Management Accounting Set 8
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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