What are the industry rules and regulations that need to be


1. Managerial accounting is important because it helps facilitate and guide/influence the decision making process of the organization.

True

False

2. Based on the lecture, which of the following individuals or groups is NOT mentioned as being interested in the financial statement information of an organization?

Regulatory agencies

Investors and potential investors

Academics

Tax authorities

3. The purpose of managerial accounting is to report the financial information of the organization to investors and creditors.

True

False

4. What are the industry rules and regulations that need to be followed for managerial accounting?

There are no industry rules or regulations for managerial accounting

Generally accepted accounting principles

Guided managerial accounting rules

Office of standards and boards

5. Which of the following organizations benefit from using managerial accounting?

Multinational corporations

Not for profit groups

Small convenience shops

All of the above

6. According to the lecture, which of the following is NOT a contemporary issue in managerial accounting?

Global organizations

Ethics

Competitors

Social considerations

7. According to the lecture, the term "cost" in managerial accounting refers to the usage of resources.

True

False

8. Direct costs refer to the cost of any materials and labor that cannot easily be traced back to the cost object.

True

False

9. All of the following are examples of questions or decisions that benefit from cost behavior information EXCEPT:

Managing the ratio of direct to indirect costs

Determining product profitability

Product price change decisions

Product line elimination decisions

10. Total variable cost does NOT increase with an increase in production levels.

True

False

11. Total variable costs __________ while unit variable costs __________ with an increase in production volumes.

Increase, decrease

Decrease, stay constant

Increase, increase

Increase, stay constant

12. Total fixed costs ___________ while unit fixed costs __________ with an increase in production volumes.

Decrease, decrease

Stay constant, stay constant

Stay constant, decrease

Increase, increase

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Accounting Basics: What are the industry rules and regulations that need to be
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