BAC1624 WEEK 1

Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.

• True

• False

Managerial accounting applies to all forms of business organizations.

• True

• False

The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity.

• True

• False

Controlling is the process of determining whether planned goals are being met.

• True

• False

Many companies have significantly lowered inventory levels and costs using just-in-time inventory methods.

• True

• False

Managerial accounting applies to each of the following types of businesses except

• service firms.

• merchandising firms.

• manufacturing firms.

• Managerial accounting applies to all types of firms.

Managerial accounting information is generally prepared for

• stockholders

• creditors

• managers

• regulatory agencies

Which of the following is not an internal user?

• Creditor

• Department manager

• Controller

• Treasurer

Managerial accounting does not encompass

• calculating product cost.

   

• calculating earnings per share.

• determining cost behavior.

• profit planning.

Management accountants would not

• assist in budget planning

• prepare reports primarily to external users

• determine cost behavior

• be concerned with the impact of cost and volume and profits