Test Bank
Introduction To Managerial Accounting,
By Ganesh Vaidyanathan Peter C. Brewer
7th Edition
1-1
,Table Of Content:
Chapter 1 An Introduction To Managerial Accounting
Chapter 2 Cost Concepts
Chapter 3 Systems Design: Job-Order Costing
Chapter 4 Process Costing
Chapter 5 Activity-Based Costing
Chapter 6 Cost Behaviour: Analysis And Use
Chapter 7 Budgeting
Chapter 8 Cost-Volume-Profit Relationships
Chapter 9 Relevant Costs: The Key To Decision Making
Chapter 10 Capital Budgeting Decisions
Chapter 11 Standard Costs And Variance Analysis
Chapter 12 Organizational Structure And Performance Measurement
Chapter 13 “How Well Am I Doing?” – Financial Statement Analysis (Online)
Chapter 14 “How Well Am I Doing?” – Cash Flow Statement (Online)
1-2
,Chapter 01 Managerial Accounting And Cost Concepts
1. Selling Costs Can Be Either Direct Or Indirect Costs.
True False
2. A Direct Cost Is A Cost That Cannot Be Easily Traced To The Particular Cost
Object Under Consideration.
True False
3. Property Taxes And Insurance Premiums Paid On A Factory Building Are Examples Of Period Costs.
True False
4. Conversion Cost Equals Product Cost Less Direct Labor Cost.
True False
5. Thread That Is Used In The Production Of Mattresses Is An Indirect Material That Is
Therefore Classified As Manufacturing Overhead.
True False
6. Direct Labor Is A Part Of Prime Cost, But Not Conversion Cost.
True False
7. Conversion Cost Is The Sum Of Direct Labor Cost And Direct Materials Cost.
True False
8. Direct Material Costs Are Generally Fixed Costs.
True False
1-3
, 9. Product Costs Are Recorded As Expenses In The Period In Which The Related Products Are Sold.
True False
10. Depreciation On Manufacturing Equipment Is A Product Cost.
True False
11. Manufacturing Salaries And Wages Incurred In The Factory Are Period Costs.
True False
12. Depreciation On Office Equipment Would Be Included In Product Costs.
True False
13. Rent On A Factory Building Used In The Production Process Would Be Classified As A
Product Cost And As A Fixed Cost.
True False
14. A Fixed Cost Remains Constant If Expressed On A Unit Basis.
True False
15. Total Variable Cost Is Expected To Remain Unchanged As Activity Changes Within The
Relevant Range.
True False
16. Country Charm Restaurant Is Open 24 Hours A Day And Always Has A Fire Going In The
Fireplace In The Middle Of Its Dining Area. The Cost Of The Firewood For This Fire Is Fixed
With Respect To The Number Of Meals Served At The Restaurant.
True False
17. Committed Fixed Costs Represent Organizational Investments With A Multi-Year Planning
Horizon That Can't Be Significantly Reduced Even For Short Periods.
1-4
Introduction To Managerial Accounting,
By Ganesh Vaidyanathan Peter C. Brewer
7th Edition
1-1
,Table Of Content:
Chapter 1 An Introduction To Managerial Accounting
Chapter 2 Cost Concepts
Chapter 3 Systems Design: Job-Order Costing
Chapter 4 Process Costing
Chapter 5 Activity-Based Costing
Chapter 6 Cost Behaviour: Analysis And Use
Chapter 7 Budgeting
Chapter 8 Cost-Volume-Profit Relationships
Chapter 9 Relevant Costs: The Key To Decision Making
Chapter 10 Capital Budgeting Decisions
Chapter 11 Standard Costs And Variance Analysis
Chapter 12 Organizational Structure And Performance Measurement
Chapter 13 “How Well Am I Doing?” – Financial Statement Analysis (Online)
Chapter 14 “How Well Am I Doing?” – Cash Flow Statement (Online)
1-2
,Chapter 01 Managerial Accounting And Cost Concepts
1. Selling Costs Can Be Either Direct Or Indirect Costs.
True False
2. A Direct Cost Is A Cost That Cannot Be Easily Traced To The Particular Cost
Object Under Consideration.
True False
3. Property Taxes And Insurance Premiums Paid On A Factory Building Are Examples Of Period Costs.
True False
4. Conversion Cost Equals Product Cost Less Direct Labor Cost.
True False
5. Thread That Is Used In The Production Of Mattresses Is An Indirect Material That Is
Therefore Classified As Manufacturing Overhead.
True False
6. Direct Labor Is A Part Of Prime Cost, But Not Conversion Cost.
True False
7. Conversion Cost Is The Sum Of Direct Labor Cost And Direct Materials Cost.
True False
8. Direct Material Costs Are Generally Fixed Costs.
True False
1-3
, 9. Product Costs Are Recorded As Expenses In The Period In Which The Related Products Are Sold.
True False
10. Depreciation On Manufacturing Equipment Is A Product Cost.
True False
11. Manufacturing Salaries And Wages Incurred In The Factory Are Period Costs.
True False
12. Depreciation On Office Equipment Would Be Included In Product Costs.
True False
13. Rent On A Factory Building Used In The Production Process Would Be Classified As A
Product Cost And As A Fixed Cost.
True False
14. A Fixed Cost Remains Constant If Expressed On A Unit Basis.
True False
15. Total Variable Cost Is Expected To Remain Unchanged As Activity Changes Within The
Relevant Range.
True False
16. Country Charm Restaurant Is Open 24 Hours A Day And Always Has A Fire Going In The
Fireplace In The Middle Of Its Dining Area. The Cost Of The Firewood For This Fire Is Fixed
With Respect To The Number Of Meals Served At The Restaurant.
True False
17. Committed Fixed Costs Represent Organizational Investments With A Multi-Year Planning
Horizon That Can't Be Significantly Reduced Even For Short Periods.
1-4
