Managerial Accounting 5th Edition Whitecotton Test Bank – Chapter 1, 2, 3 True/False & Multiple Choice Questions with Answer Key

Test Bank for Managerial Accounting, 5th Edition by Stacey Whitecotton
. . . . . . . . .




Answers Included
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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.man
agers.
⊚ 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.ma
nagers.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.reportin
g.system.
⊚ true
⊚ false


6) The.Sarbanes-
Oxley.Act.of.2002.focuses.on.three.factors.that.affect.the.accounting.reporting.environment:.et
hics,.fraud,.and.management.
⊚ true
⊚ false


7) A.sustainable.business.is.one.with.the.ability.to.meet.the.needs.of.today.without.sacri
ficing.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.mea
ningful.patterns.and.insights.from.collected.data.
⊚ true
⊚ false


10) Descriptive.analytics.uses.patterns.and.insights.from.collected.data.to.show.what.has.hap
pened.
⊚ 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.possi
ble.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.cons
ideration.is.a.relevant.cost.
⊚ true
⊚ false


19) Managerial.accounting.information.is.mandated.by.the.SEC.and.other.regulatory.age
ncies.
⊚ 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.info
rmation?

A) Investors
B) Creditors
C) Regulators
D) Managers



24) Managerial.accounting,.as.compared.to.financial.accounting,.is.primarily.intended.to.faci
litate:

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.pri
nciples.



26) Which.of.the.following.is.not.a.characteristic.of.financial.accounting?


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