4 Financial and Managerial Accouting questions for my review sheet! i rate well.

Question 32

Overhead costs include:

		A. Direct and indirect costs.
		B. Indirect costs only.
		C. Direct costs only.
		D. Neither direct nor indirect costs.

Question 33

Which of the following statements is true?

A. Outsourcing decreases the extent of a company's vertical integration.

B. Reputation of the supplier is a critical issue in an outsourcing decision.

C. An outsourcing decision involves a purchase offer from a customer at a lower-than-normal selling price.

D. Both outsourcing decreases the extent of a company's vertical integration and reputation of the supplier is a critical issue in an outsourcing decision are true.

Question 34

Select the incorrect statement from the following.

		A. The difference between a direct cost and an indirect cost is that the direct cost is physically present in the cost object.
		B. Actual costs are useful for evaluating managerial performance.
		C. Actual costs are not relevant in many decisions because actual costs cannot be determined until after the decision has been made.
		D. When accumulating the cost of a specific cost object, the indirect costs are allocated to the cost object.

Question 36

Which of the following statements is true?

		A. Participative budgeting means that a company's budget should be prepared by lower-level employees.
		B. The attitudes and actions of upper-level management have little impact on the effectiveness of a company's budget.
		C. Employees often find that budgets are constraining and limiting.
		D. In preparing a budget, information flows occur only from the bottom up.