Test Bank for Managerial Accounting, 5th Edition by Stacey Whitecotton
Verified Answers
1
,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) Managers must direct, lead, and motivate during the implementation function.
⊚ true
⊚ false
3) Financial accounting information is reported for the company as a whole.
⊚ 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.
2
, ⊚ 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
3
, 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
4
Verified Answers
1
,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) Managers must direct, lead, and motivate during the implementation function.
⊚ true
⊚ false
3) Financial accounting information is reported for the company as a whole.
⊚ 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.
2
, ⊚ 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
3
, 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
4
