Which of the following statements about responsibility accounting are correct? Select one: a. Responsibility accounting systems differ widely across organizations. b. The structure for accumulating cost information generally mirrors the structure for accumulating responsibility center information. c. Responsibili

Which of the following statements about responsibility accounting are correct? Select one: a. Responsibility accounting systems differ widely across organizations. b. The structure for accumulating cost information generally mirrors the structure for accumulating responsibility center information. c. Responsibili

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Managerial decision making in accounting requires careful analysis of quantitative data on areas such as relevant and irrelevant costs. However, qualitative factors also play a role in making such decisions. For this forum, identify some qualitative factors that should be considered when making managerial decisions. Explain why and how these qualitative factors impact the managerial decision making process.
. It is an important use of managerial accounting a. determine direct cost by adding direct materials b. understand customer orientation c. recast budgeted statements according to a situation d. change variables of risk internally and externally
Write a report about the relevance of managerial accounting in practical use.
“Provides input into an entity’s production and marketing decisions.” Is it not a primary function of the management accountant?
42. Managerial accounting is similar to financial accounting in that Group of answer choices a. both concentrate on historical costs. b. both are governed by generally accepted accounting principles. c. both deal with economic events; and both rely on cost accounting for information. d. both are governed by generally accepted accounting principles; and both rely on cost accounting for information. e. both concentrate on budgeted costs. f. both rely on cost accounting for information. g. both concentrate on historical costs and budgeted costs. h. both deal with economic events.
Financial statements are prepared in the light of applicable financial reporting framework. What is the purpose of preparation of financial statements a. To assist management in takin managerial decisions O b. For ascertainment and control of cost of product c. For ascertainment and control of cost of service d. To know financial performance, position and contribution of owner in the business
Managerial accounting is often reffered as accounting for internal users of information. true or false?
The management accounting can be stated an extension of Responsibility Accounting O a . False O b . True
In the context of a local/regional organization, explain the idea of “cost object”. Discuss the four “responsibility centres”, in the selected organization, which are linked to responsibility accounting. What are the main drawbacks of responsibility accounting? Support your answer with relevant examples.
TRUE OR FALSE Activity center is a unit in an organization for which management wants the costs of a set of activities be reported separately.
Which of the following is not a characteristic of an effective responsibility accounting system? a) Reports that set goals for long-term strategic performance b) Reports that show revenue and/or expense items under a manager's control c) Reports that show budgeted and actual amounts of controllable revenue and expense items d) Reports that highlight areas that need corrective action
Choose the correct answer(several answer options) Managerial Accounting… O …numbers have to be in line with the GAAP applied O …should assist external stakeholders in decision-making O …includes cost accounting as on of its major tools O …numbers are applied in financial / external accounting in certain cases