Recall the objectives, scope and limitations of managerial accounting and identify

whether each of the following is an objective, a scope or a limitation of managerial

accounting. 
1. Assisting the managers in directing and controlling domestic and international
operational activities. 

Answer: OBJECTIVE

2. Supplying information to the top management and to outsiders like shareholders,

banks and financial institutions. 

Answer: SCOPE

3. Financial accounting which is related to the recording of business transactions

immediately soon after the transaction has taken place.

Answer: OBJECTIVE

4. Assessing the organization's competitive position and working with other managers to
ensure the organization's long-run competitiveness in its industry. 

Answer: OBJECTIVE

5. Providing information for decision making and planning, and proactively participating

as part of the management team in the decision-making and planning processes.

Answer: OBJECTIVE

6. Cost control procedures that are an integral part of management accounting process.
These include inventory control, cost control, budgetary control, standard costing, and
others. 

Answer: LIMITATION
7. The techniques and tools suggested by the management accountant are not
alternatives or substitutes of good administration but in fact these are only to
supplement the sound management and administration. 

Answer: LIMITATION
8. Measuring the performance of activities, subunits, company officials like managers,
and other employees within the organization in discharging their respective duties and
responsibilities to contribute to the total business operating efficiency. 

Answer: SCOPE

9. Introduction and operation of management system in any organization requires a lot

of changes in the organizational structure, rules and regulations which are resisted by
the management itself as it creates difficulties in its successful operations. 

Answer: LIMITATION

10. The management accountant takes into consideration the past records provided by
the financial and cost accounting while making decisions for the future. If the past data
is not reliable, the decisions suggested by management accountant may be misleading

Answer: LIMITATION