Multiple choice

1. _____ refers to accounting information developed for managers 

within an organization. 

a. Internal auditing 

b. Managerial accounting 

c. Financial accounting 

d. Tax accounting 

2. Ethical accountants are important to society because _____. 

a. they pay their taxes 

b. the information produced is reliable 

c. they will not go to prison and waste taxpayers’ money 

d. none of these answers is correct 

3. Performance reports _____. 

 a. are quantitative expressions of action plans 

b. provide feedback by comparing results with plans and by highlighting deviations from plans 

c. are deviations from a plan 

 d. ignore areas that are presumed to be running smoothly 

4. Output measures of both resources and activities are _____. 

 a. cost drivers 

 b. stages of production 

 c. fixed activities 

d. variable activities