Solved by verified expert :59. Managerial
accounting
A. is
primarily directed at external users of accounting information.
B. is
required by taxing authorities such as the IRS.
C. must
follow GAAP.
D. is
optional.
60. The
fundamental difference between managerial and financial accounting is that
A. all
financial accounting information is audited by Certified Public Accountants
whereas managerial accounting information is not audited by anyone.
B. managerial
accounting is concerned principally with determining the cost of inventory
(ending inventory and cost of goods sold), whereas financial accounting is
concerned with a wider range of the organization’s activities.
C. managerial
accounting provides information for decision-makers within the organization,
whereas financial accounting provides information for individuals and
institutions external to the organization.
D. financial
accounting information follows U.S. Generally Accepted Accounting Principles,
whereas managerial accounting information generally follows rules set forth by
the Institute of Management Accountants.
61. Which
of the following is not a difference between financial accounting and managerial
accounting?
A. Financial
accounting is primarily concerned with reporting the past, while managerial
accounting is more concerned with the future.
B. Managerial
accounting uses more nonmonetary information than is used in financial
accounting.
C. Managerial
accounting is primarily concerned with providing information for external users
while financial accounting is concerned with internal users.
D. Financial
accounting must follow GAAP while managerial accounting is not required to
follow GAAP.
62. Which
of the following is most likely to make use of Spruce Company’s managerial
accounting information?
A. the
IRS
B. an
individual contemplating an investment in Spruce Company
C. a
company that is one of Spruce’s main competitors
D. the
production manager of Spruce’s plant in Minnesota
63. Which
of the following costs does not
change when the level of business activity changes?
A. total
fixed costs
B. total
variable costs
C. total
direct materials costs
D. fixed
costs per unit
64. Variable
cost per unit
A. increases
when the number of units produced increases.
B. does
not change when the number of units produced increases.
C. decreases
when the number of units produced increases.
D. decreases
when the number of units produced decreases.
65. Uno
Pizza produced and sold 800 pizzas last month and had total variable ingredients
that cost $3,440. If production and sales are expected to increase by 10% next
month, which of the following statements is true?
A. Total
variable materials costs are expected to be $3,784
B. Variable
material cost per unit is expected to be $4.73
C. Total
variable materials costs are expected to be $3,444.30
D. Total
variable materials costs are expected to be $344
66. A
company has a cost that is $2.00 per unit at a volume of 12,000 units and $2.00
per unit at a volume of 16,000 units. What type of cost is this?
A. fixed
B. variable
C. sunk
D. incremental67. Which of the following is not
likely to be a fixed cost?A. direct
materialsB. rentC. depreciationD. salary
of the human resources director68. Marco
Diner produced and sold 2,000 bagels last month and had fixed costs of $6,000. If
production and sales are expected to increase by 10% next month, which of the
following statements is true?A. Total
fixed costs will increase.B. Total
fixed costs will decrease.C. Fixed
cost per unit will increase.
D. Fixed
cost per unit will decrease.
