Multiple choice

1. The function of a cost accounting system (i.e, job-order or process cost system) is to value inventory and cost of good sold.

A. True

B. False

2. When compared to financial accounting, managerial accounting is less rules based and more subjective.

A. True

B. False

3. Merchandising businesses take raw materials, direct labor, and factory overhead and produce a product.

A. True

B. False

4. The payment of cash (or the commitment to pay cash in the future) for the purpose of generating revenues is known as:

A. Financial Accounting

B. Managerial Accounting

C. A Cost

D. A Manufacturing Business