24 Questions
What is the primary role of management accountants?
Providing information to managers to direct and control operations
Cost management is the same as cost accounting.
False
What is the main purpose of cost management?
To provide managers with information which aids decision.
Management accountants provide a system which allows management to receive the necessary information used in performing its administrative functions of planning, controlling, and _______________________.
decision making
Match the following administrative functions with their descriptions:
Planning = Setting of goals for the firm, evaluating the various ways to meet the goals and picking out what appears to be the best way to meet the goals Controlling = Evaluating whether actual performance conforms with planned goals Decision making = Determination of predictive information (e.g. relevant costs) for making important business decisions
What is the primary focus of cost accounting?
Recording and reporting measurements of the cost of manufacturing goods and performing services
Management accountants are only concerned with providing financial reports to external parties.
False
What is the purpose of scorekeeping or data accumulation in management accounting?
Enables both internal and external parties to evaluate organizational performance and position.
What type of organizations can benefit from cost management information?
All of the above
Cost management information is only used for strategic management.
False
What is one of the strategic decisions that management must make regarding cost management?
Choice of products
Cost management information is needed to support recurring decisions such as _______________ equipment.
replacing and maintaining
Match the following types of management with their corresponding uses of cost management information:
Strategic Management = Making sound strategic decisions Planning and Decision-making = Supporting recurring decisions Management and Operational Control = Identifying inefficient operations Reportorial and Compliance = Complying with financial reporting requirements
Who develops and analyzes cost management information?
Management accountants
Cost management information is not used for financial reporting.
False
What is one of the reportorial and compliance responsibilities of management?
Complying with financial reporting requirements to regulatory agencies
Which of the following perspectives is concerned with identifying risks and developing responses to them?
Enterprise Risk Management Perspective
The Ethical Perspective is concerned with creating value for customers.
False
What is the key to a company's success according to the Strategic Management Perspective?
Creating value for customers while differentiating itself from its competitors.
The management accountant provides input that aids in developing ___________, building resources and capabilities, and implementing strategy.
strategy
Which of the following perspectives is concerned with understanding that business processes serve the needs of the company's most important stakeholders – its customers?
Process Management Perspective
The Corporate Social Responsibility Perspective is concerned with creating value for customers.
False
Match the following perspectives with their definitions:
Strategic Management Perspective = Creating value for customers while differentiating itself from its competitors Enterprise Risk Management Perspective = Identifying risks and developing responses to them Process Management Perspective = Understanding that business processes serve the needs of the company's most important stakeholders Ethical Perspective = Keeping the economy running smoothly
What is the role of the management accountant in the Strategic Management Perspective?
Providing input that aids in developing strategy, building resources and capabilities, and implementing strategy.
Study Notes
Strategic Management Perspective
- Creating value for customers while differentiating from competitors is key to a company's success.
- Management accountants provide input for developing strategy, building resources, and implementing strategy.
Enterprise Risk Management Perspective
- Enterprise Risk Management is a process to identify risks and develop responses to meet goals.
Corporate Social Responsibility Perspective
- Corporate Social Responsibility involves considering the needs of all stakeholders when making decisions.
Process Management Perspective
- Effective managers understand that business processes serve the needs of customers.
- A business process is a series of steps to carry out tasks.
Leadership Perspective
- Organizational leaders must unite diverse employee behaviors to achieve success.
Ethical Perspective
- Ethical behavior is essential for the economy to operate efficiently.
Users of Cost Management Information
- Cost management information is useful in all organizations, including business firms, government units, and non-profit organizations.
Uses of Cost Management Information
- Strategic management: making sound strategic decisions regarding products, manufacturing methods, and marketing techniques.
- Planning and decision-making: supporting recurring decisions such as equipment replacement, cash flow management, and budgeting.
- Management and operational control: providing a fair and effective basis for identifying inefficient operations and rewarding effective managers.
- Reportorial and compliance: complying with financial reporting requirements to regulatory agencies.
Management Accountant's Role
- Management accountants develop and analyze cost management information to provide information to managers.
- They are concerned with providing information for internal decision-making.
Tasks of Management Accountants
- Scorekeeping or data accumulation to evaluate organizational performance.
- Interpreting and reporting information to help managers focus on operating problems and opportunities.
- Problem-solving or quantification of the relative merits of possible courses of action.
Cost Management System
- The management accountant provides a system that allows management to receive necessary information for performing administrative functions.
- The system involves planning, controlling, and decision-making.
Relationship Between Cost Accounting and Cost Management
- Cost accounting is a systematic set of procedures for recording and reporting cost measurements.
- Cost management needs the output of cost accounting to provide managers with information for decision-making.
This quiz covers the strategic management perspective, including creating value for customers, enterprise risk management, corporate social responsibility, and more.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
