BAC1054 Topic 1 Part 1

Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.

• True

• False

Managerial accounting internal reports are prepared more frequently than are classified financial statements.

• True

• False

The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity.

• True

• False

Controlling is the process of determining whether planned goals are being met.

• True

• False

Direct materials costs and indirect materials costs are manufacturing overhead.

• True

• False

Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

• True

• False

Managerial accounting applies to each of the following types of businesses except

• service firms.

• merchandising firms.

• manufacturing firms.

• Managerial accounting applies to all types of firms.

Managerial accounting information

• pertains to the entity as a whole and is highly aggregated.

• pertains to subunits of the entity and may be very detailed.

• is prepared only once a year.

• is constrained by the requirements of generally accepted accounting principles.

Financial statements for external users can be described as

• user-specific.

• general-purpose.

• special-purpose.

• managerial reports.

What activities and responsibilities are not associated with management's functions?

• Planning

• Accountability

• Controlling

• Directing