1 Which of the following is concerned with reporting financial information to external parties? Answer Financial accounting Managerial accounting . 3 points Question 2 Which of the following provides segment reports rather than company-wide reports? Answer Financial accounting Managerial accounting . 3 points Question 3 GAAP is strictly required for this type of accounting? Answer Financial accounting Managerial accounting . 3 points Question 4 According to the authors of the text, leading is one of the three pillars of managerial accounting. Answer I agree. The two other pillars are planning and decision making. I disagree. Two of the three pillars are controlling and decision making. . 3 points Question 5 If a production assembly line bottlenecks at the packaging station, management should apply the Lean approach. Answer Agree. Management should cut down the length of waiting lines (i.e., make the lines more lean). Disagree. Management should focus on the Theory of Constraints. . 3 points Question 6 The philosophy that had to do with behavior, i.e., honesty and fairness is referred to as: Answer Corporate governance Code of conduct . 3 points Question 7 Social responsibility as to do with: Answer Serving the community, customers, employees, and all outside stakeholders. Ethics, treating people fairly. . 3 points Question 8 Accountants who earn a certification in managerial accounting are called: Answer Certified Accounting Managers Certified Management Accountants . 3 points Question 9 The wages of factory maintenance personnel would usually be considered to be: Indirect Labor Manuf. Overhead Answer No Yes Yes No Yes Yes No No . 3 points Question 10 Conversion cost consists of which of the following? Answer Manufacturing overhead cost. Direct materials and direct labor cost. Direct labor cost. Direct labor and manufacturing overhead cost. . 3 points Question 11 Which of the following costs is an example of a period rather than a product cost? Answer Depreciation on production equipment. Wages of salespersons. Wages of production machine operators. Insurance on production equipment. . 3 points Question 12 Variable cost: Answer increases on a per unit basis as the number of units produced increases. remains constant on a per unit basis as the number of units produced increases. remains the same in total as production increases. decreases on a per unit basis as the number of units produced increases. . 3 points Question 13 Which of the following statements regarding fixed costs is incorrect? Answer Expressing fixed costs on a per unit basis usually is the best approach for decision making. Fixed costs expressed on a per unit basis will decrease with increases in activity. Total fixed costs are constant within the relevant range. Fixed costs expressed on a per unit basis will increase with decreases. . 3 points Question 14 In describing the cost formula equation Y = a + bX, which of the following statements is correct? Answer "X" is the dependent variable. "a" is the fixed component. In the high-low method, "b" equals change in activity divided by change in costs. As "X" increases "Y" decreases. . 3 points Question 15 The term differential cost refers to: Answer a difference in cost which results from selecting one alternative instead of another. the benefit forgone by selecting one alternative instead of another. a cost which does not involve any dollar outlay but which is relevant to the decision-making process. a cost which continues to be incurred even though there is no activity. . 3 points Question 16 When a decision is made among a number of alternatives, the benefit that is lost by choosing one alternative over another is the: Answer realized cost. opportunity cost. conversion cost. accrued cost. . 3 points Question 17 The following costs were incurred in September: Direct materials