• A main difference between managerial and financial accounting is that:

  Selected Answer:	d. Managerial accounting information is used only by people inside the organization for decision making, planning, and control.
  Answers:	a. This class will focus on generating and interpreting financial accounting reports.
  	b. Financial accounting reports can include nonfinancial data.
  	c. Managerial accounting reports provide information for investors and creditors to make decisions.
  	d. Managerial accounting information is used only by people inside the organization for decision making, planning, and control.

• Question 2

  0 out of 2 points

  

  Which of the following would describe the planning function of managers?

  Selected Answer:	c. Assessing whether the company is achieving its goals.
  Answers:	a. Measuring the performance of managers.
  	b. Evaluating how well plans were implemented.
  	c. Assessing whether the company is achieving its goals.
  	d. Communicating the goals of managers to the employees.

• Question 3

  2 out of 2 points

  

  Which of the following would definitely be an example of a variable cost for Bikes Unlimited (a company that produces and sells mountain bikes)?

  Selected Answer:	b. The cost of pedals bought from a supplier.
  Answers:	a. Rent on the production facility.
  	b. The cost of pedals bought from a supplier.
  	c. The utilities cost (electricity).
  	d. Depreciation of production equipment.

• Question 4

  0 out of 2 points

  

  Why do companies use cost estimation tools?

  Selected Answer:	c. To record product costs on the income statement.
  Answers:	a. To allocate overhead costs to products, using a predetermined overhead rate.
  	b. To separate product costs from period costs for the budgeting process.
  	c. To record product costs on the income statement.
  	d. To make cost projections based on the expected level of sales.

• Question 5

  0 out of 2 points

  

  Which cost estimation method will provide the most accurate (mathematically) cost equation?

  Selected Answer:	b. Scattergraph method
  Answers:	a. High-low method
  	b. Scattergraph method
  	c. Regression analysis method
  	d. Account analysis method

Transcribed image text