1. Introduction to management accounting

Question 1

What is CIMA’s definition of management accounting?

Answer 1

The application of the principles of accounting and financial management to create, protect preserve and increase value for stakeholders of for profit and not for profit enterprises in the public and private sectors. It requires the identification, generation, presentation, interpretation and use of any relavant information.

Question 2

What are the main areas of management accounting?

Answer 2

Costing
Planning
Control
Decision making
Performance evaluation

Question 3

What are the four global management accounting principles developed by CIMA and AICPA?

Answer 3

Communication provides insight which is influential.
Information is relevant
Impact on value is analyzed
Stewardship builds trust

Question 4

What are the decision-making levels?

Answer 4

Strategic
Management
Operational