1.Which of the following statements are correct?
(i) Strategic information is mainly used by senior management in an organization.
(ii) Productivity measurements are examples of tactical information.
(iii) Operational information is required frequently by its main users.
A. (i) and (ii) only
B. (i) and (iii) only
C. (ii) and (iii) only
D. (i), (ii) and (iii)
2. Reginald is the manager of production department M in a factory which has ten other production departments.
He receives monthly information that compares planned and actual expenditure for
department M. After department M, all production goes into other factory departments to be completed prior to being dispatched to customers. Decisions involving capital expenditure in department M are not taken by Reginald.
Which of the following describes Reginald's role in department M?
A. A cost cent re manager
B. An investment center manager
C. A revenue center manager
D. A profit center manager
Reginald is only responsible for costs
3. Which of the following is NOT CORRECT?
A. Cost accounting can be used for inventory valuation to meet the requirements of internal reporting only
B. Management accounting provides appropriate information for decision making,
planning, control and performance evaluation
C. Routine information can be used for both short-term and long-run decisions
D. Financial accounting information can be used for internal reporting purposes
Cost accounting can be used for inventory valuation to meet the requirements of both internal reporting and external financial reporting.