Strategic Management Accounting

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

a. Sales increase/decrease per product in last quarter

b. Total sales value per product

c. Total material usage

d. Sales staff commission as a percentage of total sales

• a & d

• b & c

• a & b

• b & d

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.

Use the drop down list to select which of the following processes occurs at the business planning stage.

(a) Obtaining data about actual results

(b) Taking corrective action

(c) Comparing actual performance with budget

(d) Establishing objectives

• (b)

• (d)

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

Good information should have certain qualities.

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

1. Complete

2. Extensive

3. True and fair

4. Accurate

• 1 & 3

• 2 & 4

• 2 & 3

• 1 & 4

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

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

(a) They may include non-financial information

(b) They are required by law to be produced

(c) They are used to aid planning

(d) They are for use by parties external to the organisation

• a & c

• b & d

• c & d

• a & b

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 qualities of good information are true?

(a) It should be relevant for its purposes

(b) It should be communicated to the right person

(c) It should be completely accurate

(d) It should be provided whatever the cost

• a & c

• b & d

• a & b

• c & b