Chapter 1: Managerial Accounting questions with correct answers

What is the definition of Managerial Accounting? Correct Answer-provides economic and financial information for managers and other *internal* users. How many ways does managerial accounting differ from financial accounting? List the differences. Correct Answer-5: 1. Primary Users of reports 2. Types and frequency of reports 3. Purpose of reports 4. Content of reports 5. Verification process Name 8 activities Managerial Accountants engage in. Correct Answer-1. Explaining manufacturing and nonmanufacturing costs and how they are reported in the financial statements. 2. Computing the cost of providing a service or manufacturing a product. 3. Determining the behavior of costs and expenses as activity levels change and analyzing cost-volume-profit relationships within a company. 4. Accumulating and presenting data for management decision making. 5. Determining prices for external and internal transactions. 6. Assisting management in profit planning and formalizing these plans in the form of budgets. 7. Providing a basis for controlling costs and expenses by comparing actual results with planned objectives and standard costs. 8. Accumulating and presenting data for capital expenditure decisions.