1.A manger should be held responsible only for those items over which he or she exercises significant control. This is

A.Restrained (or limited) management theory

B.Agency theory

C.Responsibility accounting

D.The active management principle

E.None of the above

2.An accountant must Provide all relevant information that could reasonably be expected to influence an intended users understanding of the reports, analyses, or recommendations. According to the IMA, this is part of

A.Competence

B.Confidentiality

C.Integrity

D.Credibility

E.None of the above

3.When a single company is involved in more than one activity in the value chain, it is said to be

A.Vertically integrated

B.Horizontally integrated

C.Competing internally

D.Monopolistic

E.None of the above

4.As volume decreases, variable costs will

A.Decrease in total

B.Decrease per unit

C.Increase per unit

D.Increase in total

E.None of the above

5.The only fact of which one can be certain concerning estimates is that

A.They are close

B.They are wrong

C.They are developed using valid numbers

D.They have no relation to reality whatsoever

E.None of the above