Reference no: EM131705316

1. The best criterion for determining if a given action or choice is ethical is to determine if it is legal, because all legal actions are inherently ethical. (True/ False)
2. Planning involves the development of both short-term and long-term objectives and goals. (True/ False)
3. A company's reliance on technology has not exposed it to more risk. (True/ False)
4. Set-up costs for a machine is an example of batch-level costs. (True/ False)
5. The depreciation cost for a manufacturing building is an example of a committed fixed cost: (True/ False)
6. The primary advantage of the high-low method of cost estimation over the least-squares regression method is its Limited data requirements (True/ False)
7. Mixed cost behavior pattern is unrelated to unit activity level. (True/ False)
8. Managerial accountants facilitate the decision-making process within an organization. (True/ False)
9. A corporate governance system is not used by a company to promote corporate fairness, transparency, and accountancy. (True/ False)
10. Avoidable costs are relevant costs, including opportunity costs, not sunk costs or costs that do not differ or cannot be eliminated. (True/ False)
11. A life cycle costing system includes all costs incurred throughout a product's life, not just in manufacturing and selling of the product. (True/ False)
12. Direct costs can be economically and easily traced to a product. (True/ False)
13. External forces are more important in shaping a company's corporate governance system than internal forces. (True/ False)
14. A framework for decision making include: (1) Defining the Problem (2) Identifying Objectives (3) Identifying and Analyzing Options (4) Considering Ethical Ramifications (5) Selecting the Best Option. (True/ False)
15. Codes of ethics can reduce the likelihood of individual discretion; establish the tone of a company in the absence of guidance; be a consensus building tool for employees; and convey the values and beliefs that are important to a company. (True/ False)
16. Value chain analysis concerns the study of value-producing activities, stretching from basic raw materials to the final consumer of a product or service. (True/ False)
17. The valve chain is the set of activities that increase the value of an organization's product and services. (True/ False)
18. In deciding whether to sell a joint product or to process it further, any costs incurred prior to the split-off point are sunk costs and are, therefore, irrelevant costs. (True/ False)
19. Cost-volume-analysis is not typically used to determine the break-even point. (True/ False)
20. The Enterprise Resource Planning (ERP) systems integrate traditional accounting information with nonfinancial information; they also provide a comprehensive view of the organization; further, these systems evolved to address the short-comings of the traditional accounting systems. (True/ False)
21. Fixed costs, variable costs, and revenues are all included in profitability analysis? (True/ False)
22. A company that has only fixed cost has no operating leverage. (True/ False)
23. The theory of constraints states that every process has a bottleneck and production cannot take place faster than it is processed through the bottleneck. (True/ False)
24. Contribution margin is the difference between total revenue and total variable costs (True/ False)
25. Programs established to help maintain an ethical business environment are called ethics programs. (True/ False)
26. Sunk costs are the result of past decisions; therefore, they are always relevant to future decisions. (True/ False)
27. Relevant costs are future costs that differ between competing decision alternatives. (True/ False)
28. Managers should look to find a "cause-and-effect" relationship between overhead costs and related cost driver. (True/ False)
29. Qualitative data may be exemplified by product cost and net income, not customer satisfaction. (True/ False)
30. Cost-volume-profit analysis is most useful for determining costs. (True/ False)
31. Cost information does not influence marketing, finance, or production managers' decisions. (True/ False)
32. Over the past century, cost structures in the typical company have shifted significantly as a consequence of breakthroughs in technology, resulting in a major downward shift in direct labor as a percentage of total manufacturing costs. (True/ False)
33. The break-even point for a company with multiple products cannot be determined using a unit contribution margin calculation since there are multiple products each of which has a different unit contribution margin. (True/ False)
34. Overhead costs are typically indirect in nature; unrelated costs; and must be estimated to provide timely cost information. (True/ False)
35. The wheels on an automobile are classified as a variable cost with respect to the volume of cars produced in an automobile assembly plant. (True/ False)