Test Bank - Managerial Accounting Creating Value in a Dynamic Business Environment,13th Edition by Ronald, All Chapters 1-17 Complete Guide A+

Chapter 02 Managerial Accounting and Cost Concepts Answer Key
g g g g g g g g




Trueg/gFalsegQuestions



1. Directgmaterialgcostsgareggenerallygvariablegcosts.
TRUE


AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AICP
AgFN:gMeasurementg Bloom's:gK
nowledge
LearninggObjective:g02-
01gIdentifygandggivegexamplesgofgeachgofgthegthreegbasicgmanufacturinggcostgcategoriesg LearninggObjective:g02-
03gUnderstandgcostgbehaviorgpatternsgincludinggvariablegcosts;gfixedgcosts;gandgmixedgcostsg Level:gEasy



2. Propertygtaxesgandginsurancegpremiumsgpaidgongagfactorygbuildinggaregexamplesgofg
manufacturinggoverhead.
TRUE


AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AICP
AgFN:gMeasurementg Bloom's:gK
nowledge
LearninggObjective:g02-
01gIdentifygandggivegexamplesgofgeachgofgthegthreegbasicgmanufacturinggcostgcategoriesg Level:gEasy



3. Manufacturinggoverheadgcombinedgwithgdirectgmaterialsgisgknowngasgconversiongcost.
FALSE


AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AICP
AgFN:gMeasurementg Bloom's:gK
nowledge
LearninggObjective:g02-
01gIdentifygandggivegexamplesgofgeachgofgthegthreegbasicgmanufacturinggcostgcategoriesg Level:gEasy

,4. Allgcostsgincurredgingagmerchandisinggfirmgaregconsideredgtogbegperiodgcosts.
FALSE


AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AICP
AgFN:gMeasurementg Bloom's:gK
nowledge
LearninggObjective:g02-
02gDistinguishgbetweengproductgcostsgandgperiodgcostsgandggivegexamplesgofgeachg Level:gEasy



5. Depreciationgisgalwaysgconsideredgagproductgcostgforgexternalgfinancialgreportingg
purposesgingagmanufacturinggfirm.
FALSE


AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AICP
AgFN:gMeasurementg Bloom's:gC
omprehension
LearninggObjective:g02-
02gDistinguishgbetweengproductgcostsgandgperiodgcostsgandggivegexamplesgofgeachg Level:gMedium



6. Ingexternalgfinancialgreports,gfactorygutilitiesgcostsgmaygbegincludedgingangassetgaccountgo
ngthegbalancegsheetgatgthegendgofgthegperiod.
TRUE


AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AICP
AgFN:gMeasurementg Bloom's:gC
omprehension
LearninggObjective:g02-
02gDistinguishgbetweengproductgcostsgandgperiodgcostsgandggivegexamplesgofgeachg Level:gHard



7. Advertisinggcostsgaregconsideredgproductgcostsgforgexternalgfinancialgreportsgbecausegt
heygaregincurredgingordergtogpromotegspecificgproducts.
FALSE


AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AICP
AgFN:gMeasurementg Bloom's:gC
omprehension
LearninggObjective:g02-
02gDistinguishgbetweengproductgcostsgandgperiodgcostsgandggivegexamplesgofgeachg Level:gMedium

,8. Sellinggandgadministrativegexpensesgaregproductgcostsgunderggenerallygacceptedg
accountinggprinciples.
FALSE


AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AICP
AgFN:gMeasurementg Bloom's:gK
nowledge
LearninggObjective:g02-
02gDistinguishgbetweengproductgcostsgandgperiodgcostsgandggivegexamplesgofgeachg Level:gEasy



9. Agvariablegcostgisgagcostgwhosegcostgpergunitgvariesgasgthegactivityglevelgrisesgandgfalls.
FALSE


AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AICP
AgFN:gMeasurementg Bloom's:gK
nowledge
LearninggObjective:g02-
03gUnderstandgcostgbehaviorgpatternsgincludinggvariablegcosts;gfixedgcosts;gandgmixedgcostsg Level:gEasy



10. Whengtheglevelgofgactivitygincreases,gtotalgvariablegcostgwillgincrease.
TRUE


AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AICP
AgFN:gMeasurementg Bloom's:gK
nowledge
LearninggObjective:g02-
03gUnderstandgcostgbehaviorgpatternsgincludinggvariablegcosts;gfixedgcosts;gandgmixedgcostsg Level:gEasy



11. Agdecreasegingproductiongwillgordinarilygresultgingangincreasegingfixedgproductiongcostsgp
ergunit.
TRUE


AACSB:gAnalytic
AICPAgBB:gCriticalgThinkingg AI
CPAgFN:gMeasurementg Bloom's
:gKnowledge
LearninggObjective:g02-
03gUnderstandgcostgbehaviorgpatternsgincludinggvariablegcosts;gfixedgcosts;gandgmixedgcostsg Level:gEasy

, 12. Automationgresultsgingagshiftgawaygfromgvariablegcostsgtowardgmoregfixedgcosts.
TRUE


AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AICP
AgFN:gMeasurementg Bloom's:gK
nowledge
LearninggObjective:g02-
03gUnderstandgcostgbehaviorgpatternsgincludinggvariablegcosts;gfixedgcosts;gandgmixedgcostsg Level:gEasy



13. Ingordergforgagcostgtogbegvariablegitgmustgvarygwithgeithergunitsgproducedgorgunitsgsold.
FALSE


AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AICP
AgFN:gMeasurementg Bloom's:gC
omprehension
LearninggObjective:g02-
03gUnderstandgcostgbehaviorgpatternsgincludinggvariablegcosts;gfixedgcosts;gandgmixedgcostsg Level:gMedium



14. Thegconceptgofgthegrelevantgrangegdoesgnotgapplygtogfixedgcosts.
FALSE


AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AICP
AgFN:gMeasurementg Bloom's:gK
nowledge
LearninggObjective:g02-
03gUnderstandgcostgbehaviorgpatternsgincludinggvariablegcosts;gfixedgcosts;gandgmixedgcostsg Level:gEasy



15. Indirectgcosts,gsuchgasgmanufacturinggoverhead,garegalwaysgfixedgcosts.
FALSE


AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AICP
AgFN:gMeasurementg Bloom's:gC
omprehension
LearninggObjective:g02-
03gUnderstandgcostgbehaviorgpatternsgincludinggvariablegcosts;gfixedgcosts;gandgmixedgcostsg Level:gMedium