Managerial Accounting: The objective of management accounting is to take decisions for the business. On the basis of financial accounting information, management accounting prepares the forecast and future plans, measures risk and performance and allocates resources for optimum utilization. To identify: The item which is not a characteristic of managerial accounting

Question

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Answer 1

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 18, Problem 1QC

To determine

Managerial Accounting: The objective of management accounting is to take decisions for the business. On the basis of financial accounting information, management accounting prepares the forecast and future plans, measures risk and performance and allocates resources for optimum utilization.

To identify: The item which is not a characteristic of managerial accounting

Expert Solution & Answer

Answer to Problem 1QC

Option ‘a’is correct.

Emphasizes the external financial statement is correct.

Explanation of Solution

External Financial Statements are prepared under financial accounting for the reference and usage of external users like investors, government, public, and media. The objective of management accounting is to help the management accountants who internal users.

Option b.

Provide detailed information about individual parts of the company.

Management Accounting classifies and rearranges the information provided by financial accounting and cost accounting. Both the cost and financial accounting cover each aspect of the company. For example financial statement for holding and subsidiary companies are prepared individually and also in consolidated form

So, option b is incorrect.

Option c.

Emphasizes relevance

Management accounting emphasizes more on relevance compared to financial accounting. Relevance means that the information offered is useful and impacts the decision of the users.

So, option c is incorrect.

Option d .

Focuses on the future.

The Management Accounting studies the past financial accounting information and analyzes them to make future-oriented plans and forecasts. The budgets, ratios, variances, and projections computed in management accounting serve as a base for decision making.

So, option d is incorrect.

Conclusion

Thus, option ‘a’ is correct among the given options.

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Answer 2

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 18, Problem 1QC

To determine

Managerial Accounting: The objective of management accounting is to take decisions for the business. On the basis of financial accounting information, management accounting prepares the forecast and future plans, measures risk and performance and allocates resources for optimum utilization.

To identify: The item which is not a characteristic of managerial accounting

Expert Solution & Answer

Answer to Problem 1QC

Option ‘a’is correct.

Emphasizes the external financial statement is correct.

Explanation of Solution

External Financial Statements are prepared under financial accounting for the reference and usage of external users like investors, government, public, and media. The objective of management accounting is to help the management accountants who internal users.

Option b.

Provide detailed information about individual parts of the company.

Management Accounting classifies and rearranges the information provided by financial accounting and cost accounting. Both the cost and financial accounting cover each aspect of the company. For example financial statement for holding and subsidiary companies are prepared individually and also in consolidated form

So, option b is incorrect.

Option c.

Emphasizes relevance

Management accounting emphasizes more on relevance compared to financial accounting. Relevance means that the information offered is useful and impacts the decision of the users.

So, option c is incorrect.

Option d .

Focuses on the future.

The Management Accounting studies the past financial accounting information and analyzes them to make future-oriented plans and forecasts. The budgets, ratios, variances, and projections computed in management accounting serve as a base for decision making.

So, option d is incorrect.

Conclusion

Thus, option ‘a’ is correct among the given options.

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Answer 3

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 18, Problem 1QC

To determine

Managerial Accounting: The objective of management accounting is to take decisions for the business. On the basis of financial accounting information, management accounting prepares the forecast and future plans, measures risk and performance and allocates resources for optimum utilization.

To identify: The item which is not a characteristic of managerial accounting

Expert Solution & Answer

Answer to Problem 1QC

Option ‘a’is correct.

Emphasizes the external financial statement is correct.

Explanation of Solution

External Financial Statements are prepared under financial accounting for the reference and usage of external users like investors, government, public, and media. The objective of management accounting is to help the management accountants who internal users.

Option b.

Provide detailed information about individual parts of the company.

Management Accounting classifies and rearranges the information provided by financial accounting and cost accounting. Both the cost and financial accounting cover each aspect of the company. For example financial statement for holding and subsidiary companies are prepared individually and also in consolidated form

So, option b is incorrect.

Option c.

Emphasizes relevance

Management accounting emphasizes more on relevance compared to financial accounting. Relevance means that the information offered is useful and impacts the decision of the users.

So, option c is incorrect.

Option d .

Focuses on the future.

The Management Accounting studies the past financial accounting information and analyzes them to make future-oriented plans and forecasts. The budgets, ratios, variances, and projections computed in management accounting serve as a base for decision making.

So, option d is incorrect.

Conclusion

Thus, option ‘a’ is correct among the given options.

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Answer 4

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 18, Problem 1QC

To determine

Managerial Accounting: The objective of management accounting is to take decisions for the business. On the basis of financial accounting information, management accounting prepares the forecast and future plans, measures risk and performance and allocates resources for optimum utilization.

To identify: The item which is not a characteristic of managerial accounting

Expert Solution & Answer

Answer to Problem 1QC

Option ‘a’is correct.

Emphasizes the external financial statement is correct.

Explanation of Solution

External Financial Statements are prepared under financial accounting for the reference and usage of external users like investors, government, public, and media. The objective of management accounting is to help the management accountants who internal users.

Option b.

Provide detailed information about individual parts of the company.

Management Accounting classifies and rearranges the information provided by financial accounting and cost accounting. Both the cost and financial accounting cover each aspect of the company. For example financial statement for holding and subsidiary companies are prepared individually and also in consolidated form

So, option b is incorrect.

Option c.

Emphasizes relevance

Management accounting emphasizes more on relevance compared to financial accounting. Relevance means that the information offered is useful and impacts the decision of the users.

So, option c is incorrect.

Option d .

Focuses on the future.

The Management Accounting studies the past financial accounting information and analyzes them to make future-oriented plans and forecasts. The budgets, ratios, variances, and projections computed in management accounting serve as a base for decision making.

So, option d is incorrect.

Conclusion

Thus, option ‘a’ is correct among the given options.

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Answer 5

Chapter 18, Problem 1QC

To determine

Managerial Accounting: The objective of management accounting is to take decisions for the business. On the basis of financial accounting information, management accounting prepares the forecast and future plans, measures risk and performance and allocates resources for optimum utilization.

To identify: The item which is not a characteristic of managerial accounting

Expert Solution & Answer

Answer to Problem 1QC

Option ‘a’is correct.

Emphasizes the external financial statement is correct.

Explanation of Solution

External Financial Statements are prepared under financial accounting for the reference and usage of external users like investors, government, public, and media. The objective of management accounting is to help the management accountants who internal users.

Option b.

Provide detailed information about individual parts of the company.

Management Accounting classifies and rearranges the information provided by financial accounting and cost accounting. Both the cost and financial accounting cover each aspect of the company. For example financial statement for holding and subsidiary companies are prepared individually and also in consolidated form

So, option b is incorrect.

Option c.

Emphasizes relevance

Management accounting emphasizes more on relevance compared to financial accounting. Relevance means that the information offered is useful and impacts the decision of the users.

So, option c is incorrect.

Option d .

Focuses on the future.

The Management Accounting studies the past financial accounting information and analyzes them to make future-oriented plans and forecasts. The budgets, ratios, variances, and projections computed in management accounting serve as a base for decision making.

So, option d is incorrect.

Conclusion

Thus, option ‘a’ is correct among the given options.

Answer 6

Chapter 18, Problem 1QC

To determine

Managerial Accounting: The objective of management accounting is to take decisions for the business. On the basis of financial accounting information, management accounting prepares the forecast and future plans, measures risk and performance and allocates resources for optimum utilization.

To identify: The item which is not a characteristic of managerial accounting

Expert Solution & Answer

Answer to Problem 1QC

Option ‘a’is correct.

Emphasizes the external financial statement is correct.

Explanation of Solution

External Financial Statements are prepared under financial accounting for the reference and usage of external users like investors, government, public, and media. The objective of management accounting is to help the management accountants who internal users.

Option b.

Provide detailed information about individual parts of the company.

Management Accounting classifies and rearranges the information provided by financial accounting and cost accounting. Both the cost and financial accounting cover each aspect of the company. For example financial statement for holding and subsidiary companies are prepared individually and also in consolidated form

So, option b is incorrect.

Option c.

Emphasizes relevance

Management accounting emphasizes more on relevance compared to financial accounting. Relevance means that the information offered is useful and impacts the decision of the users.

So, option c is incorrect.

Option d .

Focuses on the future.

The Management Accounting studies the past financial accounting information and analyzes them to make future-oriented plans and forecasts. The budgets, ratios, variances, and projections computed in management accounting serve as a base for decision making.

So, option d is incorrect.

Conclusion

Thus, option ‘a’ is correct among the given options.

Answer 7

Chapter 18, Problem 1QC

To determine

Managerial Accounting: The objective of management accounting is to take decisions for the business. On the basis of financial accounting information, management accounting prepares the forecast and future plans, measures risk and performance and allocates resources for optimum utilization.

To identify: The item which is not a characteristic of managerial accounting

Answer 8

Expert Solution & Answer

Answer to Problem 1QC

Option ‘a’is correct.

Emphasizes the external financial statement is correct.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

External Financial Statements are prepared under financial accounting for the reference and usage of external users like investors, government, public, and media. The objective of management accounting is to help the management accountants who internal users.

Option b.

Provide detailed information about individual parts of the company.

Management Accounting classifies and rearranges the information provided by financial accounting and cost accounting. Both the cost and financial accounting cover each aspect of the company. For example financial statement for holding and subsidiary companies are prepared individually and also in consolidated form

So, option b is incorrect.

Option c.

Emphasizes relevance

Management accounting emphasizes more on relevance compared to financial accounting. Relevance means that the information offered is useful and impacts the decision of the users.

So, option c is incorrect.

Option d .

Focuses on the future.

The Management Accounting studies the past financial accounting information and analyzes them to make future-oriented plans and forecasts. The budgets, ratios, variances, and projections computed in management accounting serve as a base for decision making.

So, option d is incorrect.

Answer 12

Conclusion

Thus, option ‘a’ is correct among the given options.

Answer 13

Ch. 18 - Prob. 1QC Ch. 18 - Prob. 2QC Ch. 18 - Dunaway Company reports the following costs for...Ch. 18 - Which of the following is a direct cost of...Ch. 18 - Which of the following is not part of...Ch. 18 - Which of the following accounts does a...Ch. 18 - Questions 7 and 8 use the data that follow....Ch. 18 - Questions 7 and 8 use the data that follow....Ch. 18 - World-class businesses use which of these systems...Ch. 18 - Prob. 10QC

Answer to Problem 1QC

Explanation of Solution

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Chapter 18 Solutions