1) Managerial accounting is different from financial accounting in that: A) Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization B) Managerial accounting never includes nonmonetary information. C) Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions. D) Managerial accounting is used extensively by investors, whereas financial accounting is used only by creditors. E) Managerial accounting is mainly used to set stock prices. 2) A direct cost is a cost that is: A) Identifiable as controllable. B) Traceable to the company as a whole. C) Does not change with the volume of activity. D) Traceable to a single cost object. E) Traceable to multiple cost objects. 3) A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is: A) Fixed versus variable. B) Direct versus indirect. C) Financial versus managerial. D) Service versus manufacturing, E) Product versus period. 4) Products that are in the process of being manufactured but are not yet complete are called: A) Raw materials inventory. B) Conversion costs. C) Cost of goods sold. D) Work in process inventory. E) Finished goods inventory 5) Factory overhead costs may include all of the following except: A) Indirect labor costs. B) Indirect material costs. C) Selling costs. D) Assembly supplies. E) Factory rent. 6) The three major cost components of manufacturing a product are: A) Marketing, selling, and administrative costs. B) Indirect labor, indirect materials, and fixed expenses. ) Direct materials, direct labor, and factory overhead. D) Product costs, period costs, and variable costs. E) General, selling, and administrative costs