BASIC CONSIDERATION IN MANAGEMENT ADVISORY SERVICES

Question 1

This refer to the function of providing professional advisory (consulting) services, the primary purpose of which is to improve the client’s use of its capabilities and resources to achieve the objectives of the organization

Answer 1

Management Advisory Services

Question 2

This is also known as “overall or strategic planning. This is done by the top management. i.e., board of directors or governing body. It encompasses the long-range objectives and policies of organization and is concerned with corporate results rather than sectional objectives.

Answer 2

Top Level Planning

Question 3

This strategy focuses on how to attain and satisfy customers, offer goods and services that meet their needs, and increase operating profits. To do this, it focus on positioning itself against competitors and staying up to date on market trends and technology changes.

Answer 3

Business Level Strategy.

Question 4

These ae agreements between two or more independent companies to cooperate in the manufacturing, development, or sale or products.

Answer 4

Strategic Alliances

Question 5

This is when a business makes a decision that affects the whole company. A corporate-level strategy affects a company’s finances, management, human resources, and where the products are sold.

Answer 5

Corporate Level Strategy

Question 6

This refers to the methods companies use to reach their objectives. By developing these strategies, a company can examine and implement effective and efficient systems for using resources, personnel, and the work process.

Answer 6

Operational Strategies

Question 7

BASIC FUNCTIONS OF MANAGEMENT

It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of action for the achievement of predetermined goals.

According to KOONTZ, this is deciding in advance-what to do, when to to & how to do it.

This is a future course of action. It is an exercise in problem-solving & decision making.

This is determination of course of action to achieve desired goals. Thus, is a systematic thinking about ways & means for accomplishment of pre-determined goals.

It is necessary to ensure proper utilization of human & non-human resources. It is al pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastage etc.

Answer 7

Planning

Question 8

BASIC FUNCTIONS OF MANAGEMENT

It is the process of bringing physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals.

According to Henry Fayol, To organize a business is to provide it with everything useful or its functioning i.e., raw material, tools, capital and personnel’s.

To organize a business involves determining & providing human and non-human resources to the organizational structure.

This process involves:

• Identification of activities
• Classification of grouping of activities
• Assignment of duties
• Coordinating authority and responsibility relationships

Answer 8

Organizing

Question 9

BASIC FUNCTIONS OF MANAGEMENT

It is the function of manning the organization structure and keeping it manned. This function assumed greater importance in recent years due to advancements f technology, the increase in the size of business complexity of human behavior, etc.

The main purpose of this function is to put the right man on the right job.

According to Kootz & O’Donell, Managerial function of this involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fulfill the roles designed in the structure.

This involves:

• Manpower Planning (estimating man power in terms of searching, choose the person, and giving the right place)
• Recruitment, Selection & Placement
• Training & Development
• Performance Appraisal
• Promotions & Transfer

Answer 9

Staffing

Question 10

BASIC FUNCTIONS OF MANAGEMENT

It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it i motion the action of people because planning, organizing and staffing are the mere preparations for doing the work.

This is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals.

This has following elements:

• Supervision
• Motivation
• Leadership
• Communication

Answer 10

Directing

Question 11

This implies overseeing the work of subordinates by their superiors, It is the act of watching & directing work & workers

Answer 11

Supervision

Question 12

Ths means inspiring, stimulating, or encouraging the sub-ordinates with zeal ti work. Positive, negative, monetary, and non-monetary incentives may be used for this purpose.

Answer 12

Motivation

Question 13

This may be defined as a process by which manager guides and influences the work of subordinates in desired direction

Answer 13

Leadership

Question 14

This is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding

Answer 14

Communications

Question 15

Implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals.

Answer 15

Controlling

Question 16

SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA

These are reports for external users
a. Financial Accounting
b. Managerial Accounting

Question 17

SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA

These are reports for external users
a. Financial Accounting
b. Managerial Accounting

Answer 17

a. Financial Accounting

Question 18

SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA

These reports are for internal users
a. Financial Accounting
b. Managerial Accounting

Answer 18

b. Managerial Accounting

Question 19

SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA

This summarizes past transactions
a. Financial Accounting
b. Managerial Accounting

Answer 19

a. Financial Accounting

Question 20

SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA

This has a strong emphasis on the future
a. Financial Accounting
b. Managerial Accounting

Answer 20

b. Managerial Accounting

Question 21

SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA

This data should be objective and verifiable
a. Financial Accounting
b. Managerial Accounting

Answer 21

a. Financial Accounting

Question 22

SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA

This data should be relevant
a. Financial Accounting
b. Managerial Accounting

Answer 22

b. Managerial Accounting

Question 23

SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA

This focuses on precision
a. Financial Accounting
b. Managerial Accounting

Answer 23

a. Financial Accounting

Question 24

SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA

This focuses on timeliness of information
a. Financial Accounting
b. Managerial Accounting

Answer 24

b. Managerial Accounting

Question 25

SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA This is concerned with reporting for a company as a whole a. Financial Accounting b. Managerial Accounting

Answer 25

a. Financial Accounting

Question 26

SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA This focuses on segments of a company a. Financial Accounting b. Managerial Accounting

Answer 26

b. Managerial Accounting

Question 27

SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA This must conform to financial accounting reporting standards a. Financial Accounting b. Managerial Accounting

Answer 27

a. Financial Accounting

Question 28

SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA This does not bound by financial accounting standards a. Financial Accounting b. Managerial Accounting

Answer 28

b. Managerial Accounting

Question 29

SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA This a mandatory a. Financial Accounting b. Managerial Accounting

Answer 29

a. Financial Accounting

Question 30

SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA This is not mandatory a. Financial Accounting b. Managerial Accounting

Answer 30

b. Managerial Accounting

Question 31

FINANCIAL ACCOUNTING vs COST ACCOUNTING This assist external users with business decisions centering on a variety of issues such as the purchase and sale of stock, issuance of loans, etc. a. Financial Accounting b. Cost Accounting

Answer 31

a. Financial Accounting

Question 32

FINANCIAL ACCOUNTING vs COST ACCOUNTING This has an internal focus. It also identifies, collects, measures classifies, and reports information that is used by managers for costing purposes, planning, controlling, and decision making a. Financial Accounting b. Cost Accounting

Answer 32

b. Cost Accounting

Question 33

COST ACCOUNTING vs MANAGEMENT ACCOUNTING This attempts to satisfy costing objectives for both financial and management accounting a. Cost Accounting b. Management Accounting

Answer 33

a. Cost Accounting

Question 34

COST ACCOUNTING vs MANAGEMENT ACCOUNTING This is concerned specifically with how cost information and other financial and non-financial information should be used for planning, controlling, and decision-making. a. Cost Accounting b. Management Accounting

Answer 34

b. Management Accounting

Question 35

ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER Provision of capital a. Controller b. Treasurer

Answer 35

b. Treasurer

Question 36

ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER Investor relation a. Controller b. Treasurer

Answer 36

b. Treasurer

Question 37

ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER Short-term financing a. Controller b. Treasurer

Answer 37

b. Treasurer

Question 38

ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER Banking and custody a. Controller b. Treasurer

Answer 38

b. Treasurer

Question 39

ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER Credits and collection a. Controller b. Treasurer

Answer 39

b. Treasurer

Question 40

ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER Investments a. Controller b. Treasurer

Answer 40

b. Treasurer

Question 41

ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER Insurance a. Controller b. Treasurer

Answer 41

b. Treasurer

Question 42

ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER Planning and control a. Controller b. Treasurer

Answer 42

a. Controller

Question 43

ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER Reporting and interpreting a. Controller b. Treasurer

Answer 43

a. Controller

Question 44

ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER Evaluating and consulting a. Controller b. Treasurer

Answer 44

a. Controller

Question 45

ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER Tax administration a. Controller b. Treasurer

Answer 45

a. Controller

Question 46

ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER Government reporting a. Controller b. Treasurer

Answer 46

a. Controller

Question 47

ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER Protection of assets a. Controller b. Treasurer

Answer 47

a. Controller

Question 48

ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER Economical appraisal a. Controller b. Treasurer

Answer 48

a. Controller

Question 49

MISSION vs VISION This decribes the desired future position of the company. (How do you forsee yourself in the future?) a. Mission Statement b. Vision Statement

Question 50

LINE vs STAFF AITHORITY Those that have the responsibility and authority for achieving the major goals of the corporation. Typically, these goals are targets for revenues and profits. They are directly involved in the daily operations of the business by selling or producing a product or service. a. Line Authority b. Staff Authority

Answer 50

a. Line Authority

Question 51

LINE vs STAFF AUTHORITY CFO a. Line Authority b. Staff Authority

Answer 51

a. Line Authority

Question 52

LINE vs STAFF AITHORITY The primary purpose is to provide assistance and specialized advice and expertise to colleagues in line positions a. Line Authority b. Staff Authority

Answer 52

b. Staff Authority

Question 53

LINE vs STAFF AUTHORITY Controller a. Line Authority b. Staff Authority

Answer 53

b. Staff Authority

Question 54

LINE vs STAFF AUTHORITY Treasurer a. Line Authority b. Staff Authority

Answer 54

a. Line Authority

Question 55

LINE vs STAFF AUTHORITY COO a. Line Authority b. Staff Authority

Answer 55

a. Line Authority

Question 56

LINE vs STAFF AUTHORITY Marketing a. Line Authority b. Staff Authority

Answer 56

a. Line Authority

Question 57

LINE vs STAFF AUTHORITY Production a. Line Authority b. Staff Authority

Answer 57

a. Line Authority

Question 58

LINE vs STAFF AUTHORITY Foreman a. Line Authority b. Staff Authority

Answer 58

a. Line Authority

Question 59

LINE vs STAFF AUTHORITY HR a. Line Authority b. Staff Authority

Answer 59

b. Staff Authority

Question 60

LINE vs STAFF AUTHORITY IT a. Line Authority b. Staff Authority

Answer 60

b. Staff Authority

Question 61

MISSION vs VISION This defines the company's business, its objectives and its approach to reach those objectives. (Bakit ka nandito? Anong gusto mong mangyari?) a. Mission Statement b. Vision Statement

Answer 61

a. Mission Statement

Question 62

MISSION vs VISION This decribes the desired future position of the company. (How do you forsee yourself in the future?) a. Mission Statement b. Vision Statement

Answer 62

b. Vision Statement

Question 63

SOURCES OF COMPETITIVE ADVANTAGE MICHAEL PORTER'S THREE GENERIC STRATEGIES Increasing by reducing costs, while charging industry-average prices. (Offer affordable products but the quality is high) a. The Cost Leadership Strategy b. The differentiation Strategy c. The Focus Strategy

Answer 63

a. The Cost Leadership Strategy

Question 64

SOURCES OF COMPETITIVE ADVANTAGE MICHAEL PORTER'S THREE GENERIC STRATEGIES This involves making your product or services different from and more attractive than those of your competitors. (Unique products > can offer a very high price) a. The Cost Leadership Strategy b. The differentiation Strategy c. The Focus Strategy

Answer 64

b. The differentiation Strategy

Question 65

SOURCES OF COMPETITIVE ADVANTAGE MICHAEL PORTER'S THREE GENERIC STRATEGIES This concentrate on particular niche markets and by understanding the dynamics of that market and the unique needs of customers. (Target Market) a. The Cost Leadership Strategy b. The differentiation Strategy c. The Focus Strategy

Answer 65

c. The Focus Strategy

Question 66

MICHAEL PORTER'S THREE GENERIC STRATEGIES TWO TYPES OF FOCUS STRATEGY This is creating a product that will cater to mid-range and low-end consumers. (More on operating leverage) a. Focus on Cost Leadership b. Focus on Product Differentiation

Answer 66

a. Focus on Cost Leadership

Question 67

MICHAEL PORTER'S THREE GENERIC STRATEGIES TWO TYPES OF FOCUS STRATEGY The target market is the high-end market. (More on profit margin) a. Focus on Cost Leadership b. Focus on Product Differentiation

Answer 67

b. Focus on Product Differentiation

Question 68

IDENTIFYING AND BUILDING RESOURCES AND CAPABILITIES This is matching knowledge of marketplace opportunities and threats with the company's resources and capabilities. a. Strategic Analysis b. Balance sheet information about assets

Answer 68

a. Strategic Analysis

Question 69

IDENTIFYING AND BUILDING RESOURCES AND CAPABILITIES BALANCE SHEET INFORMATION ABOUT ASSETS This is intended to give management an idea of the company's liquidity. i. Cash adequacy ii. Inventory management a. Current resources b. Long-term productive assets c. Intangible Assets

Answer 69

a. Current resources

Question 70

IDENTIFYING AND BUILDING RESOURCES AND CAPABILITIES BALANCE SHEET INFORMATION ABOUT ASSETS This is an important strategic decisions for the right investments. These are needed to support operating activities long-term profitability. These are capital goods needed to produce the final product or service offered by the company i. Analyze trends and measure efficiencies ii. Develop network of relationships with customers and suppliers iii. Identify financial and nonfinancial costs and benefits associated with alternative choices a. Current resources b. Long-term productive assets c. Intangible Assets

Answer 70

b. Long-term productive assets

Question 71

IDENTIFYING AND BUILDING RESOURCES AND CAPABILITIES BALANCE SHEET INFORMATION ABOUT ASSETS These are assets that lack physical attributes or existence but generate cash flows for the company. a. Current resources b. Long-term productive assets c. Intangible Assets

Answer 71

c. Intangible Assets

Question 72

MICHAEL PORTER'S 5 COMPETITIVE FORCES This refers to the number of competitors and their ability to offer goods and services at a lower price than the company. -Red ocean > too many competitors -Blue ocean > Less competitors -Position? >Market leader - setting the standard >Challenger - compete head to head with market leader > Follower - low end market >NIcher - special field a. Competition in the Industry b. Potential of New Entrants into an Industry c. Power of Suppliers d. Power of Customers e. Threats of Substitutes

Answer 72

a. Competition in the Industry

Question 73

MICHAEL PORTER'S 5 COMPETITIVE FORCES The less time and money its costs for a competitor to enter a company's market and be an effective competitor, the more an established company's position could be significantly weakened -Possible competitors can enter the market -Different Types of Market According to Economics >Pure Competition - very easy to enter the market >Monopoly - difficult to enter the competition > Oligopoly - Difficult to control the market (few players) >Monopolistoc competition - anyone can enter the market but offer unique product a. Competition in the Industry b. Potential of New Entrants into an Industry c. Power of Suppliers d. Power of Customers e. Threats of Substitutes

Answer 73

b. Potential of New Entrants into an Industry