AE 23- SCM

Chapter 2-Multiple choice

Notes:
1) b Read pages 7-8 (tasks of a management accountant; attention-directing is another
term for interpreting and analyzing)
2) B choices a, c and d are for financial accounting
3) a
4) a Line Function- the authority to command or give orders to subordinates. It exercises direct
downward authority over line departments. Managers in line positions are directly involved in the
provision of goods and services
5) b choices a, c and d are line functions.
A staff function has the authority to advise but not to command others. It is exercised laterally or upward.
6) c investing in new equipment is a function of a treasurer
7) b
8) d Letter C is not an ethical challenge
9) b
10) c It is the second step if the immediate superior is involved (or if the immediate superior is not
involved but does nothing if the matter of conflict is reported to him)
11) D a- violation of the conduct of integrity
b- management accountant observes the standard of objectivity
d- practitioners of management accounting and financial management shall condone commission of
acts contrary to the standards

12) c read page 12 on corporate social responsibility

13) d for example, rhe rehabilitation of the Pasig River by San Miguel Corp. The project costs a lot of money

14) b a- refers to competence

c- refers to confidentiality
d- refers to competence
15) d
16) b
17) c
18) b workers, managers anmd exerutives in an organization are internal users
19) a
20) c items 19-21 are accounting processes
21)a
22) c
23) d items 22 & 23 are management functions

24) b a, c and d are for management accounting

25) c future oriented reports is for management accounting
26) b a,c and d are for financial accounting
27) a managerial accounting reports both financial and non financial information
28) b reports are prepared according to the needs of the user
29) c stockholders are external users

items 30-31 are topics in chapter 4

32) d

Items 33-36 are discussed in Page 6 (Uses of cost management information)

33) a mid-level managers monitor activities of operating level managers
34) c the question refers to evaluation of mid-level managers by upper level managers
35) d a, b and c are roles of management acctg. information In operational control
36) c refers to operating control

37) c so that all the people in the organization would have a clear knowledge of the policies
38) c a, b and d are not proper actions
39) a why should those who do not follow/observe code of conduct be rewarded?
40) b ingenuity is not a standard of conduct
41) b again, this is a topic in chapter 4
42) a again, this is a topic in chapter 4
43) a