1. In comparing financial accounting with managerial accounting, managerial accounting

A. Follows GAAP or IFRS reporting standards.

B. Emphasizes timeliness and sub-unit reporting such as business units, divisions, departments.

C. Reports to parties external to the company

D. Emphasizes financial consequences of past activities

2. When production decreases

A. Variable costs per unit decrease.

B. Variable costs per unit increase.

C. Total variable costs increase.

D. Total variable costs decrease.

3. Which of the following is an indirect production cost for a company that produces ready-made prom dresses?

A. Cost of fabric

B. Cost of pearls and sequins

C. Salary of the dress designer

D. Wages of sewing workers