1. Graham manages a manufacturing facility. He is in charge of negotiating contracts for the buildings rent, ensuring that the building and equipment are properly insured, and ensuring that the company is paying the correct taxes. Graham is most concerned about _____________.

A. variable costs

B. fixed costs

C. implicit costs

D. direct costs

2. Carmen has been asked to make recommendations on how her company can reduce costs associated with her companys office building, which is separate from their manufacturing facilities. She has considered making a recommendation on how the company heats and cools the building. This would be considered a(n) __________.

A. indirect cost

B. implicit cost

C. out-of-pocket cost

D. variable cost

3. Lilianas favorite part of her job is getting to work across departments to evaluate their various business needs for the coming years. She enjoys the process of planning and then compiling all of the different inputs into a central document that provides a holistic view of the companys goals and what resources they will need to achieve those goals. What document is Liliana most likely creating?

A. The companys operating budget

B. The companys financial budget

C. The companys cash budget

D. The companys master budget

4. Madina is a management accountant for a tech startup in San Francisco. Her company recently went public, so her colleagues are anxious to stay on top of the companys performance.

Refer to Scenario 8.2. The chief financial officer wants a current view of the companys assets now that the company has issued stock. Madina has been asked to see how the company has structured its debt in terms of liabilities versus equity. Madina refers to the companys _________ to quickly demonstrate the debt structure.

A. accounting equation

B.revenues

C. income statement

D. statement of cash flows