Question 1

Management accounting:

Accepted Answer

A)  must comply with Australian accounting standards. 
B)  focuses primarily on the needs of managers internal to the organisation. 
C)  provides information for parties external to the organisation. 
D)  involves reports focusing on the enterprise in its entirety. 
A)  must comply with Australian accounting standards. 
B)  focuses primarily on the needs of managers internal to the organisation. 
C)  provides information for parties external to the organisation. 
D)  involves reports focusing on the enterprise in its entirety. B

Question 2

Objectivity in management accounting
What is meant by the following statement? 'The objectivity of the management accounting process is largely a myth.'

Accepted Answer

Accountants have wide areas of discretion in the selection, processing and recording of data. Various data can be used for different purposes. In addition, the same data can be used simultaneously for different purposes such as planning, decision making or controlling.

Question 3

Behavioural issues are not taken into consideration when developing management accounting systems.

Accepted Answer

A) True 
 B)False  False

Question 4

Which of the following is not an objective of management accounting?

Accepted Answer

A)  Providing information for making decisions 
B)  Providing information for planning 
C)  Providing information for control 
D)  Providing information for profit and loss statements 
A)  Providing information for making decisions 
B)  Providing information for planning 
C)  Providing information for control 
D)  Providing information for profit and loss statements

Question 5

Identify and contrast management accounting and financial accounting information

Accepted Answer

The answer of Identify and contrast management accounting and financial...

Question 6

Eddy Gunn is a management accountant. Which of the following is most likely to be Eddy's responsibility?

Accepted Answer

A)  Providing an environmental assurance report for his company's shareholders 
B)  Compiling the company tax return 
C)  Ensuring that the internal accounting system is compliant with generally accepted accounting standards 
D)  Developing a production cost report for each of the company's three production lines 
A)  Providing an environmental assurance report for his company's shareholders 
B)  Compiling the company tax return 
C)  Ensuring that the internal accounting system is compliant with generally accepted accounting standards 
D)  Developing a production cost report for each of the company's three production lines

Question 7

The 'vision' of an organisation:

Accepted Answer

A)  refers to the desired future state of an organisation. 
B)  refers to a statement that defines the purpose of the organisation. 
C)  refers to specific statements of objective, upon which goals can be set. 
D)  is only useful for non profit organisations. 
A)  refers to the desired future state of an organisation. 
B)  refers to a statement that defines the purpose of the organisation. 
C)  refers to specific statements of objective, upon which goals can be set. 
D)  is only useful for non profit organisations.

Question 8

Animus Ltd is a mining company. Which of the following is an example of 'control'?

Accepted Answer

A)  Awarding bonuses to Aimus Ltd's top performing executives 
B)  Setting production targets for the company's new mines 
C)  Developing correction actions to respond to lower-than-expected production levels in the existing mines. 
D)  Pursuing legal actions against environmental activists who stole mining equipment. 
A)  Awarding bonuses to Aimus Ltd's top performing executives 
B)  Setting production targets for the company's new mines 
C)  Developing correction actions to respond to lower-than-expected production levels in the existing mines. 
D)  Pursuing legal actions against environmental activists who stole mining equipment.

Question 9

Management accounting and decision making
Give an example of management accounting information that could help a manager make each of the following decisions:
i. The managing director of a car rental company is deciding whether to add luxury cars to the rental car fleet.
ii. The production manager in an assembly plant is deciding whether to have routine maintenance performed on a machine weekly or fortnightly.
iii. The manager of a department store is deciding on the number of security personnel to employ to reduce shoplifting.
iv. The local council is deciding whether to build an addition to the local library.

Accepted Answer

Note: any correct answers are possible s

Question 10

The increased information needs of modern organisations have meant that management accounting has had to change its focus over the years.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following changes in the business environment have led to more complicated relationships and business structures?

Accepted Answer

A)  Rapid advances in technology 
B)  Increases in outsourcing and reliance on various forms of business networks 
C)  Increased global mobility in labour 
D)  Reliance on creating mutually strategic business alliances 
A)  Rapid advances in technology 
B)  Increases in outsourcing and reliance on various forms of business networks 
C)  Increased global mobility in labour 
D)  Reliance on creating mutually strategic business alliances

Question 12

Organisations prepare a mission statement that describes the desired future position and/or goals of the organisation.

Accepted Answer

A) True 
 B)False

Question 13

'As global competition increases, businesses are being pressured to reach higher levels of productivity to price their products and services competitively.' Explain how management accountants can play a role in helping management meet these challenges.

Accepted Answer

The systems that management accountants

Question 14

The firm's primary accounting system that produces financial data for external users is governed by:

Accepted Answer

A)  accounting standards. 
B)  all of the choices are correct. 
C)  generally accepted accounting principles. 
D)  traditional accounting conventions. 
A)  accounting standards. 
B)  all of the choices are correct. 
C)  generally accepted accounting principles. 
D)  traditional accounting conventions.

Question 15

A management accountant should be concerned with:

Accepted Answer

A)  providing daily information on physical measures of operational performance. 
B)  assisting in interdepartmental communications. 
C)  developing and implementing information systems. 
D)  All of the given answers 
A)  providing daily information on physical measures of operational performance. 
B)  assisting in interdepartmental communications. 
C)  developing and implementing information systems. 
D)  All of the given answers

Question 16

Budgeting can be used in an organisation to:

Accepted Answer

A)  motivate managers to achieve organisational goals. 
B)  control operations. 
C)  provide managers with information for making decisions and planning. 
D)  All of the given answers 
A)  motivate managers to achieve organisational goals. 
B)  control operations. 
C)  provide managers with information for making decisions and planning. 
D)  All of the given answers

Question 17

Which of the following changes in the business environment have led to the emergence of virtual organisations?

Accepted Answer

A)  Rapid advances in technology 
B)  Increases in outsourcing and reliance on various forms of business networks 
C)  Increased global mobility in labour 
D)  Reliance on creating mutually strategic business alliances 
A)  Rapid advances in technology 
B)  Increases in outsourcing and reliance on various forms of business networks 
C)  Increased global mobility in labour 
D)  Reliance on creating mutually strategic business alliances

Question 18

Senior accountants are also known as the finance manager or financial controller.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not a widely recognised professional accounting body?

Accepted Answer

A)  The Institute of Production Accountants 
B)  CPA Australia 
C)  The Institute of Chartered Accountants 
D)  The Institute of Management Accountants 
A)  The Institute of Production Accountants 
B)  CPA Australia 
C)  The Institute of Chartered Accountants 
D)  The Institute of Management Accountants

Question 20

The role of management accounting is to:

Accepted Answer

A)  provide information to parties outside the organisation 
B)  provide information to managers within the organisation. 
C)  provide information to government agencies. 
D)  All of the given answers 
A)  provide information to parties outside the organisation 
B)  provide information to managers within the organisation. 
C)  provide information to government agencies. 
D)  All of the given answers

Management accounting:

Objectivity in management accounting What is meant by the following statement? 'The objectivity of the management accounting process is largely a myth.'

Behavioural issues are not taken into consideration when developing management accounting systems.

Which of the following is not an objective of management accounting?

Identify and contrast management accounting and financial accounting information

Eddy Gunn is a management accountant. Which of the following is most likely to be Eddy's responsibility?

The 'vision' of an organisation:

Animus Ltd is a mining company. Which of the following is an example of 'control'?

The increased information needs of modern organisations have meant that management accounting has had to change its focus over the years.

Which of the following changes in the business environment have led to more complicated relationships and business structures?

Organisations prepare a mission statement that describes the desired future position and/or goals of the organisation.

'As global competition increases, businesses are being pressured to reach higher levels of productivity to price their products and services competitively.' Explain how management accountants can play a role in helping management meet these challenges.

The firm's primary accounting system that produces financial data for external users is governed by:

A management accountant should be concerned with:

Budgeting can be used in an organisation to:

Which of the following changes in the business environment have led to the emergence of virtual organisations?

Senior accountants are also known as the finance manager or financial controller.

Which of the following is not a widely recognised professional accounting body?

The role of management accounting is to:

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Product Costing Systems

Process Costing and Operation Costing

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Strategic Performance Measurement Systems

Managing Suppliers and Customers

Managing Costs and Quality

Sustainability and Management Accounting

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

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Exam 1: Management Accounting: Information for Creating Value and Managing Resources

Management accounting:

Objectivity in management accounting What is meant by the following statement? 'The objectivity of the management accounting process is largely a myth.'

Behavioural issues are not taken into consideration when developing management accounting systems.

Which of the following is not an objective of management accounting?

Identify and contrast management accounting and financial accounting information

Eddy Gunn is a management accountant. Which of the following is most likely to be Eddy's responsibility?

The 'vision' of an organisation:

Animus Ltd is a mining company. Which of the following is an example of 'control'?

The increased information needs of modern organisations have meant that management accounting has had to change its focus over the years.

Which of the following changes in the business environment have led to more complicated relationships and business structures?

Organisations prepare a mission statement that describes the desired future position and/or goals of the organisation.

'As global competition increases, businesses are being pressured to reach higher levels of productivity to price their products and services competitively.' Explain how management accountants can play a role in helping management meet these challenges.

The firm's primary accounting system that produces financial data for external users is governed by:

A management accountant should be concerned with:

Budgeting can be used in an organisation to:

Which of the following changes in the business environment have led to the emergence of virtual organisations?

Senior accountants are also known as the finance manager or financial controller.

Which of the following is not a widely recognised professional accounting body?

The role of management accounting is to:

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Product Costing Systems

Process Costing and Operation Costing

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Strategic Performance Measurement Systems

Managing Suppliers and Customers

Managing Costs and Quality

Sustainability and Management Accounting

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

Filters