INTRODUCTION TO MANAGERIAL ACCOUNTING

The goal of management accounting is to provide the information that managers need for all of the following EXCEPT:

• Planning

• Control

• Decision Making

• Review

Management accounting is designed for use by:

• Internal users

• Stockbrokers

• External users

• Clients

Which are true about Management accounting?

• Places emphasis on future

• Must comply with GAAP standards

• Presents very detailed information

• Presents only monetary information

Which of the following statements about management accounting are true?

i. It is a part of an organisation’s management information system.

ii. It is relied upon by managers to plan and control an organisation’s operations.

iii. It is relied upon by external users to make investment decisions.

• i and ii

• i, ii and iii

• ii and iii

• iii

Which of the following statements describes the goals or objectives of an organisation?

i. Profitability and growth.

ii. Cost minimization and product quality.

iii. Market diversification and community service.

• i

• i and ii

• iii

• i, ii and iii

Which of the following are associated with Control?

• Specifies the resources needed to achieve the company goals

• Communicate's a company's goals to employees

• Evaluating managers to determine how their performance should be rewarded or punished

• Evaluating operations to provide information as to whether they should be changed or not

Part of the planning process involves

• The formulation of details of operations and finances for the next financial year.

• Comparing actual performance against targets.

• Motivating managers towards achieving organisational goals.

• Making a choice between available alternatives.

The benefits of management accounting information include:

• Improved decisions.

• Providing a means of motivating workers and rewarding performance.

• More effective planning.

• All of the above

Which of the following statements represents a similarity between financial and management accounting?

• Both are useful in providing information for external users.

• Both draw upon data from an organisation’s basic accounting system.

• Reporting of financial statements is similar.

• Both must comply with Australian accounting standards.

Both financial and management accounting:

• Must be performed by all accountants.

• Achieve the same objective.

• Must conform to rules issued by government departments.

• Use the same information system.