WorksheetsMCQ OF APPLYING MANAGERIAL ACCOUNTING
Total questions: 13
Worksheet time: 9mins
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.
A retailer is considering outsourcing its customer service function. Before building a financial model, what is it imperative for them to keep in mind?
Data
financial return
the bigger picture
risk transfer
Which items are classified as outputs in a financial model?
costs, cash flows, and return on investment
current resources and overhead costs
transition costs and the lifecycle term
financial return and corporate strategy
Part of your job as a managerial accountant is to "sell" stakeholders on your findings and recommendations. Which skills must you develop to do this effectively?
delivery skills
presentation skills
project management skills
communication skills
