In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT

Question 1 pts

In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT:

image1.wmf	provide objective measures of past operations and subjective estimates about future decisions
image2.wmf	be prepared in accordance with generally accepted accounting principles

image3.wmf	be provided at any time management needs information
image4.wmf	be prepared to report information for any unit of the business to support decision making

Question 2 pts

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

image5.wmf	Investors
image6.wmf	Managers

image7.wmf	Employees
image8.wmf	Customers

Question 3 pts

What is the primary criterion for the preparation of managerial accounting reports?

image9.wmf	Relevance of the reports
image10.wmf	Meet the manager needs

image11.wmf	Timing of the reports
image12.wmf	Cost of the reports

Question 4 pts

Which of the following is most associated with financial accounting?

image13.wmf	Can have both objective and subjective information.
image14.wmf	Can be prepared periodically, or as needed.

image15.wmf	Prepared in accordance with GAAP
image16.wmf	Can be prepared for the entity or segment.

Question 5 pts

Managerial accounting reports must be useful to the user of the information.

image17.wmf	True
image18.wmf	False

 Question 6 pts

Planning is the process of setting goals for the use of an organization’s resources and of developing ways to achieve these goals.

image19.wmf	True
image20.wmf	False

 Question 7 pts

Managerial accounting provides useful information to managers on product costs.

image21.wmf	True
image22.wmf	False

 Question 8 pts

Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for creativity and change.

image23.wmf	True
image24.wmf	False