n developed for managers to use in making decisions g principles (GAAP) and must comply with generally accepted accountin international financial reporting standards (IFRS. A. True B. False Which of the following is a nonvalue-added activity? A. Product design. B. Customer service 2. C. Research and development. D. Rework of defective items. Accounting systems are important because they are a primary source of information for managers A. True B. False 3. The field of accounting that reports according to generally accepted accounting principles (GAAP) is called A. Cost accounting. B. Managerial accounting. C. Financial accounting. D. Responsibility accounting 4. Cost accounting information is commonly used in developing financial accounting information. A. True. B. False 5. Managers face ethical situations on a daily basis, while accountants face them infrequently 6. True B. False 7. Which of the following is not a key financial manager in an organization? A. Chief financial officer. B. Treasurer. C. Controller D. External auditor