Costing 2

Cost accounting developed to help the internal management decision making. The information provided by cost accounting acts as a managerial tool so that business can utilize the available resources at optimum level

• True

• False

Below is the importance of management accounting, EXCEPT:

• Primarily forward-looking

• Planning

• Performance evaluation

• Operational control

Management accounting designed for :

• Shareholders

• Creditors

• Managers

• Tax agents

Following is the similarities between management accounting and financial accounting, EXCEPT

• Deal with economic and business events.

• Deal with financial statements, revenues, expenses, assets, liabilities, cash flows.

• Reporting is published annually for both

• Reports prepared are based on the same data base

Following is the decision making process. Choose the right step for decision making .

• Planning - controlling - directing - implementing

• implementing - controlling - planning - directing

• planning - implementing - directing - controlling

• controlling - planning -implementing - directing

The information must consider features as the followings EXCEPT:

• Cost - benefits

• Control

• Comparable

• Complete

Choose the right needs for management accounting information.

• Historical

• Forward looking

• Decision making

• Relevant

What is the principle for management accounting information?

• Increase recognition of the crucial role for management accounting in organizations and that it is utilized at the highest levels

• Help manager to prepare financial statement

• Provides general information on the financial position of an enterprise

• Concise information about overall firm performance

Management must look forward and think about how to achieve the objectives. The performance of current and past positions to be considered. This statement refers to implementation in management accounting.

• True

• False

Decision making is the heart of every function carried out by management.

• True

• False