Please indicate whether the following statements are true or false by circling a T or an F 1. Direct and indirect materials may both come from the same source 0 0 2. Factory overhead includes the cost of selling and advertising the product | 0 3. Fixed costs remain constant in total, the average fixed costs becomes progressively smaller as the level of activity increases 0 0 4. Work in process represent goods that have some or all raw materials, some lab- our and some overhead 0 0 5. Because managerial accounting is not bound by GAAP, it has nothing to do with the accounting system relied on by financial accounting 0 0 6. The purpose of any managerial costing system should be to provide accounting information to assist management in carrying out its job. 0 0 7. A variable cost is one whose total dollar amount varies in direct proportion to changes in the activity level O O 8. Mixed costs are based on what management decides may be necessary to operate effic- iently at different times 0 0 9. The Contribution Margin Ratio shows how the Contribution Margin is affected by a change in total sales 0 0 10 It is impossible, or difficult to trace Manufacturing Overhead costs to a particular to a particular product or job 1. Managerial Accounting : a) relies mainly on GAAP b) is not as constrained by GAAP as is Financial Accounting c) does not need to be reliable d) is made available to outsiders 2. All of the following entities would have a need for managerial accounting information except: a) Dell Computers b) The Blue Jays baseball club The RCMP None of the above responses is correct 3. Organizational structure refers to a) a system that involves the various positions in an organization and the relationships b) the method of producing and delivering a product c) another aspect of TOM d) the capital assets of an organization 4. Period costs in a manufacturing environment are: a) a combination of all costs incurred by a manufacturing company b) the costs not included in the cost of purchased or manufactured goods c) another term for overhead costs d) the cost of goods sold 5. Fixed costs in a manufacturing environment are: a) costs that remain the same at all times b) costs that remain the same for all quantities c) costs that do not remain the same within a given range and time d) costs that do not vary with quantity produced within a relevant range 6. Which of the following statements represents a similarity between financial and managerial accounting? A. Both are useful in providing information for external users. B. Both are governed by GAAP. C. Both draw upon data from an organization's accounting system. D. Both rely heavily on published financial statements. 7. Which of the following manufacturers would most likely use job-order costing? A. Chemical manufacturers. B. Microchip processors. C. Custom Furniture manufacturers D. Gasoline refiners. 8. A manufacturing firm produces goods in accordance with customer specifications, commencing production upon receipt of a purchase order. To accumulate the cost of each order, the company would use a A. job-cost record. B. cost allocation matrix. c. production long D. manufacturing cost record. 9. Process costing is used to account for: A large numbers of identical products that are produced in a continuous manufacturing environment. B. small numbers of products that are produced in batches. C. raw materials that are converted directly to finished goods. D. finished goods that are refined and processed further. 10. Process costing would be used in all of the following industries except: A. petroleum refining, B. chemicals C. truck tire manufacturing, D. automobile repair