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 baccounting binformation bis breported bfor bthe bcompany bas ba bwhole.
⊚ true
⊚ false
3) Managers bmust bdirect, blead, band bmotivate bduring bthe bimplementation bfunction.
⊚ true
⊚ false
4) Managers bof bsmall, bprivate bcorporations buse bmanagerial baccounting binformation,
bwhereas bmanagers bof blarge, bpublic bcorporations buse bfinancial baccounting binformation.
⊚ true
⊚ false
5) The bSarbanes-Oxley bAct bof b2002 bplaces bfull bresponsibility bon bthe bboard bof
bdirectors bfor bthe baccuracy bof bthe breporting bsystem.
⊚ true
⊚ false
6) The bSarbanes-Oxley bAct bof b2002 bfocuses bon bthree bfactors bthat baffect bthe
baccounting breporting benvironment: bethics, bfraud, band bmanagement.
⊚ true
⊚ false
7) A bsustainable bbusiness bis bone bwith bthe bability bto bmeet bthe bneeds bof btoday
bwithout bsacrificing bthe bability bof bfuture bgenerations bto bmeet btheir bown bneeds.
1
, ⊚ true
⊚ false
8) The bterm b"big bdata" brefers bto bthe bvolume, bvelocity, band bveracity bof bdata.
⊚ true
⊚ false
9) Predictive banalytics bis bthe bprocess bof brecommending ba bcourse bof baction
bbased bupon bmeaningful bpatterns band binsights bfrom bcollected bdata.
⊚ true
⊚ false
10) Descriptive banalytics buses bpatterns band binsights bfrom bcollected bdata bto bshow
bwhat bhas bhappened.
⊚ true
⊚ false
11) An bopportunity bcost bis bthe bcost bof bnot bdoing bsomething.
⊚ true
⊚ false
12) Whether ba bcost bis btreated bas bdirect bor bindirect bdepends bon bwhether btracing bthe
bcost bis bboth bpossible band bpractical.
⊚ true
⊚ false
13) Variable bcosts bare balways bdirect bcosts.
⊚ true
⊚ false
14) Fixed bcosts bstay bthe bsame, bon ba bper-unit bbasis, bas bactivity blevel bchanges.
⊚ true
⊚ false
2
,15) Prime bcosts binclude bdirect bmaterials, bdirect blabor, band bmanufacturing boverhead.
⊚ true
⊚ false
16) All bmanufacturing bcosts bare btreated bas bproduct bcosts.
⊚ true
⊚ false
17) All bmanufacturing bcosts bare binventoriable bcosts.
⊚ true
⊚ false
18) A bcost bthat bwill boccur bin bthe bfuture band bdiffers bbetween bvarious
balternatives bunder bconsideration bis ba brelevant bcost.
⊚ true
⊚ false
19) Managerial baccounting binformation bis bmandated bby bthe bSEC band bother
bregulatory bagencies.
⊚ true
⊚ false
20) Managerial baccounting binformation bis bconsidered bproprietary bin bnature.
⊚ true
⊚ false
21) Opportunity bcosts boccur bin bbusiness bwhen bresources bare bconstrained.
⊚ true
⊚ false
3
, MULTIPLE bCHOICE b- bChoose bthe bone balternative bthat bbest bcompletes bthe
bstatement bor banswers bthe bquestion.
22) What bis bthe bprimary bgoal bof baccounting?
A) To bset blong-term bgoals band bobjectives
B) To barrange bfor bthe bnecessary bresources bto bachieve ba bplan
C) To bprovide binformation bfor bdecision-making
D) To bmotivate bothers bto bwork btowards ba bplan's bsuccess
23) Of bthe bfollowing bgroups, bwhich bis bthe bprimary buser bof bmanagerial
baccounting binformation?
A) Investors
B) Creditors
C) Regulators
D) Managers
24) Managerial baccounting, bas bcompared bto bfinancial baccounting, bis bprimarily
bintended bto bfacilitate:
A) understanding bthe bGAAP.
B) making bdecisions bwith btimely, brelevant binformation.
C) conducting bethics binvestigations bunder bSOX.
D) reporting bresults bto bshareholders.
25) Managerial baccounting binformation bincludes ball bof bthe bfollowing bexcept:
A) budgets.
B) performance bevaluations, bfor bexample, bbudget-to-actual breports.
C) cost breports.
D) financial bstatements bprepared bin baccordance bwith bgenerally baccepted
baccounting bprinciples.
26) Which bof bthe bfollowing bis bnot ba bcharacteristic bof bfinancial baccounting?
4
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 baccounting binformation bis breported bfor bthe bcompany bas ba bwhole.
⊚ true
⊚ false
3) Managers bmust bdirect, blead, band bmotivate bduring bthe bimplementation bfunction.
⊚ true
⊚ false
4) Managers bof bsmall, bprivate bcorporations buse bmanagerial baccounting binformation,
bwhereas bmanagers bof blarge, bpublic bcorporations buse bfinancial baccounting binformation.
⊚ true
⊚ false
5) The bSarbanes-Oxley bAct bof b2002 bplaces bfull bresponsibility bon bthe bboard bof
bdirectors bfor bthe baccuracy bof bthe breporting bsystem.
⊚ true
⊚ false
6) The bSarbanes-Oxley bAct bof b2002 bfocuses bon bthree bfactors bthat baffect bthe
baccounting breporting benvironment: bethics, bfraud, band bmanagement.
⊚ true
⊚ false
7) A bsustainable bbusiness bis bone bwith bthe bability bto bmeet bthe bneeds bof btoday
bwithout bsacrificing bthe bability bof bfuture bgenerations bto bmeet btheir bown bneeds.
1
, ⊚ true
⊚ false
8) The bterm b"big bdata" brefers bto bthe bvolume, bvelocity, band bveracity bof bdata.
⊚ true
⊚ false
9) Predictive banalytics bis bthe bprocess bof brecommending ba bcourse bof baction
bbased bupon bmeaningful bpatterns band binsights bfrom bcollected bdata.
⊚ true
⊚ false
10) Descriptive banalytics buses bpatterns band binsights bfrom bcollected bdata bto bshow
bwhat bhas bhappened.
⊚ true
⊚ false
11) An bopportunity bcost bis bthe bcost bof bnot bdoing bsomething.
⊚ true
⊚ false
12) Whether ba bcost bis btreated bas bdirect bor bindirect bdepends bon bwhether btracing bthe
bcost bis bboth bpossible band bpractical.
⊚ true
⊚ false
13) Variable bcosts bare balways bdirect bcosts.
⊚ true
⊚ false
14) Fixed bcosts bstay bthe bsame, bon ba bper-unit bbasis, bas bactivity blevel bchanges.
⊚ true
⊚ false
2
,15) Prime bcosts binclude bdirect bmaterials, bdirect blabor, band bmanufacturing boverhead.
⊚ true
⊚ false
16) All bmanufacturing bcosts bare btreated bas bproduct bcosts.
⊚ true
⊚ false
17) All bmanufacturing bcosts bare binventoriable bcosts.
⊚ true
⊚ false
18) A bcost bthat bwill boccur bin bthe bfuture band bdiffers bbetween bvarious
balternatives bunder bconsideration bis ba brelevant bcost.
⊚ true
⊚ false
19) Managerial baccounting binformation bis bmandated bby bthe bSEC band bother
bregulatory bagencies.
⊚ true
⊚ false
20) Managerial baccounting binformation bis bconsidered bproprietary bin bnature.
⊚ true
⊚ false
21) Opportunity bcosts boccur bin bbusiness bwhen bresources bare bconstrained.
⊚ true
⊚ false
3
, MULTIPLE bCHOICE b- bChoose bthe bone balternative bthat bbest bcompletes bthe
bstatement bor banswers bthe bquestion.
22) What bis bthe bprimary bgoal bof baccounting?
A) To bset blong-term bgoals band bobjectives
B) To barrange bfor bthe bnecessary bresources bto bachieve ba bplan
C) To bprovide binformation bfor bdecision-making
D) To bmotivate bothers bto bwork btowards ba bplan's bsuccess
23) Of bthe bfollowing bgroups, bwhich bis bthe bprimary buser bof bmanagerial
baccounting binformation?
A) Investors
B) Creditors
C) Regulators
D) Managers
24) Managerial baccounting, bas bcompared bto bfinancial baccounting, bis bprimarily
bintended bto bfacilitate:
A) understanding bthe bGAAP.
B) making bdecisions bwith btimely, brelevant binformation.
C) conducting bethics binvestigations bunder bSOX.
D) reporting bresults bto bshareholders.
25) Managerial baccounting binformation bincludes ball bof bthe bfollowing bexcept:
A) budgets.
B) performance bevaluations, bfor bexample, bbudget-to-actual breports.
C) cost breports.
D) financial bstatements bprepared bin baccordance bwith bgenerally baccepted
baccounting bprinciples.
26) Which bof bthe bfollowing bis bnot ba bcharacteristic bof bfinancial baccounting?
4
