Chapter 2 - The Profession Environment Of Cost Management

Question 1

Is the authority to command action or give orders to subordinates

Answer 1

Line Authority

Question 2

Are directly responsible for attaining the objectives of the business firm as efficiently as possible

Answer 2

Line Managers

Question 3

Is the authority to advise but not command others

Answer 3

Staff authority

Question 4

Give support, advice and service to line departments

Answer 4

Staff managers

Question 5

Also called the finance director in many countries, is the executive responsible for overseeing financial operations of an organization

Answer 5

Chief Financial Officer (CFO)

Question 6

The responsibilities of the CFO vary among organizations, but they usually include the following areas:

Answer 6

1. Controllership
2. Treasury
3. Risk Management
4. Taxation
5. Internal Audit

Question 7

Is the financial executive primarily responsible for management accounting and financial accounting

Answer 7

Controller, also known as the Chief Accounting Officer

Question 8

Is the practice of the established science of control which is the process by which management assures itself that the resources are procured and utilized according to plans in order to achieve the company’s objectives

Answer 8

Controllership

Question 9

Provides reports for planning and evaluating company activities and provides the information needed to make management decisions

Answer 9

Controller

Question 10

What are the Basic Functions of Controllership

Answer 10

1. Planning
2. Control
3. Reporting
4. Accounting
5. Other Primary Responsibilities

Question 11

What are the Basic Functions of Controllership

Answer 11

1. Planning
2. Control
3. Reporting
4. Accounting
5. Other Primary Responsibilities

Question 12

Is concerned with the acquisition, financing and management of assets of a business concern to maximize the wealth of the firms for its owners

Answer 12

Treasurership

Question 13

Has custody of cash and funds invested in various marketable securities. Is generally responsible for maintaining relationships with investors, banks, and other creditors.

Answer 13

Treasurer

Question 14

The controller and treasurer report to the ______________ who is the senior executive responsible for both accounting and financial operations

Answer 14

Chief Financial Officer

Question 15

The Institute of Management Accountants of the United States has developed a very useful ethical code called the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management

Question 16

In a nutshell, the management accountant has ethical responsibilities in four broad areas namely

Answer 16

1. to maintain a high level of professional competence
2. To treat sensitive matters with confidentiality
3. to maintain personal integrity
4. To be objective in all disclosing