F2- Lesson 1

Which two of the following statement about qualities of good information are false?

• It should be relevant for its purposes

• It should be communicated to the right person

• It should be completely accurate

1.1. Reginald is the manager of production department M in factory which has ten other production departments. He receives monthly information that compares planned and actual expenditure for department M. After department M, all production goes into other factory departments to be completed prior to being dispatched to customers. Decisions involving capital expenditure in department M are not taken by Reginald.

Which of the following describes Reginald’s role in department M?

• A cost centre manager

• An investment centre manager

• A revenue centre manager

• A profit centre manager

The manager of a profit centre is responsible for which of the following?

(i) Revenues of the centre

(ii) Costs of the centre

(iii) Assets employed in the centre

• (i) only

• (ii) only

• (i) and (ii) only

• (i), (ii) and (iii)

The following statements refer to strategic planning:

(i) It is concerned with quantifiable and qualitative matters.

(ii) It is mainly undertaken by middle management in an organization.

(iii) It is concerned predominantly with the long term.

Which of the statements are correct?

• (i) and (ii) only

• (i) and (iii) only

• (ii) and (iii) only

• (i), (ii) and (iii)

What is the purpose of management information ?

• Planning only

• Planning and control only

• Planning, control and decision-making only

• Planning, control, decision-making and research and development

The management accountant of X Ltd has written a report assessing the cost savings that could be made if the company was to invest in new technology.

In which area will the report primarily aid the management of X Ltd?

• Budgeting

• Control

• Decision-making

• Monitoring

Which of the following only contains essential features of useful management information?

• Accurate, clear, presented in report forma

• Timely, reliable, supported by calculations

• Regular, complete, communicated in writing

• Clear, accurate, relevant for its purpose

Which of the following describes the essence of systematic sampling?

• Each element of the population has an equal chance of being chosen

• Members of various strata are selected by the interviewers up to predetermined limits

• Every nth members of the population is selected

• Every element of one definable sub-section of the population is selected.

Consider the following statements in relation to management information:

(i) It should always be provided regardless of its cost

(ii) It is data that has been processed in such a way as to be meaningful to the person who receives it

(iii) It should not be provided until it is as detailed and accurate as possible

Which of the above statements is/are true of good management information?

• (i) only

• (ii) only

• (i) and (iii)

• (ii) and (iii)

Which of the following are characteristics of management accounting information?

(i) Non-financial as well as financial

(ii) Used by all stakeholders

(iii) Concerned with cost control only

(iv) Not legally required

• (i) and (iv)

• (ii) and (iii)

• (i), (ii) and (iii)

• (ii), (iii) and (iv)