Which of the following descriptors refers to management accounting information
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Management accounting is a field of accounting that analyzes and provides cost information to the internal management for the purposes of planning, controlling and decision making. Show
Management accounting refers to accounting information developed for managers within an organization. CIMA (Chartered Institute of Management Accountants) defines Management accounting as “Management Accounting is the process of identification, measurement, accumulation, analysis, preparation, interpretation, and communication of information that used by management to plan, evaluate, and control within an entity and to assure appropriate use of an accountability for its resources”. This is the phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making. Managerial accounting is concerned with providing information to managers i.e. people inside an organization who direct and control its operations. In contrast, financial accounting is concerned with providing information to stockholders, creditors, and others who are outside an organization. Managerial accounting provides the essential data with which organizations are actually run. Financial accounting provides the scorecard by which a company’s past performance is judged. Because it is manager oriented, any study of managerial accounting must be preceded by some understanding of what managers do, the information managers need, and the general business environment. Comparison chartFinancial Accounting versus Management Accounting comparison chart
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Share this comparison: If you read this far, you should follow us: "Financial Accounting vs Management Accounting." Diffen.com. Diffen LLC, n.d. Web. 9 Nov 2022. < > Chapter 01 Test Bank – Static KEY 1. What type of accounting system is part of an organisation's management information system for internal use only? A. Financial accounting B. Management accounting C. Governmental accounting D. All of the given answers AACSB: Reflective Difficulty: Easy Learning Objective: 1.03 Describe the major differences between management accounting and financial accounting information Topic: Role of Management Accountant in Value Creation 2. Which of the following statement/s about management accounting is/are true? i. It is a part of an organisation's management information system. ii. It is relied on by managers to plan and control an organisation's operations. iii. It is relied on by external users to make investment decisions. A. i and ii B. i, ii and iii C. iii D. ii AACSB: Reflective Difficulty: Easy Learning Objective: 1.02 Define management accounting in terms of value creation Topic: Role of Management Accountant in Value Creation 3. Which of the following statement/s about management accounting is/are true? i. It is concerned only with information obtained from the accounting records. ii. It is concerned with financial and non-financial information. iii. It can provide information useful for making decisions. A. i B. i and ii C. ii and iii D. ii AACSB: Reflective Difficulty: Medium Learning Objective: 1.02 Define management accounting in terms of value creation Topic: Role of Management Accountant in Value Creation 4. A strategy is i. another name for a long-term objective ii. the same as an objective iii. a means by which an organisation plans to meet its mission and achieve its objectives A. i B. ii C. iii D. i and ii AACSB: Reflective Difficulty: Medium Learning Objective: 1.06 Explain the basic concepts of strategy and how management accounting systems can support strategies Topic: Fundamental Management Processes 5. Which of the following is not an objective of management accounting? A. Providing information for making decisions B. Providing information for planning C. Providing information for control D. Providing information for profit and loss statements 1-1 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw- Hill Education. Which of the following descriptions refer to management accounting information?Which of the following descriptors refers to management accounting information? It provides reasonable and timely estimates.
Which of the following is referred to management accounting?Management accounting also is known as managerial accounting and can be defined as a process of providing financial information and resources to the managers in decision making.
Which of the following types of information are used in management accounting *?Management accounting information includes: Tabulate results of customer satisfaction surverys, the cost of producing a product, the percentage of units oroduces that are defected.
Which of the following would most likely to use management accounting information?Answer: Management accounting information is used to take managerial decisions.
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