Question

Managerial accounting is primarily focused on

Select one:

A. following generally accepted accounting principles.

B. providing internal special-purpose information and reports.

C. providing information for internal and external users.

D. providing general purpose financial statements.

Which of the following phrases is most descriptive of financial accounting?

Select one:

A. Subject to cost-benefit analysis

B. Future-oriented

C. Follows GAAP

D. May measure time or customer satisfaction

Which of the following phrases is primarily relevant to managerial accounting as opposed to financial accounting?

Select one:

A. Helping managers make decisions

B. Summarizing information about past events

C. Calculating earnings per share for shareholders

D. Preparing periodic financial statements

According to Michael Porter, which of the following is an example of product or service differentiation as a business strategy?

Select one:

A. An online bookseller utilizing efficient scale facilities and overhead cost control.

B. A regional beer brewer that caters to local tastes.

C. A manufacturer focused on designing and building corporate jet aircraft.

D. An automobile manufacturer that focuses on the rapid introduction of technological change in new automobile design.

Product or service differentiation involves

Select one:

A. any changes made to a product or service.

B. creating something that is perceived as unique and worth a premium price.

C. the use of new technologies in manufacturing.

D. shifting sales to growing markets.

Answer 1

Answer.1

Option B is correct.

Managerial accounting unlike financial accounting which focuses on historical data involves the review of management's forecast or budget with the actual results obtained.

It is used by management for internal decision making unlike financial accounting which follows a defined framework that is useful for both internal and external users of the financials.

Hence, Managerial accounting is primarily focused on Providing special-purpose information and reports.

Answer.5

Option B is correct.

It allows the seller to contrast its own product with competing products in the market and emphasize the unique aspects and dramatic changes that make its product superior and a premium quality so that customers pays high prices.

Answer. 2

Option C is correct.

Management accounting is future oriented Whereas Financial accounting is past oriented.
Management accounting measurement and reporting does not have to follow GAAP but are based on cost-benefit analysis and also focus on time and customers satisfaction.But Financial accounting measurement and reporting must be prepared in accordance with GAAP and be certified by external, independent auditors.

Answer.3

Option A is correct.

Financial accounting is focused on historical data, and prepare the quarterly or annually reports for the external users of organization like creditors, govt, investors etc.

While management Accounting is for internal decision making ,internal management reports for internal management.

Answer. 4

Option D is correct.

Michael Porter’s generic cost leadership strategy :

A differentiation strategy advocates that a business must offer products or services that are valuable and unique to buyers above and beyond a low price.

The ability for a company to offer a premium price for their products or services hinges upon how valuable and unique these offerings are in the marketplace.

A differentiator invests its resources to gain a competitive advantage from superior innovation, excellent quality and responsiveness to customer needs.