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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 8

Q1 | Internal report use for _______________ .
  • Share holders
  • Government
  • Managerial personnel
  • Creditors
Q2 | External report use for _______________ .
  • Top level management
  • Middle level management
  • Lower level management
  • Shareholders
Q3 | From following which is not a routine report ?
  • Production report
  • Sales report
  • Investigation
  • Administration report
Q4 | _______ is devoted to providing information for external users.
  • Management accounting
  • Financial accounting
  • Internal accounting
  • Cost accounting
Q5 | Financial accounting is primarily concerned with providing financial reports to all ofthe following EXCEPT
  • creditors such as banks and other financial institutions.
  • creditors such as suppliers.
  • shareholders of the company.
  • management of the firm.
Q6 | Management accounting and financial accounting differ in that management accountinginformation is prepared
  • following prescribed rules.
  • using whatever methods the company finds beneficial.
  • for shareholders.
  • to summarize the whole company with little detail.
Q7 | The primary objective of management accounting is
  • to provide shareholders and potential investors with useful information for decision making.
  • to provide banks and other creditors with information useful in making credit decisions.
  • to provide management with information useful for planning and control of operations.
  • to provide the relevant taxation authorities with information about taxable income.
Q8 | Management accounting is the branch of accounting concerned with reporting to
  • internal managers.
  • shareholders.
  • the government.
  • bankers.
Q9 | Management accounting reports are prepared
  • to meet the needs of decision makers within the firm.
  • whenever shareholders request them.
  • according to guidelines prepared by the shares and Financial Services Authority.
  • according to financial accounting standards.
Q10 | Cost accounting
  • is concerned with assigning costs to various cost objects.
  • attempts to satisfy the costing objectives of both financial accounting and management accounting.
  • provides cost information that supports planning, controlling, and decision making.
  • All of the above descriptions are true.
Q11 | Which of the following costing activities is associated with the financial accountingsystem?
  • determining the cost of a department
  • determining the cost of goods sold for financial statements
  • preparing budgets
  • determining the cost of a customer
Q12 | Which of the following activities is NOT associated with the financial accounting information system?
  • reporting on the cost of quality
  • reporting to the shareholders
  • preparing reports for the tax authorities
  • preparing a statement of cash flows
Q13 | Which of the following cost management tools supports the firm's concentration on the delivery of value to the customer?
  • service industry growth
  • global competition
  • preparing an earnings report for external reporting
  • value-chain analysis
Q14 | Factors that have led to a global market for manufacturing and service firms are
  • improved transportation and communications systems.
  • improved telemarketing and communications.
  • improved distribution and transportation systems.
  • None of these factors have contributed.
Q15 | Which of the following activities is NOT significant to the advancement of informationtechnology?
  • enterprise resource planning software
  • emergence of electronic commerce
  • theory of constraints
  • decision support systems
Q16 | Software that has integrated system capability using real time data is
  • enterprise resource planning software.
  • on-line analytic programs.
  • computer-assisted engineering software.
  • none of the above.
Q17 | Automation of the manufacturing environment is associated with increases in
  • inventory.
  • capacity.
  • processing time.
  • none of these.
Q18 | Total quality management emphasizes
  • zero defects.
  • continual improvement.
  • elimination of waste.
  • all of the above.
Q19 | Which of the following emerging themes in cost accounting deals with managers striving to create an environment that will enable workers to manufacture perfect (zero-defect) products?
  • advances in information technology
  • time as a competitive element
  • global competition
  • total quality management
Q20 | Competitive advantage is established by
  • providing more customer products than competitors.
  • providing better quality than competitors.
  • providing greater customer value for less cost than competitors.
  • providing greater efficiencies than competitors.
Q21 | Improvement in time performance is most likely NOT enhanced by
  • redesign of products.
  • adding processes in production.
  • eliminating waste.
  • eliminating nonvalue-added activities.
Q22 | Which of the following statements is NOT true about world-class firms?
  • World-class firms are firms that are poor in customer support.
  • World-class firms know their market and their products.
  • World-class firms strive continually to improve product design, manufacture, and delivery.
  • World-class firms can compete with the best of the best in a global environment.
Q23 | Monitoring the number of defects produced is an example of the management function of
  • planning.
  • control.
  • decision making.
  • both a and c.
Q24 | Performance reports are accounting reports that compare
  • planned data with actual data.
  • audited data with actual data.
  • managers' bonuses with performance ratings by supervisors.
  • actual data with industry standards.
Q25 | Which of the following statements correctly distinguishes between financial andmanagement accounting?
  • Management accounting reports on the whole organization.
  • Financial accounting is oriented toward the future.
  • Financial accounting is primarily concerned with providing information for internal users.
  • Management accounting is oriented more toward the planning and control