Managerial Accounting Exam 1 (Chapters 1, 2, 3, And 5) Practice Questions And Answers Verified 2024

Investigating production variances and adjusting the production process is an example of {Ans: Controlling.}Which of the following is not an objective of managerial accounting? {Ans: To prepare external reports for investors, creditors, government agencies, and other outside users.}Which of the following is an example of a discretionary fixed cost? {Ans: Advertising costs}Which of the following is an example of the management activity referred to as planning? {Ans: Developing a strategy for disposing of hazardous waste}Which of the following is not on a time ticket? {Ans: Cost of materials}A committed fixed cost {Ans: Often involves a long-term contract.}Which of the following is an example of direct labor? {Ans: Assembly line worker for televisions}A factor that causes or leads to a change in a cost or activity is a(n): {Ans: Driver.}The primary objective of managerial accounting is: {Ans: To provide management with information useful for planning and control of operations.}Managerial accounting {Ans: Has no mandatory rules.}An indirect cost {Ans: Is hard to trace}Total variable costs: {Ans: Increases as output increases, decreases as output decreases, and equal a variable rate x amount of output}Which of the following is not an example