Managerial Accounting Final Exam Practice Questions and Answers

trategy - An accepted definition does not exist - General direction to achieve goals and objectives derived from the organization's mission (purpose) and vision ( how it wants to be perceived by the outside world) Planning - Selecting a course of action. - Must balance opportunities against resources - Requires input from analysis such as a budget Implementation - Carrying out day to day activities - Making short term and long term decisions - Managerial tools such as cost analysis and cost-volume-profit can be used Control - Obtaining feedback to ensure the organization is moving toward the goals - likely involves a performance report that compares actuals to budgeted Managerial Accounting and Financial Accounting - Managerial accounting provides information for managers of an organization who direct and control its operations. - Financial accounting provides information to shareholders, creditors, and others who are outside the organization. Aspects of Managerial Accounting - For Managers - Emphasis on the Future - Emphasis on Relevant Data (less on verifiability) - Emphasis on timeliness (less on precision) - Focus segments rather that the whole organization - No prescribed standards - Not mandatory