: Determine whether each of the following statement is true or false, and correct the false...

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: Determine whether each of the following statement is true or false, and correct the false statement(s); No. STATEMENT 1 Management accounting focuses on reporting financial information to external parties (outsiders) such as investors, government agencies, banks, and suppliers based on Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). 2 Financial accounting measures, analyzes, and reports financial and nonfinancial information to helps managers make decisions. Management accounting in producing information does not have to follow standards or principles instead it uses many tools and techniques. 3 The final output of managerial accounting is the financial statements (balance she income statement, cash flow statement and changes in equity statements). 4 Managerial accounting uses past data while Financial accounting uses past and future data 5 Managerial accounting provides information about the financial position, the income and cash flow to outsiders Financial accounting serves management in different levels Financial accounting is restricted (governed or constrained) by accounting standards (IRFS or GAAP) 8 Cost is the cash or cash-equivalent value sacrificed for goods and services that is expected to bring a current or future benefit to the organization. 6 Manufacturing cost is called period cost, while marketing and administrative costs are called product cost 9 10 Operating costs is the running costs of the operations that are required to generate income T/F Correction Question 2: In 2018 ABC Company produced 2000 units. The variable cost per unit = $5 and the total variable cost = $ 10,000 The fixed cost per unit - $ 3 and the total fixed cost = $ 6,000 Required: 1- In 2009 the company plans to produce 3000 units compute the total cost and cost per unit. 2- In 2020 the company plans to produce 1500 units compute the total cost and cost per unit. Question 3: Variable cost per unit $20- price $30-total fixed cost $ 50,000 Expected sales 8000 units- target profit $ 20,000 Required: 1-Compute break-even volume and value 2- Compute the quantity of sales that achieve the target profit 3- Compute the safety margin ratio. 4- If the variable cost increases by 20%, what is the effect on break-even volume. 5- If the fixed cost decreases by 20%, what is the effect on break-even volume. : Determine whether each of the following statement is true or false, and correct the false statement(s); No. STATEMENT 1 Management accounting focuses on reporting financial information to external parties (outsiders) such as investors, government agencies, banks, and suppliers based on Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). 2 Financial accounting measures, analyzes, and reports financial and nonfinancial information to helps managers make decisions. Management accounting in producing information does not have to follow standards or principles instead it uses many tools and techniques. 3 The final output of managerial accounting is the financial statements (balance she income statement, cash flow statement and changes in equity statements). 4 Managerial accounting uses past data while Financial accounting uses past and future data 5 Managerial accounting provides information about the financial position, the income and cash flow to outsiders Financial accounting serves management in different levels Financial accounting is restricted (governed or constrained) by accounting standards (IRFS or GAAP) 8 Cost is the cash or cash-equivalent value sacrificed for goods and services that is expected to bring a current or future benefit to the organization. 6 Manufacturing cost is called period cost, while marketing and administrative costs are called product cost 9 10 Operating costs is the running costs of the operations that are required to generate income T/F Correction Question 2: In 2018 ABC Company produced 2000 units. The variable cost per unit = $5 and the total variable cost = $ 10,000 The fixed cost per unit - $ 3 and the total fixed cost = $ 6,000 Required: 1- In 2009 the company plans to produce 3000 units compute the total cost and cost per unit. 2- In 2020 the company plans to produce 1500 units compute the total cost and cost per unit. Question 3: Variable cost per unit $20- price $30-total fixed cost $ 50,000 Expected sales 8000 units- target profit $ 20,000 Required: 1-Compute break-even volume and value 2- Compute the quantity of sales that achieve the target profit 3- Compute the safety margin ratio. 4- If the variable cost increases by 20%, what is the effect on break-even volume. 5- If the fixed cost decreases by 20%, what is the effect on break-even volume.

Answer rating: 100% (QA)

Statement 1 False Management accounting focuses on reporting financial information to internal parties insiders such as managers and executives within an organization It is used for decisionmaking pla... View the full answer