C detailed short term responsibilities at all levels

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C. Detailed, short term, responsibilities at all levels, quantitative. D. Broad, long term, broad responsibilities, qualitative. 87. (CASH MANAGEMENT) A consultant recommends a company hold funds for the following two reasons: Reason 1: Cash needs may fluctuate substantially throughout the year. Reason 2: Opportunity for buying at a discount may appear during the year. The cash balances used to address the reasons given above are correctly classified as Reason 1 Reason 2 A. Speculative balances Speculative balances B. Speculative balances Precautionary balances C. Precautionary balances Speculative balances D. Precautionary balances Precautionary balances 88. (CVP ANALYSIS) The contribution income statement differs from the traditional income statement in which of the following ways? A. The traditional income statement separates costs into fixed and variable components. B. The traditional income statement subtracts all variable costs from sales to obtain the contribution margin. C. Cost-volume-profit relationships can be analyzed more easily from the contribution income statement. D. The contribution income statement separates costs into product and period categories. 89. (QUANTITATIVE METHODS) When using a graphical solution to a linear programming problem, the optimal solution will lie in an area commonly known as the: A. region of maximization. B. feasible region. C. objective region D. constraint region.
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MANAGEMENT ADVISORY SERVICES - THEORIES Page 17 90. (DECISION MAKING) Costs that cannot be changed by any decision made now or in the future are: A. fixed costs B. indirect costs C. avoidable costs D. sunk costs 91. (DECISION TREE ANALYSIS) Which of the following statements does not apply to decision tree analysis? A. The sum of the probabilities of the events is less than one (1) . B. All of the events are mutually exclusive. C. All of the events are included in the decision. D. The branches emanate from a node from left to right. 92. (BALANCED SCORECARD) Which of the following performance measures is nonfinancial? A. Percentage of defective products. B. Return on investment. C. Gross profit margin. D. Economic value-added. 93. (PRACTICE STANDARDS) At Key Enterprises, the controller is responsible for directing the budgeting process. In this role, the controller has significant influence with executive management as individual department budgets are modified and approved. For the current year, the controller was instrumental in the approval of a particular line manager’s budget without modification , even though significant reductions were made to the budgets submitted by other line managers. As a token of appreciation, the line manager has given the controller a gift certificate for a popular local restaurant. In considering whether or not to accept the certificate, the controller should refer to which section of IMA’s Statement of Ethical Professional Practice ?
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