Question : Multiple Choice Questions 27.The principal difference between managerial accounting and financial : 1259566

 

Multiple Choice Questions 

27.The principal difference between managerial accounting and financial accounting is that managerial accounting information is:   

A. Prepared by managers.

 

B. Intended primarily for use by decision makers inside the business organization.

 

C. Prepared in accordance with a set of accounting principles developed by the Institute of Certified Managerial Accountants.

 

D. Oriented toward measuring solvency rather than profitability.

 

 

 

 

28.Management accounting systems are designed to assist organizations in the performance of all of the following functions except:   

A. The assignment of decision-making authority over company assets.

 

B. Planning and decision-making.

 

C. Monitoring, evaluating, and rewarding performance.

 

D. The preparation of income tax returns.

 

 

 

 

29.The set of linked activities and resources needed to create and deliver a product or service to the customer is referred to as:   

A. The budget.

 

B. The value chain.

 

C. The operating cycle.

 

D. The production process.

 

 

 

 

30.Which of the following is not a characteristic of managerial accounting?   

A. Reports are used primarily by insiders rather than by persons outside of the business entity.

 

B. Its purpose is to assist managers in planning and controlling business operations.

 

C. Information must be developed in conformity with generally accepted accounting principles or with income tax regulations.

 

D. Information may be tailored to assist in specific managerial decisions.

 

 

 

 

31.In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a managerial accounting report is more likely to:   

A. Be used by decision makers outside of the business organization.

 

B. Focus upon the operating results of the most recently completed accounting period.

 

C. View the entire organization as the reporting entity.

 

D. Be tailored to the specific needs of an individual decision maker.

 

 

 

 

32.In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a managerial accounting report is less likely to:   

A. Focus upon the entire organization as the accounting entity.

 

B. Focus upon future accounting periods.

 

C. Make use of estimated amounts.

 

D. Be tailored to the specific needs of an individual decision maker.

 

 

 

 

33.All of the following statements regarding management accounting’s role in assigning decision-making authority are true except:   

A. Since management accounting information is used for decision making purposes, historical information is unnecessary.

 

B. Information from the management accounting system supports decision making.

 

C. The syllabus for a college course is a type of report that outlines students’ decision-making responsibilities.

 

D. All members of an organization have some decision-making ability.

 

 

 

 

34.All of the following are true regarding benchmark studies except:   

A. The studies are shared with customers and suppliers.

 

B. The studies are shared with competitors.

 

C. The studies are prepared by collecting information from companies in the same industry.

 

D. The studies show an organization how its costs and processes compare with other companies.

 

 

 

 

35.The cost of the employee who installs the leather on the seats of a new automobile would be considered:   

A. Manufacturing overhead.

 

B. Indirect labor.

 

C. Direct material.

 

D. Direct labor.

 

 

 

 

36.Manufacturing costs do not include:   

A. Direct labor applicable to production within the period.

 

B. Selling expenses related to goods manufactured during the period.

 

C. Direct materials used during the period.

 

D. Manufacturing overhead charged to work in process during the period.