True / False Questions
1.Managerial accounting refers to the preparation and use of accounting information designed to meet the needs of decision makers inside and outside the business organization.
2.Management accounting encompasses the design and use of accounting information systems inside the company to achieve the company's objectives.
3.Management accounting reports may provide sufficient means of monitoring, evaluating and rewarding performance.
4.A value chain is a linked set of activities and resources necessary to create and deliver a product or service to a customer.
5.The three basic types of manufacturing costs are direct materials, direct labor and manufacturing overhead.
6.Manufacturing overhead is a term used to describe all manufacturing costs other than direct materials and direct labor.
7.Finished goods is comprised of direct materials purchased, direct labor, and manufacturing overhead.
8.Manufacturing overhead is considered an indirect cost, since overhead costs generally cannot be traced conveniently and directly to specific units of product.
9.Supervisor salaries, equipment repairs, depreciation of machinery, and indirect materials are all examples of manufacturing overhead.
10.Prime costs include direct materials and direct labor used in the production of goods and services.