Introduction to Management Accounting

Which TWO of the following statements about qualities of good information are true?

• It should be relevant for its purposes

• It should be communicated to the right person

• It should be completely accurate

• It should be provided whatever the cost

The sales manager has prepared a manpower plan to ensure that sales quotas for the forthcoming year are achieved. This is an example of what type of planning?

• Strategic planning

• Tactical planning

• Operational planning

• Corporate planning

Which TWO of the following statements about management accounting information are true?

• They may include non-financial information

• They are required by law to be produced

• They are used to aid planning

• They are for use by parties external to the organisation

Which of the following statements is/are correct?

(i) A management control system is a term used to describe the hardware and software used to drive a database system which produces information outputs that are easily assimilated by management.

(ii) An objective is a course of action that an organisation might pursue in order to achieve its strategy.

(iii) Information is data that has been processed into a form meaningful to the recipient.

• (i), (ii) and (iii)

• (i) and (iii)

• (ii) and (iii)

• (iii) only

Good information should have certain qualities.

Which TWO of the following are required as qualities of good management information?

• Complete

• Extensive

• True and fair

• Accurate

Monthly variance reports are an example of which one of the following types of management information?

• Tactical

• Strategic

• Non-financial

• Operational

Which of the following statements is/are correct?

(i) Information for decision-making should incorporate uncertainty in some way.

(ii) The data used to prepare financial accounts and management accounts are the same.

• (i) is true and (ii) is false

• (ii) is true and (i) is false

• Both are true

• Both are false

Which of the following processes occurs at the business planning stage?

• Obtaining data about actual results

• Taking corrective action

• Comparing actual performance with budge

• Establishing objectives

Which of the following statements is correct?

• Management accounting systems provide information for use in fulfilling legal requirements.

• Management accounting systems provide information for the use of decision-makers within an organisation.

• Management accounting systems provide information for use by shareholders.

• Management accounting systems provide information for use by tax authorities.

Which TWO of the following would be data rather than information?

• Sales increase/decrease per product in last quarter

• Total sales value per product

• Total material usage

• Sales staff commission as a percentage of total sales