Test Bank for Managerial Accounting, 5th Edition by Stacey Whitecotton Answers Included

Test Bank for Managerial Accounting, 5th Edition by Stacey Whitecotton


Answers Included
Chapter 01 5e
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Financial accounting information is generally used exclusively by internal parties such as
managers.
⊚ true
⊚ false


2) Financial accounting information is reported for the company as a whole.
⊚ true
⊚ false


3) Managers must direct, lead, and motivate during the implementation function.
⊚ true
⊚ false


4) Managers of small, private corporations use managerial accounting information, whereas
managers of large, public corporations use financial accounting information.
⊚ true
⊚ false


5) The Sarbanes-Oxley Act of 2002 places full responsibility on the board of directors for
the accuracy of the reporting system.
⊚ true
⊚ false


6) The Sarbanes-Oxley Act of 2002 focuses on three factors that affect the accounting
reporting environment: ethics, fraud, and management.
⊚ true
⊚ false


7) A sustainable business is one with the ability to meet the needs of today without
sacrificing the ability of future generations to meet their own needs.




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, ⊚ true
⊚ false


8) The term "big data" refers to the volume, velocity, and veracity of data.
⊚ true
⊚ false


9) Predictive analytics is the process of recommending a course of action based upon
meaningful patterns and insights from collected data.
⊚ true
⊚ false


10) Descriptive analytics uses patterns and insights from collected data to show what has
happened.
⊚ true
⊚ false


11) An opportunity cost is the cost of not doing something.
⊚ true
⊚ false


12) Whether a cost is treated as direct or indirect depends on whether tracing the cost is both
possible and practical.
⊚ true
⊚ false


13) Variable/costs/are/always/direct/costs.
⊚ true
⊚ false


14) Fixed/costs/stay/the/same,/on/a/per-unit/basis,/as/activity/level/changes.
⊚ true
⊚ false


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,15) Prime/costs/include/direct/materials,/direct/labor,/and/manufacturing/overhead.
⊚ true
⊚ false


16) All/manufacturing/costs/are/treated/as/product/costs.
⊚ true
⊚ false


17) All/manufacturing/costs/are/inventoriable/costs.
⊚ true
⊚ false


18) A/cost/that/will/occur/in/the/future/and/differs/between/various/alternatives/under/c
onsideration/is/a/relevant/cost.
⊚ true
⊚ false


19) Managerial/accounting/information/is/mandated/by/the/SEC/and/other/regulatory/a
gencies.
⊚ true
⊚ false


20) Managerial/accounting/information/is/considered/proprietary/in/nature.
⊚ true
⊚ false


21) Opportunity/costs/occur/in/business/when/resources/are/constrained.
⊚ true
⊚ false




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, MULTIPLE/CHOICE/-
/Choose/the/one/alternative/that/best/completes/the/statement/or/answers/the/question.
22) What/is/the/primary/goal/of/accounting?

A) To/set/long-term/goals/and/objectives
B) To/arrange/for/the/necessary/resources/to/achieve/a/plan
C) To/provide/information/for/decision-making
D) To/motivate/others/to/work/towards/a/plan's/success



23) Of/the/following/groups,/which/is/the/primary/user/of/managerial/accounting/i
nformation?

A) Investors
B) Creditors
C) Regulators
D) Managers



24) Managerial/accounting,/as/compared/to/financial/accounting,/is/primarily/intended/to/f
acilitate:

A) understanding/the/GAAP.
B) making/decisions/with/timely,/relevant/information.
C) conducting/ethics/investigations/under/SOX.
D) reporting/results/to/shareholders.



25) Managerial/accounting/information/includes/all/of/the/following/except:

A) budgets.
B) performance/evaluations,/for/example,/budget-to-actual/reports.
C) cost/reports.
D) financial/statements/prepared/in/accordance/with/generally/accepted/accounting/p
rinciples.



26) Which/of/the/following/is/not/a/characteristic/of/financial/accounting?


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