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MANAGEMENT ACCOUNTING

MU LTIPLE-9HOICE QUESTIONS
(Sources: CMA/CIA/RPCPA/AICPA/Various test banks)

1. The discipline of accounting concerned with providing information to management in making decisions
about business operations.
1) a. Cost accounting
b. Financialaccounting
c. Governmentaccounting
cl. Managementaccounting
2. The primary purpose of management accounting is to provide information
a. To internal users
b. To external users
c. To management and government
d. To both internal and external users

3. For decision-making purposes, managersare more concerned with receiving information that is:
1) a. Completely accurate and precise
' b, Completely objective and verifiable
c. Relevant, completely accurate and precise
d. Relevant, flexible and immediately available

Management accounting
a. Is discretionary rather than mandatory
h b. Is concerned only with monetary information
c. Is governed by Generally Accepted Accounting principles (GAAP)
d. Is focused on business as a whole rather than on segments of the business

5. Management accounting rs similar to financial accounting in that

fl a. Both classify reported information in the same way
b. Both concentrate with historical costs
.c.- . Both deal wittreconomic.ev.ents-
d. Both are governed by GAAP

6. Which of the statements is TRUE regarding managerial accounting?

A a. It may use estimates and forecasts
b. It complies with external reportorial requirements
c. It is concerned with reporting. to external users of accounting information
Dx ff(l(\!, d. It includes branches like job order costing, process costing, standard costing, and activity-
CI$, based costing (ABc)

7. Which of the following statements is TRUE?

c a. Financial accounting is a subset of cost accounting
b. Management accounting is a subset of cost accounting
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c, Cost accounting is a subset of both management and financial accounting
)1F,, d. Management accounting is a subset of both cost and financial accounting-
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*. Decision-making is required in which of the following management function(s)?
a. Planning
V
b. Planning and control
c. Planning and organizing
d. Planning, organizing and control

:r- The management function that involves overseeing day-to-day activities.

a. Planning
I b.
c.
Controlling
Directing and motivating
d. Rationalizing and decision-making

10. What is the function of management that compares planned results against actual results?
a. Planning
0r
b. Controllinq
c. Organizing
d. Decision-making

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