1. Managerial accounting uses only past data in reports to aid management in the decision making process a. True b. False 2. Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for creativity and change. a. True b. False 3. A diagram of the operating structure of an organization is called an organization chart. a. True b. False 4. Managerial accounting reports must be useful to the user of the information. a. True b. False 5. Planning is the process of monitoring operating results and comparing actual results with the expected results. a. True b. False 6. Controlling deals with choosing goals and deciding how to achieve them. a. True b. False 7. For a construction contractor, the wages of carpenters would be classified as factory overhead cost. a. True b. False 8. Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as factory overhead cost. a. True b. False 9. Conversion cost is the combination of direct materials cost and factory overhead cost. a. True b. False 10. The plant manager's salary in a manufacturing business would be considered an indirect cost. a. True b. False -11. The fixed cost per unit varies with change in the level of activity. a. True b. False 12. Direct materials cost that varies with the number of units produced is an example of a fixed cost of production a. True b. False 13. Total fixed costs change as the level of activity changes