ACC 212 Chapter 14 - Managerial Accounting Concepts and Principles
ACC 212 Chapter 14 - Managerial Accounting Concepts and Principles
Study online at https://quizlet.com/_3oh3j9
1. Managerial accounting d
produces information (a)
to meet internal users'
needs, (b) to meet a
user's specific needs, (c)
often focusing on the fu-
ture, or (d) all of these.
2. What is the difference Financial accounting information is intended for users external to an
between the intended organization such as investors, creditors, and government authorities.
users of financial and Managerial accounting focuses on providing information to managers,
managerial accounting? officers, and other decision makers within the organization.
3. Do generally accept- No, GAAP do not control the practice of managerial accounting. Unlike
ed accounting principles external users, the internal users need managerial accounting infor-
(GAAP) control and dic- mation for planning and controlling business activities rather than for
tate managerial account- external comparison. Different types of information are required, de-
ing? pending on the activity. Therefore it is difficult to standardize managerial
accounting.
4. Which type of cost be- Variable costs increase when volume of activity increases.
havior increases total
costs when volume of ac-
tivity increases?
5. How could traceability of By being able to trace costs to cost objects (say, to products and depart-
costs improve manageri- ments), managers better understand the total costs associated with a
al decisions? cost object. This is useful when managers consider making changes to
the cost object (such as when dropping the product or expanding the
department).
6. What are the three types Raw materials inventory, work in process inventory, and finished goods
of inventory on a manu- inventory.
1/2
1
ACC 212 Chapter 14 - Managerial Accounting Concepts and Principles
Study online at https://quizlet.com/_3oh3j9
1. Managerial accounting d
produces information (a)
to meet internal users'
needs, (b) to meet a
user's specific needs, (c)
often focusing on the fu-
ture, or (d) all of these.
2. What is the difference Financial accounting information is intended for users external to an
between the intended organization such as investors, creditors, and government authorities.
users of financial and Managerial accounting focuses on providing information to managers,
managerial accounting? officers, and other decision makers within the organization.
3. Do generally accept- No, GAAP do not control the practice of managerial accounting. Unlike
ed accounting principles external users, the internal users need managerial accounting infor-
(GAAP) control and dic- mation for planning and controlling business activities rather than for
tate managerial account- external comparison. Different types of information are required, de-
ing? pending on the activity. Therefore it is difficult to standardize managerial
accounting.
4. Which type of cost be- Variable costs increase when volume of activity increases.
havior increases total
costs when volume of ac-
tivity increases?
5. How could traceability of By being able to trace costs to cost objects (say, to products and depart-
costs improve manageri- ments), managers better understand the total costs associated with a
al decisions? cost object. This is useful when managers consider making changes to
the cost object (such as when dropping the product or expanding the
department).
6. What are the three types Raw materials inventory, work in process inventory, and finished goods
of inventory on a manu- inventory.
1/2
1
