Accounting Multiple Choice Question – 18 January 2025

Alex Ltd’s finance director Lucy wants to establish an effective system in the accounting and finance function for producing management accounting reports for the senior management team led by the Chief Executive, Ken.

In establishing such a reporting system, which of the following issues should be Lucy’s primary consideration?

Select ONE answer:

1. The information needs of the company’s senior managers
2. The need for effective internal control mechanisms
3. The need for cost-effectiveness
4. The need for effective information security

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > Management accounting is driven not by rules or standards but by the need to meet the information requirements of the senior managers led by Ken within Alex Ltd, who will use the information to plan, control, make decisions and monitor performance.
2. Not correct
3. Not correct
4. Not correct

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