Managerial Accounting Quiz

True or False. Managerial accounting must conform with GAAP.

• True

• False

True or False. While financial accounting is more concerned with accuracy of data, managerial accounting is concerned with timeliness of data.

• True

• False

This is an internal reporting system that provides product costing and other information used by managers in performing their functions.

Give at least 2 functions of management

A type of cost that changes in proportion to the number of units produced.

Give one type of cost included as product cost.

Costs that are directly linked to the goods or services a business sells.

Give one component of prime cost.

Managerial accounting is designed to help decision makers inside an organization.

• TRUE

• FALSE