Exam 1: The Role of Accounting Information in Management Decision Making

Uncertainties

An organisational vision is sometimes broken down into I Mission statement II Core values statement III Code of conduct

The supply chain:

Uncertainty and bias reduce decision quality.

How does the use of sophisticated information systems affect managerial decision making?

Irrelevant information may be I Useful in decision making II Internally-generated III Accurate

Which of the following is not true about information in an organisation's databases?

Accounting information is used to monitor operations by comparing actual results to planned results.

Biases

Which of these statements concerning the value chain is correct?

Few management decisions can be made with absolute certainty.

As an accountant, you are responsible for I Your own behavior II The behavior of any organisations you manage III The behavior of outside vendors with whom you interact

Relevant cash flows are

An organisation's value chain often includes suppliers and customers.

Biases may be

Incremental cash flows are the same as unavoidable cash flows.

The workforces' commitment to continual improvement is a executional rather than a structural cost driver.

Cost accounting information, such as the valuation of ending inventory, is shown on external financial statements.

Which of the following influences organisational strategies?

Cost accounting information is used for both external reporting and internal decision making.