1.
Managerial accounting is important because it helps facilitate and guide/influence the decision making process of the organization.
True
False
2.
Based on the lecture, which of the following individuals or groups is NOT mentioned as being interested in the financial statement information of an organization?
Regulatory agencies
Investors and potential investors
Academics
Tax authorities
3.
The purpose of managerial accounting is to report the financial information of the organization to investors and creditors.
True
False
4.
What are the industry rules and regulations that need to be followed for managerial accounting?
There are no industry rules or regulations for managerial accounting
Generally accepted accounting principles
Guided managerial accounting rules
Office of standards and boards
5.
Which of the following organizations benefit from using managerial accounting?
Multinational corporations
Not for profit groups
Small convenience shops
All of the above
6.
According to the lecture, which of the following is NOT a contemporary issue in managerial accounting?
Global organizations
Ethics
Competitors
Social considerations
7.
According to the lecture, the term “cost” in managerial accounting refers to the usage of resources.
True
False
8.
Direct costs refer to the cost of any materials and labor that cannot easily be traced back to the cost object.
True
False
9.
All of the following are examples of questions or decisions that benefit from cost behavior information EXCEPT:
Managing the ratio of direct to indirect costs
Determining product profitability
Product price change decisions
Product line elimination decisions
10.
Total variable cost does NOT increase with an increase in production levels.
True
False
11.
Total variable costs __________ while unit variable costs __________ with an increase in production volumes.
Increase, decrease
Decrease, stay constant
Increase, increase
Increase, stay constant
12.
Total fixed costs ___________ while unit fixed costs __________ with an increase in production volumes.
Decrease, decrease
Stay constant, stay constant
Stay constant, decrease
Increase, increase
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