Managerial and Financial Accounting Principles: A Comprehensive Review

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Managerial and Financial Accounting Principles: A Comprehensive Review1.____ refers to accounting information developed for managerswithin an organization.a.Internal auditingb.Managerial accountingc.Financial accountingd.Tax accounting2.Ethical accountants are important to society because _____.a.they pay their taxesb.the information produced is reliablec.they will not go to prison and waste taxpayers’ moneyd.none of these answers is correct3.Performance reports _____.a.are quantitative expressions of action plansb.provide feedback by comparing results with plans and by highlighting deviations fromplansc.are deviations from a pland.ignore areas that are presumed to be running smoothly4.Output measures of both resources and activities are _____.a.cost driversb.stages of productionc.fixed activitiesd.variable activities5.An accountant may have difficulty classifying costs as fixed or variable because _____.a.costs may behavein a nonlinear wayb.costs may be affected by more than one cost driverc.the decision situation may cause the costs to be fixed in the short termd.all of these answers are correct6.If the proportions in a sales mix change, the _____.a.contribution margin per unit increasesb.break even point will remain the samec.cost volume profit relationship also changesd.net income will not be altered7._____ will decrease a company's break-even point.

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a.Reducing its total fixed costsb.Decreasing contribution margin per unitc.Increasing variable cost per unitd.Decreasing the selling price per unit8.Costs that change abruptly at intervals of activity because the resources and theircosts come in indivisible chunks are called_____.a.mixed costsb.variable costsc.fixed costsd.step costs9._____ arise as a result of strategic decisions about the scale and scope ofanorganization's activities.a.Capacity costsb.Discretionary costsc.Mixed costsd.Engineered costs10._____ is the first step in estimating or predicting costs as a function of appropriatecost drivers.a.Cost measurementb.Cost determinationc.Cost behavior investigationd.Cost driver identification11.The process of identifying appropriate cost drivers and their effects on the costs ofmaking a product or providing a service is called _____.a.cost predictionb.cost measurementc.activity analysisd.budgeting12._____ is not a primary purpose of a cost management system.a.Providing aggregate measures of inventory value and cost of goods soldb.Providing cost information for strategic management decisionsc.Providing cost information for operational controld.All of these answers are correct13.Where a specific product is the cost object, the materials used to manufacturethe

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