Chapter 1 MA1

cost accounting can be used for inventory to meet the requirements of internal reporting only

• True
• False

Management accounting provides appropriate information for decision making, planning, control and performance evaluation

• True
• False

Routine information can be used for both short-term and long-run decisions

• True
• False

FINANCIAL accounting information can be used for internal reporting purposes

• True
• False

Management accounting information must be presented in a prescribed industry format

• True
• False

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

• Control account

• Cost classification

• Marginal costing

• Periodic stocktaking

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 one of the following is NOT an advantage of a computerised accounting system when compared to a manual accounting system?

• Error in source documents are identified more quickly

• There is a reduction in the amount of paper used and stored

• A wider variety of management reports can be produced in a timely manner

• There is less scope for arithmetic errors

Purchase invoice are entered into an organisation's computer system at the end of each day. What is this an example of?

• Batch processing

• Real time online processiing

• File maintenance

• File updating

Which one of the following is NOT a function of the human resources department?

• Hiring employees

• Firing employees

• Paying employees

• Arranging training of employees