Question 1

One of the following is not a recent development in management accounting:

Accepted Answer

A) PQR 
B) Theory of constraints 
C) TQM 
D) JIT 
A) PQR 
B) Theory of constraints 
C) TQM 
D) JIT

Question 2

When carrying out controlling activities, managers rely on feedback to ensure that the plan is actually carried out and is appropriately modified as circumstances change.

Accepted Answer

A) True 
 B)False

Question 3

Management accounting primarily is concerned with providing

Accepted Answer

A) information to managers inside the organisation as well as information to stockholders, creditors, and others outside the organisation. 
B) information to stockholders, creditors, and others outside the organisation. 
C) information to managers inside the organisation. 
D) information to governmental regulatory agencies. 
A) information to managers inside the organisation as well as information to stockholders, creditors, and others outside the organisation. 
B) information to stockholders, creditors, and others outside the organisation. 
C) information to managers inside the organisation. 
D) information to governmental regulatory agencies.

Question 4

Large batches are desirable because they minimise work in process inventories.

Accepted Answer

A) True 
 B)False

Question 5

Outline the affect that JIT has had on stocks in manufacturing firms around the world.

Accepted Answer

Reduce stock levels
Reduce stock holding

Question 6

Financial and managerial accounting are similar in that both

Accepted Answer

A) are mandatory. 
B) involve summarising financial data. 
C) emphasise the relevance and flexibility of data. 
D) emphasise the organisation as a whole. 
A) are mandatory. 
B) involve summarising financial data. 
C) emphasise the relevance and flexibility of data. 
D) emphasise the organisation as a whole.

Question 7

Reductions in trade barriers

Accepted Answer

A) do not help companies to expand. 
B) reduce the risk of business failure. 
C) are good for all companies. 
D) help agile and aggressive companies to expand. 
A) do not help companies to expand. 
B) reduce the risk of business failure. 
C) are good for all companies. 
D) help agile and aggressive companies to expand.

Question 8

Management accounting is governed by generally accepted accounting principles (GAAP).

Accepted Answer

A) True 
 B)False

Question 9

Outline the history of management accounting succinctly. What was the impact on the management accounting practices of the increased importance of financial accounting at the start of the 20th Century? What factors, in your opinion have lead to the management accounting resurgence in the last 20-25 years?

Accepted Answer

Hint – reference here needs to be made t

Question 10

One of these is not a feature of a decentralised organisation

Accepted Answer

A) tighter control at the top. 
B) quicker decision making. 
C) better training ground for new managers. 
D) greater motivation for division managers. 
A) tighter control at the top. 
B) quicker decision making. 
C) better training ground for new managers. 
D) greater motivation for division managers.

Question 11

Which of these is not an opportunity from globalisation?

Accepted Answer

A) The increasing use of English as the language of business. 
B) Freer movement of goods. 
C) Companies expanding out of their home markets. 
D) The internet. 
E) None of these
F)All of these 
A) The increasing use of English as the language of business. 
B) Freer movement of goods. 
C) Companies expanding out of their home markets. 
D) The internet. 
E) None of these
F)All of these

Question 12

The focus of management accounting is on the past, since historical cost data are generally accurate and reliable.

Accepted Answer

A) True 
 B)False

Question 13

Delegating decisions to lower levels of management results in increased

Accepted Answer

A) profitability. 
B) centralisation. 
C) control. 
D) decentralisation. 
A) profitability. 
B) centralisation. 
C) control. 
D) decentralisation.

Question 14

If ethical standards are not adhered to

Accepted Answer

A) it would have little impact on a typical management accountant. 
B) there would be no undesirable consequences. 
C) it would have little impact on advanced market economies. 
D) there would be undesirable consequences. 
A) it would have little impact on a typical management accountant. 
B) there would be no undesirable consequences. 
C) it would have little impact on advanced market economies. 
D) there would be undesirable consequences.

Question 15

The process of overseeing day-to-day activities and keeping the organisation functioning smoothly is called

Accepted Answer

A) directing. 
B) controlling. 
C) planning. 
D) decision making. 
A) directing. 
B) controlling. 
C) planning. 
D) decision making.

Question 16

In decision making, managers use

Accepted Answer

A) financial accounting information exclusively since it is more objective and precise due to well-established principles and conventions. 
B) information regarding the organisation as a whole rather than segments of the organisation in order to capture a broader perspective of the company's operations. 
C) information that is as precise as humanly possible. 
D) whatever information is relevant to the decision even though the information may not conform to generally accepted accounting principles. 
A) financial accounting information exclusively since it is more objective and precise due to well-established principles and conventions. 
B) information regarding the organisation as a whole rather than segments of the organisation in order to capture a broader perspective of the company's operations. 
C) information that is as precise as humanly possible. 
D) whatever information is relevant to the decision even though the information may not conform to generally accepted accounting principles.

Question 17

Directing and motivating does not involve one of the following:

Accepted Answer

A) Setting targets for different areas of business. 
B) Setting targets for different individuals. 
C) Planning for the future. 
D) Keeping the organisation functioning smoothly. 
A) Setting targets for different areas of business. 
B) Setting targets for different individuals. 
C) Planning for the future. 
D) Keeping the organisation functioning smoothly.

Question 18

Ethical standards have nothing to contribute to profitable business practice.

Accepted Answer

A) True 
 B)False

Question 19

The pace of innovation in the business world has been good for consumers.

Accepted Answer

A) True 
 B)False

Question 20

If a forecast cannot be made with any accuracy then it should not be made.

Accepted Answer

A) True 
 B)False

One of the following is not a recent development in management accounting:

When carrying out controlling activities, managers rely on feedback to ensure that the plan is actually carried out and is appropriately modified as circumstances change.

Management accounting primarily is concerned with providing

Large batches are desirable because they minimise work in process inventories.

Outline the affect that JIT has had on stocks in manufacturing firms around the world.

Financial and managerial accounting are similar in that both

Reductions in trade barriers

Management accounting is governed by generally accepted accounting principles (GAAP).

One of these is not a feature of a decentralised organisation

Which of these is not an opportunity from globalisation?

The focus of management accounting is on the past, since historical cost data are generally accurate and reliable.

Delegating decisions to lower levels of management results in increased

If ethical standards are not adhered to

The process of overseeing day-to-day activities and keeping the organisation functioning smoothly is called

In decision making, managers use

Directing and motivating does not involve one of the following:

Ethical standards have nothing to contribute to profitable business practice.

The pace of innovation in the business world has been good for consumers.

If a forecast cannot be made with any accuracy then it should not be made.

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Costvolumeprofit Cvp Analysis

Planning Budgeting and Behaviour

Operational Budgets

Job Costing Systems

Process Costing Systems

Absorption and Variable Costing

Flexible Budgets, Standard Costs and Variance Analysis

Variance Analysis: Revenue and Cost

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Strategy and Control

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Strategic Management Control: a Lean Perspective

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Filters

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

One of the following is not a recent development in management accounting:

When carrying out controlling activities, managers rely on feedback to ensure that the plan is actually carried out and is appropriately modified as circumstances change.

Management accounting primarily is concerned with providing

Large batches are desirable because they minimise work in process inventories.

Outline the affect that JIT has had on stocks in manufacturing firms around the world.

Financial and managerial accounting are similar in that both

Reductions in trade barriers

Management accounting is governed by generally accepted accounting principles (GAAP).

One of these is not a feature of a decentralised organisation

Which of these is not an opportunity from globalisation?

The focus of management accounting is on the past, since historical cost data are generally accurate and reliable.

Delegating decisions to lower levels of management results in increased

If ethical standards are not adhered to

The process of overseeing day-to-day activities and keeping the organisation functioning smoothly is called

In decision making, managers use

Directing and motivating does not involve one of the following:

Ethical standards have nothing to contribute to profitable business practice.

The pace of innovation in the business world has been good for consumers.

If a forecast cannot be made with any accuracy then it should not be made.

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Costvolumeprofit Cvp Analysis

Planning Budgeting and Behaviour

Operational Budgets

Job Costing Systems

Process Costing Systems

Absorption and Variable Costing

Flexible Budgets, Standard Costs and Variance Analysis

Variance Analysis: Revenue and Cost

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Strategy and Control

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Strategic Management Control: a Lean Perspective

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Filters