True or False Question Block True or false

Westminster International University in Tashkent
Management Accounting, Semester I, 2022/2023
Seminar 1. Solutions- Introduction to Management Accounting

1. 
   True or False Question Block
   

1.True or false
a) False (Indicative answer: FA and MAcc cannot be used interchangeably because they are totally different fields of accounting. Financial accounting reports to external users on past financial performance using GAAP. Management accounting provides future-oriented information in formats that help managers (internal users) make decisions and achieve organizational goals).
b) False (Indicative answer: Cost reduction is one of the responsibilities of Managerial accountants. Managerial accountants have many tools and techniques for Cost Reduction. Most of them will be covered within MAcc module. The following tools and techniques are used to reduce costs:
1. Budgetary Control
2. Standard Costing
3. Cost Benefit Analysis
4. Contribution Analysis
5. Material Control
6. Labor Control
7. Overhead Control
8. Market Research)

c) True (Indicative answer: It is true. Usually companies choose one of these strategies. Product differentiation is an organization’s ability to offer products or services perceived by its customers to be superior and unique relative to the products or services of its competitors. Cost leadership is an organization’s ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control).

d) False (Indicative answer: Since shareholders are external users, this statement will be true in terms of Financial Accounting).
e) False (Indicative answer: They are not standards, they are principles. IMA standards involve Competence, Confidentiality, Integrity, and Credibility).
f) False (Indicative answer: Communicating information fairly and objectively belongs to standard of Credibility).

2. 
   MCQ Block
   

1. 
   D (Other options belong to Financial Accounting).
   
2. 
   C
   
3. 
   D
   
4. 
   A
   
5. 
   A
   
6. 
   B
   

2.