The Manager And Management Accounting

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Question 1
Free
Multiple Choice

Management accounting ________ .

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A

focuses on estimating future revenues, costs, and other measures to forecast activities and their results

B

provides information about the company as a whole

C

reports information that has occurred in the past that is verifiable and reliable

D

provides information that is generally available only on a quarterly or annual basis

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Question 2
Free
Multiple Choice

Managers use management accounting information to ________ .

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A

help external users such as investors, banks, regulators, and suppliers

B

communicate, develop, and implement strategies

C

communicate a firm's financial position to investors, banks, regulators, and other outside parties

D

ensure that financial statements are consistent with the SEC rules

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Question 3
Free
Multiple Choice

Financial accounting ________ .

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A

focuses on the future and includes activities such as preparing next year's operating budget

B

must comply with GAAP (generally accepted accounting principles)

C

is the process of measuring, analyzing, and reporting financial and nonfinancial information related to the costs of acquiring or using resources in an organization

D

is prepared for the use of department heads and other employees

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Question 4
Free
Multiple Choice

Which of the following would most likely be the user of financial accounting information?

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A

factory shift supervisor

B

distribution manager

C

current shareholder

D

department manager

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Question 5
Free
Multiple Choice

The primary user of management accounting information is a(n) ________ .

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A

the controller

B

a shareholder evaluating a stock investment

C

bondholder

D

external regulator

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Question 6
Multiple Choice

Financial accounting provides the primary source of information for ________ .

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A
decision making in the assembly and finishing department
B
improving distribution and customer service
C
preparing the income statement for shareholders and other external parties
D
planning next year's plans and specifically; the operating budget
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Question 7
Multiple Choice

Which of the following is true of management accounting information?

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A
It focuses on documenting past business actions of a firm.
B
It is prepared based on SEC rules and FASB accounting principles.
C
It is prepared for shareholders.
D
It helps with the coordination of elements of the value chain.
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Question 8
Multiple Choice

Which of the following statements refers to management accounting information?

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A
There are no regulations governing the reports.
B
The reports are generally delayed and historical.
C
The audience tends to be stockholders, creditors, and tax authorities.
D
It primarily measures manager's compensation on reported financial results.
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Question 9
Multiple Choice

Which of the following groups would be least likely to receive detailed management accounting reports?

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A
stockholders
B
sales managers
C
production supervisors
D
distribution managers
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Question 10
Multiple Choice

Management accounting information typically includes ________ .

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A
tabulated results of customer satisfaction surveys
B
the cost of producing a product
C
the percentage of units produced that are defective
D
All of these answers are correct.
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Question 11
Multiple Choice

Cost accounting ________ .

Choose correct answer/s
A
measures the costs of acquiring or using resources in an organization
B
measures the financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization
C
coordinates product design, production, and marketing decisions and evaluate a company's performance
D
communicates information to investors, banks, regulators, and other outside parties
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Question 12
Multiple Choice

Which of the following differentiates cost accounting and financial accounting?

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A
The primary users of cost accounting are the investors, whereas the primary users of financial accounting are the managers.
B
Cost accounting deals with product design, production, and marketing strategies, whereas financial accounting deals mainly with pricing of the products.
C
Cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization, whereas financial accounting measures financial and nonfinancial information of a company's business transactions.
D
Cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties.
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Question 13
Multiple Choice

Which of the following is true of financial accounting information?

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A
It is prepared based on cost-benefit analysis.
B
It is primarily used by managers to make internal business decisions.
C
It focuses on the past-oriented financial performance of a company.
D
It only measures the cash transactions of a company.
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Question 14
Multiple Choice

A data warehouse or infobarn ________ .

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A
is reserved for exclusive use by the CFO
B
is primarily used for financial reporting purposes
C
stores information used by different managers for multiple purposes
D
gathers only nonfinancial information
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Question 15
Multiple Choice

Which of the following is true of cost accounting?

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A
It is a subset of management accounting and therefore its information is used only to meet the needs of managers.
B
It is used only by manufacturers.
C
It is part of both management and financial accounting systems.
D
The distinction between management accounting and cost accounting is clear-cut.
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Question 16
Multiple Choice

Which of the following deals with management accounting?

Choose correct answer/s
A
identifying the costs of acquiring the resources of the company
B
developing budgets
C
preparing the income statement
D
preparing the statement of cash flows
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Question 17
Multiple Choice

Financial accounting is concerned primarily with ________ .

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A
external reporting to investors, creditors, and government authorities
B
cost planning and cost controls
C
product design and marketing strategies
D
providing information for strategic and tactical decisions
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Question 18
Multiple Choice

Financial accounting provides a historical perspective, whereas management accounting emphasizes ________ .

Choose correct answer/s
A
the future
B
past transactions
C
a current perspective
D
reports to shareholders
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Question 19
Multiple Choice

Rules for measurement and reporting for management accounting ________ .

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A
state that information must only be useful to management.
B
do not need to follow GAAP but must meet the cost-benefit test.
C
must follow GAAP.
D
must follow GAAP, IRS rules or government standards.
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Question 20
Multiple Choice

The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as ________ .

Choose correct answer/s
A
value chain management
B
enterprise resource planning
C
cost management
D
customer value management
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