MCQ OF APPLYING MANAGERIAL ACCOUNTING

The primary focus of lean accounting is

• removing redundant record keeping

• assigning financial responsibility

• modeling accuracy

• reducing waste

How does lifecycle costing differ from activity-based costing?

• Activity-based costing is more subjective than lifecycle costing.

• Lifecycle costing refers to an asset rather than an operation, which is the focus of activity-based costing.

• Activity-based costing is updated yearly, while lifecycle costing is updated regularly.

• Lifecycle costing projects ahead for a ten-year period, rather than the one-year period for activity-based costing.

Which type of accounting deals with the total cost of owning an asset?

• project accounting

• lifecycle costing

• activity-based costing

• lean accounting

What are the four elements of the road map to preparing a financial model?

• goals, staffing. taxes, and accounting

• data. regulations. oversight, and accounting

• interest rates ,taxes, debts, and assets

• goals, outputs. information, and business rules

What is the essential aspect of project accounting?

• tracking invoices

• identifying all resources involved

• documenting facility management costs

• limiting the project duration

What is the advantage of performing activity- based costing over other methods?

• improved record keeping.

• It assigns costs to specific time periods.

• It appropriately allocates overhead costs.

• It reduces waste in the project process.

What is the problem with segmenting managerial accounting operations into. technical and conceptual activities?

• It leads to a disconnect in decision- making between data and assumptions.aste in the project process.

• It promotes disputes over responsibilities between the two areas.

• It leads to inefficiencies in data keeping and data modeling.

• It leads to inefficiencies in data collection and decision-making

Building a financial model is about

• historical data

• strategy

• planning

• bringing everything together

What is a transition cost?

• a one-off cost to account for changes

• the liability for old facilities

• the cost of moving facilities

• a projected interest rate

How does managerial accounting differ from financial accounting?

• Financial accounting involves more unknowns and uncertainties than managerial accounting.

• Financial accounting is more concerned with interest rates than managerial accounting.

• Managerial accounting deals primarily with summary data and explicit formulas.

• Managerial accounting informs decision- making through documented assumptions.