WOLLEGA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICs

DEPARTMENT OF ACCOUNTING AND FINANCE
COST& MANAGEMENTACCOUNTINGT EST I FOR LOGISTIC & CHAIN MANAGEMENT 2nd yr

Weight: 10% Time allowed: 30 minute

Name: ____________________________________ id no: _______ sec: ______ sign ______

Part one: say true if the statement is Correct and false if not (1 point each)

1. Management accounting is a management information system, which analyses past, present, and
future data to provide the basis for managerial decision making.

2. Financial accounting is not bound by GAAPs.

3. Reveals idle capacity is a cost accounting system can easily work out the cost of idle capacity so
that management may take immediate steps to improve the position.

4. Financial accounting is places considerable weight on non monetary data.

Part two: choose the best answer among the given alternatives

5. ------------- is it measures and records business transactions and provides financial statements that
are based on GAAPs.
A. Cost accounting B. Financial Accounting

C. Management accounting D.A&B E. None F. All

6. -----------------is cost accounting enables management to make cost comparisons of various jobs,
products, departments.

A. Facilitates cost comparison C .Aids in formulating policies E.ALL

B. Ascertainment of cost D .inventory control F.NONE

7. Wich one is true about Management accounting & financial accounting .

A. Financial accounting is primarily concerned with reporting for the company as a whole &
Management accounting is primary focuses much more on the parts.

B. Financial accounting focuses on internal reporting &Management accounting focuses on reporting to

external parties.

C. Management Accounting is analysis of relevant cost data for interpretation and presentation for
various problems of management & Financial Accounting is which has been developed to meet the
managerial needs of business.

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D. ALL E. None

Part three: discussion.

1, List & Explain objectives of cost accounting

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