True/false

1. Management accounting focuses on external reporting.

2. Financial accounting is broader in scope than management accounting.
3. The balance sheet, income statement and statement of cash flows are used for financial
accounting but not for management accounting.
4. Cost accounting doesn’t have a role in management decision making.
5. Linking rewards to performance is a major deterrent to good management performance.
6. To take advantage of changing market opportunities, the annual budget should be strictly
enforced.
7. A good cost accounting system is narrowly focused on continuous reduction of cost.
8. Financial accounting reports financial and nonfinancial information that helps manager
implement company strategies.
9. Planning includes deciding what feedback to provide that will help with future decision making.
10. Financial accountants often simultaneously doing problem-solving, scorekeeping, and attention-
directing activities.
11. A budget maybe used as a planning tool but not as a control tool.
12. For strategic decisions, scorekeeping is the most prominent role played by the management
accountants.
13. Attention-directing activities should focus on cost reduction opportunities, and not on value-
adding opportunities.
14. A budget is not a tool used to plan and express strategy.
15. Management accounting provides information that is generally available only on a quarterly or
annual basis.
16. Financial accounting reports include detailed information on the various operating segments of
the business such as product lines or department.
17. The person least likely to use management accounting information is an assembly department
supervisor.
18. Management accounting information is verifiable and reliable.
19. Financial accounting is concerned primarily with profitability analysis.
20. Financial accounting provides historical perspective, whereas management accounting
emphasizes current perspective.
21. For control decisions, emphasis is placed on the problem-solving role(s) of management
accounting.
22. Scorekeeping means reporting and interpreting information that helps managers to focus on
operating problems, imperfections, inefficiencies, and opportunities.
23. Management accounting is only considered successful when it is accurate.
24. Operational control, management control, and product and customer costing are functions of
management accounting system.
25.