Hansen AISE TB - Ch01

Chapter 1
Introduction: the Role, History, and Direction of Management Accounting
MULTIPLE CHOICE
1. One of the objectives of management accounting is to provide

a. stockholders and potential investors with useful information for decision making
b. banks and other creditors with information useful in making credit decisions
c. management with information useful for planning and controlling operations
d. the Internal Revenue Service with information about taxable income
ANS: C DIF: 1 REF: p. 004
OBJ: 1 NAT: AACSB Reflective thinking | IMA Information management
2. Which of the following can be described as an output in a management accounting system?

a. special report preparation
b. reviewing budgets
c. performance reports
d. managing information
3. Which of the following is NOT a process in a management accounting system?

a. collecting
b. measuring
c. finishing
d. reporting
4. Which of the following would be an input in a management accounting system?

a. economic event
b. special report
c. product cost
d. dollar currency
ANS: A DIF: 1 REF: p. 004
5. Which of the following is an output of the management accounting information system?

a. budgets
b. customer cost information
c. performance reports
d. all of the above
ANS: D DIF: 1 REF: p. 004
1
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2 Managerial Accounting
6. Management accounting is concerned with which kind of decision?
a. product costing and pricing
b. continuous operational improvement
c. financial control
d. all of the above
7. The process of searching for methods to increase the overall efficiency and productivity is called
a. strategic decision making
b. employee empowerment
c. continuous improvement
d. total quality management
8. One advantage of employee empowerment is

a. workers identify and correct problems
b. workers can improve production processes in a timely manner
c. employees closest to the work can provide valuable input in increasing efficiency
d. all of the above are advantages
ANS: D DIF: 2 REF: p. 005-006
9. Setting the company's profit targets for the upcoming year is an example of the management
function of
a. planning
b. control
c. variance analysis
d. internal auditing
OBJ: 1 NAT: AACSB Reflective thinking | IMA Strategic planning
10. The planning process includes

a. setting objectives
b. identifying means of achieving the objectives
c. both a and b
d. neither a nor b
11. Developing a company strategy for responding to anticipated new markets is an example of
a. planning
b. controlling
c. decision making
d. none of the above
Chapter 1/Introduction: the Role, History, and Direction of Management Accounting 3

12. Analyzing cost overruns to determine their cause is an example of the management function of
a. planning
b. controlling
c. decision making
ANS: B DIF: 2 REF: p. 007
13. Feedback is critical during which phase of the management process?

a. planning
b. controlling
c. decision making
14. Monitoring the number of defects produced is an example of the management function of
a. planning
b. controlling
c. decision making
15. The managerial activity of monitoring a plan's implementation and taking corrective action is an
example of
a. planning
b. controlling
c. decision making
16. Evaluating the performance of a segment of the company is an example of

a. planning
b. controlling
c. decision making
17. Which of the following managerial accounting activities involves choosing among competing
alternatives?
a. planning
b. controlling
c. decision making
18. Determining the bid your company should submit on a construction contract is an example of
a. planning
b. controlling
c. decision making
OBJ: 1 NAT: AACSB Reflective thinking | IMA Decision analysis
19. Setting the selling price of a company's product is an example of

a. planning
b. controlling
c. decision making
20. Management accounting and financial accounting differ in that management accounting information
is prepared
a. following GAAP
b. using whatever methods the company finds beneficial
c. for stockholders
d. for the Internal Revenue Service
ANS: B DIF: 2 REF: p. 008-009
OBJ: 2 NAT: AACSB Communication | IMA External financial reporting
21. Management accounting is primarily concerned with which of the following?

a. Following GAAP.
b. Preparing a full set of financial statements for external users.
c. Producing information for management.
d. Preparing tax returns for submission to the Internal Revenue Service
ANS: C DIF: 1 REF: p. 008-009
OBJ: 2 NAT: AACSB Communication | IMA Information management
22. How does the management accounting information system differ from the financial accounting
system?
a. The management accounting information system produces information for external users;
the financial accounting system produces information for internal users.
b. The management accounting information system uses rules promulgated by the SEC; the
financial accounting system uses rules promulgated by the FASB.
c. The management accounting information system uses objective information; the financial
accounting system uses subjective information.
ANS: D DIF: 2 REF: p. 008-009
OBJ: 2 NAT: AACSB Communication | IMA Information management
23. Which of the following does NOT describe management accounting?

a. internally focused
b. emphasis on the future
c. externally focused
d. detailed information
ANS: C DIF: 1 REF: p. 008-009
24. Financial accounting is primarily concerned with providing information to all of the following
EXCEPT
a. creditors such as banks and other financial institutions
b. the management of the firm
c. the Securities and Exchange Commission
d. the stockholders of the company
25. Publicly-traded companies preparing financial accounting reports must follow the accounting
procedures established by
a. the SEC and the IRS
b. the SEC and the FASB
c. the IRS and the FASB
26. Historically, management accounting information has been primarily concerned with
a. reporting individual customer profitability to external users
b. quality control management
c. determining the cost of inventory
d. producing specialized information for internal decision makers
27. Which of the following is NOT a current theme of management accounting?

a. inventory cost determination
b. total quality management
c. customer orientation
d. all of the above

28. Activity-based costing focuses on

a. improving the accuracy of product costs
b. increasing the amount of work performed by management accountants
c. first tracing costs to activities
d. both a and c
OBJ: 4 NAT: AACSB Reflective thinking | IMA Cost management
29. Which of the following is an objective of activity-based management?

a. increasing total product costs through the identification of activities
b. improving customer value and the resulting profit
c. determining the highest possible price to charge customers
d. all of the above
30. Which of the following is an objective of process value analysis?

a. increasing total product costs through the identification of activities
b. creating organization goals that best reflect the mission of the company
c. determining why activities are performed and how well they are performed
d. all of the above
31. What is the difference between activity-based management and activity-based costing?
a. Activity-based costing and process value analysis are emphasized by activity-based
management.
b. Activity-based management is a systemwide approach with the objective of improving
customer value, and activity-based costing is concerned with improving the accuracy of
the cost of products.
c. Activity-based costing is part of activity-based management.
d. all of the above
32. A firm can increase customer value by increasing

a. customer sacrifice
b. post-product cost
c. customer realization
d. purchasing cost
33. Which of the following best defines customer realization?
a. what a customer must give up when purchasing a product
b. what a customer gets when purchasing a product
c. what a customer wants out of products purchased
d. what a customer has to pay for a product purchased
34. Which of the following best describes the term “total product?”
a. all the products a customer purchases from the company
b. all the benefits a customer receives from a purchased product
c. all the products a customer will purchase from the company, past, present, and future
d. all of the above
35. Customer sacrifice includes

a. cost of purchasing
b. cost of time and effort learning to use the product
c. post purchase costs
d. all of the above
36. Which of the following best describes the term “strategic cost management?”
a. the process of developing product testing procedures
b. improving the accuracy of cost assignments through activity analysis
c. tracking all the products a customer will purchase from the company, past, present, and
future
d. the use of cost data to develop positions to enhance profitability
37. The selection among strategies that increase customer value to create a sustainable competitive
advantage is known as
a. total product
b. strategic positioning
c. total quality management
d. cross functional perspective
38. A firm’s strategic position generally corresponds to which two general strategies?
a. total product and customer value
b. internal and external value chain
c. cost leadership and product differentiation
d. quality and efficiency

39. The value chain includes which of the following activities?

a. designing and developing products and services
b. producing products and services
c. marketing and delivering products and services
d. all of the above
40. Relationships among activities that are performed within a firm's portion of the industrial value
chain are
a. internal linkages
b. external linkages
c. customer linkages
41. The linked set of value-creating activities from basic raw materials to disposal of a product are
known as
a. industrial value chain
b. internal linkages
c. firm value chain
d. external linkages
42. An example of an external linkage is

a. a linkage to suppliers
b. a linkage to customers
c. both a and b are examples of external linkages
d. neither a or b are examples of external linkages
43. What is a key feature of supply chain management?

a. product costing
b. customer retention
c. supply linkage
d. all of the above
44. What is a key feature of supply chain management?
a. supply linkages
b. customer linkages
c. transformation of materials to finished goods
d. all of the above
45. The management of the flow of materials from the supplier through production to distribution to the
customer is known as
a. supply chain management
b. industrial value chain
c. firm value chain
d. strategic cost management
46. Reasons why a management accountant should have a cross-functional perspective include which of
the following?
a. There are a number of definitions of product cost to use in a variety of decision-making
situations.
b. In managing the value chain, all functions of the business must be understood.
c. A decision made in one area affects the other areas (functions).
d. all of the above
47. Total quality management

a. is useful for manufacturing firms but not for service firms
b. emphasizes determining the cost of waste in the manufacturing process
c. emphasizes manufacturing products without defects
d. relies heavily on information generated by the financial accounting information system
ANS: C DIF: 2 REF: p. 013-014
48. When firms adopt a total quality management (TQM) philosophy,

a. they strive to achieve a level of "acceptable quality" of 2 percent (or less)
b. they are manufacturing firms, since TQM does not apply to service firms
c. there is a need for the management accounting system to provide financial and
nonfinancial information about quality
49. When considering time as a competitive element, which of the following is NOT true?
a. Time is a crucial element in all phases of the value chain.
b. Product life cycles are becoming longer, so time is becoming less critical.
c. World-class firms reduce non value-added time.
d. The correlation between cost and time is information that should be available from a
management accounting information system.
50. Which of the following is a critical measure of efficiency?

a. sales revenue
b. customer value
c. cost
d. profits
51. Which of the following is NOT a necessary element of measuring efficiency?

a. measuring cost
b. measuring customer value
c. relating input and output
d. measuring the financial effect of productivity changes
52. An advantage of electronic business is that it

a. provides an opportunity to expand sales
b. may lower costs
c. provides timely relevant cost information
d. all of the above are advantages
53. Which of the following is a role of the management accountant?

a. prepare financial statements in accordance with GAAP
b. assess internal control risk and developing new procedures to detect risk
c. assist individuals who are responsible for carrying out the company’s basic objectives
d. all of the above are roles assumed by the management accountant
54. The chief accounting officer of an organization is the

a. vice-president of finance
b. internal auditor
c. treasurer
d. controller
55. Which of the following staff positions generally supervises all accounting functions?
a. production vice president
b. internal auditor
c. treasurer
d. controller
56. A person in a staff position

a. has direct responsibility for achieving the basic objective of the organization
b. provides support for the line function
c. is not employed by the company
d. has low education and skill levels
57. Which of the following is a staff position?

a. vice-president of production
b. vice-president of finance
c. vice-president of marketing
d. plant supervisor
58. Which of the following would be considered a line function?

a. production
b. maintenance
c. public relations
d. administrative services
59. The internal auditor performs a

a. line function
b. staff function
c. production function
d. finance function
ANS: B DIF: 2 REF: p. 015-016
60. The finance function within an organization is the responsibility of the

a. chief executive officer
b. internal auditor
c. treasurer
d. controller

61. Which of the following is NOT true about the Sarbanes-Oxley Act?
a. stronger regulation of all private, non-profit, and governmental agencies.
b. created the Public Company Accounting Oversight Board
c. increased attention to corporate ethics
d. all of the above are true about the Sarbanes-Oxley Act
OBJ: 5 NAT: AACSB Reflective thinking | IMA Global business
62. The primary objective of an organization should be to maximize

a. the firm's net worth
b. profits using whatever means necessary
c. the firm's profit as long as the means used are legal
d. the firm's profit using legal and ethical means
OBJ: 6 NAT: AACSB Ethics | IMA Performance measures
63. Ethical behavior

a. involves never making a mistake
b. involves acting in ones self interest even if it is detrimental to society as a whole
c. involves no need to sacrifice
d. involves choosing actions that are “right, proper, and just”
64. Core values essential to an ethical life include

a. integrity
b. respect for others
c. accountability
d. all of the above
OBJ: 6 NAT: AACSB Ethics | IMA Global business
65. The Sarbanes-Oxley Act requires that

a. companies adhere to the IMA code of conduct
b. company senior financial officers must report if they are not subject to a code of ethics
c. companies to post their codes of ethics on their web sites
d. all of the above are required by the Sarbanes Oxley Act
66. Which of the following is included in the Standards of Ethical Conduct for Management
Accountants?
a. confidentiality
b. competence
c. objectivity
d. all of the above
ANS: D DIF: 2 REF: p. 019-020
67. Which of the following is NOT part of the standard for objectivity in the IMA code of ethical
conduct?
a. using confidential information for illegal advantage
b. communicating information fairly
c. disclosing all relevant information that could be expected to influence an intended users
understanding
d. communicating information objectively
ANS: A DIF: 2 REF: p. 019-020
68. Which of the following activities would NOT be a violation of the integrity standards of the IMA
code of ethical conduct?
a. accepting a gift from a supplier
b. notifying boss of lack of expertise
c. being sent to jail
d. communicating unfavorable as well as favorable information
ANS: D DIF: 3 REF: p. 019-020
69. Management accountants should attempt to resolve ethical issues by

a. first discussing the problem with the immediate supervisor
b. first reporting the problem to an external authority
c. first clarifying the issues through a confidential discussion with an objective advisor
d. any of the above
70. The certification sponsored by the Institute of Management Accountants that emphasizes economics,
finance, and management; financial accounting and reporting; management reporting; and decision
analysis is
a. the CPA
b. the CMA
c. the CIA
71. An accountant certified to possess the minimal professional qualifications for an external auditor is
a. a CPA
b. a CMA
c. a CIA
ESSAY
1. Describe the operational model for a management accounting system, giving examples of the
primary system elements.
ANS:
Inputs (economic events i.e. sales, purchases) are processed (collected, measured, stored, analyzed,
reported, and managed) resulting in outputs ( reports on sales, costs, customer costs, performance reports
and budgets). Reports are given to users (managers within the company i.e. marketing, production) which
help them in their planning, controlling and decision making duties.
DIF: 3 REF: p. 004-007 OBJ: 1

NAT: AACSB Analytic | IMA Cost management
2. Compare/contrast financial accounting and management accounting.
ANS:
(from Exhibit 1-2)
Financial Accounting Management Accounting

1. Externally focused 1. Internally focused
2. Must follow externally imposed rules 2. No mandatory rules
3. Objective financial information 3. Financial and nonfinancial
information; subjective information possible
4. Historical orientation 4. Emphasis on the future
5. Information about the firm as a whole 5. Internal evaluation and decisions based on
very
detailed information
6. More self-contained 6. Broad, multidisciplinary
DIF: 2 REF: p. 008-009 OBJ: 2

NAT: AACSB Reflective thinking | IMA Cost management
3. Describe the important transition points in the evolution of management accounting.
ANS:
Before 1914, there was concern about product costing and strategic decision making. By 1925 the focus
of product costing became concern over valuation of inventory for external reports. During the 50’s and
60’s the focus was to make cost information more useful. During the 80’s and 90’s the focus was on
developing new management accounting measures and systems that reflected the complexity and
diversity of products that reflected more accurately product and resource costs.
DIF: 3 REF: p. 009-010 OBJ: 3

4. What is the role of management accounting information in strategic cost management?
ANS:
Firms generally choose a strategy of cost leadership and product differentiation. Cost leadership involves
providing better value to customers at a lower cost than its competitors. Through activity-based costing,
product costs are more accurate by first tracing costs to activities and then to products and customers.
Process value analysis tries to determine the nature of activities, monitors the costs of the activities to
more efficiently perform the activities that add value to the product, and eliminates the activities that do
not add value. Management accounting information plays a key role in strategic cost management. This
information is used to accumulate and monitor costs to achieve cost leadership. Product differentiation
needs management accounting information to determine whether the cost of added value to the customer
exceeds the firm's cost to provide the differentiation.
DIF: 2 REF: p. 010-011 OBJ: 4

5. Identify the trends impacting management accounting and discuss the implications for management
accounting.
ANS:
Changes in the manufacturing environment, brought about by the implementation of JIT manufacturing,
increasing quality requirements, product diversity, diminishing product life cycles, automation, and
advances in information technology, are having a significant influence on the management accounting
environment. Many traditional management accounting practices will be altered because of the revolution
taking place among many manufacturing firms. Deregulation and growth in the service sector of our
economy are also increasing the demand for management accounting practices.
DIF: 3 REF: p. 010-015 OBJ: 4

6. Compare and contrast the role of the controller to the treasurer in an organization.
ANS:
Both the treasurer and the Controller report to the Chief Financial Officer. The Controller is the chief
accounting officer and supervises all of the accounting departments i.e. cost accounting, financial
accounting, tax reporting. The Controller is responsible for meeting the internal and external reporting
needs. In contrast the treasurer is responsible for the finance functions i.e. cash management, insurance,
raising capital, managing investments.
DIF: 2 REF: p. 015-016 OBJ: 5

7. Discuss how the goal of profit maximization is affected by ethical considerations. What incentives
are there for managers to manipulate accounting data in unethical ways in order to increase profits?
ANS:
The objective of profit maximization should be constrained by the requirement that profits be achieved
through legal and ethical means. Because performance evaluation and rewards for managers are often
linked to reported profits, managers might manipulate accounting data to increase profit in order to
increase their own bonuses. The evaluation and reward system should be designed to discourage unethical
behavior.
DIF: 2 REF: p. 017-018 OBJ: 6

NAT: AACSB Ethics | IMA Global business
8. You are a management accountant for the Lance Division of Clarence, Inc. Your longtime friend,
Robert Obermark, is the Lance Division manager. Robert was instrumental in helping you obtain
your current position. Because Robert's annual bonus is based on the amount of profit the Lance
Division reports for the year, Robert has asked you to "massage the numbers" to make the Lance
Division appear more profitable.
Considering the Standards of Ethical Conduct for Management Accountants, how would you respond to
Robert Obermark's request?
ANS:
According to the Standards of Ethical Conduct for Management Accountants, management accountants
have a responsibility to "perform their professional duties in accordance with relevant laws, regulations,
and technical standards." Therefore, if "massaging the numbers" involves violating any laws, regulations,
or technical standards, it would violate the Standards of Ethical Conduct for Management Accountants. In
addition, the Standards of Ethical Conduct for Management Accountants indicate management
accountants have a responsibility to communicate information fairly and objectively and to communicate
unfavorable as well as favorable information.
DIF: 3 REF: p. 019-020 OBJ: 7

9. You are a management accountant for Brown, Inc. Christy Reelitz, the sales representative for one
of Brown's suppliers, invited you to attend a professional sporting event. Because you are an avid
sports fan, you accepted Christy's invitation.
At the sporting event, Christy begins talking about Brown's upcoming contract renewals with suppliers.
Because there is intense competition and because it is the first bid she has submitted to Brown, she asks
you to review her bid to make sure "it is good enough" before she submits it to the company. In addition,
because you are knowledgeable about costs, especially regarding this contract, she asks you to tell her if
her bid is "in the ballpark" or needs "improvement." If she wins the contract, she indicates that you will
be provided with season tickets for the rest of the year.
Considering the Standards of Ethical Conduct for Management Accountants, how would you respond to
Christy's request?
ANS:
According to the Standards of Ethical Conduct for Management Accountants, management accountants
have a responsibility to "refrain from using or appearing to use confidential information acquired in the
course of their work for unethical or illegal advantage either personally or through a third party." If you
agree to review Christy's bid and tell her if the bid needs improvement so that she wins the contract, this
could be viewed as using confidential information for your personal advantage (season tickets). In
addition, management accountants have a responsibility to refuse any gift, favor, or hospitality that would
influence their actions.
DIF: 3 REF: p. 019-020 OBJ: 7

MATCHING
Determine whether each of the following is a characteristic of financial accounting or managerial

accounting.
a. financial accounting
b. managerial accounting
1. externally focused
2. historical orientation
3. internally focused
4. objective financial information
5. emphasis on the past activities of the firm
6. emphasis on the future activities of the firm
7. broad, multidisciplinary
8. information about the firm as a whole
9. emphasis on segments of the business
10. subjective information possible
1. ANS: A DIF: 1 REF: p. 009

OBJ: 2 NAT: AICPA Reflective thinking | IMA Cost management
2. ANS: A DIF: 1 REF: p. 009
3. ANS: B DIF: 1 REF: p. 008
4. ANS: A DIF: 1 REF: p. 009
5. ANS: A DIF: 1 REF: p. 009
6. ANS: B DIF: 2 REF: p. 009
7. ANS: B DIF: 1 REF: p. 009
8. ANS: A DIF: 1 REF: p. 009
9. ANS: B DIF: 1 REF: p. 009
10. ANS: B DIF: 1 REF: p. 009
Customer value is an important focus of a management accounting system. Classify each of the following
as a component of customer realization or customer sacrifice.
a. customer realization
b. customer sacrifice
11. cost of purchasing the product
12. basic and special product features
13. instructions for use
14. learning to use the product
15. post purchase costs
16. brand name
11. ANS: B DIF: 1 REF: p. 011

OBJ: 4 NAT: AICPA Reflective thinking | IMA Global business
12. ANS: A DIF: 1 REF: p. 011
13. ANS: A DIF: 1 REF: p. 011
14. ANS: B DIF: 1 REF: p. 011
15. ANS: B DIF: 1 REF: p. 011
16. ANS: A DIF: 1 REF: p. 011
Classify each of the following positions as a line or staff function.

a. line
b. staff
17. production manager
18. marketing officer
19. human resources officer
20. warehousing manager
21. treasurer
17. ANS: A DIF: 1 REF: p. 015

18. ANS: A DIF: 1 REF: p. 015
19. ANS: B DIF: 1 REF: p. 015
20. ANS: B DIF: 1 REF: p. 015
21. ANS: B DIF: 1 REF: p. 015
Identify which provision applies to which standard of the IMA code of conduct.
a. objectivity
b. confidentiality
c. competence
d. integrity
22. prepare clear and complete reports after appropriate analyses of relevant information
23. refrain from engaging in or supporting an activity that should discredit the profession
24. refrain from disclosing confidential information acquired in the course of work, except when
authorized, unless legally required to do so
25. disclose fully all relevant information that could reasonably be expected to influence an intended
user’s understanding of reports, comments, and recommendations presented.
26. communicate unfavorable as well as favorable information and professional judgments and
opinions.
22. ANS: C DIF: 2 REF: p. 019

OBJ: 6 NAT: AICPA Ethics | IMA Global business
23. ANS: D DIF: 2 REF: p. 019
24. ANS: B DIF: 2 REF: p. 019
25. ANS: A DIF: 2 REF: p. 019
26. ANS: D DIF: 2 REF: p. 019

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Hansen AISE TB - Ch01

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Chapter 1

Introduction: the Role, History, and Direction of Management Accounting

1. One of the objectives of management accounting is to provide

2. Which of the following can be described as an output in a management accounting system?

3. Which of the following is NOT a process in a management accounting system?

4. Which of the following would be an input in a management accounting system?

5. Which of the following is an output of the management accounting information system?

8. One advantage of employee empowerment is

10. The planning process includes

ANS: A DIF: 2 REF: p. 006

13. Feedback is critical during which phase of the management process?

16. Evaluating the performance of a segment of the company is an example of

19. Setting the selling price of a company's product is an example of

21. Management accounting is primarily concerned with which of the following?

23. Which of the following does NOT describe management accounting?

27. Which of the following is NOT a current theme of management accounting?

ANS: A DIF: 1 REF: p. 010

28. Activity-based costing focuses on

29. Which of the following is an objective of activity-based management?

30. Which of the following is an objective of process value analysis?

32. A firm can increase customer value by increasing

35. Customer sacrifice includes

ANS: C DIF: 1 REF: p. 011

39. The value chain includes which of the following activities?

42. An example of an external linkage is

43. What is a key feature of supply chain management?

47. Total quality management

48. When firms adopt a total quality management (TQM) philosophy,

50. Which of the following is a critical measure of efficiency?

51. Which of the following is NOT a necessary element of measuring efficiency?

52. An advantage of electronic business is that it

53. Which of the following is a role of the management accountant?

54. The chief accounting officer of an organization is the

56. A person in a staff position

57. Which of the following is a staff position?

58. Which of the following would be considered a line function?

59. The internal auditor performs a

60. The finance function within an organization is the responsibility of the

ANS: C DIF: 1 REF: p. 016

62. The primary objective of an organization should be to maximize

63. Ethical behavior

64. Core values essential to an ethical life include

65. The Sarbanes-Oxley Act requires that

69. Management accountants should attempt to resolve ethical issues by

DIF: 3 REF: p. 004-007 OBJ: 1

2. Compare/contrast financial accounting and management accounting.

Financial Accounting Management Accounting

DIF: 2 REF: p. 008-009 OBJ: 2

DIF: 3 REF: p. 009-010 OBJ: 3

4. What is the role of management accounting information in strategic cost management?

DIF: 2 REF: p. 010-011 OBJ: 4

DIF: 3 REF: p. 010-015 OBJ: 4

DIF: 2 REF: p. 015-016 OBJ: 5

DIF: 2 REF: p. 017-018 OBJ: 6

DIF: 3 REF: p. 019-020 OBJ: 7

DIF: 3 REF: p. 019-020 OBJ: 7

Determine whether each of the following is a characteristic of financial accounting or managerial

1. ANS: A DIF: 1 REF: p. 009

11. ANS: B DIF: 1 REF: p. 011

Classify each of the following positions as a line or staff function.

17. ANS: A DIF: 1 REF: p. 015

22. ANS: C DIF: 2 REF: p. 019

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