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
2
,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
3
, 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
information?
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?
4
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
2
,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
3
, 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
information?
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?
4
