1) Managerial accounting emphasizes decisions affecting the future.

True or False

2) Enterprise risk management involves replacing risky investments with investments in low risk government securities.

True or False

3) Total Manufacturing costs incurred in a given period are the same as Cost of Goods Manufactured.

True or False

4) All the following costs should be considered by an accounting firm to be indirect costs of preparing a tax return for a particular client: rent on the accounting firm's offices, the accounting firm's receptionist's wages, the costs of heating the accounting firm's offices, and the depreciation on the personal computer in the office of the accountant who has been assigned the client.

True or False

5) Absorption costing requires that all costs be included when determining job costs.

True or False

6) Job costing systems are best used when many different products and services are produced each period.

True or False

7) Over- or under applied overhead should always be closed off to Cost of Goods Sold.

True or False

8) A document that shows the materials drawn from a warehouse and used in production is known as a material requisition form.

True or False

9) A document that tracks an employee's hour-by-hour activities is known as a time ticket.

True or False

10) ABC Costing is quick and easy to implement.

True or False

11) Unit costs under ABC costing are always higher than they would be under traditional costing.

True or False

12) The process by which activity rates are used to apply costs to products and customers in activity-based costing is referred to as a first stage allocation.

True or False

13) Lean manufacturing (JIT, just-in-time) entails larger production runs so that economies of scale are developed.

True or False

14) The variable costing income statement format shows costs separated by cost behaviour rather than function.

True or False

15) As ending inventories increase, variable costing operating income will be higher than absorption costing income.

True or False

16) A summary of a company's plans for which sales, production, distribution targets and financing activities are laid out is known as a master budget.

True or False

17) Responsibility accounting means that managers are only held responsible for those items that they can actually influence to a significant extent.

True or False

18) A method of analyzing cost behaviour in which each account under consideration is classified as variable or fixed is known as the engineering approach.

True or False

19) For purposes of planning, fixed cost per unit should be used to estimate future fixed costs.

True or False