BASIC CONCEPTS IN MANAGEMENT ACCOUNTING
The major functions of management is (are):
strategic management and long-range planning.
planning and decision making.
identifying threats and opportunities for the firm.
all of the above.
The process of identifying, measuring, analyzing, interpreting, and communicating information in pursuit of an organization's goals is called A.
The primary objective of management accounting is
to provide stockholders and potential investors with useful information for decision making. B.
to provide banks and other creditors with information useful in making credit decisions. C.
to provide management with information useful for planning and control of operations. D.
to provide supervising government agencies with information about the company’s management affairs.
Management accounting information
uses historical cost as the basis for reports to managers who are making decisions about future courses of action. B.
should be developed and provided only if its benefits exceed its costs. C.
does not reflect the financial criteria of verifiability or consistency. D.
should serve the basic needs of investors and creditors.
Which of the following is included in the day-to-day work of the management team? A.
all of the above
Paying rent, purchasing supplies, and purchasing inventory are which of the day-to-day work activities of the management team? A.
directing operational activities
only A and B
Which of the following statements is true when comparing managerial accounting to financial accounting? A.
Managerial accounting places more emphasis on precision than financial accounting. B.
Both are highly dependent on timely information.
Both rely on the same accounting information system.
Managerial accounting is concerned with external decision makers.
Which of the following is true of managerial accounting rather than financial accounting? A.
The outputs of this accounting system are the primary financial statements. B.
The methods of this accounting system are established by an overseeing board. C.
The accounting methods are standardized to allow comparisons among companies. D.
The accounting system would be unique to each company.
Management accounting’s role in the control processes is to provide A.
managers with information that can be used to determine customer satisfaction levels. B.
investors and creditors information on the financial stability of the company. C.
managers with relevant information to compare with expectations. D.
input to managers on the best ways to achieve continuous improvement in the production process.
Which of the following statements are true regarding financial and managerial accounting? I.
Both are mandatory.
Both rely on the same underlying financial data.
Both emphasize the segments of an organization, rather than just looking at the organization as a whole. IV.
Both are geared to the future, rather than to the past.
I, II, III, and IV
Only II and III
Only II, III and IV
Managerial accounting activity adds value to an organization by pursuing five major objectives, which include A.
providing information for decision making and planning.
measuring the performance of activities within an organization. C.
assisting managers in directing and controlling operational activities. D.
all of them
Managerial accounting places considerable weight on:
generally accepted accounting principles.
the financial history of the entity.
ensuring that all transactions are properly recorded.
detailed segment reports about departments, products, and customers....
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