When using traditional total absorption costing it is important to identify activity cost drivers.
False
Pytanie 22
The balanced scorecard uses
a mixture of financial and non-financial performance indicators.
True
Pytanie 23
The payback period generally
does not use discounted
cash flows. It is, however,
possible to incorporate them into payback models.
True
Pytanie 24
The discount rate normally
used to discount cash flows
is the interest rate charged by the Central Bank.
False
Pytanie 25
There may be differences
between accounting in
different countries because
of importance of factors
such as history or technology.
True
Pytanie 26
Strategic management
accounting is concerned
principally with short-term operational decisions.
False
Pytanie 27
Break-even point is variable
costs divided by contribution per unit.
False
Pytanie 28
When recovering costs for pricing we use total absorption costing. However, for stock valuation we use absorption costing or
marginal costing.
True
Pytanie 29
Strategic choice may involve exploiting inherent strengths such as the business's products or customer base and/or external
diversification through acquisition, merger or collaboration.
True
Pytanie 30
When using traditional total absorption costing it is important to identify activity cost drivers.
False
Pytanie 31
The accounting rate of return
is the only investment
appraisal technique that
focuses on profits not cash flows.
True
Pytanie 32
A cost is an actual past
expenditure.
False
Pytanie 33
The two main branches of
cost accounting are costing
and planning, control and performance.
True
Pytanie 34
Strategic management accounting is concerned principally with short-term operational decisions.
False
Pytanie 35
Break-even point is variable costs divided by contribution per unit.
False
Pytanie 36
Contribution is sales less variable costs.
False
Pytanie 37
A master budget is formed by feeding in the results from all the other budgets.
True
Pytanie 38
The balanced scorecard uses only financial information.
False
Pytanie 39
Strategic management
accounting looks at both internal and external environments of a business.
True
Pytanie 40
Flexing the budget means adjusting the budget to take into account the actual quantity produced.