 answers
Identifiable as controllable.
Variable with respect to the volume of activity.
Fixed with respect to the volume of activity.
Traceable to a cost object.
Sunk with respect to a cost object.
1 points
Question 4
Question 4 text
An opportunity cost is:
Answer
Question 4 answers
An uncontrollable cost.
A cost of potential benefit lost.
A change in the cost of a component.
A direct cost.
A sunk cost.
1 points
Question 5
Question 5 text
Classifying costs by behavior involves:
Answer
Question 5 answers
Identifying fixed cost and variable cost.
Identifying cost of goods sold and operating costs.
Identifying all costs.
Identifying costs in a physical manner.
Identifying both quantitative and qualitative cost factors.
1 points
Question 6
Question 6 text
A mixed cost:
Answer
Question 6 answers
Requires the future outlay of cash and is relevant for future decision making.
Does not change with changes in the volume of activity within the relevant range.
Is directly traceable to a cost object.
Contains a combination of fixed costs and variable costs.
Has already been incurred and cannot be avoided so it is irrelevant for decision making.
1 points
Question 7
Question 7 text
A fixed cost:
Answer
Question 7 answers
Requires the future outlay of cash and is relevant for future decision making.
Does not change with changes in the volume of activity within the relevant range.
Is directly traceable to a cost object.
Changes with changes in the volume of activity within the relevant range.
Has already been incurred and cannot be avoided so it is irrelevant for decision making.
Question 9
Question 9 text
A primary difference between variable costs and fixed costs is:
Answer
Question 9 answers
Variable costs per unit change in varying increments while fixed costs per unit change in equal increments over the relevant range of activity.
Variable costs per unit fluctuate and fixed costs per unit remain constant over the relevant range of activity.
Variable costs per unit are fixed and fixed costs per unit are variable over the relevant range of activity.
Variable costs per unit change in equal increments while total fixed costs change in proportion to the level of activity over the company's relevant range.
Total variable costs are fixed and fixed costs per unit never change over the relevant range of activity.
1 points
Question 10
Question 10 text
Period costs for a manufacturing company would flow directly to:
Answer
Question 10 answers
The current income statement.
Factory overhead.
The current balance sheet.
Job cost sheet.
The current manufacturing statement.
1 points
Question 11
Question 11 text
Costs that are first assigned to inventory are called:
Answer
Question 11 answers
Period costs.
Product costs.
General costs.
Administrative costs.
Fixed costs.
