Question

In: Accounting

strategic management accounting is not concerned with? a- how an organisation can improve its relative position...

strategic management accounting is not concerned with?
a- how an organisation can improve its relative position
b- how to ensure all indirect expenses are allocated to the correct product
c- long term planning for the organisation
d- how the organisation is measuring up against competitors

Solutions

Expert Solution

Answer: (b) How to ensure all indirect expenses are allocated to the corrct product.

Explanation:

Strategic Management Accounting: Strategic Management Accounting is related to insider and outsider factors of business like competitor analysis, effect of government policies , long term planning for the business and relative cost position.

so strategic Management Accounting is concerned with :

How an organisation can improve its relative position.

Long term Planning for the organisation.

how the organisation is measuring up against competitors.

And Strategic Management Accounting is not concerned with how to ensure all indirect expenses are allocated to the correct product.

so the correct option is (b) How to ensure all indirect expenses are allocated to the corrct product.


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