Management Accounting - Study Mode

[#181] System in an organization, which defines behavior standards and code of conduct is known as
Correct Answer

(C) boundary system

Explanation

Solution: System in an organization, which defines behavior standards and code of conduct is known as boundary system. A boundary system is a set of standards relating to acceptable behavior in an organization.

[#182] An economic value added method is specific type of method to calculate
Correct Answer

(C) residual income

Explanation

Solution: An economic value added method is specific type of method to calculate residual income. Residual income is excess income generated more than the minimum rate of return. Residual income is a measurement of internal corporate performance, whereby a company's management team evaluates the income generated relative to the company's minimum required return.

[#183] An example of qualitative factor is
Correct Answer

(A) employee morale

Explanation

Solution: An example of qualitative factor is employee morale. Employee morale describes the overall outlook, attitude, satisfaction, and confidence that employees feel at work.

[#184] Fourth step in decision making process is
Correct Answer

(B) making decisions

Explanation

Solution: Fourth step in decision making process is making decisions. Decision Making Process helps manager and other professional to make choices by examining a decision , collecting information for solving problem.

[#185] Formal method of making choices, considering help of quantitative and qualitative analysis is classified as
Correct Answer

(B) decision method

Explanation

Solution: Formal method of making choices, considering help of quantitative and qualitative analysis is classified as decision method. Decision-making is the process of identifying and choosing alternatives based on the values, preferences and beliefs of the decision-maker. Every decision-making process produces a final choice, which may or may not prompt action.