Test Bank for Managerial Accounting 5th Edition by Stacey Whitecotton, Robert Libby and Fred Phillips All Chapters Complete Newest Version

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

,Chapter 01 5e rf rf




TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
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1) Financial accounting information is generally used exclusively by internal parties suc
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h as managers.
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⊚ true


⊚ false
2) Financial accounting information is reported for the company as a whole.
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⊚ true


⊚ false
3) Managers must direct, lead, and motivate during the implementation function.
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⊚ true


⊚ false

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


⊚ false

5) The Sarbanes- rf



Oxley Act of 2002 places full responsibility on the board of directors for the accuracy
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of the reporting system.
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⊚ true


⊚ false

6) The Sarbanes- rf




Oxley Act of 2002 focuses on three factors that affect the accounting reporting envir
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onment: ethics, fraud, and management.
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⊚ true


⊚ false

7) A sustainable business is one with the ability to meet the needs of today witho
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ut 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.
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⊚ true


⊚ false

9) Predictive analytics is the process of recommending a course of action based upon
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meaningful patterns and insights from collected data.
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⊚ true


⊚ false

10) Descriptive analytics uses patterns and insights from collected data to show what
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has happened.
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⊚ true


⊚ false
11) An opportunity cost is the cost of not doing something.
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⊚ true


⊚ false

12) Whether a cost is treated as direct or indirect depends on whether tracing the cost is both
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possible and practical.
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⊚ true


⊚ false
13) Variable costs are always direct costs.
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⊚ true


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


⊚ false

, 15) Prime costs include direct materials, direct labor, and manufacturing overhead.
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⊚ true


⊚ false
16) All manufacturing costs are treated as product costs.
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⊚ true


⊚ false
17) All manufacturing costs are inventoriable costs.
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⊚ true


⊚ false

18) A cost that will occur in the future and differs between various alternatives unde
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r consideration is a relevant cost.
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⊚ true


⊚ false

19) Managerial accounting information is mandated by the SEC and other regu
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latory agencies.
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⊚ true


⊚ false
20) Managerial accounting information is considered proprietary in nature.
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⊚ true


⊚ false
21) Opportunity costs occur in business when resources are constrained.
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⊚ true


⊚ false