Question : Multiple choice 49.Managerial accounting stresses accounting concepts and procedures that relevant : 1302666

Multiple choice

49.Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for

A.investors and banks.

B.internal users of accounting information.

C.shareholders and creditors.

D.the Securities and Exchange Commission (SEC).

50.The goal of managerial accounting is to provide information that managers need for

A.planning, control, and financial reporting.

B.control, evaluation, and financial reporting.

C.planning, control, and decision making.

D.preparing reports for external users.

51.The financial plans prepared by managerial accountants are referred to as

A.budgets.

B.financial statements.

C.treasurer’s reports.

D.controller’s opinions.

52.Which of the following is not a reason that current period performance results may differ from the company’s budget for that period?

A.The plan may not have been followed properly.

B.The plan may not have been well thought-out.

C.Changing circumstances may have made the plan out of date.

D.All of the above are reasons that actual results may differ from the company’s plan.

53.Which one of the following is true as it relates to the management function of control?

A.It is achieved by evaluating the performance of managers.

B.It is achieved by evaluating the operations for which a manager is responsible.

C.It is necessary only when performance is less than expected.

D.It is achieved by evaluating the performance of managers and the operations for which they are responsible.

54.Which one of the following is the last step in the planning and control process?

A.Implement a plan.

B.Construct a plan.

C.Make decisions based on the evaluation of the results.

D.Compare actual results to the planned results.

55.Performance reports often compare current performance with

A.a competing company’s performance.

B.shareholders’ expected level of performance.

C.industry standards.

D.performance in a prior period or budgeted performance.

56.When using management by exception, a difference between actual costs and budgeted costs

A.should be investigated if the amount is large.

B.indicates that the planned cost was poorly estimated.

C.indicates that the manager is doing a poor job.

D.should be ignored if it increases profit.

57.Wilson Company’s managers investigate departures from the budget that appear to be significant. What principle is being followed?

A.Small amounts do not matter

B.Management by exception

C.Incremental analysis

D.You get what you measure

58.Below is a performance report that compares budgeted and actual profit of Atlanta Enterprises for the month of June:

BudgetActualDifference

Sales$182,000$180,000($2,000)

Less:

Cost of ingredients145,000141,0004,000

Salaries24,00023,0001,000

Controllable profit$ 13,000     $ 16,000     $ 3,000

In evaluating the department in terms of its changes in sales and expenses, what will be most important to investigate?

A.Sales

B.Cost of ingredients

C.Salaries

D.Debtors