Introduction to Managerial Accounting
What is the primary purpose of managerial accounting?
To provide information to internal users for decision-making, planning, and controlling.
What is ethical behavior?
Knowing right from wrong and doing the right thing.
What determines the type of information managers need?
The organization’s strategy.
What function involves setting goals and determining how to achieve them?
Planning.
Who are the primary users of financial accounting?
External users, such as investors and creditors.
Name one key difference between financial accounting and managerial accounting.
Managerial accounting focuses on internal users, while financial accounting focuses on external users.
Name one of the four standards in the IMA Statement of Ethical Professional Practice
Competence, confidentiality, integrity, or credibility.
Name a tool used to monitor progress toward strategic goals.
Balanced Scorecard.
Which function ensures activities align with the organization’s goals?
Controlling.
What standards guide financial accounting practices?
Generally Accepted Accounting Principles (GAAP).
What type of information is typically used in managerial accounting?
Both financial and non-financial information.
What is a corporate code of conduct?
A set of guidelines that defines acceptable behaviors for employees.
How does a low-cost strategy influence information needs?
It requires detailed cost and variance information.
What function assesses actual results compared to planned results?
Evaluating.
Is managerial accounting forward-looking or historical in focus?
Forward-looking.
What is one major role of a managerial accountant?
Assisting management in decision-making, planning, and controlling operations.
What is whistleblowing?
Reporting unethical behavior within an organization.
What is supply chain management?
Managing relationships and flows within a supply chain to meet strategic goal
Which function involves choosing between alternative actions?
Decision-making.
Which accounting type emphasizes accuracy to the penny?
Financial accounting.
What governing body sets standards for managerial accounting?
There is no governing body; managerial accounting practices are internally developed.
Why is ethical behavior important in managerial accounting?
It ensures trust, prevents illegal actions, and supports long-term success.
What is an ERP system?
Enterprise Resource Planning system used to collect and share data organization-wide.
How does evaluating help in managerial functions?
It identifies areas where performance needs improvement.
What is the level of detail in managerial accounting reports compared to financial accounting?
Managerial accounting provides detailed information for specific segments, while financial accounting summarizes the organization as a whole.