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LESSON 1
Assignment
Note:
For multiple-choice questions, identify the best response. Answer each item by giving the letter of your choice. For example, if (4) is the best answer for (a), write a(4) as your answer. Select only one answer for each item. If more than one answer is given, it will not be marked. Incorrect answers will be marked as zero. No marks will be given to any explanation you offer.
Question 1 (63 marks)
Multiple choice (3 marks each)
a. Which of the following statements about managerial accounting is true?
1) Managerial accounting information is prepared for external users.
2) Managerial accounting information is a legal requirement.
3) The structure of managerial accounting practice is relatively flexible.
4) There are structured standards of acceptability for managerial accounting.
b. In the context of making a decision, which of the following statements regarding relevant costs is incorrect?
1) An opportunity cost is a relevant cost.
2) A traceable fixed cost is a relevant cost.
3) A variable cost is a relevant cost.
4) A sunk cost is a relevant cost.
c. When distinguishing between fixed costs and variable costs, which of the following statements is true?
1) As production rises, variable costs per unit will fall.
2) As production rises, total fixed costs will rise.
3) As production falls, fixed costs per unit will rise.
4) As production falls, variable costs per unit will fall.
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