Context of Management Accounting (10%) Flashcards
(104 cards)
1
Q
Name two disadvantages of Business Process Outsourcing.
A
- Loss of control
- Confidentiality risk
2
Q
Who would prepare a cash budget?
A
Management accountant
3
Q
Who would prepare the cash flow statement?
A
Financial accountant
4
Q
Who would prepare the Statement of Profit or Loss.
A
Management accounant
5
Q
Which side of accounting (financial/management) do the following comments sit under:
- Uses historical data
- Is carried out at the discretion of management
- Uses non-financial information
- Aids planning within the organisation
A
Financial Accounting
- Uses historical data.
Management Accounting
- Is carried out at the discretion of management.
- Uses non-financial information.
- Aids planning within the organisation.
6
Q
What are financial accountants primarily responsible for?
A
- Preparation of the statutory accounts.
- Statement of Profit or Loss.
- Statement of Financial Position.
- Cash Flow Statement
7
Q
Is the following statement true or false?
Information used by strategic management tends to be summarised.
A
True
8
Q
Is the following statement true or false?
Information used by strategic management tends to be forward looking.
A
True
9
Q
Is the following statement true or false?
Information used by operational management tends to contain estimates.
A
False
10
Q
Is the following statement true or false?
Information used by operational management tends to be required infrequently.
A
False
11
Q
Is the following statement true or false?
Information used by strategic management tends to be from external sources.
A
False
12
Q
Is the following statement true or false?
A role of management accounting as, defined by CIMA includes deriving performance measures and benchmarks for monitoring and controlling?
A
True
13
Q
Is the following statement true or false?
A role of management accounting as, defined by CIMA includes measuring and reporting financial and non-financial performance measurements to management and other stakeholders.
A
True
14
Q
Is the following statement true or false?
A role of management accounting as, defined by CIMA includes checking the accuracy of the financial statements produced by the organisation.
A
False
15
Q
Is the following statement true or false?
A role of management accounting as, defined by CIMA includes formulating strategic and operational plans in line with the coprorate objectives of the organisation.
A
True
16
Q
Is the following statement true or false?
Management accountants are concerned with planning, control and decision making.
A
True
17
Q
Is the following statement true or false?
Financial accountants are concerned with planning, control and decision making.
A
False
18
Q
Is the following statement true or false?
Preparing an annual budget for a cost centre relates to control by CIMA’s definition of management accounting.
A
False
19
Q
Is the following statement true or false?
Producing an investment appraisal calculation for a proposed new project relates to control by CIMA’s definition of management accounting.
A
False
20
Q
Is the following statement true or false?
Comparing the actual and expected results for a period and calculating the variances relates to control by CIMA’s definition of management accounting.
A
True
21
Q
Is the following statement true or false?
Advising management of the most profitable use of scarce resources relates to control by CIMA’s definition of management accounting.
A
False
22
Q
Is the following statement true or false?
Producing a monthly report of financial and non-financial performance measures for management relates to control by CIMA’s definition of management accounting.
A
True
23
Q
Is the following statement true or false?
Strategic information is mainly used by middle management in an organisation.
A
False
24
Q
Is the following statement true or false?
Productivity measurements are examples of tactical information.
A
True
25
Is the following statement true or false?
Operational information is required frequently by its main users.
False
26
Is the following statement true or false?
Two characteristics of good information are cost beneficial and regular.
True
27
Is the following one of the five fundamentals principles of the CIMA's code of ethics?
Integrity
True
28
Is the following one of the five fundamentals principles of the CIMA's code of ethics.
Responsibility
False
29
Is the following one of the five fundamentals principles of the CIMA's code of ethics.
Professional competence and due care
True
30
Is the following one of the five fundamentals principles of the CIMA's code of ethics.
Confidentiality
True
31
Is the following one of the five fundamentals principles of the CIMA's code of ethics.
Professional behaviour
True
32
Is the following one of the five fundamentals principles of the CIMA's code of ethics.
Objectivity
True
33
Is the following statement a benefit of locating management accounting within the individual business unit.
Cost Saving
False
34
Is the following statement a benefit of locating management accounting within the individual business unit.
Adoption of best practice
False
35
Is the following statement a benefit of locating management accounting within the individual business unit.
Closer to the business needs
True
36
Is the following statement a benefit of locating management accounting within the individual business unit.
Consistency of approach across the organisation
True
37
Is the following statement a benefit of locating management accounting within the shared services centres (SSCs) or Business Process Outsourcing (BPO).
Cost Saving
True
38
Is the following statement a benefit of locating management accounting within the shared services centres (SSCs) or Business Process Outsourcing (BPO).
Adoption of best practice
True
39
Is the following statement a benefit of locating management accounting within the shared services centres (SSCs) or Business Process Outsourcing (BPO).
Consistency of approach across the organisation
True
40
Is the following statement a benefit of locating management accounting within the shared services centres (SSCs) or Business Process Outsourcing (BPO).
Closer to business needs
False
41
Is the following statement a main purpose of management accounting.
Planning
True
42
Is the following statement a main purpose of management accounting.
Reporting
False
43
Is the following statement a main purpose of management accounting.
Decision Making
True
44
Is the following statement a main purpose of management accounting.
Controlling
True
45
Companies can select different ways to set up their finance functions.
What are the 3 main ways?
Dedicated Business Partners Shared Services Centre Business Processing Outsourcing
46
Is the following statement true or false:
Within the dedicated business partners finance setup, the finance staff are an integral part of the business they support.
True
47
Is the following statement true or false:
Within the dedicated business partners finance setup, the finance functions are undertaken by a third party.
False
48
Is the following statement true or false:
Within the dedicated business partners finance setup, the whole finance function operates as one centre which provides for the finance needs of the company.
False
49
Is the following statement true or false:
Within the shared services centre finance setup, the whole finance function operates as one centre which provides for the finance needs of the company.
True
50
Is the following statement true or false:
Within the shared services centre finance setup, the finance functions are undertaken by a third party.
False
51
Is the following statement true or false:
Within the shared services centre finance setup, the finance staff are an integral part of the business they support.
False
52
Is the following statement true or false:
Within the business process outsourcing finance setup, the whole finance function operates as one centre which provides for the finance needs of the company.
False
53
Is the following statement true or false:
Within the business process outsourcing finance setup, the finance functions are undertaken by a third party.
True
54
Is the following statement true or false:
Within the business process outsourcing finance setup, the finance staff are an integral part of the business they support.
False
55
The management accountant of Fruity Inc has produced a monthly report for managers. Some of the managers have complained that the reports are unhelpful as they miss out some key figures and that they are not always familiar with the terminology used in the report.
Which characteristic of good information is missing in this report?
Complete and understandable
56
Is the following statement true or false:
Strategic level management would carry out making day-to-day decisions about the running of a department.
False
57
Is the following statement true or false:
Strategic level management would carry out defining the objectives of the company.
True
58
Is the following statement true or false:
Strategic level management would decide in which markets to operate in.
True
59
Is the following statement true or false:
Strategic level management would decide about how to operate within the market.
True
60
Is the following statement about CIMA true or false:
CIMA are committed to upholding the highest ethical and professional standards.
True
61
Is the following statement about CIMA true or false:
CIMA can provide students and members with guidance on how to handle situations where their ethics may be compromised.
True
62
Is the following statement about CIMA true or false:
CIMA focuses on organisations in the private sector.
False
63
Is the following statement about CIMA true or false:
CIMA is the world's largest and leading professional body of management accountants. Members and students are located in over 160 countries.
True
64
There are 4 global management accounting principles that are here to help you explain the role of management accounting in today's organisations.
Is the following statement true or false
The 4 principles are:
* Trust
* Influence
* Objectivity
* Reliability
False
65
There are 4 global management accounting principles that are here to help you explain the role of management accounting in today's organisations.
Is the following statement true or false:
The 4 principles are:
* Integrity
* Influence
* Value
* Reliability
False
66
There are 4 global management accounting principles that are here to help you explain the role of management accounting in today's organisations.
Is the following statement true or false:
The 4 principles are:
* Honesty
* Communication
* Value
* Relevance
False
67
There are 4 global management accounting principles that are here to help you explain the role of management accounting in today's organisations.
Is the following statement true or false:
The 4 principles are:
* Trust
* Influence
* Value
* Relevance
True
68
All certified management accountants must comply with CIMA's code of ethics. A management accountant who puts themselves forward for a role which they do not have the correct knowledge and experience to undertake would be breaching a fundamental principle.
Is the following statement true or false:
The fundamental principle being breached here is integrity.
False
69
All certified management accountants must comply with CIMA's code of ethics. A management accountant who puts themselves forward for a role which they do not have the correct knowledge and experience to undertake would be breaching a fundamental principle.
Is the following statement true or false:
The fundamental principle being breached here is objectivity.
False
70
All certified management accountants must comply with CIMA's code of ethics. A management accountant who puts themselves forward for a role which they do not have the correct knowledge and experience to undertake would be breaching a fundamental principle.
Is the following statement true or false:
The fundamental principle being breached here is professional competence and due care.
True
71
All certified management accountants must comply with CIMA's code of ethics. A management accountant who puts themselves forward for a role which they do not have the correct knowledge and experience to undertake would be breaching a fundamental principle.
Is the following statement true or false:
The fundamental principle being breached here is confidentiality.
False
72
RST operates in the health and fitness industry running a successful chain of fitness centres throughout their home country. A decision has been made to branch out into the fitness industry. A range of clothing will be manufactured for RST which will be sold in their fitness centres.
Is the following statement true or false:
The decision on how much inventory of clothing to carry in each fitness centre would be made at the strategic level.
False
73
RST operates in the health and fitness industry running a successful chain of fitness centres throughout their home country. A decision has been made to branch out into the fitness industry. A range of clothing will be manufactured for RST which will be sold in their fitness centres.
Is the following statement true or false:
The decision on how much inventory of clothing to carry in each fitness centre would be made at the operational level.
True
74
RST operates in the health and fitness industry running a successful chain of fitness centres throughout their home country. A decision has been made to branch out into the fitness industry. A range of clothing will be manufactured for RST which will be sold in their fitness centres.
Is the following statement true or false:
The decision on how much inventory of clothing to carry in each fitness centre would be made at the tactical level.
False
75
RST operates in the health and fitness industry running a successful chain of fitness centres throughout their home country. A decision has been made to branch out into the fitness industry. A range of clothing will be manufactured for RST which will be sold in their fitness centres.
Is the following statement true or false:
The decision to move into the fitness clothing industry would be made at the strategic level.
True
76
RST operates in the health and fitness industry running a successful chain of fitness centres throughout their home country. A decision has been made to branch out into the fitness industry. A range of clothing will be manufactured for RST which will be sold in their fitness centres.
Is the following statement true or false:
The decision to move into the fitness clothing industry would be made at the operational level.
False
77
RST operates in the health and fitness industry running a successful chain of fitness centres throughout their home country. A decision has been made to branch out into the fitness industry. A range of clothing will be manufactured for RST which will be sold in their fitness centres.
Is the following statement true or false:
The decision to move into the fitness clothing industry would be made at the tactical level.
False
78
RST operates in the health and fitness industry running a successful chain of fitness centres throughout their home country. A decision has been made to branch out into the fitness industry. A range of clothing will be manufactured for RST which will be sold in their fitness centres.
Is the following statement true or false:
The decision on the range of clothing to sell and the pricing of the range would be made at the operational level.
False
79
RST operates in the health and fitness industry running a successful chain of fitness centres throughout their home country. A decision has been made to branch out into the fitness industry. A range of clothing will be manufactured for RST which will be sold in their fitness centres.
Is the following statement true or false:
The decision on the range of clothing to sell and the pricing of the range would be made at the tactical level.
True
80
RST operates in the health and fitness industry running a successful chain of fitness centres throughout their home country. A decision has been made to branch out into the fitness industry. A range of clothing will be manufactured for RST which will be sold in their fitness centres.
Is the following statement true or false:
The decision on the range of clothing to sell and the pricing of the range would be made at the strategic level.
False
81
Is the following statement regarding management accounting true or false:
Management accounting tends to focus on the needs of external stakeholders.
False
82
Is the following statement regarding management accounting true or false:
Management account information can be presented in any format
True
83
Is the following statement regarding management accounting true or false:
The main purpose of management accounting is to produce the statutory financial statements for the entity.
False
84
Is the following statement regarding management accounting true or false:
Management accounting is carried out at the discretion of management.
True
85
Is the following statement regarding management accounting true or false:
One of the key deliverables of management accounting is the cash flow statement.
False
86
Is the following statement regarding financial accounting true or false:
One of the key deliverables of financial accounting is the cash flow statement.
True
87
Is the following statement regarding financial accounting true or false:
Financial accounting tends to focus on the needs of external stakeholders.
True
88
Is the following statement regarding financial accounting true or false:
Financial accounting information can be presented in any format.
False
89
Is the following statement regarding financial accounting true or false:
Financial accounting is carried out at the discretion of management.
False
90
Is the following statement regarding financial accounting true or false:
The main purpose of financial accounting is to produce the statutory financial statements for the entity.
True
91
CIMA's code of ethics is made up of five fundamental principles.
Is the following statement true or false:
Professional competence and due care are one of the five fundamental principles.
True
92
CIMA's code of ethics is made up of five fundamental principles.
Is the following statement true or false:
Professional behaviour are one of the five fundamental principles.
True
93
CIMA's code of ethics is made up of five fundamental principles.
Is the following statement true or false:
Objectivity are one of the five fundamental principles.
True
94
CIMA's code of ethics is made up of five fundamental principles.
Is the following statement true or false:
Integrity are one of the five fundamental principles.
True
95
CIMA's code of ethics is made up of five fundamental principles.
Is the following statement true or false:
Confidentiality are one of the five fundamental principles.
True
96
CIMA's code of ethics is made up of five fundamental principles.
Is the following statement true or false:
Privacy are one of the five fundamental principles.
False
97
CIMA's code of ethics is made up of five fundamental principles.
Is the following statement true or false:
Commitment are one of the five fundamental principles.
False
98
Is the following statement true or false:
Financial accountants historically used to be mainly concerned with enhancing performance.
False
99
Is the following statement true or false:
Management accountants historically used to be mainly concerned with enhancing performance.
False
100
Is the following statement true or false:
Management accountants are now more concerned about enhancing performance.
True
101
Is the following statement true or false:
Management accountants are now seen as value-adding business partners.
True
102
Is the following statement true or false:
Financial accountants are now seen as value-adding business partners.
False
103
Is the following statement true or false:
The main purpose of management accountants is to provide information to managers for the purposes of planning, control and decision making.
True
104
Is the following statement true or false:
The main purpose of financial accountants is to provide information to managers for the purposes of planning, control and decision making.
False
