Question Tag: Management Accounting

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ICMA – Nov 2024 – L1 – Q3b – Relevant Cost Concepts

Explains two key concepts of relevant cost used in decision-making.

Question

Relevant Cost
Relevant cost should be used for assessing the economic and financial consequences of any decision made by management. Only relevant cost and benefits should be taken into consideration when evaluating the financial consequences of a decision.

Required:
Explain TWO key concepts of relevant cost.

Answer

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Tags: Costs, Financial Decision-Making, Management Accounting, Relevant Cost
Level: Level 1

Topic: Relevant Cost and Revenue
Series: Nov 2024

PM – May 2019 – L2 – Q6 – Strategic Management Accounting

Discusses the essential qualities needed for management accounting information to be useful for decision-making.

Question

“The purpose of management accounting is to provide relevant and reliable information so that managers can make well-informed decisions. The value of management accounting, therefore, depends on the quality of the information provided and whether this information helps managers to make better decisions.” Therefore, before management accounting information can be useful to managers, it must possess some qualities.

Required:
Discuss the essential qualities of good management accounting information.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Decision Making, Information Quality, Management Accounting
Level: Level 2

Topic: Strategic Management Accounting
Series: MAY 2019

FA – Nov 2013 – L1 – SA – Q33 – Roles of Accountants in Business and the Economy

Understanding the branch of accounting that provides information to management.

Question

The branch of accounting that offers financial and operating information to the firm’s management to help in planning, controlling, and taking decisions is called ____________.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Management, Financial Information, Management Accounting
Level: Level 1

Topic: Roles of Accountants in Business and the Economy
Series: NOV 2013

MI – May 2018 – L1 – SA – Q1 – Introduction to Cost Accounting

Identifying non-functions of cost accountants in an organization.

Question

Which of the following is NOT a function of the Cost Accountant?
A. Advising management on cost control
B. Preparing budgets
C. Purchasing materials with the cheapest costs
D. Compiling cost of production
E. Allocating indirect expenses to manufactured products

Answer

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Tags: Cost Accounting, Functions, Management Accounting
Level: Level 1

Topic: Introduction to Cost Accounting
Series: MAY 2018

MI – Nov 2014 – L1 – SA – Q10 – Introduction to Cost Accounting

Identify which report is NOT the responsibility of a Management Accountant.

Question

Which of the following reports is NOT the responsibility of a Management Accountant?

A. Operating Statement
B. Cash Flow Statement
C. Statement of Assets and Liabilities
D. Statement of Profitability Analysis
E. Statement of Costs and Variance Returns

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accountability, Financial Reports, Management Accounting
Level: Level 1

Topic: Introduction to Cost Accounting
Series: NOV 2014

BMF – Nov 2023 – L1 – SA – Q13 – Business and Organizational Structures and Choices

Identify which field is concerned with internal reporting to decision-makers.

Question

Which of the following is concerned with internal reporting to decision-makers?

A. Financial management
B. Financial accounting
C. Strategic management performance
D. Management accounting
E. Finance

Answer

Find Related Questions by Tags, levels, etc.

Tags: Decision Making, Internal Reporting, Management Accounting
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: NOV 2023

FA – Nov 2023 – L1 – SB – Q1B – Roles of Accountants in Business and the Economy

Describe various types of accounting and their roles.

Question

Explain the various types of accounting and their respective roles in providing relevant information to different users of financial information.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Accounting, Financial Accounting, Management Accounting, Tax Accounting
Level: Level 1

Topic: Roles of Accountants in Business and the Economy
Series: NOV 2023

BMF – Nov 2019 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets

Identifying a management accounting function among finance functions

Question

Which aspect of these finance functions is generally regarded as a management accounting function?
A. Ratio analysis
B. Budget preparation
C. Managing financial derivatives
D. Maintaining a good system of accounts
E. Setting of financial objectives and targets

Answer

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Tags: Finance Functions, Management Accounting
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: NOV 2019

MA – May 2018 – L2 – Q2c – Other aspects of performance measurement

Explain two limitations of management information in providing guidance for managerial decision-making.

Question

Explain TWO limitations of management information in providing guidance for
managerial decision-making.

Answer

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Tags: Decision Making, Information Limitations, Management Accounting, Management Information
Level: Level 2

Topic: Other Aspects of Performance Measurement
Series: MAY 2018

MA – May 2017 – L2 – Q1b – Other aspects of performance measurement

Explain three qualities of management accounting information in terms of their importance for decision making.

Question

While managers can use different leadership styles, they all share the task of utilizing information to make decisions that achieve organizational goals. Accounting information for decision making will differ in terms of its details depending on the user.

Required:

Explain THREE qualities of Management Accounting information. (3 marks)

Answer:

The qualities of Management Accounting information include:

Relevance:
Information should be timely and bear on the decision-making process by possessing predictive or confirmatory (feedback) value.
Faithful Representation:
Information must be truthful, complete, neutral, and free from error.
Comparability:
Even though different companies may use different accounting methods, there is still sufficient basis for valid comparison.

Additional points from the original answer but not required since only three qualities were asked:

Consistency:
Deviations in measured outcomes from period to period should be the result of deviations in underlying performance (not accounting quirks).
Verifiability:
Different knowledgeable and independent observers reach similar conclusions.
Timeliness:
Information should be available in sufficient time to be capable of influencing decisions.
Understandability:
Information should be clear and concise to those with reasonable business knowledge.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Decision Making, Information Quality, Information relevance, Information reliability, Management Accounting
Level: Level 2

Topic: Other Aspects of Performance Measurement
Series: MAY 2017

ICMA – Nov 2024 – L1 – Q3b – Relevant Cost Concepts

Explains two key concepts of relevant cost used in decision-making.

Question

Required:
Explain TWO key concepts of relevant cost.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Costs, Financial Decision-Making, Management Accounting, Relevant Cost
Level: Level 1

Topic: Relevant Cost and Revenue
Series: Nov 2024

PM – May 2019 – L2 – Q6 – Strategic Management Accounting

Discusses the essential qualities needed for management accounting information to be useful for decision-making.

Question

Required:
Discuss the essential qualities of good management accounting information.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Decision Making, Information Quality, Management Accounting
Level: Level 2

Topic: Strategic Management Accounting
Series: MAY 2019

FA – Nov 2013 – L1 – SA – Q33 – Roles of Accountants in Business and the Economy

Understanding the branch of accounting that provides information to management.

Question

The branch of accounting that offers financial and operating information to the firm’s management to help in planning, controlling, and taking decisions is called ____________.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Management, Financial Information, Management Accounting
Level: Level 1

Topic: Roles of Accountants in Business and the Economy
Series: NOV 2013

MI – May 2018 – L1 – SA – Q1 – Introduction to Cost Accounting

Identifying non-functions of cost accountants in an organization.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Accounting, Functions, Management Accounting
Level: Level 1

Topic: Introduction to Cost Accounting
Series: MAY 2018

MI – Nov 2014 – L1 – SA – Q10 – Introduction to Cost Accounting

Identify which report is NOT the responsibility of a Management Accountant.

Question

Which of the following reports is NOT the responsibility of a Management Accountant?

A. Operating Statement
B. Cash Flow Statement
C. Statement of Assets and Liabilities
D. Statement of Profitability Analysis
E. Statement of Costs and Variance Returns

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accountability, Financial Reports, Management Accounting
Level: Level 1

Topic: Introduction to Cost Accounting
Series: NOV 2014

BMF – Nov 2023 – L1 – SA – Q13 – Business and Organizational Structures and Choices

Identify which field is concerned with internal reporting to decision-makers.

Question

Which of the following is concerned with internal reporting to decision-makers?

A. Financial management
B. Financial accounting
C. Strategic management performance
D. Management accounting
E. Finance

Answer

Find Related Questions by Tags, levels, etc.

Tags: Decision Making, Internal Reporting, Management Accounting
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: NOV 2023

FA – Nov 2023 – L1 – SB – Q1B – Roles of Accountants in Business and the Economy

Describe various types of accounting and their roles.

Question

Explain the various types of accounting and their respective roles in providing relevant information to different users of financial information.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Accounting, Financial Accounting, Management Accounting, Tax Accounting
Level: Level 1

Topic: Roles of Accountants in Business and the Economy
Series: NOV 2023

BMF – Nov 2019 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets

Identifying a management accounting function among finance functions

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Finance Functions, Management Accounting
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: NOV 2019

MA – May 2018 – L2 – Q2c – Other aspects of performance measurement

Explain two limitations of management information in providing guidance for managerial decision-making.

Question

Explain TWO limitations of management information in providing guidance for
managerial decision-making.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Decision Making, Information Limitations, Management Accounting, Management Information
Level: Level 2

Topic: Other Aspects of Performance Measurement
Series: MAY 2018

MA – May 2017 – L2 – Q1b – Other aspects of performance measurement

Explain three qualities of management accounting information in terms of their importance for decision making.

Question

Required:

Explain THREE qualities of Management Accounting information. (3 marks)

Answer:

The qualities of Management Accounting information include:

Relevance:
Information should be timely and bear on the decision-making process by possessing predictive or confirmatory (feedback) value.
Faithful Representation:
Information must be truthful, complete, neutral, and free from error.
Comparability:
Even though different companies may use different accounting methods, there is still sufficient basis for valid comparison.

Additional points from the original answer but not required since only three qualities were asked:

Consistency:
Deviations in measured outcomes from period to period should be the result of deviations in underlying performance (not accounting quirks).
Verifiability:
Different knowledgeable and independent observers reach similar conclusions.
Timeliness:
Information should be available in sufficient time to be capable of influencing decisions.
Understandability:
Information should be clear and concise to those with reasonable business knowledge.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Decision Making, Information Quality, Information relevance, Information reliability, Management Accounting
Level: Level 2

Topic: Other Aspects of Performance Measurement
Series: MAY 2017

Question Tag: Management Accounting

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ICMA – Nov 2024 – L1 – Q3b – Relevant Cost Concepts

Explains two key concepts of relevant cost used in decision-making.

You're reporting an error for "ICMA – Nov 2024 – L1 – Q3b – Relevant Cost Concepts"

PM – May 2019 – L2 – Q6 – Strategic Management Accounting

Discusses the essential qualities needed for management accounting information to be useful for decision-making.

You're reporting an error for "PM – May 2019 – L2 – Q6 – Strategic Management Accounting"

FA – Nov 2013 – L1 – SA – Q33 – Roles of Accountants in Business and the Economy

Understanding the branch of accounting that provides information to management.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q33 – Roles of Accountants in Business and the Economy"

MI – May 2018 – L1 – SA – Q1 – Introduction to Cost Accounting

Identifying non-functions of cost accountants in an organization.

You're reporting an error for "MI – May 2018 – L1 – SA – Q1 – Introduction to Cost Accounting"

MI – Nov 2014 – L1 – SA – Q10 – Introduction to Cost Accounting

Identify which report is NOT the responsibility of a Management Accountant.

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BMF – Nov 2023 – L1 – SA – Q13 – Business and Organizational Structures and Choices

Identify which field is concerned with internal reporting to decision-makers.

You're reporting an error for "BMF – Nov 2023 – L1 – SA – Q13 – Business and Organizational Structures and Choices"

FA – Nov 2023 – L1 – SB – Q1B – Roles of Accountants in Business and the Economy

Describe various types of accounting and their roles.

You're reporting an error for "FA – Nov 2023 – L1 – SB – Q1B – Roles of Accountants in Business and the Economy"

BMF – Nov 2019 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets

Identifying a management accounting function among finance functions

You're reporting an error for "BMF – Nov 2019 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets"

MA – May 2018 – L2 – Q2c – Other aspects of performance measurement

Explain two limitations of management information in providing guidance for managerial decision-making.

You're reporting an error for "MA – May 2018 – L2 – Q2c – Other aspects of performance measurement"

MA – May 2017 – L2 – Q1b – Other aspects of performance measurement

Explain three qualities of management accounting information in terms of their importance for decision making.

You're reporting an error for "MA – May 2017 – L2 – Q1b – Other aspects of performance measurement"

ICMA – Nov 2024 – L1 – Q3b – Relevant Cost Concepts

Explains two key concepts of relevant cost used in decision-making.

You're reporting an error for "ICMA – Nov 2024 – L1 – Q3b – Relevant Cost Concepts"

PM – May 2019 – L2 – Q6 – Strategic Management Accounting

Discusses the essential qualities needed for management accounting information to be useful for decision-making.

You're reporting an error for "PM – May 2019 – L2 – Q6 – Strategic Management Accounting"

FA – Nov 2013 – L1 – SA – Q33 – Roles of Accountants in Business and the Economy

Understanding the branch of accounting that provides information to management.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q33 – Roles of Accountants in Business and the Economy"

MI – May 2018 – L1 – SA – Q1 – Introduction to Cost Accounting

Identifying non-functions of cost accountants in an organization.

You're reporting an error for "MI – May 2018 – L1 – SA – Q1 – Introduction to Cost Accounting"

MI – Nov 2014 – L1 – SA – Q10 – Introduction to Cost Accounting

Identify which report is NOT the responsibility of a Management Accountant.

You're reporting an error for "MI – Nov 2014 – L1 – SA – Q10 – Introduction to Cost Accounting"

BMF – Nov 2023 – L1 – SA – Q13 – Business and Organizational Structures and Choices

Identify which field is concerned with internal reporting to decision-makers.

You're reporting an error for "BMF – Nov 2023 – L1 – SA – Q13 – Business and Organizational Structures and Choices"

FA – Nov 2023 – L1 – SB – Q1B – Roles of Accountants in Business and the Economy

Describe various types of accounting and their roles.

You're reporting an error for "FA – Nov 2023 – L1 – SB – Q1B – Roles of Accountants in Business and the Economy"

BMF – Nov 2019 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets

Identifying a management accounting function among finance functions

You're reporting an error for "BMF – Nov 2019 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets"

MA – May 2018 – L2 – Q2c – Other aspects of performance measurement

Explain two limitations of management information in providing guidance for managerial decision-making.

You're reporting an error for "MA – May 2018 – L2 – Q2c – Other aspects of performance measurement"

MA – May 2017 – L2 – Q1b – Other aspects of performance measurement

Explain three qualities of management accounting information in terms of their importance for decision making.

You're reporting an error for "MA – May 2017 – L2 – Q1b – Other aspects of performance measurement"

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