MULTIPLE CHOICE. Read carefully the statements below and write the letter of your choice on the table provided above. Use CAPITAL letter only. NO ERASURES ALLOWED. 11. Which of the following is not one of the three basic activities of a manager? A. Planning B. Controlling C. Directing and motivating D. Compiling management accounting reports 12. Which of the following statements are false concerning line and staff functions? I. Persons occupying staff functions have authority over persons occupying line functions. II. Both line and staff functions are depicted on the organization chart. III. Line functions are directly related to the basic objectives of an organization. A. Only I B. Only II C. Only I and II D. I, II, and III 13. The Standards of Ethical Conduct for Management Accountants developed by the Institute of Management Accountants contain a policy regarding confidentiality that requires management accountants to refrain from disclosing confidential information acquired in the course of their work: A. except when authorized by management. B. in all situations. C. except when authorized by management; unless legally obligated to do so. D. in all cases not prohibited by law. 14. Titan Company has set various goals, and management is now taking appropriate action to ensure that the firm achieves these goals. One such action is to reduce outlays for overhead, which have exceeded budgeted amounts. Which of the following functions best describes this process? A. Decision making. B. Planning. C. Coordinating. D. Controlling. 15. Which of the following is not an objective of managerial accounting? A. Providing information for decision making and planning. B. Assisting in directing and controlling operations. C. Maximizing profits and minimizing costs. D. Measuring the performance of managers and subunits. 16. Which of the following employees at American Airlines would not be considered as holding a line position? A. Pilot. B. Chief financial officer (CFO). C. Flight attendant. D. Ticket agent. 17. A controller is normally involved with: A. preparing financial statements. B. managing investments. C. raising capital. D. safeguarding assets. 18. Which of the following is not an ethical standard of managerial accounting? A. Competence. B. Confidentiality. C. Efficiency. D. Integrity. 19. Which of the following is not an element of competency? A. To develop appropriate knowledge about a particular subject. B. To perform duties in accordance with relevant laws. C. To perform duties in accordance with relevant technical standards. D. To refrain from engaging in an activity that would discredit the accounting profession. 20. Assume that a managerial accountant regularly communicates with business associates to avoid conflicts of interest and advises relevant parties of potential conflicts. In so doing, the accountant will have applied the ethical standard of: A. objectivity. B. confidentiality. C. integrity. D. credibility. 21. Montgomery Company has a variable selling cost. If sales volume increases, how will the total variable cost and the variable cost per unit behave? Total Variable Cost Variable Cost Per Unit A. Increase Increase B. Increase Remain constant C. Increase Decrease D. Remain constant Decrease 22. What type of cost exhibits the behavior that follows? Manufacturing Volume (Units) Cost Per Unit 50,000 $1.95 70,000 1.95 A. Variable cost. B. Fixed cost. C. Semivariable cost. D. Discretionary fixed cost. 23. Webster has the following budgeted costs at its anticipated production level (expressed in hours): variable overhead, $150,000; fixed overhead, $240,000. If Webster now revises its anticipated production slightly downward, it would expect: A. total fixed overhead of $240,000 and a lower hourly rate for variable overhead. B. total fixed overhead of $240,000 and the same hourly rate for variable overhead. C. total fixed overhead of $240,000 and a higher hourly rate for variable overhead. D. total variable overhead of less than $150,000 and a lower hourly rate for variable overhead. 24. What type of cost exhibits the behavior that follows? Manufacturing Volume (Units) Total Cost Cost Per Unit 50,000 $150,000 $3.00 80,000 150,000 1.88 A. Variable cost. B. Fixed cost. C. Semivariable cost. D. Step-variable cost. 25. Which of the following choices denotes the typical cost behavior of advertising and sales commissions? Advertising Sales Commissions A. Variable Variable B. Variable Fixe