Orgz Controllers department

Question 1

CHARACTERISTICS OF EFFECTIVE PERFORMANCE REPORTS: ( Bs, R, TA, Ce)

Answer 1

1. Behaviorally sound
2. Relevant
3. Timely and accurate
4. Cost effective

Question 2

In most corporate organizations, is the Chief Accounting Officer Internally

Answer 2

Controller

Question 3

providing information, to managers and usually oversees the company’s internal control system.

Answer 3

Controller

Question 4

DUTIES OF THE CONTROLLER AND ITS STAFF: 4-5

Answer 4

1. Designing, installing, and maintaining the cost accounting system.2. Forecasting future costs.
   3.Coordinating the development of the budget.4. Accumulating and analyzing actual costs. 5. Preparing and analyzing performance reports.

Question 5

DUTIES OF THE CONTROLLER AND ITS STAFF: 6-10

Answer 5

6. Preparing reports for external users.
7. Providing information for special decisions.
8. Consulting with management as to the meaning of cost information.
9. Infernal auditing.
10. Tax administration.

Question 6

DISTINCTIONS BETWEEN (FUNCTIONS) CONTROLLER AND TREASURER:
CONTROLLERSHIP

Answer 6

Planning and control
Reporting and interpreting Evaluating and consulting
Tax administration
Protection of assets
Government Reporting
Economic appraisal

Question 7

DISTINCTIONS BETWEEN (FUNCTIONS) CONTROLLER AND TREASURER:
Treasurer ship

Answer 7

Provides information to external generates general purpose financial statement
reports on past activities
must conform to externally imposed standards
Emphasize objective data

Question 8

The functions of the ___ also include management audits, internal audits. development of accounting systems and computer data processing

Answer 8

controller

Question 9

is based on a classification of managerial responsibilities at every level in the organization for the purpose of establishing a budget for each.

Answer 9

Responsibility accounting

Question 10

True or False : Each department’s budget should clearly identify costs controllable by the person responsible.

Answer 10

True

Question 11

T/F : The starting point for a responsibility accounting, information system rests with the organization chart in which the areas of jurisdiction have been determined.

Answer 11

True

Question 12

1. To inform managers and superiors of their performance in responsible areas.
2. To motivate managers and superiors to generate the direct action necessary to improve performance.

Answer 12

PURPOSES OF PERFORMANCE REPORTS

Question 13

-Fit report to recipient
-Fit report to organization chart
-Keep number of reports to a minimum
-Make reports timely
- Use Action Reports
- include only essential data
- Issue reports earlier
-Pinpoint responsibility
Standardize presentation and form
Simplify and Clarify facts and DAta

Answer 13

FUNDAMENTALS OF GOOD PERFORMANCE REPORTS:

Question 14

Show comparisons, rations and trends
make the system flexible
consider cost
use visual aids
control distribution

Answer 14

FUNDAMENTALS OF GOOD PERFORMANCE REPORTS:

Question 15

It is concerned with providing information to management that will be useful in making decisions about the operations of the business.

Answer 15

Management (Managerial) Accounting

Question 16

It means that the executive’s attention and effort are concentrated on the significant deviations from expected results and that the information system highlights areas most in need of investigation.

Answer 16

Management By Exception

Question 17

A management approach designed to focus on the definition and attainment of overall and individual objectives with the participation of all levels of management.

Answer 17

Management By Objective

Question 18

involves the establishment of goals and the selection of courses of action (decision models) to achieve those goals.

Answer 18

Planning

Question 19

involves the implementation of plans and the consideration of feedback that may influence future decisions or activities..

Answer 19

Control

Question 20

The flow of management activities through the steps of planning, organizing and directing, controlling, and then back to planning again.

Answer 20

Planning and Control Cycle -

Question 21

is the officer who has the overall responsibility for all the accounting activities within the organization.

Answer 21

Controller

Question 22

The ___who has the authority for accounting within the organization and for external reporting.

Answer 22

Chief Accounting Officer

Question 23

It is the practice of the established science of control, which is the process by which management assures itself that the resources utilized according to plans, in order to achieve the company’s the objectives.

Answer 23

Controllership

Question 24

Is the person in charge of raising cash for operations and managing cash and near-cash assets.

Answer 24

Treasurer

Question 25

1. Measures the contribution to enterprise income that flows from specific products or services. 2. Measures the contribution to income of individual organization segments (departments, divisions, ctc.).

Answer 25

NATURE AND PURPOSE OF RESPONSIBILITY ACCOUNTING:

Question 26

It is a system design that recognizes various decision centers throughout an organization and traces costs (as well as revenues, assets and liabilities, where relevant) to the individual managers who are primarily responsible for making decisions about these variables.

Answer 26

Responsibility Accounting

Question 27

is any point within an organization where control over the incurrence of costs or the generating of revenue is found.

Answer 27

Responsibility Center

Question 28

are those costs that maybe influenced by unit managers in a given time period.

Answer 28

Controllable Costs

Question 29

These costs are those over which departmental supervisor can exert influence over the amount spent, like direct materials, direct labor and variable overhead.

Answer 29

Controllable Costs

Question 30

are costs assigned to a department or cost center by upper management and are therefore not under the control of the department supervisor

Answer 30

Uncontrollable Costs

Question 31

are reports prepared according to responsibility levels in the organization.

Answer 31

Responsibility Performance Reports

Question 32

A detailed report to management comparing budgeted data against actual data for a specific time period.

Answer 32

Performance Report

Question 33

TYPES OF RESPONSIBILITY CENTERS:

Answer 33

1. Cost Center 2. Profit Center 3. Revenue Center 4. Investment Center

Question 34

1. Cost Center 2. Profit Center 3. Revenue Center 4. Investment Center

Answer 34

TYPES OF RESPONSIBILITY CENTERS:

Question 35

The focus of control shifts from detailed analysis of revenues and expenses to the evaluation of the net profit.

Answer 35

2. Profit Center

Question 36

Is a segment in which the manager's responsibility is limited to control of costs. Reports on performance will show only controllable costs.

Answer 36

1. Cost Center

Question 37

Organization units whose activities are primarily related to making sales. Performance is evaluated in terms of revenues achieved and direct costs incurred.

Answer 37

3. Revenue Center

Question 38

It is a responsibility center in which the manager is held responsible not only for profit but also for the level of investment that is utilized to earn that profit.

Answer 38

4. Investment Center

Question 39

1. Assisting in the design of the organization's information system. 2. Ensuring that the system performs adequately. 3. Periodically reporting information to interested managers, and 4. Undertaking special analyses.

Answer 39

The specific duties of managerial accountants include:

Question 40

provide information to managers relating to financial statements, tax problems, dealings with government agencies and other matters

Answer 40

Managerial accountants

Question 41

have an obligation to the organizations they serve. their profession, the public. and themselves to maintain the highest standards of ethical conduct.

Answer 41

Management Accountants

Question 42

Standards of Ethical Conduct of Management Accounting.

Answer 42

Competence Confidentiality Integrity Objectivity

Question 43

Management accountants have a responsibility to: Maintain an appropriate level of professional competence by ongoing development of their knowledge and skills.

Answer 43

Competence

Question 44

Management accountants have a responsibility to: Perform their professional duties in accordance with relevant laws, regulations and technical standards.

Answer 44

Competence

Question 46

Management accountants have a responsibility to: Prepare complete and clear reports and recommendations after appropriate analyses of relevant and reliable information.

Answer 46

Competence

Question 47

Management accountants have a responsibility to: Inform subordinates as appropriate regarding the confidentiality of information acquired in the course of their work and monitor their activities to assure the maintenance of that confidentiality

Answer 47

Confidentiality

Question 48

Management accountants have a responsibility to: Refrain from using or appearing to use confidential information acquired in the course of their work for unethical and illegal advantage either personally or through third parties

Answer 48

Confidentiality

Question 49

Management accountants have a responsibility to : Avoid actual or apparent conflicts of interest and advise all appropriate parties of any potential conflict

Answer 49

Integrity

Question 50

Management accountants have a responsibility to : Refrain from engaging in any activity that would prejudice their ability to carry out their duties ethically

Answer 50

Integrity

Question 51

Management accountants have a responsibility to : Refuse any gift favor or hospitality that would influence or would appear to influence their actions

Answer 51

Integrity

Question 52

Management accountants have a responsibility to : Refrain from engaging in or supporting any activity that would discredit the profession

Answer 52

Integrity

Question 53

Management accountants have a responsibility to : Refrain from other actively or passively subverting the attainment of the organization s legitimate and ethical objectives.

Answer 53

Integrity

Question 54

Management accountants have a responsibility to : Recognize and communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity

Answer 54

Integrity

Question 55

Management accountants have a responsibility to : Communicate information fairly and objectively

Answer 55

Objectivity

Question 56

Management accountants have a responsibility to : Disclose fully all-relevant information that could reasonably be expected to influence an intended user's understanding of the reports. comments. and recommendations presented

Answer 56

Objectivity

Question 58

1. Identifying the decisions to be made. 2. Identifying the information that is relevant to the decision making process, and 3. Organizing the information so that it is most useful to management

Answer 58

AREAS NOT CONTROLLED IN MANAGEMENT ACCOUNTING BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES:

Question 59

AREAS NOT CONTROLLED IN MANAGEMENT ACCOUNTING

Answer 59

1. Identifying the decisions to be made. 2. Identifying the information that is relevant to the decision making process, and 3. Organizing the information so that it is most useful to management

Question 60

The primary objective of ___is to assist in planning and control functions of internal decision makers (i.e., management).

Answer 60

Cost and Managerial Accounting

Question 61

is primarily concerned with the information needs external decision makers (stockholders, creditors, governmental authorities, etc.).

Answer 61

Financial Accounting

Question 62

plays an important role in the planning and control process The information generated in the decision-making process helps establish expectations of performance and provides actual results to compare with expectations.

Answer 62

Managerial Accounting

Question 63

plays an important role in the planning and control process The information generated in the decision-making process helps establish expectations of performance and provides actual results to compare with expectations.

Answer 63

Managerial Accounting

Question 64

is the link between planning and control in the decision making cycle. Part of the output (feedback) is transferred to the input (goals and decision models) so that the cycle is continuous and interacting.

Answer 64

Cost Accounting System

Question 65

T/f: Managerial accountants in businesses include personnel in the controller's office, as well as budget analysts, cost analysts, and financial analysts.

Answer 65

True

Question 66

T/F In large companies many people perform managerial accounting functions.

Answer 66

True

Question 67

T/F In small businesses the controller and an assistant might carry out all of the managerial accounting functions.

Answer 67

True

Question 68

The chief management accountant or the chief accounting executive of an organization is called the (often called comptroller, especially in the government sector).

Answer 68

controller

Question 69

the (often called __, especially in the government sector).

Answer 69

comptroller

Question 70

The _is in charge of the accounting department.

Answer 70

controller

Question 71

T/F : The controller's authority is basically staff authority in that the controller's department gives advice and service to other departments. At the same time. the controller has line authority over members of his/her own department such as internal auditors. budget analysts. financial analysts, bookkeepers, etc.

Answer 71

True

Question 72

T/F : the controller has line authority over members of his/her own department such as internal auditors. budget analysts. financial analysts, bookkeepers, etc.

Answer 72

True

Question 73

focuses on providing information to managers to help them in fulfilling their functions of planning, controlling, performance evaluation, and decision making.

Answer 73

Management Accounting

Question 74

1. Planning and controlling routine operations 2. Non-routine decisions, policy making, and long-range planning. 3. Inventory valuation and income determination

Answer 74

PURPOSES OF MANAGEMENT ACCOUNTING:

Question 75

1. Decide on a standard or budget specifying what actual performance should be. 2. Measure the results of actual performance. 3. Compare actual performance with the standard or budget.

Answer 75

PLANNING AND CONTROL PROCESS INCLUDES:

Question 76

1. Identify the problem requiring managerial action. 2. Specify the objective or goal to be achieved. 3. List the possible alternative courses of action 4 Gather information about the consequences of each alternative. 5. Make a decision by selecting one of the alternatives

Answer 76

MANAGEMENT DECISION MAKING INCLUDES:

Question 77

DISTINCTION BETWEEN MANAGEMENT ACCOUNTING AND FINANCIAL ACCOUNTING: 1.Provides information to internal users.. 2. Generates special purpose reports and statements. 3. Reports on past or Outline future plans. 4. Is not subject to externally imposed standards. 5. Allows a subjective data.

Answer 77

MANAGEMENT ACCOUNTING

Question 78

DISTINCTION BETWEEN MANAGEMENT ACCOUNTING AND FINANCIAL ACCOUNTING: 1.Provides information to external 2. Generates general purpose financial statements. 3. Reports on past activities. 4. Must conform to externally imposed standards. 5. Emphasizes on objective data

Answer 78

FINANCIAL ACCOUNTING