Which of the following is a fundamental characteristic of management accounting as compared to financial accounting?

Uses generally accepted accounting principles

Satisfies a competitive need

Is governed by regulatory agencies

Uses only financial data

If a cost increases as the sales volume increases, the cost is a:

Variable cost

Fixed cost

Sunk cost

Direct cost

If total cost stays the same, even though the production level has risen, the cost is a(n):

Indirect cost

Variable cost

Fixed cost

Out-of-pocket cost

The cost of milk used to manufacture ice cream would most likely be classified as a(n):

Indirect cost

Variable cost

Fixed cost

Sunk cost

Glue used in the manufacture of chairs would most likely be classified as:

Direct materials

Period cost

Manufacturing overhead

Direct labor

A nonmanufacturing cost is usually classified as:

Manufacturing overhead

A period cost

Direct materials

A product cost

In constructing a custom cabinet, an indirect material would be:

Brass handles

Hinges

Wood

Screws

The cost of milk for an ice cream manufacturer would be considered all of the following EXCEPT:

Indirect cost

Product cost

Manufacturing cost

Variable cost

Costs that are specifically traceable to a unit of business are known as which of the following costs to that unit?

Direct

Differential

Opportunity

Indirect

You currently work as a school bus driver. Your salary is $28,000 per year. You are thinking about quitting your job and going back to college. It will take you two years to obtain your college degree. Tuition and other costs of the education will total $24,000. You also intend to keep your car by making the $250 per month payments out of your savings. How much is the opportunity cost of going to college?

$52,000

$28,000

$56,000

$62,000