Test Bank for Managerial Accounting for Managers, 6th Edition by Eric Noreen (Latest 2025–2026 Update)

Test Bank for Managerial Accounting for Managers, 6th Edition by
Eric Noreen All Chapters 1-12 Completed

,Chap 01 6e

1 Which of the following statements are true?
1. A factory supervisor's salary would be classified as an indirect cost with respect to
a unitof product.
2. A direct cost is a cost that can be easily traced to the particular cost object
underconsideration.
3. A cost can be direct or indirect. The classification can change if the cost object changes.
A) Only statement 1 is true.
B) Statements 1 and 2 are true.
C) All of the statements are true.
D) None of the statements are true.



2) Which of the following statements are true?
1. Wages paid to production supervisors would be classified as manufacturing overhead.
2. Indirect costs, such as manufacturing overhead, are variable costs.
3. Selling costs are indirect costs.
4. Administrative costs are indirect costs.
A) Only statement 1 is true.
B) Statements 1 and 3 are true.
C) All statements are true.
D) None of the statements are true.



3) Which of the following statements are true?
1. The sum of all manufacturing costs except for direct materials and direct labor is
calledmanufacturing overhead.
2. The three cost elements ordinarily included in product costs are direct materials,
directlabor, and manufacturing overhead.
A) Only statement 1 is true.
B) Only statement 2 is true.
C) Both of the statements are true.
D) Neither of the statements are true.

,4) Which Nof Nthe Nfollowing Nstatements Nare Ntrue?
1. Depreciation Nis Nalways Nconsidered Na Nperiod Ncost Nfor Nexternal Nfinancial
reporting N purposesin Na Nmanufacturing Ncompany.
N

2. Depreciation Non Nequipment Na Ncompany Nuses Nin Nits Nselling Nand
Nadministrative N activitieswould Nbe Nclassified Nas Na Nperiod Ncost.

A) Only Nstatement N1 Nis Ntrue.
B) Only Nstatement N2 Nis Ntrue.
C) Both Nof Nthe Nstatements Nare Ntrue.
D) Neither Nof Nthe Nstatements Nare Ntrue.



5) Which Nof Nthe Nfollowing Nstatements Nare Ntrue?
1. Conversion Ncost Nis Nthe Nsum Nof Ndirect Nlabor Ncost Nand Nmanufacturing Noverhead
cost.
N

2. Conversion Ncost Nis Nthe Nsame Nthing Nas Nmanufacturing Noverhead.
3. Conversion Ncost Nequals Nproduct Ncost Nless Ndirect Nmaterials Ncost.
A) Only Nstatement N1 Nis Ntrue.
B) Statements N1 Nand N3 Nare Ntrue.
C) All Nstatements Nare Ntrue.
D) None Nof Nthe Nstatements Nare Ntrue.



6) Which Nof Nthe Nfollowing Nstatements Nare Ntrue?
1. In Na Nmanufacturing Ncompany, Nall Ncosts Nare Nperiod Ncosts.
2. Selling Nand Nadministrative Nexpenses Nare Nperiod Ncosts Nunder Ngenerally
accepted N accountingprinciples.
N

3. The Ncost Nof Nshipping Nparts Nfrom Na Nsupplier Nis Nconsidered Na Nperiod Ncost.
A) Only Nstatement N1 Nis Ntrue.
B) Only Nstatement N2 Nis Ntrue.
C) Statements N1 Nand N2 Nare Ntrue.
D) Statements N1 Nand N3 Nare Ntrue.




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, 7) Which Nof Nthe Nfollowing Nstatements Nare Ntrue?
1. Advertising Nis Nnot Na Nconsidered Na Nproduct Ncost Neven Nif Nit Npromotes Na Nspecific
product.
N

2. Product Ncosts Nare Nalso Nknown Nas Ninventoriable Ncosts.
3. Prime Ncost Nis Nthe Nsum Nof Ndirect Nmaterials Ncost Nand Ndirect Nlabor Ncost.
4. Prime Ncost Nequals Nmanufacturing Noverhead Ncost.
A) Only Nstatement N1 Nis Ntrue.
B) Both Nstatements N1 Nand N4 Nare Ntrue.
C) Statements N1, N2, Nand N3 Nare Ntrue.
D) None Nof Nthe Nstatements Nare Ntrue.



8) Which Nof Nthe Nfollowing Nstatements Nare Ntrue?
1. If Nthe Nactivity Nlevel Nincreases, Nthen None Nwould Nexpect Nthe Nfixed Ncost Nper
unit Nto N increase Naswell.
N

2. A Nfixed Ncost Nis Na Ncost Nwhose Ncost Nper Nunit Nvaries Nas Nthe Nactivity Nlevel Nrises Nand
Nfalls.

3. A Ndecrease Nin Nproduction Nwill Nordinarily Nresult Nin Na Ndecrease Nin Nfixed
Nproduction N costs Nperunit.

A) Only Nstatement N2 Nis Ntrue.
B) Only Nstatement N3 Nis Ntrue.
C) Statements N1 Nand N2 Nare Ntrue.
D) Statements N1 Nand N3 Nare Ntrue.



9) Which Nof Nthe Nfollowing Nstatements Nare Ntrue?
1. Cost Nbehavior Nis Nconsidered Ncurvilinear Nwhenever Na Nstraight Nline
is Na N reasonableapproximation Nfor Nthe Nrelation Nbetween Ncost
N

Nand Nactivity.

2. As Nactivity Ndecreases Nwithin Nthe Nrelevant Nrange, Nfixed Ncosts Nremain Nconstant
Non Na N per Nunitbasis.

3. In Naccount Nanalysis, Nan Naccount Nis Nclassified Nas Neither Nvariable Nor Nfixed
Nbased N on Nananalyst’s Nprior Nknowledge Nof Nhow Nthe Ncost Nin Nthe Naccount

Nbehaves.

A) Only Nstatement N1 Nis Ntrue.
B) Only Nstatement N2 Nis Ntrue.
C) Only Nstatement N3 Nis Ntrue.
D) All Nstatements Nare Ntrue.




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