1. TRUE/FALSE AND MULTIPLE SELECTION CAP 1 i Managerial accounting provides information for only financial accounting purposes. . True False CAP2 2 A cost that is constant in total amount is always considered an) A fixed cost B. Indirect cost. C variable cost. D direct cost. 3 As the quantity produced increases, fixed costs per unit are expected to A stay the same per unit. B. decrease per unit. C. increase per unit. D. None of the above. 4 Hotels.com, a company that sells hotel reservations over the Internet is an example of an) A merchandiser B. service company. C manufacturer D. None of the above. 5 The cost of materials that have been started into production, but are not completely processed, would be found in which inventory account on the balance sheet? A. Direct materials inventory B. Work-in-process inventory C. Finished goods inventory D. Supplies inventory 6 Finished goods inventory costs represent the costs of goods that are A. already delivered to customers. B. waiting to be worked on. C. currently being worked on. D. waiting to be sold