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.