Full Test Bank for Managerial Accounting 5th Edition – Stacey Whitecotton | Complete Test Bank with Questions and Answers | Full Chapter Coverage

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


Answers 100% verified
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 of small, private corporations use managerial accounting information, whereas
managers of large, public corporations use financial accounting information.
true
false

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




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

8) 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.
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




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,14) Fixed costs stay the same, on a per-unit basis, as activity level changes.
true
false 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
consideration is a relevant cost.
true
false


19) Managerial accounting information is mandated by the SEC and other regulatory agencies.
true
false


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


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



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, false


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 information?

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



24) Managerial accounting, as compared to financial accounting, is primarily intended to
facilitate:

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
principles.




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