Practice Management Accounting (1.3.2) - Introduction to Accounting - ICSE 11 Accountancy

Practice: Management Accounting

Lesson 1.3.2Introduction to Accounting

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8 questions

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2 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
2 questions · about 1 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is management accounting?
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Think about internal versus external stakeholders.
Question 2.
Name one output of management accounting.
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These are tools used specifically by managers.
3Question 3.
What is the primary purpose of management accounting?
- To prepare financial statements for external users
- To assist internal management in decision-making
- To ensure legal compliance
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Think about who uses the information.
4Question 4.
True or False: Variance analysis only shows where expenses exceed budgets.
- True
- False
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Can variance analysis show potential savings?
Question 5.
A company estimates its yearly marketing budget to be $50,000. At year-end, actual spending is $75,000. Discuss what steps management might take in response to this outcome using variance analysis.
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What aspects did not go as planned?
Question 6.
You’re a manager who has a budget for operational expenses of $100,000. If actual performance at year-end shows expenses of $80,000, what impacts might this have on managing future budgets?
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Good news is from under-spending. How can it be used?

4 more questions in this section. Enroll free to practise them all.