1. Which of the following best describes the difference between financial and managerial accounting?
Managerial accounting provides information to support decisions, while financial accounting does not.
Managerial accounting is not restricted to generally accepted accounting principles (GAAP), while financial accounting is restricted to GAAP.
Managerial accounting does not result in financial reports while financial accounting does result in financial reports.
Managerial accounting is concerned solely with the future and does not record events from the past, while financial accounting records only events from past transactions.
2. For which of the following would the job order cost system be appropriate?
Manufacturer of individualized golf equipment
Rubber manufacturer
Crude oil refinery
Coal mining
3. For which of the following businesses would the process cost system be most appropriate?
Custom jewelry manufacturer
Car rental agency
Crude oil refinery
Small engine repair shop