28689001-MAS-Compilation-of-Questions - MANAGEMENT ADVISORY...

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MANAGEMENT ADVISORY SERVICES QUESTIONS AND ANSWERS COMPILED BY: MA. CRISTINA P. OBESO, CPA THEORY 1. Which of the following costs should consider the tax shield effect in computing the costs of capital? A A. Cost of debt B. Cost of common stock C. Cost of preferred stock D. Cost of retained earnings 2. Which of the following is not considered in the cash conversion cycle? B A. Receivable collection period B. Debt repayment period C. Inventory conversion period D. Payable deferral period 3. Cash flows from capital budgeting projects are assumed to be received C A. At the beginning of the year B. Evenly during the year C. At the end of the year D. At a certain point of the year 4. In the absence of shutdown costs, B A. Shutdown point is higher than breakeven point B. Shutdown point is equal to the breakeven point C. Shutdown point is lower than breakeven point D. One cannot determine the relationship between shutdown point and breakeven point 5. The balanced scorecard approach does not require looking at performance from which of the following perspectives? C A. Customer B. Employees C. Competitor D. Internal business processes 6. Contribution margin ÷ profit after interests and preferred dividends = C A. Degree of operation leverage B. Degree of financial leverage C. Degree of total leverage D. No meaningful amount 7. If an increase in product price by 5% causes a decrease in quantity demanded by the same percentage, then the demand for the product is said to be B A. Elastic B. Unit-elastic C. Inelastic D. Perfectly Elastic 8. Under the high-low method, the unit variable cost closely resembles the math concept of C A. Y-intercept B. X-intercept C. Slope of the line D. Independent variable 9. Profit under variable costing fluctuates with A A. Sales only B. Production only C. Both sales and production D. Neither sales nor production 10. The path that has the highest slack time in the PERT network is C A. Critical path B. Longest path C. Shortest path D. Psychopath
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11.Which of the following is an invalid measure of productivity? C A. Partial operational B. Partial financial C. Total operational D. Total financial 12.Which of the following situations is among the concerns of a controller (as opposed to those of a treasurer)? D A. The company is in need of financing from external sources. B. The company is already late in filing its monthly VAT returns. C. The company is guilty of unplanned material bank overdraft. D. The company is in default of its account payable to suppliers. 13. A firm’s working capital financing requirements may be divided into B A. Aggressive and conservative B. Seasonal and permanent C. Current and non-current D. Internal and external 14. Dividend yield multiplied by price-earnings ratio A A. Pay-out ratio B. Retention ratio C. Equity ratio D. Earnings per share 15. A term descriptive of managerial accounting.
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This note was uploaded on 08/12/2010 for the course ACC 452 taught by Professor Mr.cula during the Spring '10 term at Abraham Baldwin Agricultural College.

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28689001-MAS-Compilation-of-Questions - MANAGEMENT ADVISORY...

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