Test Bank - for Managerial Accounting, 5th Edition by Stacey Whitecotton, All Chapters 1-13 |Complete Guide A+

1

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



Chapter 01 5e xc xc




TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
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1) Financial accounting information is generally used exclusively by internal parties such as
xc xc xc xc xc xc xc xc xc xc xc




managers.
xc




⊚ true
⊚ false


2) Financial accounting information is reported for the company as a whole.
xc xc xc xc xc xc xc xc xc xc




⊚ true
⊚ false


3) Managers must direct, lead, and motivate during the implementation function.
xc xc xc xc xc xc xc xc xc




⊚ true
⊚ false


4) Managers of small, private corporations use managerial accounting information, whereas
xc xc xc xc xc xc xc xc xc




managers of large, public corporations use financial accounting information.
xc xc xc xc xc xc xc xc xc




⊚ true
⊚ false


5) The Sarbanes-Oxley Act of 2002 places full responsibility on the board of directors
xc xc xc xc xc xc xc xc xc xc xc xc




for the accuracy of the reporting system.
xc xc xc xc xc xc xc




⊚ true
⊚ false


6) The Sarbanes-Oxley Act of 2002 focuses on three factors that affect the
xc xc xc xc xc xc xc xc xc xc xc




accounting reporting environment: ethics, fraud, and management.
xc xc xc xc xc xc xc




⊚ true
⊚ false


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




2

, ⊚ true
⊚ false


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




⊚ true
⊚ false


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




⊚ true
⊚ false


10) Descriptive analytics uses patterns and insights from collected data to show what
xc xc xc xc xc xc xc xc xc xc xc




has happened.
xc xc




⊚ true
⊚ false


11) An opportunity cost is the cost of not doing something.
xc xc xc xc xc xc xc xc xc




⊚ true
⊚ false


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




⊚ true
⊚ false


13) Variable costs are always direct costs.
xc xc xc xc xc




⊚ true
⊚ false


14) Fixed costs stay the same, on a per-unit basis, as activity level changes.
xc xc xc xc xc xc xc xc xc xc xc xc




⊚ true
⊚ false


3

, 15) Prime costs include direct materials, direct labor, and manufacturing overhead.
xc xc xc xc xc xc xc xc xc




⊚ true
⊚ false


16) All manufacturing costs are treated as product costs.
xc xc xc xc xc xc xc




⊚ true
⊚ false


17) All manufacturing costs are inventoriable costs.
xc xc xc xc xc




⊚ true
⊚ false


18) A cost that will occur in the future and differs between various alternatives
xc xc xc xc xc xc xc xc xc xc xc xc




under consideration is a relevant cost.
xc xc xc xc xc xc




⊚ true
⊚ false


19) Managerial accounting information is mandated by the SEC and other regulatory
xc xc xc xc xc xc xc xc xc xc




agencies.
xc




⊚ true
⊚ false


20) Managerial accounting information is considered proprietary in nature.
xc xc xc xc xc xc xc




⊚ true
⊚ false


21) Opportunity costs occur in business when resources are constrained.
xc xc xc xc xc xc xc xc




⊚ true
⊚ false




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