Question 1 In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT: provide objective measures of past operations and subjective e
Question 1
In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT:
provide objective measures of past operations and subjective estimates about future decisions | |
be prepared in accordance with generally accepted accounting principles |
be provided at any time management needs information | |
be prepared to report information for any unit of the business to support decision making |
Question 2
Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?
Investors | |
Managers |
Employees | |
Customers |
Question 3
What is the primary criterion for the preparation of managerial accounting reports?
Relevance of the reports | |
Meet the manager needs |
Timing of the reports | |
Cost of the reports |
Question 4
Which of the following is most associated with financial accounting?
Can have both objective and subjective information. | |
Can be prepared periodically, or as needed. |
Prepared in accordance with GAAP | |
Can be prepared for the entity or segment. |
Question 5
Managerial accounting reports must be useful to the user of the information.
True | |
False |
Question 6
Planning is the process of setting goals for the use of an organization’s resources and of developing ways to achieve these goals.
True | |
False |
Question 7
Managerial accounting provides useful information to managers on product costs.
True | |
False |
Question 8
Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for creativity and change.
True | |
False |