Which of these statements are true of marginal costing?
(i) The contribution per unit will be constant if the sales volume increases.
(ii) There is no under- or over-absorption of overheads.
(iii) Marginal costing does not provide useful information for decision making.
Total contribution will increase as sales volume increases, but the contribution per unit will be constant as long as the sales price and variable cost per unit are unchanged. Overhead is not absorbed to product unit so there is no under/over absorption of overhead. Marginal costing does provide useful information for decision making because it highlights contribution, which is a relevant cash flow for decision-making purposes.
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Which of the following statements about management accounting information is/are true?
(i) They must be stated in purely monetary terms.
(ii) Limited companies must, by law, prepare management accounts.
(iii) They serve as a future planning tool and are not used as an historical record.
Which of the following statements is/are correct?
(i) A management control system is a term used to describe the hardware and software used to drive a database system which produces information outputs that are easily assimilated by management.
(ii) An objective is a course of action that an organisation might pursue in order to achieve its strategy.
(iii) Information is data that has been processed into a form meaningful to the recipient.
Good information should have certain qualities. Which of the following are qualities of good information?(i) Complete(ii) Extensive(iii) Relevant(iv) Accurate
Monthly variance reports are an example of which one of the following types of management information?
Which of the following statements is/are correct?
(i) Information for decision-making should incorporate uncertainty in some way
(ii) The data used to prepare financial accounts and management accounts are the
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