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