Test Bank for Managerial Accounting, 5th Edition by Stacey Whitecotton all chapters updated||2025

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`rep
orting`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.

1

, ⊚ 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`i
nformation?

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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