MA1 - C1 - Q1

What is the primary purpose of management accounting?

• To prepare financial statements

• To assist in decision making

• To manage payroll

• To conduct audits

Which of the following is NOT an attribute of good information?

• Relevance

• Accuracy

• Timeliness

• Complexity

What type of planning involves long-term goals and strategies?

• Tactical planning

• Operational planning

• Strategic planning

• Contingency planning

Which of the following is a type of management control system?

• Budgeting

• Inventory management

• Market research

• Sales forecasting

What distinguishes cost centres from profit centres?

• Cost centres generate revenue

• Profit centres focus on costs

• Profit centres are not accountable

• Cost centres do not generate revenue

Which of the following best describes the difference between data and information?

• Data is financial; information is non-financial

• Data is processed; information is raw

• Data is subjective; information is objective

• Data is raw; information is processed

What is the role of cost accounting?

• To prepare tax returns

• To analyze costs for decision making

• To manage cash flow

• To track financial performance

Which of the following is a characteristic of management information?

• It is always quantitative

• It is used for external reporting

• It is not time-sensitive

• It supports internal decision making

What is the main focus of operational planning?

• Financial forecasting

• Daily operations and activities

• Setting long-term goals

• Strategic initiatives

How does management accounting differ from financial accounting?

• Management accounting is for external users

• Management accounting focuses on future projections

• Financial accounting is more flexible

• Financial accounting is more detailed