AC2200 TOPIC 1

Question 1

WHAT IS MANAGERIAL ACCOUNTING

Answer 1

is concerned with the provision of information to people within the organization to help with decision making and improve the efficientcy and effectiveness of exisiting operations

Question 2

financial vs managerial accounting (audience)

Answer 2

mg: internal use by mangers and employess
fin: external parties such as investors, general public, regulators

Question 3

financial vs managerial accounting (purpose)

Answer 3

• mg: used for internal purposes, focusing on helping management make decisions related to operations, strategy and resource allocation
• fin: main focus is reporting an organisations financial performance an financial position to external parties

Question 4

role of accountant planning?

Answer 4

• is deciding on the organisations goals
• predicting results under various alternative ways of achieving those goals
• then deciding how to attain those goal

Question 5

role of accountant control?

Answer 5

• is deciding and taking action that implement the planning decision
• deciding on performance evaluation

Question 6

role of accountant budgets

Answer 6

are quantitative expressions of a proposed plan of action by management for a future time period and an aid to the coordination and implementation of the plan

Question 7

identify 5 broad purposes of accounting systems

Answer 7

1- formulating overall strategies and long-range plans
2- resource allocation decision
3- cost planning and cost control of operations and activities
4- performance measurements and evaluation of people
5- meeting external regulatory and legal reporting requirements

Question 8

what is a performance report

Answer 8

a report that compares actual results with the budget amounts

Question 9

name key themes in mgt acc.

Answer 9

customer focus
continuous improvement
key success factors (cost, quality, time, innovation)
value chain
supply chain

Question 10

name the purpose of accounting

Answer 10

1- planning
2- direction and motivation (implementation of plans)
3- controlling (measuring performance)
4- controlling (comparing actual to planned performance)

Question 11

score-keeping

Answer 11

involves accumulating the data and reporting reliable results to all levels of management.

Question 12

question of score-keeping

Answer 12

how is the business doing

Question 13

attention - directing

Answer 13

involves helping the managers focus their attention.

Question 14

question asked in attention-directing

Answer 14

which opportunities should be emphasised first

Question 15

problem-solving

Answer 15

involves comparative analysis for decision making with an element of analytical review

Question 16

what is the question in problem solving

Answer 16

of all the alternatives available, which is the best?

Question 17

focus on the management accountants role in 1950s?

Answer 17

focus on cost determination and financial control through budgeting

Question 18

focus on the management accountants role in 1960s?

Answer 18

focus on planning and control through responsibility accounting and decision making

Question 19

focus on the management accountants role in 1980s?

Answer 19

focus on reduction of wasted resources

Question 20

focus on the management accountants role in 1990s?

Answer 20

creation of value through effective use of technology and resources

Question 21

changes in enterprise structure?

Answer 21

1- organisational change where they moved towards cross functional operations
2- shifting mass market focus towards niche market

Question 22

changes in digitisation?

Answer 22

emergence of the new economy

Question 23

changes in intellectual capital and knowledge management?

Answer 23

• intellectual capital is now recognised and one of the principal assets of an organisation
• firms are now actively trying to manage their knowledge resources and harness the learning they have achieved