BATCH20: MAS1

It is the practice of helping organizations to improve their performance, primarily through the analysis of existing organizational problems and the development of plans for improvement.

• Accounting

• Management Consulting

• Total Quality Management

• Auditing

MAS can relate to the following areas, except

• The management functions of analysis, planning, organizing, and controlling.

• The introduction of new ideas, concepts, and methods to management.

• The improvement of policies, procedures, systems, methods, and personal relationships.

• The application and use of managerial accounting, control systems, data processing, and mathematical techniques and methods.

In informal advice,

• The nature of the services rendered is informal and therefore, no presumption should exist that an extensive study has been performed to identify and consider pertinent facts and alternatives.

• Any action beyond the point of decision is solely the responsibility of the consultant.

• Once the implementation is concluded, the client’s participation is concluded, and only the consultant’s personnel remain to carry on the solution.

• The consultant need not be independent in mental attitude.

Which of the following statements is false?

• Financial accounting reports are general-purpose and intended for external users.

• Managerial accounting reports are special-purpose and issued as frequently as needed.

• Top managers must certify that a company maintains an adequate system of internal control.

• Management accountants have a single role within an organization – collecting and reporting costs to management.

It refers to anything (a product, product line, a business segment) for which cost is computed.

• Cost Object

• Cost Driver

• Cost Control

• Cost Variance

It is a grouping of individual cost items, or an account in which a variety of similar costs are accumulated.

• Cost Driver

• Cost Variance

• Income Statement

• Cost Pool

It is an event, action, transaction, task, or unit of work that consumes resources and with a specified purpose.

• Cost Object

• Activity

• Cost Driver

• Direct Labor

Which of the following statements about cost behavior is correct?

• Within the relevant range, total variable costs may vary directly with activity, while total fixed costs remain unchanged for a given period despite fluctuations in activity.

• Within the relevant range, variable cost per unit varies directly with activity, while fixed cost per unit remains unchanged for a given period despite fluctuations in activity.

• Within the relevant range, fixed cost per unit varies directly with activity, while

• Within the relevant range, total variable costs may vary inversely with activity, while total fixed costs remain unchanged for a given period despite fluctuations in activity.

Within the relevant range, unit variable costs

• are constant per unit, regardless of units produced or sold.

• vary directly with the activity level.

• vary inversely with the activity level.

• are at the minimum.

When production (in units) decreases, the average cost per unit of product increases. This increase in the average cost per unit is due to the

• A. increase in variable cost per unit.

• B. increase in fixed cost per unit.

• C. increase in total variable costs.

• D. increase in total fixed costs.