Chapter 10 Self-test questions

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. Which of the following describe features of cost and management accounting and which describe features of financial accounting?

Costs and revenue planning

Select an answer choice Cost and management accounting Cost and management accounting Financial accounting Financial accounting Financial accounting Cost and management accounting

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Past performance

Select an answer choice Cost and management accounting Financial accounting Cost and management accounting Financial accounting Cost and management accounting Financial accounting

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Comparisons of actual and expected outcomes

Select an answer choice Cost and management accounting Cost and management accounting Financial accounting Financial accounting Cost and management accounting Financial accounting

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Reported to external users

Select an answer choice Cost and management accounting Cost and management accounting Financial accounting Financial accounting Financial accounting Cost and management accounting

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An information summary

Select an answer choice Financial accounting Financial accounting Cost and management accounting Cost and management accounting Cost and management accounting Financial accounting

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Future focus

Select an answer choice Cost and management accounting Cost and management accounting Financial accounting Financial accounting Cost and management accounting Financial accounting

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. To be useful, cost and management accounting information should be: Please select all that apply.

Relevant correct incorrect

Timely correct incorrect

Verifiable correct incorrect

Comparable correct incorrect

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. Cost and management accounting is used in the fundamental business cycle of ____________ activities.

Your response

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. Both financial accounting and cost and management accounting reports derive their numerical input from the same internal sources.

True correct incorrect

False correct incorrect

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. Management accounting is an integral part of management. It requires the identification, generation, presentation, interpretation and use of relevant information to: Please select all that apply.

Determine capital structure and fund that structure. correct incorrect

Implement corporate governance procedures, risk management and internal controls. correct incorrect

Report results to shareholders. correct incorrect

Inform operational decisions. correct incorrect

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. Management accounting is the application of the principles of accounting and financial management to create, protect, preserve and increase the value of the shareholders of for-profit and not-for-profit enterprises in the public and private sectors.

True correct incorrect

False correct incorrect

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. The cost allocation process requires the ____________ of costs to cost objects

Your response

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. Which one of the following would not be relevant information when setting a selling price for a new product?

Costs of production correct incorrect

Selling prices of competitors' products correct incorrect

Unique features of the product correct incorrect

Competitors' costs correct incorrect

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. Which of the following describe features of costing and which describe features of management accounting?

The attachment of cost information to cost objects

Select an answer choice Management accounting Costing Management accounting Costing Management accounting Costing

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Plan long, medium and short run operations

Select an answer choice Management accounting Costing Management accounting Costing Management accounting Costing

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Safeguard tangible and intangible assets

Select an answer choice Management accounting Costing Costing Management accounting Management accounting Costing

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The establishment of budgets, standard costs and actual costs of operations

Select an answer choice Costing Costing Management accounting Management accounting Costing Management accounting

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Control operations and ensure the efficient use of resources

Select an answer choice Management accounting Costing Costing Management accounting Costing Management accounting

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The analysis of variances, profitability or the social use of funds

Select an answer choice Management accounting Management accounting Costing Costing Costing Management accounting

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. Which one of the following statements applies equally well to both financial accounting reports and to cost and management accounting reports?

Usually provide only financial information. correct incorrect

Decision usefulness is very high. correct incorrect

High degree of comparability with current and past reports for the same organization. correct incorrect

Produced as frequently as required for the effective management of the organization. correct incorrect

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. Which of the following statements describe features of cost and management accounting reports and which describe features of financial accounting reports?

Comparisons of actual and expected outcomes

Select an answer choice Cost and management accounting reports Cost and management accounting reports Financial accounting reports Financial accounting reports Financial accounting reports Cost and management accounting reports

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An information summary

Select an answer choice Cost and management accounting reports Cost and management accounting reports Financial accounting reports Financial accounting reports Financial accounting reports Cost and management accounting reports

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Presents both financial and non-financial information

Select an answer choice Financial accounting reports Cost and management accounting reports Cost and management accounting reports Financial accounting reports Financial accounting reports Cost and management accounting reports

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Reports produced infrequently

Select an answer choice Financial accounting reports Financial accounting reports Cost and management accounting reports Cost and management accounting reports Cost and management accounting reports Financial accounting reports

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Highly regulated content and presentation

Select an answer choice Financial accounting reports Cost and management accounting reports Cost and management accounting reports Cost and management accounting reports Financial accounting reports Financial accounting reports

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No comparability with reports of other organisations

Select an answer choice Financial accounting reports Cost and management accounting reports Financial accounting reports Cost and management accounting reports Cost and management accounting reports Financial accounting reports

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. Which of the following describe the role of management accounting? Please select all that apply.

Informing strategic decisions and formulating business strategy. correct incorrect

Formal reporting of financial results to stakeholders. correct incorrect

Designing reward strategies for executives and shareholders. correct incorrect

Controlling operations and ensuring the efficient use of resources. correct incorrect

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. Cost and management accounting reports have an internal focus only.

True correct incorrect

False correct incorrect

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. Cost and management accounting reports should be comparable so that they are useful for decision making purposes.

True correct incorrect

False correct incorrect

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. Cost and management accounting information must faithfully represent what it purports to represent in order for it to be relevant in the decision making process.

True correct incorrect

False correct incorrect