D greater employee participation 36 decentralization

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D. Greater employee participation. 36. (DECENTRALIZATION & PERFORMANCE EVALUATION) SPQR, Inc. has two divisions: the Handles Division which manufactures SPQR handles, and the Assembly Division which assembles various parts to produce SPQRs, the main product of SPQR, Inc. The Handles Division currently has excess capacity of 1,500 units. It produces handles at variable cost of P70. The handles can be sold in the outside market for P100. The Assembly Division requires 1,400 handles for the SPQRs that it produces. It can buy such handles from outside suppliers at P100 or it can just buy them from the Handles Division. What is the natural bargaining range for the two divisions regarding the transfer price of handles? A. Between P70 and P100 B. Between P100 and P170 C. Any amount less than P100 D. P70 is the only acceptable price. 37. (QUANTITATIVE METHODS) In a PERT network, the critical path is the path that A. has the most number of activities. B. requires the longest time to complete. C. requires the shortest time to complete. D. has the most slack. 38. (BASIC MAS CONCEPTS) A person who is qualified by education, experience, technical ability, and temperament to advise or assist businessmen on a professional basis in identifying, defining, and solving specific management problems involving the organization, planning, direction, control, and operation of a firm is called a A. Management Consultant B. Certified Public Accountant C. Accounting Technician D. Management Accountant 39. (BASIC MAS CONCEPTS) Consulting services differ fundamentally from CPA’s function of attesting to the assertions of other parties. In a consulting service, A. the practitioner expresses a conclusion about the reliability of a written assertion that is the responsibility of the assertor. B. the work is generally performed only for the use and benefit of the client. C. the client develops findings, conclusions, and recommendations. D. the nature and scope of work is determined solely by the consulting services practitioner.
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MANAGEMENT ADVISORY SERVICES - THEORIES Page 8 40. (BASIC MAS CONCEPTS) As a consultant the CPA/MAS practitioner should A. conduct his engagement as if he is a member of the client’s organization. B. exercise administrative control over the client’s staff to avoid unnecessary delays in implementation. C. encourage dependence of client on the consultant’s staff so as to pinpoint clear responsibility in implementing systems. D. not take responsibility for making decisions and policy judgments in MAS engagements. 41. (BASIC MAS CONCEPTS) Which of the following statements is correct? A. MAS is confined only to such areas as financial accounting, auditing, and tax services. B. Because the MAS practitioner must be independent, he must not allow the client to participate in any phase of his engagement.
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