Reference no: EM131489070

TRUE OR FALSE

1 Managerial accounting is designed to satisfy needs of external users, including creditors, investors, and governmental agencies.

2 The managerial accounting system includes economic and non-financial data as well as financial data.

3 Operating workers (lower-level employees) need more non-financial data than financial data to do their jobs.

4 Senior executives focus mostly on financial data, while operating employees have greater need for nonfinacial information.

5 External users focus primarily on the performance of the company as a whole.

6 Most internal users of accounting information need primarily global information that reflects the performance of the company as a whole.

7 Product costs include materials, labor, and selling and administrative costs.

8 Wages paid to production workers are recorded as inventory rather than expensed when incurred.

9 A cash purchase of materials to be used in manufacturing a product is an asset exchange transaction.

10 Selling and general and administrative costs cannot be easily traced to products and are therefore included in manufacturing overhead.