1. Managers use management accounting information to A) help external users such as investors, banks, regulators, and suppliers B) communicate a firm's financial position to investors, banks, C) ensure that financial statements are consistent with the SEC rules D) make various business decisions, including pricing, costing, outsourcing and others 2. The costs of direct materials are classified as: A) B) C) D) Conversion cost Yes No Yes No Manufacturing cost Yes No Yes Yes Prime cost Yes No No Yes A) Choice A B) Choice B C) Choice C D) Choice D 3. For a manufacturing company, the cost of factory depreciation is classified as a A) direct material cost B) direct manufacturing labor cost C) manufacturing overhead cost D) period cost 4. Which of the following is true if the production volume increases? A) fixed cost per unit increases B) fixed cost per unit decreases C) variable cost per unit increases D) variable cost per unit decreases