Today we’ll learn Top “25” Questions and Answers- Introduction to Management Accounting.” Please read it with a proper concentration from top to bottom. You’ll get a basic idea of the Introduction to Management Accounting.
It will also enhance your management accounting knowledge and help you perform well on any competitive exam, job interview, etc.
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Questions and Answers- Introduction to Management Accounting
Question-01: What is Management Accounting?
Answer: Management accounting is a process of business and operational costs analysis to prepare internal financial reports and records. And the decision-making process aid managers in achieving business targets.
Question-02: What is Financial Accounting?
Answer: Financial accounting is an area in which financial transactions relating to a business are summarized, analyzed, and reported.
Question-03: What is Cost Accounting?
Answer: Cost accounting is the process by which various alternative measures for cost management are recorded, classified, analyzed, summarized, and allocated.
Question-04: What is a Management Audit?
Answer: The Management Audit is a systematic examination of the management’s decisions and actions to analyze the performance.
Question-05: What is the main objective of Management Accounting?
Answer: Provide accounting information for internal users in the company.
Question-06: What is the purpose of Management Accounting?
Answer: The purposes of management accounting are
- Decision Making
- Budgeting and forecasting
- Interpretation of Data
- Controlling the business.
Question-07: What are the Consequences of Management accounting in a modern Business?
Answer: The Consequences of Management accounting in a modern Business are as follows:
- Managing the business
- Budgeting Process
- Reduce Expenses
- Improve Cashflow
- Increase Financial Results
- Taking business Decision
Question-08: What is the scope of management accounting?
Answer: The following facts of management accounting indicate the scope of the subject
- Financial Accounting
- Cost Accounting
- Budgeting and Forecasting
- Cost Control Procedure
- Statistical Methods
- Legal provisions
Question-09: What are the techniques that are commonly used in Management accounting?
Answer: The techniques that are commonly used in Management accounting are as follows:
- Financial Statement Analysis
- Fund Flow Analysis
- Cash Flow Analysis
- Costing Techniques
- Budgetary Control
- Responsibility Accounting
- Management reporting
Question-10: Who are the users of managerial accounting information?
Answer: People within an organization are the users of managerial accounting information.
Question-11: What is the nature of management accounting?
Answer: Management accounting forecast and take future decisions based on past & present cost data.
Question-12: Are there any legal requirements to prepare reports in Management accounting?
Answer: No. There are no legal requirements to prepare reports in Management accounting.
Question-13: What are the roles of management accounting in an organization?
Answer: The roles of management accounting are as follows:
- Achieve their objectives or goals
- Formulate policy
- Monitor and assess the performance
- Plan for the future period
- Solve of variety of problems in a practical scenario.
Question-14: What does ethics mean?
Answer: Ethics is a philosophical branch that includes the systematization, defense, and recommendation of concepts of right and wrong behavior.
Question-15: What are the ethical responsibilities of management accounting?
Answer: The ethical responsibilities of management accounting are as follows:
Question-16: What is the Value Chain?
Answer: The value chain is a set of activities carried out by a company operating in a specific industry to provide the market with a valuable product or service.
Question-17: What is the budget?
Answer: A financial plan for a defined period, usually a year, is a budget.
Question-18: What is the full meaning of IMA and CMA?
IMA= Institute of Management Accountants.
CMA= Certified Management Accountant
Question-19: What is a Performance Report?
Answer: A Performance report is a report on the performance of something.
Question-20: What is decision making?
Answer: Decision-making is considered the cognitive process that leads to the choice between several alternative possibilities of a course of action.
Question-21: What is budgetary control?
Answer: Budgetary control includes the framing of budgets, the comparison of actual results with budgeted estimates, the determination by calculation of variances of any deviation of actual results from budgeted estimates, and the adoption of necessary corrective measures against such variation.
Question-22: What is the full form of JIT, TOC, and TQM?
JIT= Just in Time
TOC=Theory of Constraints
TQM=Total Quality Management
Question-23: What is benchmarking?
Answer: Benchmarking compares one’s business processes and performance metrics with other firms’ best and best practices in the industry.
Question-24: What do you mean by Total Quality Management?
Answer: Total Quality Management (TQM) consists of organizational efforts to establish and permanently create an environment in which an organization can constantly provide clients with high-quality products and services.
Question-25: What is meant by the theory of constraints (TOC)?
Answer: The theory of constraints identifies the main limiting factor to achieve an objective and then systemically improve this limitation until it no longer constitutes the limiting factor.
I hope, at the end of the article, you have a basic idea about the introduction to management accounting. Read these Top “25” Questions and Answers- introduction to Management Accounting regularly and improve your accounting skills and knowledges.
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