Which is not a advantage of management accounting?
Accounting involves some level of estimates but it is not completely based on estimates. Also, estimates used may sometimes not provide the accurate information for accounting and hence is not an advantage.
Budgeting, Trend Analysis, and Forecasting
Managerial accounting also helps in analyzing information related to capital expenditure decisions with the use of standard capital budgeting metrics, such as NPV and IRR. It assists decision-makers on whether to invest in capital-intensive projects or purchases or not.
Costly Installation
The cost of installation of management accounting system is very high. Hence, a small business organization can not bear the cost of such installation. Moreover, the utility of this system is restricted only to big and complex organizations.
Management accounting helps organizations improve their ability to control costs and plan for the future through financial forecasts. It also focuses on providing reports to ensure comprehensive management oversight.
Solution : Policy making is not an objective of management. It is in fact a process that involves the setting up of goals and objectives for the organisation and the determining the ways to achieve the desired goals.
Management briefly refers to the process of dealing with or controlling people or things. Planning, staffing, controlling are covered under this definition. Hence, co-operating is not a function as such, of management. Was this answer helpful?
- Better Planning: MBO invokes setting of goals and targets through active participation of both superiors and subordinates. ...
- Better Organisation: ...
- Self – Control: ...
- Higher Productivity: ...
- Better Appraisal of Performance: ...
- Executive Development:
| Advantages | Disadvantages |
|---|---|
| It helps in planning business activities based on budgeting and forecasting | Decisions made under management accountant, may not be implemented |
| It helps in wastage of time | It will impact the business, if not found reliable |
- Emphasis on Short Term Goals: below Management by Objectives goals are set just for a brief period, say for 6 months or one year. ...
- Costly and Time overwhelming method: Management by Objectives is sort of expensive and a time overwhelming process.
Accounting does not provide any help in protecting and controlling strategic policy formulation.
Which is not a limitation of management accounting Mcq?
"Evidence in legal matters" is not a limitation of accounting.
- It never shows the market value of assets.
- It gives unrealistic information.
- It ignores the qualitative elements.
- It ignores effect of price level changes.
- Depends upon personal judgments.
- It gives historical facts not current worth.
- It is based upon estimations.
- It is not fully exact.
| Q. | One of the following is not within the scope of Management Accounting |
|---|---|
| B. | Classification and collection of costs |
| C. | Planning and co-ordinating the activities of the enterprise |
| D. | Decision making on alternative courses of action |
| Answer» b. Classification and collection of costs | |
Management accounting is also referred to as managerial accounting and is a discipline that is helpful in providing the management with financial information and the appropriate resources that will help managers in decision making.
Policy-making is the process of formulating policies on the basis of which the company or an organization works. Top executives and directors usually brainstorm and decide upon the policy to be adopted. Hence, policy-making is not an objective of management. Was this answer helpful?
Expert-verified answer
Employee punishment is not an objective of operations management.
Growth is not an organisational objective of management.
Accounting does not provide any help in protecting and controlling strategic policy formulation.
| Advantages | Disadvantages |
|---|---|
| It helps in planning business activities based on budgeting and forecasting | Decisions made under management accountant, may not be implemented |
| It helps in wastage of time | It will impact the business, if not found reliable |
Management briefly refers to the process of dealing with or controlling people or things. Planning, staffing, controlling are covered under this definition. Hence, co-operating is not a function as such, of management. Was this answer helpful?
Which of the following is not a management accounting tool?
This is Expert Verified Answer
The main instrument of management accounting is financial statement analysis. We collect four income reports in this tool: a financial statement, a balance sheet, a cash flow statement, and a fund flow statement. A profit and loss statement is not a financial analytical tool.
Accounting have concept of Matching, Dual aspect and Going concern but there is no concept of true and fair concept. Was this answer helpful?
"Evidence in legal matters" is not a limitation of accounting.
There is no Accounting convention named as Secrecy.
- Emphasis on Short Term Goals: below Management by Objectives goals are set just for a brief period, say for 6 months or one year. ...
- Costly and Time overwhelming method: Management by Objectives is sort of expensive and a time overwhelming process.
| Advantages of Cost Accounting | Disadvantages of Cost Accounting |
|---|---|
| Helps in forecasting | Proper maintenance is required. |
| Helps in preparation of financial accounts | Expertise is required to record |
| Fraud can be reduced | Complex system |
...
| Q. | What are the characteristics of management accounting? |
|---|---|
| D. | All of the above |
| Answer» d. All of the above | |
| Q. | Which of the following are tools of management accounting? A) Decision accounting B) Standard costing C) Budgetary control D) Human Resources Accounting |
|---|---|
| B. | A, C and D |
| C. | A, B and C |
| D. | A, B , C, D |
| Answer» c. A, B and C | |
(b) Management by objectives is not a technqiue of control.
The correct answer is Option B
The management prepares its report prior to the report submitted by the auditor. Hence it cannot be included in Management Report.
