Chapter 14: Managerial Accounting Concepts and Principles 14. Managerial accounting reports are usually prepared for which of the following users? A. Creditors B. External users C. Internal users D. Investors 15. Which of the following defines a variable cost? A. Changes in proportion to changes in volume of activity B. Does not change with changes in volume of activity C. Non-production costs linked to a time period D. Potential benefit lost by taking a specific action 16. Which of the following defines a fixed cost? A. Changes in proportion to changes in volume of activity B. Does not change with changes in volume of activity C. Non-production costs linked to a time period D. Potential benefit lost by taking a specific action 17. Which of the following are classified as product costs? A. Advertising expenses B. Depreciation on office furniture and equipment C. Direct labor, direct materials, and factory overhead D. Salaries of sales staff and wages of maintenance workers 18. Which of the following are classified as period costs? A. Direct labor B. Direct materials C. Factory overhead D. Operating expenses Page 2 of 6