Chapter 18

Financial accounting provides information for (internal/external) _________ users, while managerial accounting provides information for (internal/external) _____________ , decision makers.

Financial accounting provides information for external users, while managerial accounting provides information for internal decision makers.

Managerial accounting report both monetary and nonmonetary information. (3) Examples of nonmonetary information include:

1. Employee Satisfaction Data 2. Employee Diversity 3. Percentage of On-Time Deliveries

(3) What types of information does managerial accounting provide?

1. Non- Financial 2. Info for managers 3. Financial

The managerial accountant at XYZ Company told her friend that the company expects to announce a major recall in a few weeks. The friend promptly sells all her stock in XYZ. The accountant violated which IMA requirement? A. Credibility B. Confidentiality C. Integrity D. Competence

A and B

Managerial accounting has which of the following characteristics? A. Information is usually available only after an audit B. Primarily focuses on past performance using historical information C. Includes mostly monetary and some nonmonetary information D. Emphasis is on projects, processes, and divisions focus is on internal users

B, C, and D.

T/F Factory overhead includes all manufacturing costs except direct materials and direct labor.

True

T/F Managerial accounting provides information to internal managerial and executive employees who are in charge of a company's business activities.

True

T/F The main purpose of managerial accounting is to provide relevant information to its managers.

True

What kind of performances does managerial accounting use?

current performances and future projections

Those who work directly on the product to convert raw materials into a finished product are known as

direct labor

Costs which are crucial parts of the finished product are called

direct materials

Managerial accounting primarily provides information to

internal users

The use of managerial accounting is different from the use of financial accounting in that:

managerial accounting is used in planning and controlling decisions and financial accounting is used in making investment and credit decision.

In addition to monetary information, managerial accounting reports information.

non-monetary or non-financial

What kind of performances does financial accounting use?

past performances and historical information