1- What is an example of a tool or technique that is used in a cost management system?

a. conservatism principle

b. cost-volume-profit analysis

c. retail method

d. lower of cost or market rule

2- The primary users of management accounting information are ________.

a. bankers

b. governmental regulatory bodies

c. managers in organizations

d. managerial accountants

3- Which statement regarding fixed costs is TRUE?

a. Both discretionary and committed fixed costs preserve management's flexibility.

b. Committed fixed costs preserve management's flexibility.

c. Discretionary fixed costs preserve management's flexibility.

d. Discretionary fixed costs limit management's flexibility.

4- An opportunity cost is ________.

a. the additional costs generated by a proposed alternative

b. the difference in total cost between two alternatives

c. a cash disbursement in the future

d. the maximum available benefit foregone by using a resource for a particular purpose instead of the best alternative use