E1.22 LO 1.2 1.3 2. Management accounting:

(a) is another name for cost accounting

(b) is tailored to the needs of external users

(c) is produced to meet the needs of managers

(d) has changed very little since the 1950s

(e) none of the above. 3. Management accounting:

(a) is an exact science

(b) is relevant to strategy decisions

(c) follows prescribed reporting standards

(d) cannot significantly influence employee behaviour

(e) none of the above. The nature of management accounting systems Classify each of the following statements as true or false. In each case, provide reasons to explain your answer. 1. Management accounting systems provide managers with all the information they need to make decisions. 2. Management accounting systems need to be flexible enough to provide information for financial statements. 3. Management accounting systems may draw on data that are internal and external to the organisation. 4. Management accounting systems are concerned with the quality of products produced by the organisation. 5. Management accounting systems need to produce information that is objective and verifiable.