Horngren’s Cost Accounting A Managerial Emphasis 17th Global Edition by Srikant M. Datar test bank
Diff: 3
Objective: 5
AACSB: Analytical thinking
Objective 1.6
1) Which of the following is true of line management?
A) It is directly responsible for achieving the goals of the organization.
B) It is responsible of management accounting functions.
C) It provides advice, support, and assistance to staff management.
D) It only includes the top level management.
Answer: A
Diff: 2
Objective: 6
AACSB: Analytical thinking
2) Which of the following is true of staff management?
A) It plans income taxes, sales taxes, and international taxes.
B) It is directly responsible for achieving the goals of the organization.
C) It provides advice, support, and assistance to line management.
D) It controls the main business functions such as production and marketing.
Answer: C
Diff: 2
Objective: 6
AACSB: Analytical thinking
3) ________ includes providing financial information for reports to managers and shareholders, and overseeing the overall operations of the accounting system.
A) Risk management
B) Treasury management
C) Controllership
D) Strategic planning
Answer: C
Diff: 1
Objective: 6
AACSB: Analytical thinking
4) ________ includes banking and short- and long-term financing, investments, and cash management.
A) Risk management
B) Strategic planning
C) Controllership
D) Treasury management
Answer: D
Diff: 1
Objective: 6
AACSB: Analytical thinking
5) Line management includes:
A) distribution managers
B) human-resource managers
C) information-technology managers
D) management-accounting managers
Answer: A
Diff: 1
Objective: 6
AACSB: Analytical thinking
6) Staff management includes:
A) manufacturing managers
B) management accountants
C) purchasing managers
D) distribution managers
Answer: B
Diff: 1
Objective: 6
AACSB: Application of knowledge
7) Which of the following is a responsibility of the CFO?
A) budget funds for a plant upgrade
B) managing short-term and long-term financing
C) investing in new equipment
D) conducting internal audit
Answer: B
Diff: 2
Objective: 6
AACSB: Analytical thinking
8) Which of the following functions would typically not come under the responsibility of the CFO?
A) tax
B) treasury
C) operations
D) investor relations
Answer: C
Diff: 2
Objective: 6
AACSB: Analytical thinking
9) Which of the following reports to the CFO?
A) external auditor
B) distribution manager
C) production manager
D) treasurer
Answer: D
Diff: 2
Objective: 6
AACSB: Application of knowledge
10) Which of the following is a function of a controller?
A) operations administration
B) controlling the stock price
C) communication with the shareholders
D) interest-rate risk management
Answer: A
Explanation: A) Found in exhibit 1-6
Diff: 2
Objective: 6
AACSB: Analytical thinking
11) Arrangement of long-term financing is an integral part of the ________ function in an organization.
A) CFO's
B) controller's
C) auditor's
D) president's
Answer: A
Diff: 1
Objective: 6
AACSB: Analytical thinking
12) Line management is directly responsible for attaining the goals of the organization.
Answer: TRUE
Diff: 1
Objective: 6
AACSB: Analytical thinking
13) Staff management, such as management accountants and information technology and human-resources management, provides advice, support, and assistance to line management.
Answer: TRUE
Diff: 1
Objective: 6
AACSB: Analytical thinking
14) Treasury includes banking and short- and long-term financing, investments, and cash management.
Answer: TRUE
Diff: 1
Objective: 6
AACSB: Analytical thinking
15) The controller is usually responsible for budgeting.
Answer: TRUE
Diff: 1
Objective: 6
AACSB: Analytical thinking
16) The treasurer (also called the chief accounting officer) is the financial executive primarily responsible for both management accounting and financial accounting.
Answer: FALSE
Explanation: The controller is also called the chief accounting officer. The controller is the financial executive primarily responsible for both management accounting and financial accounting.