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Quiz 1 Introduction To Managerial Accounting

Management accounting is used by management for planning, marketing, reporting, and evaluation. It uses estimates and forecasts, is concerned with internal users, and involves cost accumulation procedures like job order costing and activity-based costing. The primary purpose of management accounting is to provide information to internal users to help managers improve their decisions. Management accounting information should be relevant, flexible, and immediately available for decision-making purposes.

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966 views

Quiz 1 Introduction To Managerial Accounting

Management accounting is used by management for planning, marketing, reporting, and evaluation. It uses estimates and forecasts, is concerned with internal users, and involves cost accumulation procedures like job order costing and activity-based costing. The primary purpose of management accounting is to provide information to internal users to help managers improve their decisions. Management accounting information should be relevant, flexible, and immediately available for decision-making purposes.

Uploaded by

Hera Asuncion
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Quiz #1 Introduction to Managerial

Accounting
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Management Accounting is used


by a company’s management for * 1 point

multitude purposes that DO NOT include

Planning

Marketing

Reporting

Evaluation

Management
accounting is similar to financial accounting in that * 1 point

Both classify reported information in the same way

Both concentrate with historical data

Both serve the needs of investors and creditors

Both deal with economic events

Which of the
statements is TRUE regarding managerial accounting? * 1 point

It may use estimates and forecasts

It complies with external reportorial requirements

It is concerned with reporting to external users of accounting information

It involves cost accumulation procedures like job order costing, process


costing, standard costing, and activity-based costing (ABC)
Management accounting
information is deemed most successful if it * 1 point

Is accurate

Is easily understood by the user

Helps managers improve their decisions

Helps creditors evaluate the company’s ability to pay its debts

The primary purpose of management accounting


is to provide * 1 point
information

to management and government

to internal users

to external users

to both internal and external users

Management accounting * 1 point

Is discretionary rather than mandatory

Is concerned only with monetary information

Is governed by Generally Accepted Accounting Principles (GAAP)

Is focused on business as a whole rather than on segments of the business

Which of the following is NOT covered by Standards


of Conduct for * 1 point

Management Accountants?

Objectivity

Independence

Competence

Integrity
In which of the following aspect is managerial
accounting similar to * 1 point
financial accounting?

Type of data provided to users

Emphasis between past and future

Users of report

Reliance on accounting database

Which of the
following statements is TRUE? * 1 point

Management accounting is a subset of cost accounting

Cost accounting is a subset of both management and financial accounting

Financial accounting is a subset of cost accounting

Management accounting is a subset of both cost and financial accounting

For decision-making purposes, managers are


more concerned with * 1 point

receiving information that


is:

Completely accurate and precise

Completely objective and verifiable

Relevant, completely accurate and precise

Relevant, flexible and immediately available

Decision-making is
required in which of the following management * 1 point
function(s)?

Planning and organizing

Planning and control

Planning

Planning, organizing and control


The setting of objectives and the identification of
methods to achieve * 1 point

those objectives is called

Planning

Controlling

Performance evaluation

Decision making

Which of the following BEST describes the management


accounting * 1 point
information?

It provides reasonable and timely estimates

It is reliable and verifiable

It is prepared for shareholders

It is prepared in accordance to GAAP

The management
function that involves overseeing day-to-day * 1 point

activities.

Directing and motivating

Controlling

Rationalizing and decision-making

Planning

What is the
function of management that compares planned results * 1 point

against actual results?

Decision-making

Organizing

Controlling

Planning
The management control process contains the
following four * 1 point
sequential steps, including

A)    Measuring actual performance

B)    Establishing
standards of performance

C)    Implementing a
program of corrective action

D)    Comparing actual


performance with standards

What is the
proper sequence of these activities?

B, A, C, D

A, B, C, D

A, B, D, C

B, A, D, C

The controller primarily occupies a * 1 point

Non-supervisory rank-and-file position

Line position

Position with very little influence in management decision-making

Staff position

A STAFF position
is * 1 point

Supportive in nature since it provides assistance to other company segments

Exercised downward in doing the command function

Directly involved in achieving the basic objectives of the organization

The primary function of a company’s treasurer


Which of the following is most likely a LINE position? * 1 point

Human resources manager for an educational institution

VP for Research of a conglomerate firm

Chief financial officer of a merchandising company

Store manager of a retail convenience outlet

CONTROLLERS are usually not concerned with * 1 point

Reporting to government

Protection of assets

Preparation of tax returns

Investor relations

TREASURERS are usually not concerned with * 1 point

Cash custody and banking

Credit extension and bad debt collection

Financial reporting

Short-term financing

The primary goal


of financial management is to: * 1 point

To minimize the risk

To maximize profit

To maximize the return

To maximize shareholders' wealth


Financial
management is mainly concerned with: * 1 point

Profit maximization

Efficient management of every business

All aspects of acquiring and utilizing financial resources for the firm’s activities

Arrangement of funds

Which of the following is NOT a function of


financial management? * 1 point

Financing

Capital budgeting

Risk management

Internal control

The Standards of Ethical Conduct for management


accountants 1 point
comprises of competence, confidentiality, integrity and
objectivity.
Objectivity

Requires management accountants to develop their skills and to do not do their


tasks in accordance with relevant laws, regulations and standards.

Forbids management accountants to act on confidential information they


acquire in doing their work, except when authorized or when legally obligated
to do so.

Refers to avoidance of conflicts of interest improprieties of accepting gifts and


favors, and other matters generally associated with professional behavior.

Is the responsibility to communicate information fairly and objectively and


disclose all relevant information expected to influence an intended user’s
understanding of the reports presented.

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