QUESTION 1 Which of the following statements is true: LAgency theory suggests that the principal's job is to fulfil the interests of the agent. IL Compensating the managers for performing well can help in managing the agency problem O I only O I only O Both I and II O Neither I nor II
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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- Q7 the key feature of an agency relationship is that 1) The company will allow another firm to take on its name and act as an agent in doing the business 2) the principal will always make decisions that are in the best interest of the agent 3) one party passes the responsibility for making decisions design as a party 4 ) the decisions by the agent will always improve the position of the owner of the firmQ5) Agency costs are _______ costs that are paid to ____ acting on behalf of the principal to minimise the conflict of interests between the two parties. Group of answer choices a) internal, shareholders b) external, shareholders c) internal, managers d) external, managers1. Which of the following best describes agency cost?A) Costs involved with any effort to minimize the conflict between the principal's interest and the 2/3.B) Cost incurred by an agent to facilitate the creation of an agency relationship with theirprincipal.C) Cost incurred by a principal to establish an agency.D) Agency costs are irrelevant costs that are not measurable nor recognized in the face of the Financial Statement and is therefore not a cost to a company. in the long-term. 2. Which of the following is a valid reason why Financial Managers should put emphasis on long-term growth rather than short-term profit maximization?A) A manager should focus on profit maximization because it adds to the wealth of shareholdersB) A manager should focus on long-term growth because short-term profit maximization does not add to the wealth of shareholders on the long-term.C) There is no difference between focusing on short-term profit maximization and emphasis on agents interestD) Emphasis…
- According to agency theory: Select one: a. The stakeholders are the principal. b. The management board is the agent. c. The management board is the principal. d. Self-interest plays no role.. What is an agency relationship? When you firstbegin operations, assuming you are the onlyemployee and only your money is invested in thebusiness, would any agency conflicts exist? Explainyour answer.Give typing answer with explanation and conclusion 1.The duty of performance requires agents to live up to which of the following standards? Good faith and fair dealing Reasonable care and skill in performing their work The level of performance required under the Uniform Commercial Code Expert performance at all times
- 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…S1: Assurance engagements performed by professional accountants are intended to improve the operating efficiency and effectiveness of the responsible parties.S2: An auditor is required to understand all the aspects of internal control of the client. Group of answer choices Only S1 is correct. Both S1 and S2 are incorrect. Only S2 is correct. Both S1 and S2 are correct.1. Information from Management Reporting System are used by business owners in making strategic decisions. The reports created from this are called Group of answer choices b. Discretionary, because the company has no discretion to produce the report or not, the law requires them to generate such reports c. Non discretionary, because the company has sole discretion to produce such reports for internal users. on discretionary, because the company has no discretion to produce the report or not, the law requires them to generate such reports d. Discretionary, because the company has sole discretion to produce such reports for internal users. 2. The entry to record the granting of credit to a customer for a sales return is posted to Group of answer choices a. accounts receivable subsidiary ledger only. b. the general ledger only. c. both the accounts receivable subsidiary ledger and the general ledger. d. both the accounts payable subsidiary ledger and the general ledger.…
- 1. What are interesting facts/ fun facts about management accounting practices? 2. Explain one example management accounting dishonest practices that talked a around the whole?QUESTION 31 Which of the following is not correct regarding the agency theory of the principal-agent relationship? A. The principal tries to minimize agency problems/costs. B. A doctor for seeing a patient is an agent. C. Usually, the agent is better informed than the principal regarding the operating environment. D. The principal-agent relationship exists when one party works for the other party. E. Adverse selection means that the agent may not take as much effirts as the principal wants.Think about the main duties/tasks for the Accountant and Auditor occupation. Using the tasks listed, and your knowledge of Self-Determination Theory, for 3 each form of motivation listed below, pick one task that would fit each form of motivation for you. Tell me why the task would likely fit, for you, the specific motivation type noted, and in doing so, demonstrate your knowledge of these motivation types. a. external regulation b. identified regulation c. intrinsic motivation