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MANAGEMENT, THE CONTROLLER,AND COST ACCOUNTING

MULTIPLE CHOICE

B 1. An organizational concept that groups business functions around resources, processes, andhuman interrelations is the:A. resources functionB. functional-teamwork conceptC. processes functionD. line-staff concept. matching concept

!. "he measurement of performance and the control of costs is aided the most b#:A. organizational chartsB. continuous super$isionC. preparation for the futureD. planning. budgets and standards

A %. All of the following are abbre$iations for s#stems or processes that represent changes inmanufacturing technolog#, except:A. C&AB. '("C. C(&

D. CAD. )&*

D +. "he process of pro$iding indi$iduals with the authorit# to carr# out their assignedresponsibilities is referred to as:A. control circuitB. obecti$e settingC. accountabilit#D. delegation. line-staff organization

A . "he department that uses pertinent cost data to determine products that are mostprofitable and sales policies is:A. &arketingB. &anufacturingC. "reasur#D. egal. Cost

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B /. 0amples of nonroutine planning include all of the following, except:A. responses to the appearance of new competitionB. estimating the collection of recei$ables during the ne0t month for the purpose of

making in$estmentborrowing decisionsC. responses to a proposed go$ernment regulation of the industr#D. responses to a significant change in consumer tastes. none of the abo$e

B 2. "he coordinated de$elopment of a compan#3s organization with the cost and budgetar#s#stem will lead to an approach to accounting and reporting called:A. functional-teamwork s#stemB. responsibilit# accountingC. line-staff organizationD. controllable segmentation. superior-subordinate relationship

4. "he organizational group that ad$ises or performs technical functions of an enterprise isthe:A. lineB. function

C. teamD. e0ecuti$e management. staff

A 5. "he business function in the functional-teamwork concept of management that deals withacti$ities such as product design, research and de$elopment, purchasing, manufacturing,ad$ertising, marketing, and billing is the:A. processes functionB. e0ecuti$e functionC. resources functionD. staff . human interrelations function

16. 7ronouncements of the Cost Accounting *tandards Board adhere to the concept of:A. indirect costingB. common costingC. direct costingD. standard costing. full costing

B 11. "he professional certification de$eloped b# the (&A indicating professional competence inthe management accounting field is the:A. C(AB. C&AC. CAD. C7A. C7&

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&anagement, the Controller, and Cost Accounting %

C 1!. "he plans that are sufficientl# detailed to permit the preparation of budgeted financialstatements for the entit# as of a future date are:A. strategic plansB. medium-range plansC. short-range plansD. long-range plans. none of the abo$e

B 1%. All of the following are organizations in the pri$ate sector that influence the de$elopmentof cost accounting theor# and practice except:A. )(B. (8*C. A(C7AD. )A*B. (&A

D 1+. Budgeting pla#s an important role in influencing indi$idual and group beha$ior at all ofthe following stages of the management process, except:A. setting goalsB. moti$ating desired performance

C. e$aluating performanceD. computing bonuses. suggesting when correcti$e action should be taken

B 1. "he functional-teamwork concept of management is structured to emphasize all of thefollowing except:A. human interrelationsB. accountabilit#C. resourcesD. processes. none of the abo$e

1/. All of the following are e0amples of non-$alue-added acti$ities except:A. retrie$ingB. handlingC. e0peditingD. reworking. assembling

D 12. "he department that has the responsibilit# for the financial administration of a compan#is:A. "a0B. Controller3sC. CostD. "reasur#. (nternal Audit

D 14. "he collection, presentation, and anal#sis of cost data should help managementaccomplish all of the following tasks except:A. control the ph#sical 9uantities of in$entor#B. determine compan# costs and profits for an accounting periodC. choose from among two or more alternati$es that will increase re$enuesD. conform to )A*B reporting re9uirements for pensions. establish costing methods and procedures that permit cost reductions

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D 15. (n an attempt to resol$e an ethical conflict in a publicl#-held corporation, if theaccountant has unsuccessfull# gone to the board of directors, the ne0t step is to:A. go to the compan# presidentB. go back to middle management to garner supportC. report the problem to the *CD. resign. none of the abo$e

C !6. An organizational concept recognizing that all positions or functional di$isions can becategorized into two groups is:A. functional-teamwork conceptB. processes functionC. line-staff conceptD. matching concept. resources function

A !1. (n an attempt to resol$e an ethical conflict when the immediate superior is in$ol$ed, anaccountant should first:A. go to the ne0t higher le$el of managementB. report the problem to the *C

C. resignD. go to the compan# president. none of the abo$e

C !!. "he Standards of Ethical Conduct for Management Accountants presents fifteenresponsibilities of the management accountant that encompass all of the followingcategories except:A. competenceB. confidentialit#C. dependabilit#D. integrit#. obecti$it#