d.
terms serve as a model of the organization.
ANSWER:
c
23. Monitoring the number of defects produced is an example of the management function of
a.
planning.
b.
control.
c.
decision making.
d.
both a and c.
ANSWER:
b
24. The setting of objectives and the identification of methods to achieve those objectives is called
a.
planning.
b.
controlling.
c.
performance evaluation.
d.
decision making.
ANSWER:
a
25. Comparing actual quality costs with planned quality costs is an example of
a.
planning.
b.
controlling.
c.
performance evaluation.
d.
both b and c.
ANSWER:
d
26. Performance reports are accounting reports that compare
a.
planned data with actual data.
b.
audited data with actual data.
c.
managers' bonuses with performance ratings by supervisors.
d.
actual data with industry standards.
ANSWER:
a
27. Which of the following statements correctly distinguishes between financial and management accounting?
a.
Management accounting reports on the whole organization.
b.
Financial accounting is oriented toward the future.
c.
Financial accounting is primarily concerned with providing information for internal users.
d.
Management accounting is oriented more toward the planning and control aspects of management.
ANSWER:
d
28. 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.
ANSWER:
a
29. Setting the selling price of a company's product is an example of
a.
planning.
b.
control.
c.
decision making.
d.
all of the above.
ANSWER:
c
30. Developing a company strategy for responding to anticipated new markets is an example of
a.
planning.
b.
control.
c.
decision making.
d.
all of the above.
ANSWER:
a
31. The planning process includes
a.
setting objectives.
b.
identifying means of achieving the objectives.
c.
making decisions.
d.
all of the above.
ANSWER:
d
32. Investigating production variances and adjusting the production process is an example of
a.
planning.
b.
control.
c.
internal auditing.
d.
both a and c.
ANSWER:
b
33. Evaluating the performance of a segment of the company is an example of
a.
planning.
b.
control.
c.
internal auditing.
d.
both a and c.
ANSWER:
b
34. Determining the bid your company should submit on a construction contract is an example of
a.
planning.
b.
control.
c.
decision making.
d.
both a and b.
ANSWER:
c
35. The formulation of a scheme or program for the accomplishment of a specific purpose or goal is referred to as