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"Management Advisory Services "
"by Franklin T. Agamata, MBA, CPA "
"Suggested Key Answers Multiple Choice Questionnaires "
" "
"Chapter 1 "Chapter 2 "Chapter 3 "Chapter 4 " "
"Multiple "Multiple "Multiple "Multiple "48. C "
"Choice "Choice "Choice "Choice " "
"Basic "1. B "Costs "Basic "49. D "
"Concepts " "classificati"Concepts " "
" " "on " " "
"1. C "2. D "1. D "1. A "50. D "
"2. D "3. D "2. D "2. A "51. D "
"3. D "4. B "3. D "3. B "42. C "
"4. A "5. D "4. C "4. A "43. D "
"5. C "6. A "5. D "5. B "44. A "
"6. A "7. A "6. A "6. D "45. D "
"7. A "8. A "7. C "7. B "46. D "
"8. A "9. D "8. D "8. D "47. A "
"9. C "10. A "9. B "9. B "48. A "
"10. C "11. D "10. D "10. A "49. D "
"11. D "12. D "11. D "11. B "50. B "
"12. D "13. C "12. B "12. C "51. C "
"13. A "14. C "13. A "13. C "52. C "
"14. B "15. C "14. B "14. B "53. D "
"15. D "16. B "15. B "15. D "54. C "
"MAS Practice"17. C "16. A "16. B "55. D "
"Standards "18. D "17. C "Operating "56. A "
" " " "income " "
"16. D "19. A "18. B "17. A "57. C "
"17. D "20. C "19. A "18. B "58. D "
"18. D "21. C "20. A "19. B "59. B "
"19. A "22. C "21. A "20. A "Scattergraph "
"20. B "23. C "22. D "21. A "60. A "
"21. A "24. C "23. C "22. C "61. A "
"22. D "25. B "24. B "23. D "62. D "
"23. A "26. A "25. C "24. B "63. A "
"24. C "True or "26. D "25. A "64. A "
" "False " " " "
"25. C "27. T "27. B "26. A "65. B "
"26. A "28. F "28. D "27. C "66. C "
"27. C "29. T "29. A "28. D "Coefficient of "
"28. A "30. F " "29. A "Correlation "
" "31. T " "30. A "67. A "
" "32. T " "31. B "68. B "
" "33. T " "32. B "69. D "
" "34. F " "33. A "70. C "
" "35. F " "34. B "71. C "
" "36. T " "Income with "72. B "
" " " "variances "73. D "
" " " "35. B "74. D "
" " " "High-low "75. B "
" " " "method " "
" " " "36. A "76. C "
" " " "37. B "77. D "
" " " "38. B "78. C "
" " " "39. D "79. A "
" " " "40. D "80. A "
" " " "41. A "81. D "
" " " "42. A " "
" " " "43. D " "
" " " "44. C " "
" " " "45. D " "
" " " "46. A " "
" " " "47. B " "
"Chapter 5 " "Chapter 6 " " "
"Multiple "55. D "Multiple "54. C "101. C "
"Choice " "Choice " " "
"Basic "56. C "Basic "55. B "102. D "
"Concepts " "Concepts " " "
"1. C "Multi-produc"1. D "56. D "103. D "
" "t sales " " " "
"2. A "57. D "2. D "57. A "104. D "
"3. B "58. C "3. C "58. B "105 D "
"4. C "59. D "4. D "59. A "106. A "
"5. D "60. B "5. A "60. A "107. B "
" "(200,000) " " " "
"6. C "61. D "6. C "Direct labor "Other budgeting "
" " " "budget " "
"7. D "62. A "7. C "61. D "techniques "
" " " " " "
"8. D "63. B "8. D "62. B "108. D "
"9. B "64. B "9. C "63. C "109. B "
"10. B "65. C "10. B "64. B "110. B "
"11. D "66. D "11. No "Factory "111. B "
" " "question "overhead " "
"12. C "Breakeven "12. A "budget "112. A "
" "and CVP " " " "
" "graphs " " " "
"13. C "67. B "13. C "65. C "113. A "
"Breakeven "68. C "14. B "66. B "114. A "
"Point " " " " "
"14. B "69. C "15. D "67. B "115. A "
"15. D "70. A "16. D "Operating "116. C "
" " " "expenses " "
"16. D "71. A "17. B "budget "117. C "
"17. B "72. C "18. B "68. C "118. A "
"18. B "73. A "19. D "Cash budget "119. D "
"19. B "74. A "20. D "69. C "120. A "
"20. B "75. A "21. D "70. A "121. C "
"21. C "76. A "22. A "71. C "True or False "
"22. C "77. A "23. D "72. C "1. T "
"23. B "78. C "24. D "73. C "2. T "
"24. D "79. D "25. D "74. A "3. T "
"25. C "80. C "26. A "75. D "4. T "
"26. A "81. A "27. E "76. C "5. F "
"27. C "82. D "28. B "77. C "6. T "
"28. C "83. B "29. B "78. B "7. F "
"29. B "84. C "30. B "79. D "8. T "
"30. A "85. D "31. C "80. B "9. F "
"31. C "86. B "32. A "81. C "10. F "
"32. A "87. A "33. C "82. D " "
"33. B " "34. B "83. D " "
"34. D " "35. D "84. D " "
"35. A " "36. B "85. C " "
"36. A " "37. A "86. B " "
"37. B " "38. C "87. C " "
"38. B " "39. B "88. D " "
"39. D " "40. B "Income " "
" " " "statement " "
"40. A " "41. D "89. D " "
"41. A " "42. D "90. A " "
"42. B " "43. D "91. A " "
"43. B " "44. D "92. A " "
"44. D " "Production "93. C " "
" " "budget " " "
"45. A " "45. B "94. D " "
"46. A " "46. C "95. B " "
"47. A " "47. C "96. C " "
"48. A " "48. D "97. C " "
"49. B " "Materials "Flexible " "
" " "budget "budget " "
"50. A " "49. C "98. D " "
"51. D " "50. D "99. B " "
"52. C " "51. B "100. B " "
"53. B " "52. D "Comprehensive" "
"54. C " "53. D "problems " "
" " " " " "
" " " " " "
" " " " " "
" " " " " "
"Chapter 7 " "Chapter 8 " "Chapter 9 "
"Multiple "52. D "Multiple "53. D "Multiple Choice "
"Choice " "Choice " " "
"Basic "53. D "Basic "54. D "Basic Concepts "
"Concepts " "Concepts " " "
"1. C "54. B "1.. B "55. B "1. B "
"2. B "55. D "2. C "56. B "2. C "
"3. B "56. D "3. D "57. D "3. D "
"4. B "57. A "4. B "58. C "4. B "
"5. D "58. A "5. A "59. D "5. B "
"6. D "59. D "6. B "60. B "6. D "
"7. A "Factory "7. D "61. B "7. C "
" "overhead " " " "
"8. C "cost "8. C "62. C "8. D "
" "variances " " " "
"9. D "60. A "9. B "63. C "9. B "
"10. B "61. D "10. A "64. B "10. D "
"11. A "62. A "11. D "65. B "11. B "
"12. D "63. C "12. C "66. D "12. C "
"13. C "64. A "13. B "67. C "13. D "
"14. D "65. B "14. A "Transfer "14. D "
" " " "pricing " "
"15. D "66. D "15. C "68. C "15. A "
"16. D "67. A "16. D "69. D "16. C "
"17. D "68. B "17. A "70. A "17. B "
"18. B "69. B "18. A "71. B "18. B "
"19. A "70. B "19. B "72. B "19. D "
"20. D "71. A "20. A "73. A "20. A "
"21. C "72. E "21. A "74. A "21. D "
"22. B "73. E "22. A "75. D "22. B "
"23. A "74. A "23. D "76. C "23. B "
"Material "75. B "24. D "77. C "24. A "
"cost " " " " "
"Variances "76. A "25. C "78. B "25. B "
"24. A "77. B "26. C "79. D "26. D "
"25. C "78. D "27. D "80. B "27. B "
"26. C "79. A "28. A "81. B "28. B "
"27. D "80. B "29. D "82. D "29. C "
"28. C "81. A "30. D "83. A "30. A "
"29. B "82. B "Controllabil"84. D "31. C "
" " "ity " " "
"30. A "83. D "31. C "85. D "32. A "
"31. D "84. D "32. A " "33. C "
"32. C "85. D "33. B " "34. D "
"33. B "86. D "34. B " "35. D "
"34. C "87. C "35. D " "Accept or reject"
" " " " "a "
"35. B "88. A "36. A " "special sales "
" " " " "order "
"36. A "89. C "37. A " "36. C "
"37. D "90. D "38. A " "37. A "
"38. D "91. A "Investment " "38. D "
" " "center " " "
"39. D "92. A "performance " "39. A "
" " "models " " "
"Direct labor"93. C "39. C " "40. A "
"cost " " " " "
"Variances "Miscellaneou"40. B " "41. B "
" "s " " " "
"40. A "Topics "41. D " "42. C "
"41. D "94. B "42. B " "43. B "
"42. B "95. C "43. C " "44. A "
"43. D "96. A "44. C " "45. B "
"44. B "97. B "45. D " "46. C "
"45. B " "46. B " "47. D "
"46. A " "47. A " "48. B "
"47. D " "48. D " "49. C "
"48. D " "49. D " "50. A "
"49. A " "50. C " "51. B "
"50. D " "51. B " "52. C "
"51. A " "52. A " "53. A "
" " " " "Drop or continue"
" " " " "a "
" " " " "division, "
" " " " "department, "
" " " " "process, project"
" " " " "or "
" " " " "activity "
" " " " "54. B "
"Ch. 9 " "Chapter 10 "Chapter 11 " "
"(Cont.) " " " " "
"55. C "99. D "Multiple "1. A "59. B "
" " "Choice " " "
"56. A "100. B "Basic "2. B "60. D "
" " "Concepts " " "
"57. D "101.D "1. A "3. A "61. C "
"58. B " "2. D "4. A "62. A "
"59. D " "3. B "5. C "63. D "
"60. A " "4. D "6. D "64. B "
"61. B " "5. E "7. C " "
"62. B " "6. D "8. C " "
"Maximization" "7. C "9. C " "
"of " " " " "
"scarce " "8. B "10 .C " "
"resources " " " " "
"63. A " "9. A "11 .D " "
"64. C " "10. C "12 .B " "
"65. D " "11. B "13 .C " "
"66. B " "12. C "14. A " "
"67. A " "13. A "15. B " "
"68. B " "14. C "16. A " "
"69. A " "15. C "17. D " "
"70. A " "16. A " 18.C " "
" " " "internal " "
" " " "failure cost " "
"Retain or " "17. D "19. B " "
"Replace " " " " "
"an old asset" "18. B "20. D " "
"71. C " "19. A "21. A " "
"72. D " "20. D "22. A " "
"73. A " "21. C "23. D " "
"74. B " "22. B "24. B " "
"Sell-as-is " "23. C "25. C " "
"or process " " " " "
"further a " " " " "
"product " " " " "
" " "24. B "26. A " "
"75. B " "25. E "27. B " "
"76. A " "26. D "28. A " "
"77. B " "27. D " 29. B " "
" " " "P122,600 " "
"78. C " "28. B "30. A " "
"79. B " "29. D "31. D " "
"Bid price " "30. B "32. A " "
"80. D " "Sales "33. A " "
" " "variation " " "
"81. D " "analysis "34. B " "
"82. B " "31. A "35. D " "
"83. D " "32. C "36. D " "
"Shut down or" "33. D "37. B " "
"not " " " " "
"84. B " "34. A "38. D " "
"Scrap or " "35. D "39.C " "
"rework " " " " "
"defective " "36. A "40. A " "
"units " " " " "
"85. D " "37. C "41. C " "
"86. A " " "42. C " "
"87. A " " "43. D " "
"Indifference" " "44. D " "
"point " " " " "
"88. C " " "45. A " "
"89. C " " "46. B " "
"90. C " " "47. A " "
"91. D " " "48. B " "
"Miscellaneou" " "49. C " "
"s " " " " "
"Topics " " "50. C " "
"92. D " " "51. B " "
"93.A " " "52. A " "
"94. C " " "53. C " "
"95. B " " "54. A " "
"96. A " " "55. D " "
"97. D " " "56. A " "
"98. C " " "57. D " "
" " " "58 D. " "
"Chapter 12 "Chapter 13 " " "Chapter 14 "
"1. A "Multiple "50. D "106. D "Multiple Choice "
" "Choice " " " "
"2. B "Basic "51. C "Miscellaneous"Basic Concepts "
" "Concepts " " " "
"3. B "1. D "52. C "problems "1. D "
"4. A "2. C "53. D "107. A "2. C "
"5. C "Horizontal &"54. B "108. B "3. B "
" "trend " " " "
" "analysis " " " "
"6. B "3. C "55. C "109. C "4. D "
"7. B "4. A "56. B "110. B "5. C "
"8. D "5. D "57. C "111. C "6.. C "
"9. C "6. C "58. B "112. D "7. B "
"10 D "7. B "59. C "113. A "8. B "
"11.B "8. A "60. C "114. A "9. D "
"12. B "9. A "61. D "115. C "10. B "
"13. A "Vertical "62. C "116. A "11. C "
" "Analysis " " " "
"14. B "10. C "63. C "117. B "Net Cost of "
"15. D "11. D "64. A "118. D "Investment "
"16. C "12. A "Liquidity "119. C "12. B "
" " "ratios " " "
"17. D "13. C "65. A "120. A "13. B "
"18.A "Leverage "66. B "Comprehensive"14. C "
" "ratios " " " "
"19. A "(Financing "67. B "questions "15. B "
" "ratios) " " " "
"20. A "14. C "68. B "121. D "16. C "
"(P95.90) " " " " "
"21. A "15. B "69. B "122. C "Net returns "
"22. C "16. B "70. B "123. C "17. D "
"23. B "17. C "71. B "124. D "18. B "
"24. B "18. B "72. C "125. A "19. B "
"25. C "19. D "73. B "126. A "20. B "
"26. A "20. A "74. A "127. C "21. B "
"27. B "21. B "75. D "128. B "Cost of capital "
"28. D "22. D "76. C "129. C "22. A "
"29.C "23. C "77. C "130. C "23. D "
"30. B "24. B "78. D "131. A "24. D "
"31. C "25. C "79. C "132. B "25. D "
"32. A "Profitabilit"80. A "133. C "26. B "
" "y ratios " " " "
"33. D "26. D "81. A "134. C "27. D "
"34. C "27. A "82. B "135. C "28. D "
"35. C "28. A "83. A " 136. "29. B "
" " " "(1:1) " "
"36. D "29. C "84. B "137. B "30. A "
"37. A "30. D "85. A "138. A "31. C "
"38. D "31. A "86. B "139. B "32. D "
"39.D "32. D "87. A "140. D "33. B "
"40. E "33. B "88. C "141. B "34. A "
"41. E " 34. "89. B "142. D "35. B "
" "Bonus " " " "
"42. E "35. C "90. A "143. B "36. B "
"43. C "36. A "91. D "144. B "37. D "
"44. D "37. B "92. A " 145. "38. A "
" " " "(1:1) " "
"45. M, K, L,"38. A "93. A "146. C "39. B "
"J " " " " "
"46. C "39. C "94. D "147. C "40. B "
" "40. D "95. B " "41. A "
" " " "148. (12.5x)" "
" "41. C "96. C "149. D "42. B "
" "42. B "97. C " "43. C "
" "43. A "98. A " "44. A "
" "44. B "99. C " "Traditional "
" "45. B "100. A " "evaluation "
" " " " "models "
" "46. C "101. A " "45. A "
" "Growth "102. D " "46. B "
" "ratios " " " "
" "47. C "103. C " "47. D "
" "48. D "104. A " "48. A "
" "49. D "105. D " "49. A "
" " " " "50. B "
" " " " "51. B "
" " " " "52. D "
" " " " "53. D "
" " " " "54. D "
" " " " "55. B "
" " " " "56. C "
"Ch 14 " " "Chapter 15 "Chapter 16 "
"(Cont.) " " " " "
"57. B "110. A "159. D "Multiple "Multiple Choice "
" " " "Choice " "
"58. A "111. A "160. D "1. B "Effective "
" " " " "discount rate "
"59. D "NPV index "161. C "2. D "1. A "
"60. C "112. A "162. A "3. C "2. B "
"61. A "Internal "163. B "4. C "3. B "
" "rate of " " " "
"Discounted "Return "164. A "5.. B "4. B "
"cash " " " " "
"flows model "113. B "165. B "6. D "5. B "
"General "114. D "166. A "Effective "6. B "
" " " "interest " "
"62. D "115. C "167. D "Rate "7. C "
"63. D "116. A "168. C "7. C "Credit and "
"64. B "117. C "Comprehensiv"8. A "collection "
" " "e " "policy "
"65. A "118. B "Problems "9. D "8. A "
"66. C "119. A "169. B "10. B "9. C "
"67. A "120. D "170. C "11.No "10. B "
" " " "question " "
"68. D "121. A "171. D "12. C "11. B "
"69. D "122. C "172. C "13. C "12. C "
"70. D "123. A "173. D "14. A "13. D "
"71. C "124. B "174. D "General "14. A "
" " " "working " "
"72. D "125. B "175. A "capital "15. C "
" " " "concepts " "
"73. A "126. B "176. D "15. B "16. B "
"74. C "127. C "177. C "16. B "17. D "
"75. B "128. D "178. B "17. D "18. D "
"76. B "129. A "179. D "18. B "19. C "
"77. A "130. C "180. B "19. C "20. B "
"78. D "131. B "181. A "20. C "21. A "
"79. C "132. D "182. C "21. A "22. D "
"80. C "133. B "183. C "22. B "23. C "
"81. C "134. C "184. C (2,3,"23. C "24. D "
" " "and 4) " " "
"82. A "Profitabilit"185. D " "25. D "
" "y index " " " "
"83. D "135. B "186. D " "26. A "
"84. B "136. D "187. C " "27. C "
"85. A "137. C "188. C " "Accounts "
" " " " "receivable "
"Net present "138. B "189. A " "portfolio "
"value " " " "analysis "
"86. A "139. B " " "28. A "
"87. A "140. D " " "29. B "
"88. A "141. D " " "30. D "
"89. B "142. C " " "31. B "
"90. C "Other " " "32. C "
" "discounted " " " "
"91. C "cash flows " " "33. A "
" "models " " " "
"92. D "143. B " " " "
"93. D "144. D " " " "
"94. B "145. B " " " "
"95. B "146. D " " " "
"96. B "147. B " " " "
"97. C "Lease or buy" " " "
"98. A "148. A " " " "
"99. B "149. A " " " "
"100. D "Others " " " "
"101. B "150. C " " " "
"102. B "151. D " " " "
"103. C "152. A " " " "
"104. A "153. B " " " "
"105. D "154. A " " " "
"106. B "155. A " " " "
"107. D "156. A " " " "
"108. B "157. D " " " "
"109. D "158. C " " " "
" " " " " "
" " " " " "
" " " " " "
" " " " " "
" " " " " "
"Chapter 17 " " " " "
"Multiple "55. B " " " "
"Choice " " " " "
"1. B "56. A " " " "
"2. D "57. C " " " "
"3. C "58. A " " " "
"4. A "59. C " " " "
"5. D "60. C " " " "
"6. A "Safety stock" " " "
"7. B "61. A " " " "
"8. B "62. B " " " "
"9. D "63. D " " " "
"10. C "64. C " " " "
"11. C "65. D " " " "
"EQQ Model "66. D " " " "
"12. B "67. D " " " "
"13. B "68. B " " " "
"14. A "69. C " " " "
"15. D "70. D " " " "
"16. C "71. A " " " "
"17. D "72. D " " " "
"18. B "73. D " " " "
"19. A "74. B " " " "
"20. B "75. B " " " "
"21. C "76. C " " " "
"22. A "77. D " " " "
"23. D "78. D " " " "
"24. C "79. C " " " "
"25. D "80. B " " " "
"26. D "81. B " " " "
"27. B "JIT, MRP,ERP" " " "
"28. B "FMS, etc. " " " "
"29. C "82. A " " " "
"30. C "83. B " " " "
"31. B "84. A " " " "
"32. D "85. D " " " "
"33. C "86. A " " " "
"34. C "87. A " " " "
"35. B "88. C " " " "
"36. D "89. B " " " "
"37. B "90. D " " " "
"38. C "91. D " " " "
"39. B "92. A " " " "
"40. A "Miscellaneou" " " "
" "s " " " "
"41. A "93. D " " " "
"42. A "94. C " " " "
"43. D "95. B " " " "
"44. C "96. B " " " "
"45. C " " " " "
"46. D " " " " "
"47. B " " " " "
"48. D " " " " "
"49. B " " " " "
"50. A " " " " "
"51. A " " " " "
"Reorder " " " " "
"point " " " " "
"52. C " " " " "
"53. A " " " " "
"54. A " " " " "
