Possum Ltd is now engaged solely in a service industry having previously been involved in manufacturing. Its chief accountant is considering which of the following management accounting processes the company needs to retain: I Capacity Planning Normal II Inventory valuation III Production planning IV Workforce planning
A IV only
B I and III only
C II and III only
D II and IV only
Consider the following statements in relation to management information: I It should always be provided regardless of its cost II It should not be provided until it is as detailed as possible III It is data that has been processed so as to be meaningful to the recipient Which of the above statements is/are true of good management information?
A I only
B III only
C I and II only
D II and III only
Which of the following are characteristics of management accounting information? I Not legally required II Used by all stakeholders III Non-financial as well as financial IV Concerned with cost control only
A I and III only
B II and IV only
C I, II and III only
D I, III and IV only
Which of the following statements about cost and management accounting are true? I There is a legal requirement to prepare management accounts II The format of management accounts may vary from one business to another III Management accounting provides information to help management make business decisions IV Cost accounting cannot be used to provide information for inventory valuations for external financial reporting
A I and II only
B I and IV only
C II and III only
D III and IV only
A management control system is
A a system that controls and maximises the profits of an organisation.
B a collective term for the hardware and software used to drive a database system.
C a possible course of action that might enable an organisation to achieve its objectives.
D a system that measures and corrects the performance of activities of subordinates in order to make sure that the objectives of an organisation are being met and their associated plans are being carried out.
Which of the following statements is/are true? I Information is the raw material for data processing. II External sources of information include an organisation's financial accounting records. III The main objective of a non-profit making organisation is usually to provide employment to its staff.
A I and III only
B II and III only
C I, II and III
D None of the above
Wateraid is a charity providing relief for victims of drought in Africa. A fund-raising brochure produced by the charity contains the following statement: 'Wateraid aspires to be the largest charitable provider of clean water services for Africa.' The statement is an example of the charity's
A vision.
B mission.
C strategy.
D objective
Genzyme Ltd operates its business in four geographical regions. The sales director has decided that the company needs to increase its market share in the next five years and as a result has decided to establish a sales quota for next year which is to be achieved by each of the regions. The setting of a quarterly sales target for each sales representative is an example of
A a tactical plan.
B a strategic plan.
C an operational plan.
D a management control plan