Question 18 (2 points)

Managerial accounting information

is used mainly by external users.

is the only accounting information available to managers.

can be used for control purposes but not for planning purposes.

involves gathering information about costs for planning and control decisions.

Question 19 (2 points)

Factory overhead costs normally include all of the following except: Machinery oil.

Factory rent.

Indirect labor costs.

Selling costs.

Question 20 (2 points)

Which action would be appropriate for a managerial accountant faced with any ethical dilemma:

contact the board of directors first.

discuss the issue with your friends and family, to make an educated decision.

contact your attorney about your legal obligations and rights.

contact the media immediately, to blow the whistle on the offender.

Question 21 (2 points)

According to the IMA Statement of Ethical Professional Practice, confidentiality means that each member has a responsibility for all the following except

maintaining an appropriate level of professional expertise.

inform relevant parties to the appropriate use of company information, and monitor to ensure compliance.

do not release information except when disclosure is authorized or legally required.

refrain from using confidential information for unethical or illegal advantage.

Question 22 (2 points)

If Spiller company increased its units produced in April,

its per unit variable costs would remain the same.

its per unit fixed costs would remain the same

both its total fixed and variable costs would remain the same.

its total variable costs would remain the same.

Question 23 (2 points)

For a company with high operating leverage

it is easier to earn a profit at low sales levels

a large proportion of the companys sales are variable costs

its fixed costs are lower than its variable costs

small errors in forecasting sales have a greater impact on the companys overall profit

Question 24 (2 points)

A company's normal operating range, in which cost information can be assumed to remain the same.

Margin of safety.

Relevant range.

Opportunity cost.

High-low point.

Question 25 (2 points)

Which one of the following statements is true?

Total fixed costs increases as the volume increases.

Fixed costs per unit stay constant as the volume decreases.

Variable cost per unit stay constant as the volume decreases

Total variable costs decrease as the volume increases.