Question 1

For each report listed below,identify whether the major purpose of the report is for (1)routine internal reporting,(2)nonroutine internal reporting,or for (3)external reporting to investors and other outside parties.
Item:
a.study detailing sale information of the top-ten selling products
b.weekly report of total sales generated by each store in the metropolitan area
c.annual Report sent to shareholders
d.monthly report comparing budgeted sales by store to actual sales

Accepted Answer

The answer of For each report listed below,identify whether the...

Question 2

The balance sheet,income statement,and statement of cash flows are used for financial accounting,and also for management accounting.

Accepted Answer

The balance sheet, income statement, and statement of cash flows are commonly used in both financial accounting, which is used to prepare financial statements for external stakeholders, as well as management accounting, which is used for internal decision-making and evaluating business performance.

Question 3

What competitive advantage could a company obtain from a successful cost management program?

Accepted Answer

The answer of What competitive advantage could a company obtain...

Question 4

An Enterprise Resource Planning (ERP)System is a single database that collects data and feeds into applications that support each of the company's business activities,such as purchases,production,distribution,and sales.

Accepted Answer

This statement correctly describes an ERP System.

Question 5

Cost accounting provides information for both management accounting and financial accounting professionals.

Accepted Answer

Cost accounting is a branch of accounting that is used to help management make decisions about their business operations. It provides information about the costs of various components of a business, such as raw materials, labor, and overhead expenses. This information can be used in management accounting to help forecast financial outcomes and create budgets. It can also be used in financial accounting to help prepare financial statements and comply with regulatory requirements. Therefore, cost accounting provides information for both management and financial accounting professionals.

Question 6

Financial accounting information focuses on internal reporting.

Accepted Answer

Financial accounting information focuses on external reporting, not internal reporting.

Question 7

Management accounting information and reports do not have to follow set principles or rules such as GAAP.

Accepted Answer

Management accounting information and reports are not bound by GAAP or any other set principles or rules, as their purpose is to provide internal decision-making support to management rather than comply with external reporting requirements.

Question 8

Cost accounting is the process of measuring,analyzing,and reporting financial and nonfinancial information related to the costs of acquiring or using resources in an organization.

Accepted Answer

Cost accounting involves the measurement, analysis, and reporting of financial and nonfinancial information related to the costs of acquiring or using resources in an organization.

Question 9

Financial accounting provides an organization's past-oriented information such as the previous years' financial statements.

Accepted Answer

Financial accounting is concerned with reporting past financial information of an organization, including financial statements and reports from previous accounting periods.

Question 10

Cost accounting provides information for both management accounting and financial accounting professionals.Explain.

Accepted Answer

The answer of Cost accounting provides information for both management...

Question 11

Cost management not only helps reducing costs but also improving customer satisfaction and the quality of a firm's products.

Accepted Answer

Effective cost management helps a firm to reduce costs, which can lead to lower prices for customers and improved customer satisfaction. Additionally, by reducing waste and optimizing processes, cost management can improve the quality of a firm's products or services, further enhancing customer satisfaction.

Question 12

Strategy specifies ________.

Accepted Answer

Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace.

Question 13

Describe management accounting and financial accounting.

Accepted Answer

The answer of Describe management accounting and financial accounting....

Question 14

Which of the following statements concerning an organization's strategy is true?

Accepted Answer

Strategy involves the process of identifying an organization's mission, vision, goals, and objectives, and developing a plan to achieve them. It requires an understanding of both the organization's internal capabilities and the external environment in which it operates. Cost accountants may be involved in providing information on costs, but strategy is formulated by top management. Poor implementation can undermine even the best strategy, and businesses often pursue a variety of strategies beyond these two broad categories.

Question 15

Financial accounting is broader in scope than management accounting.

Accepted Answer

Financial accounting focuses on providing information to external parties, while management accounting is broader as it includes internal decision-making processes and detailed financial analysis for managers.

Question 16

Cost accounting measures and reports short-term,long-term,financial,and non financial information.

Accepted Answer

Cost accounting measures and reports both short-term and long-term financial information, as well as non-financial information such as production quantities and employee productivity.

Question 17

Management accounting ensures communication of an organization's financial position to investors,banks,and regulators.

Accepted Answer

Financial accounting, not management accounting, ensures communication of an organization's financial position to investors, banks, and regulators.

Question 18

Is it possible to have an active cost management program without an Enterprise Resource Planning (ERP)System?

Accepted Answer

The answer of Is it possible to have an active...

Question 19

For management accounting,internal measurement and reporting are based on cost-benefit analysis.

Accepted Answer

Internal measurement and reporting in management accounting involves analyzing costs and benefits to identify areas of improvement and make informed decisions. This allows companies to optimize their resources and maximize profits.

Question 20

Management accounting has to strictly follow the rules of generally accepted accounting principles for the purposes of measurement and reporting.

Accepted Answer

While general accounting principles do provide a framework for management accounting, it is not required to strictly follow them. Management accounting is more concerned with providing information for decision-making within the organization, while financial accounting adheres to GAAP for external reporting purposes.

Quiz 1: The Manager and Management Accounting