Multiple Choice Answers

The person MOST likely to use management accounting information is a(n):
banker evaluating a credit application
shareholder evaluating a stock investment
governmental taxing authority
assembly department supervisor

Which of the following is NOT a function of a management accounting system? strategic planning
financial reporting
operational control
product costing

Financial accounting provides the PRIMARY source of information for
decision making in the finishing department
improving customer service
preparing the income statement for shareholders
planning next year’s operating budget
A key element of any organization’s strategy is identifying:
its potential shareholders
its target customers
competitor’s products
employee needs

Managers of service departments need all of the following information EXCEPT:
efficiency data on work performance
quality data on work performance
profitability data of the whole company
profitability data of the service department

A weekly report comparing machine time used to available machine time is information MOST useful to: (Points: 2)
a front-line employee
the manager of operations
the chief executive officer
the accounting department
Decentralized responsibility refers to allowing lower-level managers to do all of the following EXCEPT:
make decisions without seeking higher approval
take advantage of local opportunities
make periodic financial reports to upper-management
pursue individual objectives even though they may not contribute to the entire company