Test bank for Managerial Accounting, 5th Edition by Stacey M. Whitecotton, Robert Libby, and Fred Phillips |all chapters covered|

TEST BANK
Managerial Accounting
STACEY M. WHITECOTTON, ROBERT LIBBY, FRED PHILLIPS
5th Edition

,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 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.




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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