Exam 1 accounting Exam Questions
with Complete Solutions
Managerial accounting is the provision of accounting for a company's extern. T or F - Correct Answers:
false
Providing an analysis for a company regarding adding a particular product line, retracting sales markets,
or dealing with risks or opportunities are some of the responsibilities of managerial accountants. T or F -
Correct Answers: True
Cost objects do not need to be considered for all business and personal decisions. - Correct Answers:
false
When providing cost estimates, it is essential to know the decision to which the cost object is related. -
Correct Answers: true
Cost behavior is the general term for describing whether and how a cost changes when the level of
output changes - Correct Answers: true
If Jeanette's Good Times Diner paid for social media advertising based on how many "likes" their pages
received each week, it would be a fixed cost because it is not related to the number of burgers sold each
week. - Correct Answers: false
A semi-variable cost is a cost that in total increases or decreases as output volume increases or
decreases. - Correct Answers: false
Failing to recognize and predict semi-variable costs that increase at an increasing rate can lead to
disastrous outcomes for businesses. - Correct Answers: true
Managerial accounting follows the same rules as financial accounting. - Correct Answers: false
with Complete Solutions
Managerial accounting is the provision of accounting for a company's extern. T or F - Correct Answers:
false
Providing an analysis for a company regarding adding a particular product line, retracting sales markets,
or dealing with risks or opportunities are some of the responsibilities of managerial accountants. T or F -
Correct Answers: True
Cost objects do not need to be considered for all business and personal decisions. - Correct Answers:
false
When providing cost estimates, it is essential to know the decision to which the cost object is related. -
Correct Answers: true
Cost behavior is the general term for describing whether and how a cost changes when the level of
output changes - Correct Answers: true
If Jeanette's Good Times Diner paid for social media advertising based on how many "likes" their pages
received each week, it would be a fixed cost because it is not related to the number of burgers sold each
week. - Correct Answers: false
A semi-variable cost is a cost that in total increases or decreases as output volume increases or
decreases. - Correct Answers: false
Failing to recognize and predict semi-variable costs that increase at an increasing rate can lead to
disastrous outcomes for businesses. - Correct Answers: true
Managerial accounting follows the same rules as financial accounting. - Correct Answers: false
