ACCESS Test Bank for Managerial Accounting 18th Edition Garrison
m m m m m m m m
Managerial Accounting Edition 18 by Garrison
m m m m m
CORRECT ANSWERS ARE LOCATED IN THE 2ND HALF OF THIS DOC.
m m m m m m m m m m
MULTIPLEmCHOICEm-
mChoosemthemonemalternativemthatmbestmcompletesmthemstatementmormanswersmthemquestion.
1) Whichmof mthemfollowingmstatementsmaremtrue?
1. A mfactorymsupervisor'smsalarymwould mbemclassified masmanmindirect mcost mwithmrespect mtomamu
nit mof mproduct.
2. A mdirect mcost mismamcost mthat mcanmbemeasilymtraced mtomthemparticularmcost mobject mun
dermconsideration.
3. A mcost mcanmbemdirect mormindirect.mThemclassificationmcanmchangemif mthemcost mobject mchanges.
A) Onlymstatement mI mismtrue.
B) StatementsmI mand mII maremtrue.
C) Allmof mthemstatementsmaremtrue.
D) Nonemof mthemstatementsmaremtrue.
2) Whichmof mthemfollowingmstatementsmaremtrue?
1. Wagesmpaid mtomproductionmsupervisorsmwould mbemclassified masmmanufacturingmoverhead.
2. Indirect mcosts,msuchmasmmanufacturingmoverhead,maremvariablemcosts.
3. Sellingmcostsmaremindirect mcosts.
4. Administrativemcostsmaremindirect mcosts.
A) Onlymstatement mI mismtrue.
B) StatementsmI mand mIII maremtrue.
C) Allmstatementsmaremtrue.
D) Nonemof mthemstatementsmaremtrue.
3) Whichmof mthemfollowingmstatementsmaremtrue?
1. Themsummof mallmmanufacturingmcostsmexcept mformdirect mmaterialsmand mdirect mlabormismcall
ed mmanufacturingmoverhead.
2. Themthreemcost melementsmordinarilymincluded minmproduct mcostsmaremdirect mmaterials,mdire
ct mlabor,mand mmanufacturingmoverhead.
A) Onlymstatement mI mismtrue.
B) Onlymstatement mII mismtrue.
C) Bothmof mthemstatementsmaremtrue.
D) Neithermof mthemstatementsmaremtrue.
Versionm1 1
mynursytest.store
,ACCESS Test Bank for Managerial Accounting 18th Edition Garrison
m m m m m m m m
Managerial Accounting Edition 18 by Garrison
m m m m m
4) Whichmof mthemfollowingmstatementsmaremtrue?
1. Depreciationmismalwaysmconsidered mamperiod mcost mformexternalmfinancialmreportingmpurpos
esminmammanufacturingmcompany.
2. Depreciationmonmequipment mamcompanymusesminmitsmsellingmand madministrativemactiviti
esmwould mbemclassified masmamperiod mcost.
A) Onlymstatement mI mismtrue.
B) Onlymstatement mII mismtrue.
C) Bothmof mthemstatementsmaremtrue.
D) Neithermof mthemstatementsmaremtrue.
5) Whichmof mthemfollowingmstatementsmaremtrue?
1. Conversionmcost mismthemsummof mdirect mlabormcost mand mmanufacturingmoverhead mcost.
2. Conversionmcost mismthemsamemthingmasmmanufacturingmoverhead.
3. Conversionmcost mequalsmproduct mcost mlessmdirect mmaterialsmcost.
A) Onlymstatement mI mismtrue.
B) StatementsmI mand mIII maremtrue.
C) Allmstatementsmaremtrue.
D) Nonemof mthemstatementsmaremtrue.
6) Whichmof mthemfollowingmstatementsmaremtrue?
1. Inmammanufacturingmcompany,mallmcostsmaremperiod mcosts.
2. Sellingmand madministrativemexpensesmaremperiod mcostsmundermgenerallymaccepted maccounti
ngmprinciples.
3. Themcost mof mshippingmpartsmfrommamsuppliermismconsidered mamperiod mcost.
A) Onlymstatement mI mismtrue.
B) Onlymstatement mII mismtrue.
C) StatementsmI mand mII maremtrue.
D) StatementsmI mand mIII maremtrue.
7) Whichmof mthemfollowingmstatementsmaremtrue?
1. Advertisingmismnot mamconsidered mamproduct mcost mevenmif mit mpromotesmamspecificmproduct.
2. Product mcostsmaremalsomknownmasminventoriablemcosts.
3. Primemcost mismthemsummof mdirect mmaterialsmcost mand mdirect mlabormcost.
4. Primemcost mequalsmmanufacturingmoverhead mcost.
A) Onlymstatement mI mismtrue.
B) BothmstatementsmI mand mIVmaremtrue.
C) StatementsmI,mII,mand mIII maremtrue.
D) Nonemof mthemstatementsmaremtrue.
Versionm1 2
mynursytest.store
,ACCESS Test Bank for Managerial Accounting 18th Edition Garrison
m m m m m m m m
Managerial Accounting Edition 18 by Garrison
m m m m m
8) Whichmof mthemfollowingmstatementsmaremtrue?
1. If mthemactivitymlevelmincreases,mthenmonemwould mexpect mthemfixed mcost mpermunit mtomincrease
asmwell.
m
2. A mfixed mcost mismamcost mwhosemcost mpermunit mvariesmasmthemactivitymlevelmrisesmand mfalls.
3. A mdecreaseminmproductionmwillmordinarilymresult minmamdecreaseminmfixed mproductionmcostsm
permunit.
A) Onlymstatement mII mismtrue.
B) Onlymstatement mIII mismtrue.
C) StatementsmI mand mII maremtrue.
D) StatementsmI mand mIII maremtrue.
9) Whichmof mthemfollowingmstatementsmaremtrue?
1. Cost mbehaviormismconsidered mcurvilinearmwhenevermamstraight mlinemismamreasonab
lemapproximationmformthemrelationmbetweenmcost mand mactivity.
2. Asmactivitymdecreasesmwithinmthemrelevant mrange,mfixed mcostsmremainmconstant monmampermu
nit mbasis.
3. Inmaccount manalysis,manmaccount mismclassified masmeithermvariablemormfixed mbased monm
anmanalyst’smpriormknowledgemof mhowmthemcost minmthemaccount mbehaves.
A) Onlymstatement mI mismtrue.
B) Onlymstatement mII mismtrue.
C) Onlymstatement mIII mismtrue.
D) Allmstatementsmaremtrue.
10) Whichmof mthemfollowingmstatementsmaremtrue?
1. Themvariablemcost mpermunit mdependsmonmhow mmanymunitsmaremproduced.
2. A mstep-
variablemcost mismamcost mthat mismobtained minmlargemchunksmand mthat mincreasesmormdecr
easesmonlyminmresponsemtomfairlymwidemchangesminmactivity.
A) Onlymstatement mI mismtrue.
B) Onlymstatement mII mismtrue.
C) Bothmof mthemstatementsmaremtrue.
D) Neithermof mthemstatementsmaremtrue.
Versionm1 3
mynursytest.store
, ACCESS Test Bank for Managerial Accounting 18th Edition Garrison
m m m m m m m m
Managerial Accounting Edition 18 by Garrison
m m m m m
11) Whichmof mthemfollowingmstatementsmaremtrue?
1. A mfixed mcost mismconstant mif mexpressed monmampermunit mbasismbut mthemtotalmdollarmamo
unt mchangesmasmthemnumbermof munitsmincreasesmormdecreases.
2. Fixed mcostsmexpressed monmampermunit mbasismdomnot mchangemwithmchangesminmactivity.
3. Committed mfixed mcostsmremainmlargelymunchanged minmthemshort mrun.
A) Onlymstatement mI mismtrue.
B) Onlymstatement mII mismtrue.
C) Onlymstatement mIII mismtrue.
D) Allmstatementsmaremtrue.
12) Whichmof mthemfollowingmstatementsmaremtrue?
1. Withinmthemrelevant mrange,mamchangeminmactivitymresultsminmamchangeminmvariablemcost mpermu
nit mand mtotalmfixed mcost.
2. Themconcept mof mthemrelevant mrangemdoesmnot mapplymtomvariablemcosts.
A) Onlymstatement mI mismtrue.
B) Onlymstatement mII mismtrue.
C) Bothmof mthemstatementsmaremtrue.
D) Neithermof mthemstatementsmaremtrue.
13) Whichmof mthemfollowingmstatementsmaremtrue?
1. Whenmoperationsmareminterrupted mormcut mback,mcommitted mfixed mcostsmaremcut minmthemsh
ort mtermmbecausemthemcostsmof mrestoringmthemmlatermaremlikelymtombemfarmlessmthanmthemsh
ort-runmsavingsmthat maremrealized.
2. Themcost mof mnapkinsmput monmeachmperson'smtraymat mamfast mfood mrestaurant mismamvariablemc
ost mwithmrespect mtomhow mmanympersonsmaremserved.
3. Committed mfixed mcostsmrepresent morganizationalminvestmentsmwithmamone-
yearmplanningmhorizon.
4. Themfollowingmcostsmaremallmexamplesmof mcommitted mfixed mcosts:mdepreciationmonmbuildin
gs,msalariesmof mhighlymtrained mengineers,mreal mestatemtaxes,mand minsurancemexpenses.
A) Onlymstatement mIII mismtrue.
B) Bothmstatement mI mand mII maremtrue.
C) Bothmstatement mII mand mIVmaremtrue.
D) Allmstatementsmaremtrue.
Versionm1 4
mynursytest.store
m m m m m m m m
Managerial Accounting Edition 18 by Garrison
m m m m m
CORRECT ANSWERS ARE LOCATED IN THE 2ND HALF OF THIS DOC.
m m m m m m m m m m
MULTIPLEmCHOICEm-
mChoosemthemonemalternativemthatmbestmcompletesmthemstatementmormanswersmthemquestion.
1) Whichmof mthemfollowingmstatementsmaremtrue?
1. A mfactorymsupervisor'smsalarymwould mbemclassified masmanmindirect mcost mwithmrespect mtomamu
nit mof mproduct.
2. A mdirect mcost mismamcost mthat mcanmbemeasilymtraced mtomthemparticularmcost mobject mun
dermconsideration.
3. A mcost mcanmbemdirect mormindirect.mThemclassificationmcanmchangemif mthemcost mobject mchanges.
A) Onlymstatement mI mismtrue.
B) StatementsmI mand mII maremtrue.
C) Allmof mthemstatementsmaremtrue.
D) Nonemof mthemstatementsmaremtrue.
2) Whichmof mthemfollowingmstatementsmaremtrue?
1. Wagesmpaid mtomproductionmsupervisorsmwould mbemclassified masmmanufacturingmoverhead.
2. Indirect mcosts,msuchmasmmanufacturingmoverhead,maremvariablemcosts.
3. Sellingmcostsmaremindirect mcosts.
4. Administrativemcostsmaremindirect mcosts.
A) Onlymstatement mI mismtrue.
B) StatementsmI mand mIII maremtrue.
C) Allmstatementsmaremtrue.
D) Nonemof mthemstatementsmaremtrue.
3) Whichmof mthemfollowingmstatementsmaremtrue?
1. Themsummof mallmmanufacturingmcostsmexcept mformdirect mmaterialsmand mdirect mlabormismcall
ed mmanufacturingmoverhead.
2. Themthreemcost melementsmordinarilymincluded minmproduct mcostsmaremdirect mmaterials,mdire
ct mlabor,mand mmanufacturingmoverhead.
A) Onlymstatement mI mismtrue.
B) Onlymstatement mII mismtrue.
C) Bothmof mthemstatementsmaremtrue.
D) Neithermof mthemstatementsmaremtrue.
Versionm1 1
mynursytest.store
,ACCESS Test Bank for Managerial Accounting 18th Edition Garrison
m m m m m m m m
Managerial Accounting Edition 18 by Garrison
m m m m m
4) Whichmof mthemfollowingmstatementsmaremtrue?
1. Depreciationmismalwaysmconsidered mamperiod mcost mformexternalmfinancialmreportingmpurpos
esminmammanufacturingmcompany.
2. Depreciationmonmequipment mamcompanymusesminmitsmsellingmand madministrativemactiviti
esmwould mbemclassified masmamperiod mcost.
A) Onlymstatement mI mismtrue.
B) Onlymstatement mII mismtrue.
C) Bothmof mthemstatementsmaremtrue.
D) Neithermof mthemstatementsmaremtrue.
5) Whichmof mthemfollowingmstatementsmaremtrue?
1. Conversionmcost mismthemsummof mdirect mlabormcost mand mmanufacturingmoverhead mcost.
2. Conversionmcost mismthemsamemthingmasmmanufacturingmoverhead.
3. Conversionmcost mequalsmproduct mcost mlessmdirect mmaterialsmcost.
A) Onlymstatement mI mismtrue.
B) StatementsmI mand mIII maremtrue.
C) Allmstatementsmaremtrue.
D) Nonemof mthemstatementsmaremtrue.
6) Whichmof mthemfollowingmstatementsmaremtrue?
1. Inmammanufacturingmcompany,mallmcostsmaremperiod mcosts.
2. Sellingmand madministrativemexpensesmaremperiod mcostsmundermgenerallymaccepted maccounti
ngmprinciples.
3. Themcost mof mshippingmpartsmfrommamsuppliermismconsidered mamperiod mcost.
A) Onlymstatement mI mismtrue.
B) Onlymstatement mII mismtrue.
C) StatementsmI mand mII maremtrue.
D) StatementsmI mand mIII maremtrue.
7) Whichmof mthemfollowingmstatementsmaremtrue?
1. Advertisingmismnot mamconsidered mamproduct mcost mevenmif mit mpromotesmamspecificmproduct.
2. Product mcostsmaremalsomknownmasminventoriablemcosts.
3. Primemcost mismthemsummof mdirect mmaterialsmcost mand mdirect mlabormcost.
4. Primemcost mequalsmmanufacturingmoverhead mcost.
A) Onlymstatement mI mismtrue.
B) BothmstatementsmI mand mIVmaremtrue.
C) StatementsmI,mII,mand mIII maremtrue.
D) Nonemof mthemstatementsmaremtrue.
Versionm1 2
mynursytest.store
,ACCESS Test Bank for Managerial Accounting 18th Edition Garrison
m m m m m m m m
Managerial Accounting Edition 18 by Garrison
m m m m m
8) Whichmof mthemfollowingmstatementsmaremtrue?
1. If mthemactivitymlevelmincreases,mthenmonemwould mexpect mthemfixed mcost mpermunit mtomincrease
asmwell.
m
2. A mfixed mcost mismamcost mwhosemcost mpermunit mvariesmasmthemactivitymlevelmrisesmand mfalls.
3. A mdecreaseminmproductionmwillmordinarilymresult minmamdecreaseminmfixed mproductionmcostsm
permunit.
A) Onlymstatement mII mismtrue.
B) Onlymstatement mIII mismtrue.
C) StatementsmI mand mII maremtrue.
D) StatementsmI mand mIII maremtrue.
9) Whichmof mthemfollowingmstatementsmaremtrue?
1. Cost mbehaviormismconsidered mcurvilinearmwhenevermamstraight mlinemismamreasonab
lemapproximationmformthemrelationmbetweenmcost mand mactivity.
2. Asmactivitymdecreasesmwithinmthemrelevant mrange,mfixed mcostsmremainmconstant monmampermu
nit mbasis.
3. Inmaccount manalysis,manmaccount mismclassified masmeithermvariablemormfixed mbased monm
anmanalyst’smpriormknowledgemof mhowmthemcost minmthemaccount mbehaves.
A) Onlymstatement mI mismtrue.
B) Onlymstatement mII mismtrue.
C) Onlymstatement mIII mismtrue.
D) Allmstatementsmaremtrue.
10) Whichmof mthemfollowingmstatementsmaremtrue?
1. Themvariablemcost mpermunit mdependsmonmhow mmanymunitsmaremproduced.
2. A mstep-
variablemcost mismamcost mthat mismobtained minmlargemchunksmand mthat mincreasesmormdecr
easesmonlyminmresponsemtomfairlymwidemchangesminmactivity.
A) Onlymstatement mI mismtrue.
B) Onlymstatement mII mismtrue.
C) Bothmof mthemstatementsmaremtrue.
D) Neithermof mthemstatementsmaremtrue.
Versionm1 3
mynursytest.store
, ACCESS Test Bank for Managerial Accounting 18th Edition Garrison
m m m m m m m m
Managerial Accounting Edition 18 by Garrison
m m m m m
11) Whichmof mthemfollowingmstatementsmaremtrue?
1. A mfixed mcost mismconstant mif mexpressed monmampermunit mbasismbut mthemtotalmdollarmamo
unt mchangesmasmthemnumbermof munitsmincreasesmormdecreases.
2. Fixed mcostsmexpressed monmampermunit mbasismdomnot mchangemwithmchangesminmactivity.
3. Committed mfixed mcostsmremainmlargelymunchanged minmthemshort mrun.
A) Onlymstatement mI mismtrue.
B) Onlymstatement mII mismtrue.
C) Onlymstatement mIII mismtrue.
D) Allmstatementsmaremtrue.
12) Whichmof mthemfollowingmstatementsmaremtrue?
1. Withinmthemrelevant mrange,mamchangeminmactivitymresultsminmamchangeminmvariablemcost mpermu
nit mand mtotalmfixed mcost.
2. Themconcept mof mthemrelevant mrangemdoesmnot mapplymtomvariablemcosts.
A) Onlymstatement mI mismtrue.
B) Onlymstatement mII mismtrue.
C) Bothmof mthemstatementsmaremtrue.
D) Neithermof mthemstatementsmaremtrue.
13) Whichmof mthemfollowingmstatementsmaremtrue?
1. Whenmoperationsmareminterrupted mormcut mback,mcommitted mfixed mcostsmaremcut minmthemsh
ort mtermmbecausemthemcostsmof mrestoringmthemmlatermaremlikelymtombemfarmlessmthanmthemsh
ort-runmsavingsmthat maremrealized.
2. Themcost mof mnapkinsmput monmeachmperson'smtraymat mamfast mfood mrestaurant mismamvariablemc
ost mwithmrespect mtomhow mmanympersonsmaremserved.
3. Committed mfixed mcostsmrepresent morganizationalminvestmentsmwithmamone-
yearmplanningmhorizon.
4. Themfollowingmcostsmaremallmexamplesmof mcommitted mfixed mcosts:mdepreciationmonmbuildin
gs,msalariesmof mhighlymtrained mengineers,mreal mestatemtaxes,mand minsurancemexpenses.
A) Onlymstatement mIII mismtrue.
B) Bothmstatement mI mand mII maremtrue.
C) Bothmstatement mII mand mIVmaremtrue.
D) Allmstatementsmaremtrue.
Versionm1 4
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