Question 1

1. Managerial Accounting is designed primarily for external users.

   	a.	True
   	b.	False

1 points

Question 2

1. The process of choosing among competing alternatives is decision making.

   	a.	True
   	b.	False

1 points

Question 3

1. Activity based costing is a more detailed approach to determining the cost of goods and services.

   	a.	True
   	b.	False

1 points

Question 4

1. Virtually all management accounting practices were developed to assist managers in maximizing profits.

   	a.	True
   	b.	False

1 points

Question 5

1. Excellent customer service is an example of a non-value added activity.

   	a.	True
   	b.	False

1 points

Question 6

1. It is not necessary to assign indirect costs to cost objects.

   	a.	True
   	b.	False

1 points

Question 7

1. Property taxes on a factory building would normally be classified as a variable cost.

   	a.	True
   	b.	False

1 points

Question 8

1. Glue used in the manufacture of cabinets would be an example of a variable cost.

   	a.	True
   	b.	False

1 points

Question 9

1. Industries that provide intangible services do not normally have direct contact with their customers.

   	a.	True
   	b.	False

1 points

Question 10

1. Period costs are those costs associated with the manufacture of goods or the providing of services.

   	a.	True
   	b.	False

1 points

Question 11

1. Employees who convert direct materials into a product or who provide a service to customers are classified as direct labor.

   	a.	True
   	b.	False

1 points

Question 12

1. All manufacturing costs are classified as direct materials, direct labor, or overhead.

   	a.	True
   	b.	False

1 points

Question 13

1. Any costs associated with storing, selling, and delivering the product are classified as period costs.

   	a.	True
   	b.	False

1 points

Question 14

1. Prime cost is the sum of indirect materials and indirect labor.

   	a.	True
   	b.	False

1 points

Question 15

1. Product costs are carried in inventory until the goods are finished.

   	a.	True
   	b.	False

1 points

Question 16

1. Marketing costs would be classified as period costs.

   	a.	True
   	b.	False

1 points

Question 17

1. Cost of goods manufactured represents the cost of direct materials, direct labor, and overhead incurred during the current accounting period.

   	a.	True
   	b.	False

1 points

Question 18

1. Cost of goods sold is the total product cost of the units sold during a period.

   	a.	True
   	b.	False

1 points

Question 19

1. Direct materials can be directly traced to the goods or services being produced.

   	a.	True
   	b.	False

1 points

Question 20

1. The cost of janitorial services for a factory building would be classified as direct labor.

   	a.	True
   	b.	False