CS1: Managerial Accounting Questions – Flashcards
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Which phrases best describes the current role of the managerial accountant?
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Managerial accountants facilitate the decision-making process within an organization
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The role management accounting does not normally include the function of
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cash management
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Which of the following jobs are considered a staff position
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Plant accountant
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An opportunity cost is
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the benefit forgone when one alternative is selected rather than another
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Financial statements are prepared
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Primarily for the benefit of persons outside of the business organization
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The basic purpose of an accounting system is to
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Meet an organization's need for accounting information as efficiently as possible
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Information is cost effective when
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The value of the information exceeds the cost of producing it
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Although accounting is used by a wide variety of external parties, financial reporting is primarily directed towards the information needs of
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Investors and creditors
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A complete set of financial statements for Hartman Company, at December 31, 1999, would include each of the following except
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Statement of projected cash flows for 2000
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All of the following are characteristics of managerial accounting, except
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Information must be developed in conformity with generally accepted accounting principles or with income tax regulations
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In comparison with financial statement prepared in conformity with generally accepted accounting principles, a managerial accounting report is more likely to
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Be tailored to the specific needs of an individual decision maker
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Management accounting is usually associated with reporting
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internal
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Generally, managerial accounting is focused on ________, control, and internal decision making
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planning
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The head of the accounting department in a very large manufacturing firm usually has the title of
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controller
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As a company's management accountant you would
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Prepare plans and forecasts for the future activities of the business
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Which statement regarding management accountants is true?
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Management accountants are used by managers within an organization
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Which of the following is not classified as a planning or decision making role of management accountant?
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Identifying objectives
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Management by exception refers to
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Management focusing on the areas that need to be controlled most to achieve the businesses objectives
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Which of the following is not a function of management accounting?
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To aid shareholders in making wise investment decisions
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Strategic decisions are
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Decisions that affect the firms long run possibilities and will affect the choices that the business can make in the future
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___________ is devoted to providing information for external users
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Financial accounting`
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The primary objective of management accounting is
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to provide management with information useful for planning and control of operations
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Changing cost structures in the business environment have led to management accounting systems
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collecting and reporting more information on cost savings
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Which of the following characteristics does NOT pertain to management accounting?
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has externally imposed standards
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Which of the following is Not a current theme of managerial accounting?
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determination of cost of stock, continuous improvement, value chain analysis
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Cost accounting is concerned with
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cost accumulation for inventory valuation to meet external financial reporting requirements
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Management accounting information is sometimes used for
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legitimizing and rationalizing organizational activities
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Which of the following is the best description of an opportunity cost in a course of action?
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the expected benefit of the next best alternative course of action not undertaken
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The term "prime cost" refers to
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the sum of raw material costs and direct labor costs
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To be useful to management, accounting information must
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have the potential to affect decisions and influence behavior
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Which of the following statements is false?
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There is no overlap between financial and managerial accounting
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Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?
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Managers
