MA Theory Mock - 1

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

• Tactical

• Strategic

• Planning

• Operational

Which of the following statements are correct?

(1) Strategic information is mainly used by senior management in an organization

(2) Productivity measurements are examples of tactical information

(3) Operational information is required frequently by its main users

• 1 and 2 only

• 1 and 3 only

• 2 and 3 only

• 1, 2 and 3

The following statements relate to financial accounting or to cost and management accounting:

(1) The main users of financial accounting information are external to an organization

(2) Cost accounting is part of financial accounting and establishes costs incurred by an organization

(3) Management accounting is used to aid planning, control and decision making

Which of the statements are correct?

• 1 and 2 only

• 1 and 3 only

• 2 and 3 only

• 1, 2 and 3

Which of the following is an initial requirement of a management control system?

• Establishing the standard to be achieved

• Measuring the actual performance

• Setting organizational objectives

• Taking appropriate corrective action

The following statements refer to strategic planning:

(1) It is concerned with quantifiable and qualitative matters

(2) It is mainly undertaken by middle management in an organisation

(3) It is concerned predominantly with the long term

Which of the statements are correct?

• 1 and 2 only

• 1 and 3 only

• 2 and 3 only

• 1, 2 and 3

Which one of the following is a common feature of cost accounting but not financial accounting?

• Control accounts

• Cost classification

• Cost unit

• Periodic stocktaking

The following descriptions relate to management information:

(1) Clear to the user

(2) Detailed and completely accurate

(3) Provided whatever the cost

(4) Relevant for purpose

Which of the above are necessary features of useful management information?

• 1 and 2 only

• 1 and 4 only

• 2 and 4 only

• 1, 2 and 3 only

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

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

• Accurate, clear, presented in report format

• Timely, reliable, supported by calculations

• Regular, complete, communicated in writing

• Clear, accurate, relevant for its purpose

Which of the following describes the control process?

• The action of monitoring something to keep it on course

• The choice between alternatives

• The development of strategies to achieve objectives

• The establishment of a plan for a future period