TESTBANK MANAGERIAL TESTBANK MANAGERIAL
ACCOUNTING FOR MANAGERS, 6TH ACCOUNTING FOR MANAGERS, 6TH
EDITION ERIC NOREEN ACTUAL EDITION ERIC NOREEN ACTUAL
TESTBANK UPDATED VERSION TESTBANK UPDATED VERSION
ACCESS Test Bank for Managerial Accounting for Managers 6th Edition
Noreen
1 mynursytest.store
CORRECT ANSWERS ARE LOCATED IN THE 2ND HALF OF THIS DOC. Managerial Accounting for Managers Edition 6 by Noreen
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or Version 1
answers the question.
1) Which of the following statements are true?
1. A factory supervisor's salary would be classified as an indirect cost with respect to a unit
of product.
2. A direct cost is a cost that can be easily traced to the particular cost object under
consideration.
3. A cost can be direct or indirect. The classification can change if the cost object changes.
A) Only statement I is true.
B) Statements I and II are true.
C) All of the statements are true.
D) None of the statements are true. 2
4) Which of the following statements are true?
2) Which of the following statements are true? 1. Depreciation is always considered a period cost for external financial reporting purposes
1. Wages paid to production supervisors would be classified as manufacturing overhead. in a manufacturing company.
2. Indirect costs, such as manufacturing overhead, are variable costs. 2. Depreciation on equipment a company uses in its selling and administrative activities
3. Selling costs are indirect costs. would be classified as a period cost.
4. Administrative costs are indirect costs. A) Only statement I is true.
A) Only statement I is true. B) Only statement II is true.
B) Statements I and III are true. C) Both of the statements are true.
C) All statements are true. D) Neither of the statements are true.
D) None of the statements are true.
5) Which of the following statements are true?
3) Which of the following statements are true? 1. Conversion cost is the sum of direct labor cost and manufacturing overhead cost.
1. The sum of all manufacturing costs except for direct materials and direct labor is called 2. Conversion cost is the same thing as manufacturing overhead.
manufacturing overhead. 3. Conversion cost equals product cost less direct materials cost.
2. The three cost elements ordinarily included in product costs are direct materials, direct A) Only statement I is true.
labor, and manufacturing overhead. B) Statements I and III are true.
A) Only statement I is true. C) All statements are true.
B) Only statement II is true. D) None of the statements are true.
C) Both of the statements are true.
D) Neither of the statements are true. 6) Which of the following statements are true?
, TESTBANK MANAGERIAL TESTBANK MANAGERIAL
ACCOUNTING FOR MANAGERS, 6TH ACCOUNTING FOR MANAGERS, 6TH
EDITION ERIC NOREEN ACTUAL EDITION ERIC NOREEN ACTUAL
TESTBANK UPDATED VERSION TESTBANK UPDATED VERSION
1. In a manufacturing company, all costs are period costs. well.
2. Selling and administrative expenses are period costs under generally accepted accounting 2. A fixed cost is a cost whose cost per unit varies as the activity level rises and falls.
principles. 3. A decrease in production will ordinarily result in a decrease in fixed production costs per
3. The cost of shipping parts from a supplier is considered a period cost. unit.
A) Only statement I is true. A) Only statement II is true.
B) Only statement II is true. B) Only statement III is true.
C) Statements I and II are true. C) Statements I and II are true.
D) Statements I and III are true. D) Statements I and III are true.
7) Which of the following statements are true? 9) Which of the following statements are true?
1. Advertising is not a considered a product cost even if it promotes a specific product. 1. Cost behavior is considered curvilinear whenever a straight line is a reasonable
2. Product costs are also known as inventoriable costs. approximation for the relation between cost and activity.
3. Prime cost is the sum of direct materials cost and direct labor cost. 2. As activity decreases within the relevant range, fixed costs remain constant on a per unit
4. Prime cost equals manufacturing overhead cost. basis.
A) Only statement I is true. 3. In account analysis, an account is classified as either variable or fixed based on an
B) Both statements I and IV are true. analyst’s prior knowledge of how the cost in the account behaves.
C) Statements I, II, and III are true. A) Only statement I is true.
D) None of the statements are true. B) Only statement II is true.
C) Only statement III is true.
ACCESS Test Bank for Managerial Accounting for Managers 6th Edition D) All statements are true.
Noreen
mynursytest.store 10) Which of the following statements are true?
Managerial Accounting for Managers Edition 6 by Noreen 1. The variable cost per unit depends on how many units are produced.
Version 1 2. A step-variable cost is a cost that is obtained in large chunks and that increases or
decreases only in response to fairly wide changes in activity.
A) Only statement I is true.
B) Only statement II is true.
C) Both of the statements are true.
D) Neither of the statements are true.
ACCESS Test Bank for Managerial Accounting for Managers 6th Edition
Noreen
mynursytest.store
Managerial Accounting for Managers Edition 6 by Noreen
3 Version 1
8) Which of the following statements are true?
1. If the activity level increases, then one would expect the fixed cost per unit to increase as
, TESTBANK MANAGERIAL TESTBANK MANAGERIAL
ACCOUNTING FOR MANAGERS, 6TH ACCOUNTING FOR MANAGERS, 6TH
EDITION ERIC NOREEN ACTUAL EDITION ERIC NOREEN ACTUAL
TESTBANK UPDATED VERSION TESTBANK UPDATED VERSION
salaries of highly trained engineers, real estate taxes, and insurance expenses.
A) Only statement III is true.
B) Both statement I and II are true.
C) Both statement II and IV are true.
D) All statements are true.
ACCESS Test Bank for Managerial Accounting for Managers 6th Edition
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11) Which of the following statements are true? Managerial Accounting for Managers Edition 6 by Noreen
1. A fixed cost is constant if expressed on a per unit basis but the total dollar amount Version 1
changes as the number of units increases or decreases.
2. Fixed costs expressed on a per unit basis do not change with changes in activity.
3. Committed fixed costs remain largely unchanged in the short run.
A) Only statement I is true.
B) Only statement II is true.
C) Only statement III is true.
D) All statements are true.
12) Which of the following statements are true?
1. Within the relevant range, a change in activity results in a change in variable cost per unit
and total fixed cost. 5
2. The concept of the relevant range does not apply to variable costs. 14) Which of the following statements are true?
A) Only statement I is true. 1. A fixed cost fluctuates in total as activity changes but remains constant on a per unit basis
B) Only statement II is true. over the relevant range.
C) Both of the statements are true. 2. The relevant range is the range of activity within which the assumption that cost behavior
D) Neither of the statements are true. is strictly linear is reasonably valid.
A) Only statement I is true.
13) Which of the following statements are true? B) Only statement II is true.
1. When operations are interrupted or cut back, committed fixed costs are cut in the short C) Both of the statements are true.
term because the costs of restoring them later are likely to be far less than the short-run D) Neither of the statements are true.
savings that are realized.
2. The cost of napkins put on each person's tray at a fast food restaurant is a variable cost 15) Which of the following statements are true?
with respect to how many persons are served. 1. Variable costs per unit are not affected by changes in activity.
3. Committed fixed costs represent organizational investments with a one-year planning 2. The relevant range concept is applicable to mixed costs.
horizon. 3. A variable cost remains constant if expressed on a unit basis.
4. The following costs are all examples of committed fixed costs: depreciation on buildings, 4. A fixed cost is not constant per unit of product.
, TESTBANK MANAGERIAL TESTBANK MANAGERIAL
ACCOUNTING FOR MANAGERS, 6TH ACCOUNTING FOR MANAGERS, 6TH
EDITION ERIC NOREEN ACTUAL EDITION ERIC NOREEN ACTUAL
TESTBANK UPDATED VERSION TESTBANK UPDATED VERSION
A) Only statement III is true.
B) Both statement I and II are true.
C) Both statement II and IV are true. 6
D) All statements are true. 18) Which of the following statements are true?
1. In a traditional format income statement, the gross margin is sales minus cost of goods
16) Which of the following statements are true? sold.
1. Differential costs can only be variable. 2. In a traditional format income statement, the gross margin minus selling and
2. The potential benefit that is given up when one alternative is selected over another is administrative expenses equals net operating income.
called a sunk cost. A) Only statement I is true.
3. The amount that a manufacturing company could earn by renting unused portions of its B) Only statement II is true.
warehouse is an example of an opportunity cost. C) Both of the statements are true.
A) Only statement I is true. D) Neither of the statements are true.
B) Only statement II is true.
C) Only statement III is true. 19) Which of the following statements are true?
D) All statements are true. 1. In a traditional format income statement for a merchandising company, cost of goods sold
is a variable cost that is included in the "Variable expenses" portion of the income
17) Which of the following statements are true? statement.
1. Opportunity costs at a manufacturing company are not part of manufacturing overhead. 2. Traditional format income statements are widely used for preparing external financial
2. A cost that differs from one month to another is known as a sunk cost. statements.
A) Only statement I is true. 3. Although the traditional format income statement is useful for external reporting
B) Only statement II is true. purposes, it has serious limitations when used for internal purposes because it does not
C) Both of the statements are true. distinguish between fixed and variable costs.
D) Neither of the statements are true. A) Only statement I is true.
B) Only statement II is true.
ACCESS Test Bank for Managerial Accounting for Managers 6th Edition C) Both statements I and III are true.
Noreen D) Both statements II and III are true.
mynursytest.store
Managerial Accounting for Managers Edition 6 by Noreen 20) Which of the following statements are true?
Version 1 1. In a contribution format income statement for a merchandising company, the cost of
goods sold reports the product costs attached to the merchandise sold during the period.
2. Contribution format income statements are prepared primarily for external reporting
purposes.
3. Most companies use the contribution approach in preparing financial statements for
external reporting purposes.
A) Only statement I is true.
B) Both statements I and III are true.
C) All of the statements are true.
ACCOUNTING FOR MANAGERS, 6TH ACCOUNTING FOR MANAGERS, 6TH
EDITION ERIC NOREEN ACTUAL EDITION ERIC NOREEN ACTUAL
TESTBANK UPDATED VERSION TESTBANK UPDATED VERSION
ACCESS Test Bank for Managerial Accounting for Managers 6th Edition
Noreen
1 mynursytest.store
CORRECT ANSWERS ARE LOCATED IN THE 2ND HALF OF THIS DOC. Managerial Accounting for Managers Edition 6 by Noreen
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or Version 1
answers the question.
1) Which of the following statements are true?
1. A factory supervisor's salary would be classified as an indirect cost with respect to a unit
of product.
2. A direct cost is a cost that can be easily traced to the particular cost object under
consideration.
3. A cost can be direct or indirect. The classification can change if the cost object changes.
A) Only statement I is true.
B) Statements I and II are true.
C) All of the statements are true.
D) None of the statements are true. 2
4) Which of the following statements are true?
2) Which of the following statements are true? 1. Depreciation is always considered a period cost for external financial reporting purposes
1. Wages paid to production supervisors would be classified as manufacturing overhead. in a manufacturing company.
2. Indirect costs, such as manufacturing overhead, are variable costs. 2. Depreciation on equipment a company uses in its selling and administrative activities
3. Selling costs are indirect costs. would be classified as a period cost.
4. Administrative costs are indirect costs. A) Only statement I is true.
A) Only statement I is true. B) Only statement II is true.
B) Statements I and III are true. C) Both of the statements are true.
C) All statements are true. D) Neither of the statements are true.
D) None of the statements are true.
5) Which of the following statements are true?
3) Which of the following statements are true? 1. Conversion cost is the sum of direct labor cost and manufacturing overhead cost.
1. The sum of all manufacturing costs except for direct materials and direct labor is called 2. Conversion cost is the same thing as manufacturing overhead.
manufacturing overhead. 3. Conversion cost equals product cost less direct materials cost.
2. The three cost elements ordinarily included in product costs are direct materials, direct A) Only statement I is true.
labor, and manufacturing overhead. B) Statements I and III are true.
A) Only statement I is true. C) All statements are true.
B) Only statement II is true. D) None of the statements are true.
C) Both of the statements are true.
D) Neither of the statements are true. 6) Which of the following statements are true?
, TESTBANK MANAGERIAL TESTBANK MANAGERIAL
ACCOUNTING FOR MANAGERS, 6TH ACCOUNTING FOR MANAGERS, 6TH
EDITION ERIC NOREEN ACTUAL EDITION ERIC NOREEN ACTUAL
TESTBANK UPDATED VERSION TESTBANK UPDATED VERSION
1. In a manufacturing company, all costs are period costs. well.
2. Selling and administrative expenses are period costs under generally accepted accounting 2. A fixed cost is a cost whose cost per unit varies as the activity level rises and falls.
principles. 3. A decrease in production will ordinarily result in a decrease in fixed production costs per
3. The cost of shipping parts from a supplier is considered a period cost. unit.
A) Only statement I is true. A) Only statement II is true.
B) Only statement II is true. B) Only statement III is true.
C) Statements I and II are true. C) Statements I and II are true.
D) Statements I and III are true. D) Statements I and III are true.
7) Which of the following statements are true? 9) Which of the following statements are true?
1. Advertising is not a considered a product cost even if it promotes a specific product. 1. Cost behavior is considered curvilinear whenever a straight line is a reasonable
2. Product costs are also known as inventoriable costs. approximation for the relation between cost and activity.
3. Prime cost is the sum of direct materials cost and direct labor cost. 2. As activity decreases within the relevant range, fixed costs remain constant on a per unit
4. Prime cost equals manufacturing overhead cost. basis.
A) Only statement I is true. 3. In account analysis, an account is classified as either variable or fixed based on an
B) Both statements I and IV are true. analyst’s prior knowledge of how the cost in the account behaves.
C) Statements I, II, and III are true. A) Only statement I is true.
D) None of the statements are true. B) Only statement II is true.
C) Only statement III is true.
ACCESS Test Bank for Managerial Accounting for Managers 6th Edition D) All statements are true.
Noreen
mynursytest.store 10) Which of the following statements are true?
Managerial Accounting for Managers Edition 6 by Noreen 1. The variable cost per unit depends on how many units are produced.
Version 1 2. A step-variable cost is a cost that is obtained in large chunks and that increases or
decreases only in response to fairly wide changes in activity.
A) Only statement I is true.
B) Only statement II is true.
C) Both of the statements are true.
D) Neither of the statements are true.
ACCESS Test Bank for Managerial Accounting for Managers 6th Edition
Noreen
mynursytest.store
Managerial Accounting for Managers Edition 6 by Noreen
3 Version 1
8) Which of the following statements are true?
1. If the activity level increases, then one would expect the fixed cost per unit to increase as
, TESTBANK MANAGERIAL TESTBANK MANAGERIAL
ACCOUNTING FOR MANAGERS, 6TH ACCOUNTING FOR MANAGERS, 6TH
EDITION ERIC NOREEN ACTUAL EDITION ERIC NOREEN ACTUAL
TESTBANK UPDATED VERSION TESTBANK UPDATED VERSION
salaries of highly trained engineers, real estate taxes, and insurance expenses.
A) Only statement III is true.
B) Both statement I and II are true.
C) Both statement II and IV are true.
D) All statements are true.
ACCESS Test Bank for Managerial Accounting for Managers 6th Edition
Noreen
4 mynursytest.store
11) Which of the following statements are true? Managerial Accounting for Managers Edition 6 by Noreen
1. A fixed cost is constant if expressed on a per unit basis but the total dollar amount Version 1
changes as the number of units increases or decreases.
2. Fixed costs expressed on a per unit basis do not change with changes in activity.
3. Committed fixed costs remain largely unchanged in the short run.
A) Only statement I is true.
B) Only statement II is true.
C) Only statement III is true.
D) All statements are true.
12) Which of the following statements are true?
1. Within the relevant range, a change in activity results in a change in variable cost per unit
and total fixed cost. 5
2. The concept of the relevant range does not apply to variable costs. 14) Which of the following statements are true?
A) Only statement I is true. 1. A fixed cost fluctuates in total as activity changes but remains constant on a per unit basis
B) Only statement II is true. over the relevant range.
C) Both of the statements are true. 2. The relevant range is the range of activity within which the assumption that cost behavior
D) Neither of the statements are true. is strictly linear is reasonably valid.
A) Only statement I is true.
13) Which of the following statements are true? B) Only statement II is true.
1. When operations are interrupted or cut back, committed fixed costs are cut in the short C) Both of the statements are true.
term because the costs of restoring them later are likely to be far less than the short-run D) Neither of the statements are true.
savings that are realized.
2. The cost of napkins put on each person's tray at a fast food restaurant is a variable cost 15) Which of the following statements are true?
with respect to how many persons are served. 1. Variable costs per unit are not affected by changes in activity.
3. Committed fixed costs represent organizational investments with a one-year planning 2. The relevant range concept is applicable to mixed costs.
horizon. 3. A variable cost remains constant if expressed on a unit basis.
4. The following costs are all examples of committed fixed costs: depreciation on buildings, 4. A fixed cost is not constant per unit of product.
, TESTBANK MANAGERIAL TESTBANK MANAGERIAL
ACCOUNTING FOR MANAGERS, 6TH ACCOUNTING FOR MANAGERS, 6TH
EDITION ERIC NOREEN ACTUAL EDITION ERIC NOREEN ACTUAL
TESTBANK UPDATED VERSION TESTBANK UPDATED VERSION
A) Only statement III is true.
B) Both statement I and II are true.
C) Both statement II and IV are true. 6
D) All statements are true. 18) Which of the following statements are true?
1. In a traditional format income statement, the gross margin is sales minus cost of goods
16) Which of the following statements are true? sold.
1. Differential costs can only be variable. 2. In a traditional format income statement, the gross margin minus selling and
2. The potential benefit that is given up when one alternative is selected over another is administrative expenses equals net operating income.
called a sunk cost. A) Only statement I is true.
3. The amount that a manufacturing company could earn by renting unused portions of its B) Only statement II is true.
warehouse is an example of an opportunity cost. C) Both of the statements are true.
A) Only statement I is true. D) Neither of the statements are true.
B) Only statement II is true.
C) Only statement III is true. 19) Which of the following statements are true?
D) All statements are true. 1. In a traditional format income statement for a merchandising company, cost of goods sold
is a variable cost that is included in the "Variable expenses" portion of the income
17) Which of the following statements are true? statement.
1. Opportunity costs at a manufacturing company are not part of manufacturing overhead. 2. Traditional format income statements are widely used for preparing external financial
2. A cost that differs from one month to another is known as a sunk cost. statements.
A) Only statement I is true. 3. Although the traditional format income statement is useful for external reporting
B) Only statement II is true. purposes, it has serious limitations when used for internal purposes because it does not
C) Both of the statements are true. distinguish between fixed and variable costs.
D) Neither of the statements are true. A) Only statement I is true.
B) Only statement II is true.
ACCESS Test Bank for Managerial Accounting for Managers 6th Edition C) Both statements I and III are true.
Noreen D) Both statements II and III are true.
mynursytest.store
Managerial Accounting for Managers Edition 6 by Noreen 20) Which of the following statements are true?
Version 1 1. In a contribution format income statement for a merchandising company, the cost of
goods sold reports the product costs attached to the merchandise sold during the period.
2. Contribution format income statements are prepared primarily for external reporting
purposes.
3. Most companies use the contribution approach in preparing financial statements for
external reporting purposes.
A) Only statement I is true.
B) Both statements I and III are true.
C) All of the statements are true.
