Test Bank for Managerial Accounting ISE 5th Edition by Fred Phillips, Robert Libby, and Stacey Whitecotton

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


Chapter 01 5e ff ff




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
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as managers.
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⊚ true
⊚ false


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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




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