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State whether the following statements are True or False
1. Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for internal users of accounting information.
2. The goal of managerial accounting is to provide information for planning, controlling and decision making.
3. A thorough understanding of managerial accounting is essential for an effective manager.
4. A budget informs managers of planned production amounts and the cost of resources needed for production.
5. Budgets are financial plans prepared by managerial accountants.
6. Only amounts that can be expressed in dollars and cents can be used in preparing budgets.
7. An unfavorable evaluation of an operation indicates that the manager of that operation is not performing adequately.
8. Performance reports are used for control purposes.
9. Performance reports, like other managerial accounting reports, must follow GAAP.
10. Performance reports may show comparisons of current period performance to the planned, or budgeted, performance.
11. Managers need to investigate every difference between actual and budgeted costs in a performance report.
12. Decisions to reward or punish managers are not part of the planning and control process.
13. Managerial accounting is directed at external users of accounting information.
14. Managerial accounting must follow generally accepted accounting principles.
15 Managerial accounting may present more detailed information than financial accounting.
16. Managerial accounting is optional and stresses that the information provided should be useful to managers.
17. Financial accounting is concerned with presenting results of past transactions while managerial accounting places considerable emphasis on the future.
18. Variable costs increase or decrease in total in proportion with changes in the level of business activity.
19. Insurance is generally a controllable cost for a factory department supervisor.
20. Variable cost per unit remains the same even though there is a change in the number of units produced.
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21. Fixed cost per unit remains constant when the number of units produced changes.
22. Sunk costs are a significant consideration in incremental analysis.
23. Opportunity costs are the value of benefits foregone when one alternative is selected over another.
24. Direct costs are directly traceable to a product, activity, or department.
25. A manager can influence a controllable cost.
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