Question 1

The text identifies six ways to classify the major differences between Management and Financial Accounting.The statement "Varies from hourly to 15 to 20 years" is an example of which of the following classes of differences?

Accepted Answer

The statement "Varies from hourly to 15 to 20 years" refers to the time span and type of reports, which is one of the six ways to classify the major differences between Management and Financial Accounting.

Question 2

Cost management involves long-term and short-term decisions that attempt to increase value for customers and lower costs of products or services.

Accepted Answer

Cost management strategies aim to improve the value of products or services for customers while minimizing costs. This involves both long-term and short-term decisions, such as reducing operating expenses, optimizing production processes, and streamlining supply chain management. By implementing effective cost management strategies, companies can stay competitive, enhance customer satisfaction, and increase profitability.

Question 3

Which of the following is something management accountants should do to satisfy their users?

Accepted Answer

Management accountants should provide specialized information that given users can use to satisfy their needs. They should tailor the information to the specific needs of the users, whether they are internal or external, and should consider both financial and non-financial measures. Following generally accepted accounting principles is important, but it is not the only consideration for management accountants, who need to consider the needs of their users when providing information. Planning and control are both important aspects of management accounting, and both should be considered as needed to meet the needs of users.

Question 4

Financial accounting is concerned primarily with

Accepted Answer

Financial accounting focuses on the preparation and reporting of financial statements to external users, such as investors, creditors, and government agencies. It provides information about a company's financial position, performance, and cash flows. Cost planning, profitability analysis, and strategic decision making are typically addressed by managerial accounting. While financial accounting information can be useful for long-term decision making, its primary focus is on external reporting.

Question 5

The key to a company's success is always to be the low cost producer in a particular industry.

Accepted Answer

While being the low cost producer can certainly be an advantage, it is not always the key to a company's success. Other factors such as product differentiation, customer service, branding, and innovation can also contribute to a company's success.

Question 6

Management accounting is guided by generally accepted accounting principles.

Accepted Answer

While management accounting may use financial information and data, it is not required to follow Generally Accepted Accounting Principles (GAAP) like financial accounting does. Management accounting is focused on providing internal decision-making information for management, rather than producing financial statements for external stakeholders. Therefore, management accounting is more flexible and can use non-GAAP methods and techniques to provide relevant and timely information to managers.

Question 7

The text identifies six ways to classify the major differences between Management and Financial Accounting.The statement "Past oriented (reports on 2011 performance prepared in 2012)" is an example of which of the following classes?

Accepted Answer

The answer of The text identifies six ways to classify...

Question 8

"Cost management" describes

Accepted Answer

Cost management involves finding ways to increase the value provided to customers while controlling and reducing costs. This approach helps companies remain competitive and profitable in the long run. Option B is only one aspect of cost management, while option C and D only focus on customer needs and maintaining current cost levels respectively. Option E is not an effective cost management strategy as it does not account for factors that may increase costs such as inflation or changes in the market.

Question 9

There are three (3)basic business strategies: low cost, premium products, and customer satisfaction.

Accepted Answer

The three basic business strategies are cost leadership, differentiation, and focus. Customer satisfaction is a goal, not a strategy.

Question 10

Managerial accounting and cost accounting both measure and report financial and non-financial information relating to the cost of acquiring or utilizing resources.

Accepted Answer

Both managerial accounting and cost accounting are concerned with measuring and reporting information related to the cost of resources. However, managerial accounting tends to focus more on internal decision-making within an organization, while cost accounting is generally more focused on determining the actual costs of products or services for external reporting purposes.

Question 11

In what way do managers benefit from the use of a management information system?

Accepted Answer

With the use of a management information system, managers can combine or adjust data to answer the questions from particular internal and external users. This allows them to make informed decisions based on accurate and relevant information.

Question 12

Companies with a strategy of low prices compete on their ability to offer unique new products or services that are priced higher than their competition.

Accepted Answer

Companies with a strategy of low prices compete by offering products or services at a lower price point than their competition. They do not typically focus on offering unique new products or services at higher prices.

Question 13

Management accountants are required to follow the generally accepted accounting principles that are used for external financial reporting when preparing reports for internal users.

Accepted Answer

Management accountants may use different methods and techniques than those used for external financial reporting, as their reports are tailored for internal decision-making purposes rather than public disclosure. However, they should still ensure that their reports are accurate and relevant to the needs of their intended audience.

Question 14

The text identifies six ways to classify the major differences between Management and Financial Accounting.The statement "Communicate organization's financial position to external users" is an example of which of the following classes?

Accepted Answer

The purpose of information in financial accounting is to communicate the organization's financial position to external users, such as investors and creditors, whereas the purpose of information in management accounting is to help internal users make business decisions.

Question 15

Managers typically receive reports on cost planning and controls that should be considered for internal use only.

Accepted Answer

Cost planning and controls reports are internal documents meant for managers to use for decision-making and strategy development. They contain sensitive financial information that should not be shared with external parties.

Question 16

Cost accounting provides information for both management and financial accounting.

Accepted Answer

Cost accounting provides detailed information about the costs of manufacturing and selling products or services, which can be used by both management and financial accounting. Management can use this information to make decisions about pricing, product mix, and cost control, while financial accounting can use it to calculate the cost of goods sold and inventory values for financial statements.

Question 17

Companies generally follow one of two basic strategies: 1)providing a quality product or service at low prices, or 2)offering a unique product or service often priced higher than competing products.

Accepted Answer

This statement is true. These are two common strategies that companies use to differentiate themselves from their competitors.

Question 18

The Global Reporting Initiative (GRI)is a nonprofit organization established to develop guidelines so that reporting on economic, environmental and social performance by all organizations is as routine and comparable as financial reporting.

Accepted Answer

The statement correctly describes the purpose of the Global Reporting Initiative (GRI).

Question 19

The text identifies six ways to classify the major differences between management and financial accounting.The "managers of the organization" is an example of which of the following classes of differences?

Accepted Answer

The classification of primary users refers to who the intended audience is for the information. In this case, the managers of the organization are the primary users of management accounting information.

Question 20

Corporate social responsibility is now mandatory for all publicly traded companies in Canada.

Accepted Answer

While there are regulations and guidelines regarding corporate social responsibility in Canada, it is not currently mandatory for all publicly traded companies.

Quiz 1: The Accountants Vital Role in Decision Making