Financial accounting prepares reports for people directly involved in day-to-day operations Select one: True False Indirect cost is the cost that cannot be directly attributed to the production as these costs are incurred in general and can be fixed or variable in nature Select one: True False Managerial accounting is often referred to as accounting for internal users of information Select one: True False Salary paid to administration staff is an example of a direct cost. Select one: : True False For a company that manufactures or sells physical goods, inventory includes everything that goes into those products, such as raw materials, work-in- progress but excluding finished goods. Select one: True False The EOQ provides a model for calculating the appropriate reorder point and the optimal reorder quantity to ensure the instantaneous replenishment of inventory with no shortages. Select one: : True False Management accounting reports on the profitability (and therefore the efficiency) of a business, whereas financial accounting reports on specifically what is causing problems and how to fix them. Select one: True False The wood used to make furniture is a variable cost to an enterprise that manufactures and sells household furniture. Select one: True False People with an indirect interest in a business would use reports based on Generally Accepted Accounting Principles (GAAP). Select one: True False The First-In- First- Out method, which is mainly utilized to assign the average cost of production to a given product, is most commonly employed when inventory items are so intertwined that it becomes difficult to assign a specific cost to an individual unit. Select one: True False