A The nature, source and purpose of management information

Which of these is a feature of management accounting information, compared with financial accounting?

• 1 It must follow IFRS Accounting Standards
• 2 It is published for shareholders
• 3 It only reports past transactions
• 4 It is prepared for internal use and can look to the future

What is the difference between data and information?

• 1 Data is always more reliable than information
• 2 Information is data that has been processed into a form that is useful to the user
• 3 Information is raw facts and figures
• 4 They mean the same thing

Which cost is a non-production cost?

• 1 Factory rent
• 2 The salaries of sales staff
• 3 Direct materials
• 4 The wages of machine operators

A cost has a fixed element of $2,000 a month and a variable element of $3 per unit. What is the cost at 1,500 units?

• 1 $2,000
• 2 $4,500
• 3 $6,500
• 4 $8,000

Which is an example of a stepped fixed cost?

• 1 Electricity charged per kilowatt hour
• 2 Raw materials used per unit
• 3 A fixed annual insurance premium for one factory
• 4 A supervisor who is needed for every 20 additional workers

A manager is responsible for both the revenue and the costs of a division, but not for the assets used. What kind of centre does the manager run?

• 1 A profit centre
• 2 A cost centre
• 3 An investment centre
• 4 A revenue centre

Which of these is secondary data?

• 1 The entity's own sales invoices
• 2 Statistics published by a government agency
• 3 Readings from a sensor on the entity's machine
• 4 Results of a survey the entity ran itself

Which chart is most suited to showing each product's share of total sales?

• 1 A scatter graph
• 2 A frequency table only
• 3 A line graph
• 4 A pie chart