ACCA Applied Knowledge · Management Accounting · Accounting for management
A manager receives a report each month comparing actual departmental expenditure with budget. In terms of the level of management information, this report is MOST likely to be used for which type of decision?
Monthly budget-versus-actual reports mainly support tactical control by middle management, who monitor resource use against plans. Strategic planning needs longer-term, more external data, and operational control needs more detailed, immediate information, while statutory reporting is a financial accounting function.
- AStrategic planning for the next ten years
- BOperational control of daily activities by a supervisor
- CTactical control by middle managementCorrect
- DStatutory reporting to shareholders
Explanation
Monthly budget-versus-actual comparisons support tactical (management control) decisions by middle managers, who ensure resources are used effectively. Strategic information is longer-term and externally focused, and operational information is detailed and short-term. Statutory reporting is financial accounting, not this report's purpose.
Did you get it right without looking?
One question tells you little. A timed set on Accounting for management shows your real accuracy, how long you take and where you lose marks.
More Accounting for management questions
- Which of the following is a task of management accounting in supporting planning, control and decision-making?
- Which of the following information would normally be produced by management accounting rather than financial accounting?
- Which of the following is a characteristic of management accounting information, as opposed to financial accounting information?
- A company's management accountant produces a weekly report for the production director showing machine downtime in hours and units scrapped …
- Which of the following is the best example of a manager applying knowledge rather than simply receiving information?
- A retail company's till system records every individual sale, showing the item code, time and price. Which description best fits these recor…