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

Under contingency theory, the degree of competition refers to the:

The primary difference between planning and control decisions is that:

In supplying external users with additional accounting information, there is a need to balance the costs and benefits of supplying that information, but this does not apply to internal users such as managers because the information is already available and does not incur any additional costs.

The contingency theory accepts that different types of organisation require different types of accounting information for effective functioning.

Organisational size and structure are major influences on the information needs of managers.

Evaluation of performance involves:

Accounting information systems should be installed in an organisation when:

Bankers have a statutory right of access to internal accounting information.

What is meant by responsibility accounting?

Decisions that require managers to identify goals and to develop strategies are usually referred to as:

A desired outcome of setting objectives in the planning process is to create criteria for assessing alternative business options.

A major requirement of managers is to have detailed and timely information that enables them to monitor results and compare with plans and budgets, in order to take appropriate action for the future direction of the company.

Decisions that require managers to evaluate the accomplishments of their organisation and to make changes if the organisation is not meeting its goals are usually referred to as: Planning decisions Control decisions

Name three ways that accounting information can assist managers who make marketing decisions.