12 Questions
What function does Management Accounting serve in terms of performance evaluation?
It acts as a yardstick for measuring the level of performance of operational activities.
What is a limitation of Management Accounting?
It relies heavily on historical data.
What is an objective of Management Accounting?
Performance Evaluation and Decision Making
What is a tool or technique of Management Accounting?
Financial Statement Analysis
What is the primary goal of management accounting, according to J.Batty?
Assisting management in its task of maximizing profits
What is the role of Management Accounting in terms of planning?
It prepares necessary plans to implement financial decisions.
What is a scope of Management Accounting?
All of the above
Which of the following is NOT a feature of management accounting, according to the Certified Institute of Management Accountants (CIMA)?
Auditing financial statements
What is the primary purpose of management accounting, according to the American Accounting Association (AAA)?
To assist management in establishing plans for reasonable economic objectives
What is the role of management accounting in relation to the management's decision-making process?
It provides information to guide management in making rational decisions
What is the primary objective of management accounting, according to the Certified Institute of Management Accountants (CIMA)?
To assist management in identifying, presenting and interpreting information
What is the primary function of management accounting in relation to the collection of data?
To analyze and interpret data
Test your understanding of Management Accounting, its definition, and its role in assisting management in maximizing profits or minimizing losses. Learn about the concepts and techniques used in processing economic data to aid management decisions.
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