1. Which of the following is not an example of an external user of accounting information?

A. Potential and existing stockholders

B. Government taxing agencies

C. Potential and existing creditors

D. Management

E. Trade union

2. Which of the following is true regarding managerial accounting?

A. It often emphasises segments rather than the organisation as a whole.

B. It often must follow established rules called generally accepted accounting principles.

C. Its primary focus is on providing information to external users.

D. It is less flexible than financial accounting.

E. All of the above

3. Costs that differ between alternatives are called:

1. sunk costs.
2. irrelevant costs.
3. relevant costs.
4. unavoidable costs.
5. opportunity costs

4. You are considering your housing options for next semester. The cost of a dorm room and the cost of an apartment are the same. You paid a $50 non-refundable deposit to live in the dorm last year. This deposit is an example of a (n):

1. opportunity cost.
2. relevant cost.
3. sunk cost.
4. avoidable cost.
5. none of the above.

5. Which of the following is an advantage of lean production and just-in-time (JIT) manufacturing systems?

1. Deliver the product to the customer on time, even if the workers go on a strike.
2. Improved product quality and reduced processing time.
3. Reduced reliance on highly skilled employees
4. Increased reliance on few suppliers.
5. none of the above.

6. Manufacturing costs typically consist of:

1. direct materials, direct labour, and administrative costs.
2. production and shipping costs.
3. direct materials, direct labour, and manufacturing overhead.
4. manufacturing overhead and selling costs.
5. direct materials, direct labour and marketing expenses

7. Materials that can be directly traced to a particular product and become an integral part of the finished product are called:

1. indirect materials.
2. direct materials.
3. supplies.
4. cost of goods sold
5. product materials.

8. Which of the following types of costs are the most likely to be classified as fixed?

1. Factory utilities
2. Factory supplies
3. Direct labour
4. Factory insurance
5. Direct materials

9. As production goes up, total fixed costs __________.

1. decrease.
2. increase.
3. stay the same.
4. can not be predicted.
5. none of the above,

10. As production goes up, total variable costs ___________.

1. decrease.
2. increase.
3. stay the same.
4. can not be predicted.
5. none of the above.