96.Costs associated with holding inventory include hidden costs, such as low employee motivation.
True False
97.Because management accountants prepare and analyze financial information used by company decision-makers, they are considered to be at the forefront of corporate governance.
True False
98.Assuming that the number of units produced exceeds the number of units sold, misclassifying period costs as product costs will overstate net income relative to what net income would be without this error.
True False
99.Misclassifying a product cost as a period cost will usually cause the income statement to be incorrect, but the balance sheet will not be affected.
True False
100.Misclassifying a period cost as a product cost will usually correct itself in the following period.
True False
101.If product costs are misclassified as selling costs, the cost per unit will be understated.
True False
102.With respect to income taxes, managers would prefer to classify costs as assets rather than expenses.
True False
103.The four Standards of Ethical Conduct for Management Accountants relate to competence, confidentiality, integrity, and objectivity.
True False
104.Karen is a Certified Management Accountant and is bound by the IMA's Standards of Ethical Conduct. Her superior has asked her to try to influence the firm's outside auditors with expensive gifts and favors. If Karen complies, she will violate the competence standard.
True False
105.Opportunity, pressure and rationalization are the three elements of the fraud triangle.
True False