1. The Financial Accounting Standards Board (FASB) established management accounting and requires it to follow generally accepted accounting principles (GAAP).

True

False

2. Performance evaluation of individual product lines would conclude that those with positive contribution margins should not be dropped but should be continued.

True False

3. The amount for cost of goods manufactured should be the same as the amount credited from the Work-in-Process inventory account and debited to the Finished Goods inventory account during the year.

True False

4. Which of the following would not be considered a product cost?

property taxes for a shoe factory

tires for an automobile manufacturer

sales commission for an agricultural seeds salesperson

wages of workers who build wooden cabinets

5. With regard to a particular company, which of the following groups generally has the widest variety of decisions to make?

Group of answer choices

Regulators

Investors

Creditors

Managers