1) ________ is the field that produces information for managers within an organization.

A) Financial accounting

B) Management accounting

C) Financial auditing

D) External auditing

2) When analyzing costs, accountants should think of variable costs on a ________ basis and fixed costs on a ________ basis.

A) total; total

B) per-unit; per-unit

C) total; per-unit

D) per-unit; total

3) When managers graph a linear cost function with one cost driver, the intercept represents the ________ cost and the slope represents the ________ cost.

A) variable; fixed

B) fixed; variable

C) fixed; mixed

D) variable; mixed

4) Which purpose of cost allocation usually dominates most business situations?

A) to justify costs or obtain reimbursement

B) to compute income and asset valuations for financial reporting

C) to give feedback for performance evaluation

D) to predict the economic effects of strategic and operational control decisions

5) ________ is the additional cost resulting from producing and selling one additional unit.

A) Marginal cost

B) Common cost

C) Opportunity cost

D) Target cost

6) ________ old equipment is relevant in a decision to replace equipment.

A) The cost of

B) The book value of

C) Accumulated depreciation on

D) Future maintenance costs of

7) The first step in preparing the master budget is the ________.

A) cash budget

B) capital budget

C) operating expense budget

D) sales budget

8) The fixed overhead spending variance equals the difference between ________.

A) actual fixed overhead costs and budgeted fixed overhead costs at the actual level of operations

B) actual fixed overhead costs and budgeted variable overhead costs at the actual level of operations

C) actual fixed overhead costs and predicted variable overhead costs based on actual driver used

D) actual fixed overhead costs and predicted variable overhead costs based on standard costs

9) ________ is the logical integration of techniques to gather and report data for planning and control decisions and to evaluate performance.

A) An internal control system

B) A quality control system

C) A financial reporting system

D) A management control system

10) The joint formulation by a manager and his or her superior of a set of goals and plans for achieving the goals for a forthcoming period is known as ________.

A) capital budgeting

B) managerial effort

C) management control system

D) management by objectives