Anonymous
Anonymous asked in Business & FinanceOther - Business & Finance · 10 years ago

Accounting Questions?

1. Managerial accounting places greater emphasis on the future than financial accounting, which is primarily concerned with the past.

True

False

2. A firm's organization chart will normally show both the formal and informal lines of reporting and communication.

True

False

3. Management accounting focuses primarily on providing data for:

a.internal uses by managers.

b.external uses by stockholders and creditors.

c,external uses by the Internal Revenue Service.

d.external uses by the Securities and Exchange Commission.

4. Which of the functions of management involves overseeing day-to-day activities?

a.Planning

b.Directing and motivating

c.Controlling

d.Decision making

5. Which of the following is not one of the three basic activities of a manager?

a.Planning

b.Controlling

c.Directing and motivating

d.Compiling management accounting reports

6. Variable costs per unit are affected by changes in activity.

True

False

7. The salary paid to the president of King Company would be classified on the income statement as a(n):

a.administrative expense.

b.direct labor cost.

c.manufacturing overhead cost.

d.selling expense.

8. Property taxes on a company's factory building would be classified as a(n):

a.product cost.

b.opportunity cost.

c.period cost.

d.variable cost.

9. A cost incurred in the past that is not relevant to any current decision is classified as a(n):

a.period cost.

b.opportunity cost.

c.sunk cost.

d.differential cost.

10. The cost of warranty repairs would be classified as a(n):

a.prevention cost.

b.appraisal cost.

c.internal failure cost.

d.external failure cost.

1 Answer

Relevance
  • Jack C
    Lv 4
    10 years ago
    Favorite Answer

    1. True - Managerial Accounting looks at budgeting and forecast, while Financial does not

    2. False - Only formal lines are typically shown

    3. A - Managerial accounting information is designed to meet the specific needs of a company’s management, such as historical data and subjective estimates about future decisions; Financial-external

    4. B - The process by which managers run day-to-day operations is called directing.

    5. D

    6. False - Variable costs per unit are constant over the relevant range

    7. A

    8. C

    9. C

    10. C

    Source(s): College Accounting Instructor
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