Chapter 1: Managerial Accounting Answers – Flashcards
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What is the objective of managerial accounting?
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assisting managers in directing and controlling
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The focus of ____ accounting is to meet the needs of EXTERNAL users
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Financial
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What type of organizations use managerial accounting information?
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Profit seeking, nonprofit enterprises, and manufacturing companies
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Managerial Accounting
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Help managers achieve the organization's goals
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The balanced scorecard uses both_______ and _______ performance measures.
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financial and non financial
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Comparing actual data to budgeted data is an example of?
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Controlling activity
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controlling is
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determining if the company is operating in accordance with the developed plans and in the intended manner to achieve its goals.
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Decision making involves choosing among available alternatives.
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true
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Cost-causing factors are called
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cost drivers
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Running an organization on a day-to-day basis is an example of
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Directing operational activities
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The upper limit on production capacity if everything works perfectly is called
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theoretical capacity
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A budget is
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A document that indicates how resources are to be allocated and what activities are to be emphasized.
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Who is responsible for raising capital, managing investments and safeguarding an organization's assets?
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the treasurer
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the upper limit on the quantity of goods or services that can be produced in a given time period is called the organization's ?
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capacity
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The cost accounting system provides data about
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the cost of producing goods and services, organization's overall accounting system, used both in managerial and financial reporting.
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A manager directly involved in the provision of goods or services is in what position in an organizational chart?
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Line position
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Strategic cost management does not include
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determining the factors that cause weaknesses in the company's system of internal control.
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The purpose of comparing actual data to budgeted data is to
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Direct attention to an issue
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Which of the following are true regarding a value chain?
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-companies define their value chains in different ways - customers must be willing to pay the cost of value chain activities plus profit or the company will fall. - value creating activities can be provided by suppliers.
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An internal auditor is responsible for
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-expressing an opinion to top management regarding the effectiveness of the accounting system - reviewing accounting procedures - expressing an opinion to the board of directors on the organization's internal controls.
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A set of linked, value-creating activities is called a
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value chain
