Question : 59.Managerial accounting A.is primarily directed at external users of accounting information. B.is : 1302667

59.Managerial accounting

A.is primarily directed at external users of accounting information.

B.is required by taxing authorities such as the IRS.

C.must follow GAAP.

D.focuses on future performance.

60.The fundamental difference between managerial and financial accounting is that

A.all financial accounting information is audited by Certified Public Accountants whereas managerial accounting information is audited by the IMA.

B.managerial accounting is concerned principally with budgets, whereas financial accounting is concerned with a wider range of the organization’s activities.

C.managerial accounting provides information for decision-makers within the organization, whereas financial accounting provides information for individuals and institutions external to the organization.

D.financial accounting information follows U.S. Generally Accepted Accounting Principles, whereas managerial accounting information generally follows rules set forth by the Institute of Management Accountants.

61.Which of the following is a difference between financial accounting and managerial accounting?

A.Managerial accounting is primarily concerned with reporting the past, while financial accounting is more concerned with future decisions that external users may need to make.

B.Managerial accounting uses monetary and nonmonetary information, whereas financial accounting reports monetary information.

C.Managerial accounting is primarily concerned with providing information for external users while financial accounting is concerned with internal users.

D.Financial accounting is rather detailed, while managerial accounting is more summarized.

62.Which one of the following is most likely to make use of Ralston Enterprises’ managerial accounting information?

A.The IRS

B.An individual contemplating an investment in Ralston Enterprises

C.A company that is one of Ralston’s main suppliers

D.The production manager of Ralston’s plant in Georgia

63.Which of the following costs will change when the level of business activity changes?

A.Total fixed costs

B.Variable cost per unit

C.A company’s total costs

D.Sunk cost

64.Variable cost per unit

A.increases when the number of units produced increases.

B.does not change when the number of units produced increases.

C.decreases when the number of units produced increases.

D.decreases when the number of units produced decreases.

65.Kilwin’s Candies produced and sold 600 boxes of chocolate covered popcorn last month and had total variable costs of $2,100 that reflected the costs of chocolate and popcorn (ingredients). Each box of popcorn sells for $12.00. If production and sales are expected to increase by 10% next month, which of the following statements is true?

A.Total variable costs are expected to be $1,785

B.Variable cost per unit is expected to be $3.50

C.The incremental cost per unit is costs expected to be $0.35

D.Unit variable costs are expected to be $2.10

66.A company has a cost that is $3.00 per unit at a volume of 9,000 units and $3.00 per unit at a volume of 11,000 units. What type of cost is this?

A.Fixed

B.Variable

C.Sunk

D.Noncontrollable

67.Which of the following is most likely to be a fixed cost?

A.Cost of wheels for a lawn mower manufacturer

B.Rent on a factory building

C.Cost of labor for cashiers at a retail store

D.Supplies used by the housekeeping staff that cleans hotel rooms

68.Bagel Time produced and sold 2,500 bagels last month and incurred fixed costs totaling $8,000. If production and sales are expected to decrease by 10% next month, which of the following statements is true?

A.Total fixed costs will increase.

B.Total fixed costs will decrease.

C.Fixed cost per unit will increase.

D.Fixed cost per unit will decrease.