Question

b. Managerial accounting is an activity that helps managers determ and services plan fut activity that helps managers determine costs of products and services, plan future activities, and compare actual to planned results True False wa 7. Costs are importa Costs are important to managers because they impact both the financial position and profitability of a business True False 8. Both financial and managerial accounting rely on accepted principles that are enforced through an extensive set of rules and guidelines O lot True False 9. Direct materials are not easily traced to a product. ee True False 10. A company that produces products individually designed to meet the needs of a specific customer, would normally use a job order costing system. True False 11. A job order costing system would be appropriate for a manufacturer of automobile tires. True False 12. The cost of direct materials issued to production is debited to Work in Process Inventory True False 13. When materials are used as indirect materials, their cost is debited to the Factory Overhead account. True False 14. Direct materials and direct labor are examples of costs that are debited to the Factory Overhead account in a job costing system. True False

Answer 1

6.True, Managerial accounting deals with Determining costs of products, plan future activities and variation analysis

7.True

8.False, Only financial accounting follows standards, rules and regulations and not managerial accounting

9.False, Direct Material are easily traceable to products

10.True, Job order costing is used when jobs are different from each other

11.False, since output will always be the same

12.True, Direct material cost forms a part of WIP

13.True

14.False, these are direct costs