Managerial ACCT- Mary Jo

Which of the following is not an objective of managerial accounting?

To produce info for external users, including investors, creditors, cutomers, suppliers, and government agencies

Which of the following statements is true of financial accounting?

a. Financial accounting is directed toward external users. b. Financial accounting is able to provide audited, objective financial information. c. Financial accounting is subject to externally imposed rules. d. All of these choices are correct D

Cost of advertising is an example of a _____

a. committed fixed cost b. variable cost c. semi-variable cost d. discretionary fixed cost

Which of the following is true of a variable cost? a. A variable cost in total changes in direct proportion to changes in output within the relevant range. b. A variable cost is a cost that is not linked to a company's output. c. A variable cost in total increases as output decreases and decreases as output increases. d. A variable cost in total remains constant regardless of the level of output.

c.

Which of the following statements best describes an indirect cost? a. An indirect cost can be easily and accurately traced to a cost object. b. It is not important to assign an indirect cost as it can be traced to a cost object. c. An indirect cost is assigned to a cost object using allocation. d. None of these statements are true.

c.

Which of the following is true of price? a. Price is the difference between cost per unit and income per unit. b. Price is a dollar measure of the resources used to achieve a given benefit. c. Price must be greater than cost for a firm to earn income. d. Price is the difference between gross margin and the cost of goods sold.

c. Price must be greater than cost for a firm to earn income

Overhead includes a. factory supplies. b. indirect materials. c. indirect labor. d. all

d.

Which of the following would not be a period cost? a. advertising costs b. office supplies c. research and development d. direct materials

d. direct materials

The provision of accounting information for internal users is known as

managerial accounting