Management accounting, as defined by the IMA, uses the expertise of the management accountant to

Management accounting, as defined by the IMA, uses the expertise of the management accountant to

A) improve quality and reduce manufacturing cost.

B) implement a strategy of cost leadership or differentiation.

C) implement a tactic of customer value and shareholder value.

D) improve business performance and the life-cycle of operations.


Answer: B) implement a strategy of cost leadership or differentiation.

Which of the following documents is used as a basis for posting to the DM section of the job cost sheet?

A Purchase requisition
B material req
C Receiving report
D Purchase order
E Time Card


Answer: B

The IMA definition of management accounting states that

A) management accounting is the process of gathering, reporting, and analyzing information for management decision making.

B) management accounting is a profession that involves preparation and analysis of cost information, budgeting, and performance measurement and analysis to assist managers in decision making.

C) management accounting involves partnering in management decision making, planning, and performance measurement to assist in the formulation and implementation of an organization's strategy.

D) management accounting is a set of practices in which accountants, working within companies, help managers to make better decisions based on accurate financial information.


Answer: C) management accounting involves partnering in management decision making, planning, and performance measurement to assist in the formulation and implementation of an organization's strategy.