Chapter 1

Controlling is

Determining if the company is operating in accordance with the developed plans and in the intended manner to achieve its goals

The purpose of comparing actual data to budgeted data is to

Direct attention to an issue

Organized set of activities

Directing, decision making, planning, controlling

A line position

Directly involved in achieving the basic objectives of an organization

Which of the following is incorrect regarding activity based costing (ABC)

ABC is a system that focuses on the historical cost accounting perspective

Accounting system

Accumulated financial and managerial accounting data in the cost accounting system

A cost management system that emphasizes an organizations activities is sometimes called ____ accounting

Activity

Managerial accounting is used by

All company managers

Practical capacity

Allows for normal occurrences such as cash register downtime and cashier fatigue or illness

The organization which focuses on the competence of accountants working outside of an organization and passing judgments about the reliability of accounting reports for the public is

American institute of CPA's

An objective of managerial accounting is

Assisting managers in directing and controlling

Comparing actual data to budgeted data is an example of an ______ activity

Controlling

Data about the cost of producing the company's outputs is accumulated in the ____ accounting system

Cost

Data about the costs of producing the company's outputs is accumulated in the ____ accounting system

Cost

Choosing among available alternatives is called

Decision making

The use of accounting information for reporting to parties outside the organization is _____ accounting

Financial

Managerial account is the process of

Identifiying, measuring, analyzing, interpreting and communicating information

Managerial Accounting

Information for decision making, planning, and controlling an organizations operations

Which of the following organizations focuses on best practices and developments in managerial accounting

Institute of Management Accountants

Financial accounting information focuses on

Investors, unions, stockholders and consumers

What type of accounting is used to gather information in pursuit of an organizations goals

Managerial

Some objectives of a cost management system are to

Measure the cost of resource consumed Identify and eliminate non-value-added costs Evaluate new activities

Cost management systems objectives

Measure the cost of resources consumed Identify and eliminate non-value-added costs Determine efficiency and effectiveness of major activities Identify and evaluate new activities that can improve performance

Managers in staff positions are

Only indirectly involved in operational activities

What types of organizations use managerial accounting information

Profit seeking and nonprofit seeking

Financial accounting

Published financial statements and other financial reports

Institute of Management accountants (IMA)

Publishes, Administers, and Develops

Treasure is responsible for

Raising capital and safeguarding the organizations assets

Internal auditor is responsible for

Reviewing accounting procedures, records and reports in both the controllers and the treasures area of responsibility

Strategic cost management and the value chain order

Securing raw materials and other resources Research and development Product design Production Marketing Distribution Customer service

Treasurer examples include

Supervises relationships with financial institutions Work with investors and potential investors Manages investments Establishes credit policies Manages insurance coverage

The chief managerial and financial accountant is responsible for

Supervising accounting personnel Preparation of information and reports, managerial and financial Analysis of accounting information Planning and decision making

A staff position

Supports and assists line positions

Theoretical capacity

The upper limit on the amount of goods and services if everything works perfectly

Professional Ethics

competence, confidentiality, integrity, credibility