CHAPTER 1

Managerial Accounting in the Information Age

Summary of Questions by Objectives and Bloom’s Taxonomy

|Item |
|1. |
|49. |
|143. |
|144. |
|159. |3 |K |161. |
|Sales |$180,000 |$182,000 |$2,000 |
|Less: | | | |
| Cost of ingredients |142,000 |146,000 |(4,000) |
| Salaries |11,000 |11,200 |(200) |
|Controllable profit |$27,000 |$24,800 |($2,200) |

In evaluating the department in terms of its increases in sales and expenses, what will be most important to investigate? A. Sales B. Cost of ingredients C. Salaries D. All three components have equal importance.

59. Managerial accounting A. is primarily directed at external users of accounting information. B. is required by taxing