Lecture 1 - Key defintions

Question 1

Role of management accountants

Answer 1

Score Keeping
Attention directing
Problem solving

Question 2

Cost object

Answer 2

Any activity for which a separate measurement of cost is required

Question 3

Cost drivers

Answer 3

Any factors that affect cost

Question 4

Standard costs

Answer 4

Target costs that are predetermined and should be incurred under efficient operating conditions

Question 5

Direct costs

Answer 5

Those costs that can be specifically and exclusively traced to the cost object

Question 6

Indirect costs

Answer 6

Costs that cannot be specifically and exclusively traced to the cost object

Question 7

Product costs

Answer 7

Associated with goods/services purchased or produced for sale to customer

Question 8

Period costs

Answer 8

Those costs that are treated as expenses in the period to which they relate

Question 9

Main functions that a management accountant performs

Answer 9

Planning
Communication
Co ordination
Decision making
Performance measurement
Evaluation
Problem solving

Question 10

Skills that a management accountant needs to have

Answer 10

Adaptable
Analytical
Organised
Collaborative
Time keeper
Tolerant
Critical thinker