TOPIC 1

 

STRATEGIC MANAGEMENT ACCOUNTING INFORMATION

 

 QUESTION 1

August 2024 Question Four A

One of the roles of management accounting is to provide information that is useful for managers of an organisation of various departments, in decision making.

In line with this statement, explain THREE types of accounting information a management accountant could communicate to a human resource manager.   (6 marks)

 

QUESTION 2

April 2024 Question Three A

“Management Accounting is an invaluable tool to any organisation at both the operational level and the strategic management level”.

Discuss THREE reasons to support the claim.        (6 marks)

 

QUESTION 3

December 2023 Question One A and B

(a) With reference to strategic management accounting, evaluate THREE underpinnings of each of the following concepts:

(i) Balanced scorecard model.             (3 marks)

(ii) Responsibility accounting.            (3 marks)

 

(b) “Carbon credits” and “carbon credit tax” are increasingly being applied in environmental management accounting (EMA) as transparent measurable and result oriented activities aimed at protecting and preventing environmental degradation by adopting environmental management strategies, policies and compliance requirements. Carbon credit tax (CCT) is aimed at enhancing compliance. CCT is levied on pollution caused by carbon emission to the environment. One of the aims of the tax is to discharge organisations from operating with excessive carbon emission and instead encourage a transition to more sustainable alternatives by detecting and preventing external costs of environmental management.

Required:

With reference to the above statement, identify THREE benefits that might accrue to an organisation as a result of implementation of carbon credit strategies and policies towards:

(i) Environmental detection costs.            (3 marks)

(ii) Environmental external failure costs.           (3 marks)

 

QUESTION 4

December 2022 Question Five A

Explain THREE conceptual differences between the following concepts as applied in strategic management for short term decision making:

(i) Throughput accounting.            (3 marks)

(ii) Limiting factor analysis.            (3 marks)

 

QUESTION 5

August 2022 Question One A

The effective use of the control information provided by the management accounting department of an organisation to the operating managers depends on various factors.

 

Explain four actions that the management accounting department might take to enhance the effective use of the above information by the operating managers.     (4 marks)

 

QUESTION 6

April 2022 Question One A

a) In control theory, a “feedback control” mechanism is the one which supplies information to determine whether corrective action should be taken to re-establish control of a system.

In the context of the above statement, distinguish between “feedforward” and “feedback” controls giving an example of each as used in management accounting.         (4 marks)

 

QUESTION 7

November 2019 Question One A

Examine three benefits that might accrue to a business organisation as a result of good ethical behaviour by management accountants.           (6 marks)

 

QUESTION 8

May 2019 Question Four A

Highlight four ethical standards of management accountants.       (4 marks)