ACG 2071 FSU EXAM 1 FINAL PAPER 2026
CERTIFICATION EVALUATION QUESTIONS
AND ANSWERS FULL SOLUTION A+
●● Characteristics of managerial accounting.
Answer: 1. The primary products are a variety of useful internal reports
2. The users of the information are internal users (managers)
3. The purpose of the information is to help managers with planning,
controlling, and decision making
4. The reporting format does not need to follow GAAP
5. The focus of the information is futuristic
6. The characteristics of the information are relevance and timeliness
7. The reporting units are segments/divisions of the company
8. The information is helpful but not required by any agency
●● Corporate Social Responsibility.
Answer: A business's concern for society's welfare. A company's
performance should be viewed in terms of:
1. Profits (economic)
2. People (social)
3. Planet (environmental)
, ●● Service companies.
Answer: Companies that sell and provide intangible services (healthcare,
banking, insurance)
●● Merchandising companies.
Answer: Companies that resell tangible products purchased from
suppliers (Walmart, Publix, CVS)
●● Manufacturing companies.
Answer: Companies that convert raw materials into new finished
products by using labor, plant, and equipment (Toyota, Ben & Jerry's)
●● Direct costs.
Answer: Costs that can easily be traced to the cost object. The direct cost
is incurred solely because of the cost object. (A football coach's salary
can be easily traced to the cost of having a football team)
●● Indirect costs.
Answer: Costs that cannot be easily and accurately traced to the cost
object. They are related to the cost but not as clearly as a direct cost, so
they must be allocated. (The cost of an athletic director or shared
training gym cannot be directly traced to the cost of having a football
team)
CERTIFICATION EVALUATION QUESTIONS
AND ANSWERS FULL SOLUTION A+
●● Characteristics of managerial accounting.
Answer: 1. The primary products are a variety of useful internal reports
2. The users of the information are internal users (managers)
3. The purpose of the information is to help managers with planning,
controlling, and decision making
4. The reporting format does not need to follow GAAP
5. The focus of the information is futuristic
6. The characteristics of the information are relevance and timeliness
7. The reporting units are segments/divisions of the company
8. The information is helpful but not required by any agency
●● Corporate Social Responsibility.
Answer: A business's concern for society's welfare. A company's
performance should be viewed in terms of:
1. Profits (economic)
2. People (social)
3. Planet (environmental)
, ●● Service companies.
Answer: Companies that sell and provide intangible services (healthcare,
banking, insurance)
●● Merchandising companies.
Answer: Companies that resell tangible products purchased from
suppliers (Walmart, Publix, CVS)
●● Manufacturing companies.
Answer: Companies that convert raw materials into new finished
products by using labor, plant, and equipment (Toyota, Ben & Jerry's)
●● Direct costs.
Answer: Costs that can easily be traced to the cost object. The direct cost
is incurred solely because of the cost object. (A football coach's salary
can be easily traced to the cost of having a football team)
●● Indirect costs.
Answer: Costs that cannot be easily and accurately traced to the cost
object. They are related to the cost but not as clearly as a direct cost, so
they must be allocated. (The cost of an athletic director or shared
training gym cannot be directly traced to the cost of having a football
team)
