Question

This question has five parts:

1. Production material costs are generally fixed costs:

a. true b. false

2. The primary functions of manufacturing accounting is planning, controlling, and budgeting:

a. true b. false

3. Which of the following is an example cost that is variable with respect to the number of units produced:

a. rent on the administrative office building

b. rent on the factory building

c. direct labor cost

d. salaries of top marketing executives

4. Financial accounting stresses accounting concepts and procedures that are relevant to preparing reports for internal users of accounting information:

a. true b. false

5. The goal of managerial accounting is to provide information for planning, controlling, and reporting information to shareholders:

a. true b. false

Answer 1

1.

Correct answer is b. False

Direct materials cost is always a variable cost as it is directly related to the number of units produced.

2.

Correct answer is b. false

These are the functions of managerial accounting

3.

Correct answer is c. Direct labor cost

Direct labor costs is a variable cost because it is directly related to production and it varies with the volume of production.

4.

Correct answer is b. false

The accounting system concerned with the reporting to the internal users is managerial acccounting

5.

Correct answer is b. false

The goal of managerial accounting is reporting to internal users and management rather than shareholders.