Management Accounting

Question 1

What are the 4 areas of management accounting ?

Answer 1

1. Plan
2. Organise
3. Control - deviations- corrective action
4. Decision making - sensitivity analysis

Question 2

4 roles of mgt. accountant

Answer 2

1. Total cost of making one product
2. Cost of running each dept.
3. Budget for future costs, predict SP
4. Variance Analysis - look at different output levels and observe what happens to Cost & Profit

Question 3

Compare mgt. + fin. accounting

Time

Answer 3

Mgt: predict future : SP + production levels

Fin: past figures
Analyse profitability ratios

Question 4

Compare mgt. to fin. Accounting

Users

Answer 4

Mgt: internal
‘Managers, managing director

Fin: internal and external
Shareholders, govt, suppliers, debtors

Question 5

Compare man. to fin. Acc

Frequency of reports

Answer 5

Man: monthly/yearly
Fin: yearly

Question 6

Compare man. To fin. Acc

Regulation

Answer 6

Man: Own preference
Fin: FRS(Financial Reporting Standards)
SSAP (Statement of Standard Accounting Practice )