Managerial Accounting 5th Edition Test Bank by Stacey Whitecotton | Verified Chapter Exams & Solutions for Business Accounting Prep

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


Answers Included
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 must direct, lead, and motivate during the implementation function.
⊚ true
⊚ false


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


7) 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.




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, ⊚ true
⊚ false


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


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


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,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
⊚ false




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, 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.



26) Which of the following is not a characteristic of financial accounting?


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