Module 1 - Business Information

Question 1

Management Information

Answer 1

Any information used by management for monitoring company performance, decision making and problem solving

Question 2

Management information must be:

Answer 2

• accurate
• complete
• cost-beneficial
• user-targeted
• reliable
• appropriate
• timely
• easy to use

Question 3

Internal users of management info may be:

Answer 3

• board of directors
• management
• section leaders
• employees

Question 4

External users of management info:

Answer 4

• suppliers
• customers
• government agencies
• providers of finance

Question 5

Internal uses of management information

Answer 5

1. planning
2. control
3. decision-making
4. performance evaluation

Question 6

Key differences between management accounts and financial statements?

Answer 6

• management accounts provide info to internal stakeholders
• no statutory requirement to prepare management accounts
• format is at management’s discretion
• often highly detailed and disaggregated
• can include non-monetary amounts
• can include historical record and can also show future plans