Test Yourself

Management Accounting is useful in the following activities, EXCEPT

• Controlling

• Planning

• Costing

• Inventory Valuation

Management accounting is an extension of the following areas; Risk Management, Performance Management and ____________.

The followings are part of Management Accounting process, EXCEPT

• classification

• identification

• analysis

• communication

"Involves selecting a course of action and specifying how the action is implemented" is best defined as __________________

• Profit maximization

• controlling

• planning

• Reports to the outsiders

• Must follow GAAP

• Emphasizes on past financial transactions

• The statements above are explaining on ____________

• Cost accounting

• Management accounting

• Financial accounting

• Risk management

_______________________ involves the process of gathering, determining and reporting costs of products or activities.

• Cost accounting

• Management accounting

• Financial accounting

• Risk management

The characteristics of management accounting are as follows.

• Reliable and timely

• Relevant and comparable

• Understandable and cost benefits

• All the above

______________________helps managers to take wise economic decision by providing them with the desired information whilst

________________________________________________deals with motivation and encouragement of managers and subordinates, encouraging them to take action in line with the organization’s desires

_________________________________ is a technique where goods are manufactured or purchased just in time for usage by applying demand pull system.