Ch 1 : Introduction to MA

Determining the unit cost of manufacturing a product is an output of Financial Accounting.

• TRUE

• FALSE

Managerial Accounting internal reports are prepared more frequently than are classified as Financial Statements.

• TRUE

• FALSE

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

• TRUE

• FALSE

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

• TRUE

• FALSE

Decision-making is an integral part of the planning, directing, and controlling functions.

• TRUE

• FALSE

Managerial Accounting is primarily concerned with managers and external users.

• TRUE

• FALSE

Planning involves coordinating the diverse activities and human resources of a company to produce a smooth-running operation.

• TRUE

• FALSE

Managerial Accounting applies to which of the following types of firms?

• service firms.

• merchandising firms.

• manufacturing firms.

• Managerial accounting applies to all types of firms.

Managerial Accounting information is generally prepared for..

• Investors

• shareholders

• managers

• regulatory agencies

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.