Question

In general, managerial accounting is more rule oriented and restrictive than financial accounting.

Question 1 options:

	True
	False

Question 2 (1 point)

One way to classify costs is to describe them as Variable or Fixed costs.

Question 2 options:

	True
	False

Question 3 (1 point)

One way to classify costs is to describe them as Manufacturing or Opportunity costs.

Question 3 options:

	True
	False

Question 4 (1 point)

Manufacturing costs can also be called Product Costs.

Question 4 options:

	True
	False

Question 5 (1 point)

This chapter covers terminology used in Managerial accounting and also includes a section on Ethics.

Question 5 options:

	True
	False

Answer 1

1) False managerial accounting is less rule oriented as restricted than financial accounting as financial accounting is governed by laws where management accounting is not governed by any law and there is freedom to managers to prepare and use reports according to their convenience and purpose in mind.

2) True according to behavour in accordance with activity the costs can be classified as variable or fixed costs. But there are mixed costs as well which include fixed portion and additional variable expenses

3) False, manufacturing costs or opportunity costs is not a way of classifying costs . According to management function costs can be classified as manufacturiing or non manufacturing and opportunity costs come under classification in accordance with relevance to decision making.

4) True manufacturing costs can also be called product costs as both means including those expenses which are directly related to producing a product like direct materials, direct labour and manufacturing overheads.

5) It is not very clear what chapter is being talked about but managerial accounts take into consideration ethical issues as it is based on one's personal judgement as it is not governed by any standards or laws. So it possibly true