1. Accounting for Management Flashcards
1
Q
What are the purposes of management accounting? (6)
A
To aid:
- decision-making
- planning
- co-coordinating
- controlling
- communicating
- motivating
2
Q
The nature of good information (8)
A
- Accurate
- Complete
- Cost-efficient
- Understandable
- Relevant
- Timely
- Easy to Use
3
Q
Define planning.
Aims and objectives should be (5)
A
Planning involves establishing the objectives of an organisation and forming strategies to achieve those objectives.
- Specific
- Measurable
- Accurate
- Relevant
- Timed
4
Q
Decision making is…
Control is…
A
Decision-making involves considering information that has been provided and making an informed decision
Control is any information relating to the results of an organisation that is reported to managers.
5
Q
Explain the different types of planing (3)
A
- Strategic: long term objectives - involves senior managers
- Tactical: short-term plans for the next year, involves senior managers
- Operational: day-to-day plans, involves all managers
6
Q
What is a responsibility centre?
What types are there? Explain them (4)
A
A responsibility centre is an individual part of a business whose manager has personal responsibility for its performance.
- Cost centre: Manager solely responsible for costs incurred and charged
- Profit centre: Manager responsible for costs and revenue
- investment centre: Manager responsible for costs, revenue and investment
- Revenue centre: Manager responsible for revenue.
