Statement 1: Managerial accountants are in the best position to aid managers in making business decisions by gathering data inputs from various sources, designing the management information system that obtain inputs and generate information in the form of management reports and assist managers to interpret the information reflected in these reports. Statement 2: Controllers are often involved in preparing financial statements, defining cash collection procedures, establishing credit policy, internal audit, economic appraisal and supervising the company’s financial planning process. Both statements are true. Only Statement 1 is true. Only Statement 2 is true. Both statements are false.
Statement 1: Managerial accountants are in the best position to aid managers in making business decisions by gathering data inputs from various sources, designing the management information system that obtain inputs and generate information in the form of management reports and assist managers to interpret the information reflected in these reports. Statement 2: Controllers are often involved in preparing financial statements, defining cash collection procedures, establishing credit policy, internal audit, economic appraisal and supervising the company’s financial planning process. Both statements are true. Only Statement 1 is true. Only Statement 2 is true. Both statements are false.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Statement 1: Managerial accountants are in the best position to aid managers in making business decisions by gathering data inputs from various sources, designing the management information system that obtain inputs and generate information in the form of management reports and assist managers to interpret the information reflected in these reports.
Statement 2: Controllers are often involved in preparing financial statements, defining cash collection procedures, establishing credit policy,internal audit, economic appraisal and supervising the company’s financial planning process.
Statement 2: Controllers are often involved in preparing financial statements, defining cash collection procedures, establishing credit policy,
Both statements are true.
Only Statement 1 is true.
Only Statement 2 is true.
Both statements are false.
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