management accounting

1. Which of the following financial management activities is most appropriately handled by the Treasurer rather than the Controller in a corporation?

• a. Overseeing financial reporting compliance and ensuring adherence to GAAP.

• b. Managing the company's short-term and long-term investment portfolio.

  
  

• c. Preparing variance analysis reports to compare actual vs. budgeted financial performance.

• d. Designing internal control procedures to prevent fraud and misstatements.

2. A company is experiencing increasing interest expenses due to rising debt obligations. Which of the following actions would fall under the Treasurer’s responsibilities rather than the Controller’s in addressing this issue?

• a. Evaluating the company's debt-to-equity ratio and recommending adjustments to financial leverage policies.

• b. Ensuring accurate accrual of interest expenses and proper disclosure in financial statements.

• c. Conducting an internal audit to assess whether debt covenants are being properly followed.

• d. Allocating indirect costs in financial reports to accurately reflect departmental profitability.

3. Indirect materials and indirect labor are

• a. Yes Yes Yes

• b. No No Yes

• c. No Yes Yes

• d. Yes No No

4. A bank’s Branch Manager is responsible for overseeing daily branch operations, ensuring customer satisfaction, and meeting financial targets. Meanwhile, the bank’s Legal Advisor provides guidance on regulatory compliance and risk management. Based on their roles, how do their functions differ?

• a. The Branch Manager is a staff function, while the Legal Advisor is a line function

• b. The Branch Manager is a line function, while the Legal Advisor is a staff function

• c. Both the Branch Manager and Legal Advisor are line functions

• d. Both the Branch Manager and Legal Advisor are staff functions

5. The American Institute of Management Accountants came up with the Standards of Ethical Conduct for Management Accountants which have four sections, namely:

• a. competence, confidentiality, integrity and objectivity

• b. competence, security, integrity and objectivity

• c. competence, confidentiality, integrity and maturity

• d. competition, confidentiality, integrity and objectivity

6. Integrity is an ethical requirement for all management accountants. One aspect of integrity requires

• a. maintenance of an appropriate level of professional competence

• b. performance of professional duties in accordance with applicable laws

• c. refraining from improper use of confidential information

• d. avoidance of actual or apparent conflicts of interest and advise all appropriate parties of any potential conflict.

7. It is a field of accounting that provides financial and nonfinancial information to an organization’s managers and other internal decision makers.

• a. Cost accounting

• b. Bookkeeping

• c. Managerial accounting

• d. Financial accounting

8. The wages of the factory janitorial staff should be classified as:

• a. Factory overhead costs

• b. Direct labor costs

• c. Period costs

• d. Prime costs

9. In cost terminology, conversion costs consist of:

• a. Direct and indirect labor

• b. Direct labor and direct material

• c. Direct labor and factory overhead

• d. Indirect labor and variable factory overhead