QUESTION 1 Determine if the following statements are true or false. Managerial accounting helps managers determine costs, plan A. True future activities and compare results. Managerial accounting reports are mostly used by external investors and creditors. Both financial and managerial accounting are required to follow the generally accepted accounting principles. Internal control systems are implemented to ensure reliable accounting records and uphold company culture. B. False QUESTION 2 Which of the following is correct as it relates to cost classifications and behaviors? OA. Fixed costs will change in direct proportion to changes in volume or activity. OB. Fixed vs. variable costs is the classification used to determine if the cost will be capitalized. OC. Direct vs. indirect costs are determined by how easily a cost can be traced to a cost object. OD. All product costs are variable costs. E. Period costs are shown as cost of goods sold on the income statement.