Indicate the answer choice that best completes the statement or answers the question 1. The two categories ofcost comprising conversion costs are a. factory overhead and direct materials b. direct labor and factory overhead c. direct labor and direct materials d. direct labor and indirect labor 2. Accounting designed to meet the needs or decision makers inside the brines is a. general accounting b. financial accounting c, external accounting d. managerial accounting 3. Which of the following accounts will be found on the income statement? a. Cost of Goods Sold b. Work in Process cInventory d.Finished Goods -4Costs that are incurred in generating revenues during the period, but are not involved in the man process are referred to as a. factory overhead costs b. period costs c. product costs d. conversion costs 5. Which of the following is the principle reason for preparing managerial accounting reports? a. usefulness to management b. GAAP c. cost of preparation d. clarity 6. Which of the following products would be manufactured using a job order costing system a. a recliner b. a highlighter pen c. a cell phone d. a graduation invitation -7. Which of the following is most associated with managerial accounting? a. must follow GAAP b. always reports on the entire entity c. is prepared for users outside the organization d. may rely on estimates and forecasts