Management Accounting - Study Mode
[#416] An approach in which managers use resources to increase customer value is classified as
Correct Answer
(B) cost management
Explanation
Solution: An approach in which managers use resources to increase customer value is classified as cost management. Cost management is the process of planning and controlling the budget of a business. Cost management is a form of management accounting that allows a business to predict impending expenditures to help reduce the chance of going over budget.
[#417] An engineering of products or detailed planning of products or services is called
Correct Answer
(A) product design
Explanation
Solution: An engineering of products or detailed planning of products or services is called product design. Product design is the process of creating a new product to be sold by a business to its customers. A very broad concept, it is essentially the efficient and effective generation and development of ideas through a process that leads to new products.
[#418] Type of accounting which measures, reports and analysis non-financial and financial information to help in decision making is called
Correct Answer
(B) management accounting
Explanation
Solution: Type of accounting which measures, reports and analysis non-financial and financial information to help in decision making is called management accounting. Management Accounting is the presentation of accounting information in order to formulate the policies to be adopted by the management and assist its day-to-day activities.
[#419] Type of accounting which reports to external parties of organization is known as
Correct Answer
(C) financial accounting
Explanation
Solution: Type of accounting which reports to external parties of organization is known as financial accounting. Financial accounting is a specific branch of accounting involving a process of recording, summarizing, and reporting the myriad of transactions resulting from business operations over a period of time.
[#420] Human resource management, IT management and management accountants are categorized under
Correct Answer
(C) staff management
Explanation
Solution: Human resource management, IT management and management accountants are categorized under staff management. STAFF MANAGEMENT is the function of managing all employees in the organization, including the development of staff skills through training and other forms of staff development as well as the identification, development and implementation of training needs and programs available for staff.