Exam 12: An Introduction to Management Accounting: a Strategic Perspective

Detailed financial information is only generally available to managers and a limited number of external users, as it normally contains sensitive information that may be detrimental to the company if made publicly available.

Which of the following is not an external user of financial information?

Strategic decisions are decisions that:

Which of the following factors influence the information available to the management of an organisation?

The determination of objectives and expressing how they are to be attained are together referred to as the planning process.

Strategic planning differs from operational planning in that strategic planning:

One important use of managerial accounting information is performance evaluation. List and discuss the three major ways managers can identify and detect behaviour for performance evaluation purposes. For each major way, suggest two specific examples within the context of a consulting company.

The section of a business that has an individual in control of costs and revenues is:

How are financial accounting information and management accounting information similar?

The proper sequence for the planning and controlling process is:

Which of the following is not true of the control process? The control process:

A company's results are judged against some expectations, which may be rough plans or detailed budgets.

The cost-benefit approach is often used to evaluate the net benefits of alternative accounting information systems.

Strategic decisions are decisions that focus on the efficient use of the resources available to the firm in the short term.

If bankers are to make judgements about the future needs and prospects of the entity, they are likely to require information on projected cash flow statements, statements of comprehensive income and details of any other loans the company may have.

The basic difference between management and financial accounting is that:

A major difference between strategic and operating decisions is that the former focus on the long-term policies of the firm, whereas operating decisions focus on the short-term use of resources.

Traditional management accounting information:

The purpose of financial accounting is to provide information for decision making. What is the primary purpose of management accounting?

Operating decisions are undertaken to: