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Management Information and Planning Quiz

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7 views3 pages

Management Information and Planning Quiz

Uploaded by

hangocthuyly1
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Multiple choice questions

1. Which TWO of the following statements about qualities of good information are true?
A. It should be relevant for its purposes.
B. It should be communicated to the right person.
C. It should be completely accurate.
D. It should be provided whatever the cost.

2. The sales manager has prepared a staffing numbers plan to ensure that sales quotas for the
forthcoming year are achieved. This is an example of what type of planning?
A. Strategic planning
B. Tactical planning
C. Operational planning
D. Corporate planning

3. Which TWO of the following statements about management accounting information are true?
A. It may include non-financial information.
B. It is required by law to be produced.
C. It is used to aid planning.
D. It is for use by parties external to the organisation.

4. Which of the following statements are correct?


(1) A management control system is a term used to describe the hardware and software used to
drive a database system which produces information outputs that are easily assimilated by
management.
(2) An objective is a course of action that an organisation might pursue in order to achieve its
strategy.
(3) Information is data that has been processed into a form meaningful to the recipient.
A. (1), (2) and (3)
B. (1) and (3) only
C. (2) only
D. (3) only

5. Good information should have certain qualities. Which TWO of the following are required as
qualities of good management information?
A. Complete
B. Extensive
C. True and fair
D. Accurate

6. Monthly variance reports are an example of which of the following types of management
information?
A. Tactical
B. Strategic
C. Non-financial
D. Operational

7. Which of the following statements are correct?


(1) Information for decision making should incorporate uncertainty in some way.
(2) The data used to prepare financial accounts and management accounts are the same.
A. (1) is true and (2) is false
B. (2) is true and (1) is false
C. Both are true
D. Both are false

8. Which of the following processes occurs at the business planning stage?


A. Comparing actual performance with budget
B. Establishing objectives
C. Obtaining data about actual results
D. Taking corrective action

9. Which of the following statements is correct?


A. Management accounting systems provide information for use in fulfilling legal requirements.
B. Management accounting systems provide information for the use of decision makers within an
organisation.
C. Management accounting systems provide information for use by shareholders.
D. Management accounting systems provide information for use by tax authorities.
10. Which TWO of the following are data rather than information?
A. Sales increase/decrease per product in last quarter
B. Total sales value per product
C. Total material usage
D. Sales staff commission as a percentage of total sales

Common questions

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Tactical planning is focused on achieving specific targets or quotas, such as in the staffing plan prepared by a sales manager to meet sales quotas, while strategic planning involves long-term and overall organizational objectives .

Management control systems involve the tools and processes for managing and producing information, whereas strategic objectives are specific courses of action developed to achieve overarching organizational goals .

Good management information should be "complete" and "true and fair" to ensure it serves its purpose effectively .

Operational planning in management accounting is evidenced by activities like monthly variance reports, which provide insights into how operations are performing against plans .

In decision-making, information should incorporate uncertainty because decisions are often made in environments where all variables cannot be controlled or predicted, thus requiring managers to consider potential risks .

Management accounting information is not required by law; it is used internally by organizations to aid in planning and decision-making, as opposed to financial accounting which is legally mandated for external reporting .

Information gains value through processing, transforming raw data into insights that are meaningful to recipients, thereby enhancing their ability to make informed decisions .

Establishing objectives is a forward-looking process focused on setting goals for future performance, whereas taking corrective action is reactive, aimed at addressing deviations from expected outcomes to realign with established objectives .

Data, such as total material usage or sales increase per product, are raw figures without context, while information is derived from processing data into a meaningful form, like understanding trends over time or making decisions based on analyzed outcomes .

Management accounting systems provide information specifically to support internal decision-making processes, unlike financial accounting systems whose outputs are intended for external stakeholders such as tax authorities or shareholders .

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