Management Accounting Vs. Financial Management Flashcards
The main purpose of management accounting is to
A. Assess past performance
B. Project future transactions
C. Help managers make decisions
D. help investors and creditors make decisions
C. Help managers make decisions
The person most likely to use management accounting information is a(n)
A. Governmental taxing authority
B. Assembly department supervisor
C. Banker evaluating a credit application
D. Shareholder evaluating a stock investment
B. Assembly department supervisor
The person most likely to use only financial accounting information is a
A. Current shareholder
B. Department manager
C. Factory shift supervisor
D. Vice president of operations
A. Current shareholder
Management accounting is similar to financial accounting in that
A. Both focus on the whole business rather than business segments
B. Both classify reported information in the same way
C. Both are concerned in financial information only
D. Both deal with economic events
D. Both deal with economic events
Determine the TRUE statement about managerial accounting.
A. It complies with GAAP to produce financial reports for external users
B. It tends to summarize information with precision more often than financial accounting
C. Reports are often based on estimates and are seldom useful for everything other than the purpose for which they are prepared
D. It specifically covers various cost accumulation procedures such as job order costing, standard costing, backflush costing, and activity based costing (ABC)
C. Reports are often based on estimates and are seldom useful for everything other than the purpose for which they are prepared
Which is the most accurate statement?
A. Financial accounting is a subset of cost accounting
B. Management accounting ids a subset of cost accounting
C. Cost accounting is a subset of both management and financial accounting
D. Management accounting is a subset of both cost and financial accounting
C. Cost accounting is a subset of both management and financial accounting
Decision making is required in which of the following management function(s)?
A. Planning
B. Planning and control
C. Planning and organizing
D. Planning, organizing, and control
D. Planning, organizing, and control
“Budgets” and “performance reports” respectively correspond to these management functions
A. Planning and controlling
B. Planning and organizing
C. Controlling and planning
D. Organizing and controlling
A. Planning and controlling
The management control process contains the following four sequential steps, including
A) Measuring actual performance
B0 Establishing standards of performance
C) Implementing a program of corrective action
D) Comparing actual performance with standards
What is the proper sequence of these activities?
A. A, B, C, D
B. A, B, D, C
C. B, A, C, D
D. B, A, D, C
D. B, A, D, C
The controller primarily occupies a
A. Line position
B. Staff position
C. Non-supervisory rank-and-file position
D. Position with very little influence in management decision-making
B. Staff position
A staff position is
a. Superior to a line position
b. Not essential in a business organization
c. Directly responsible for attainting of organizational objectives
d. Supportive in nature, providing service and assistance to other parts of the organization
d. Supportive in nature, providing service and assistance to other parts of the organization
Line management includes
a. Manufacturing managers
b. Human resource managers
c. Information technology managers
d. Management accounting managers
a. Manufacturing managers
Staff management includes
a. Human resource managers
b. Manufacturing managers
c. Distribution managers
d. Purchasing managers
a. Human resource managers
CONTROLLERS are usually not concerned with
a. Government reporting
b. Tax administration
c. Investor relations
d. Data processing
c. Investor relations
TREASURERS are usually not concerned with
a. Tax planning
b. Short-term financing
c. Cash custody and banking
d. Credit extension and collection of bad debts
a. Tax planning
