1. Which of the following is an indirect cost of manufacturing a table made of wood and glass for a firm that manufactures furniture?
The cost of the glass in the table.
The cost of rent on the factory where the table is manufactured.
The cost of the wood in the table.
The cost of the labor used to assemble the table.
2. Which of the following is not a characteristic of managerial accounting?
Reports are prepared as needed.
Information is used by external parties.
Information is subjective, relevant, future-oriented.
Information is reported at the decision making level.
3. Variable costs are:
costs that remain constant no matter the activity level.
costs that are not worth the effort to trace to a specific cost object.
costs that change, in total, in direct proportion to changes in activity levels.
always irrelevant.
4. Which of the following functions of management involves setting short and long-term objectives and the tactics to achieve them?
Reviewing
Planning
Control
Implementing
4. Which of the following costs is not relevant to the decision whether to replace an old computer with a new one?
The cost of the old computer.
The cost to repair the old computer if a new computer is not purchased.
The cost of the new computer.
The cost of a service plan on the new computer.
5. Which of the following is a characteristic of a manufacturing environment that would use job order costing?
Continuous manufacturing
Differentiated products
Standardized production process
Homogenous products