Knowledge Check - Chapter 1

What is the purpose of management information?

• Planning and control only

• Planning, control, decision making and research and development

• Planning only

• Planning, control and decision making

Which of the following is NOT part of the role of CIMA?

• Offering a continuing education scheme to its members

• Ensuring that each member complies with CIMA's regulations

• Issuing a code of ethics

• Upholding public confidence in management accounting

Which of the following statements are true?

1. The main role of the management accountant is to produce financial accounts

2. Management accountants always work within the finance function

3. Management accountants always work in partnership with business managers

• 1 and 2 only

• 2 and 3 only

• 1 and 3 only

• None of the above

Which TWO of the following statements about CIMA are true?

• CIMA members may only work in the UK.

• CIMA members and students must comply with the CIMA code of ethics.

• CIMA members work mainly on the production of financial accounts.

• CIMA members are not qualified to work as finance directors.

• CIMA members work in all areas of business.

Monthly variance reports are an example of which of the following types of management information?

• Managerial

• Strategic

• Non Financial

• Operational

Which of the following is NOT a quality of good information?

• Accurate

• Completeness

• Complexity

• Relevance

Which FOUR of the following are the Global Management Accounting Principles?

• Information is relevant

• Stewardship builds trust

• Communication provides insight that is influential

• The letter and the spirit of laws, codes and regulations are followed

• Impact on value is analysed

Which of the following is a disadvantage of business process outsourcing?

• Increased confidentiality of financial information

• Reduced access to specialist knowledge

• Less control over the finance function

• Duplication of effort

Which TWO of the following tasks are carried out by management accountants?

• Preparation of cash budgets

• Helping with planning within the organization

• Checking the accuracy of year end financial statements

• Preparation of the statement of profit or loss

Which of the following statements is true?

• Strategic tasks are highly structured

• Operational tasks are short term in timescale

• Tactical information is mostly external

• Operational plans are implemented by top level management