Which of the following measures captures the effects of both risk and return, which makes it a better measure than standard deviation for evaluating stand-alone risk in situations where investments differ with respect to both their amounts of total risk and their expected returns?
A. Probability distribution of the investment's returns
B. Expected average rate of returns of the investment
C. Correlation coefficient of one investment with another investment
D. Coefficient of variation
E. Beta coefficient
Answer: D
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Cabot's CEO's annual compensation is an example of a ________ cost
A) direct B) variable C) traceable common D) nontraceable common E) manufacturing
Which of the following creates opportunities for fraud?
a. Requirement to change passwords on a regular basis b. Inability to judge quality of performance c. Controls that prevent or detect fraud d. Segregation of duties
Suppose a management accountant becomes aware that a poor judgment he or she made has resulted in the loss of one of the company's clients. Is the accountant bound to share this information with the company? (The accountant doubts that the company will ever find out about it directly.)
A) The management accountant is bound to respond honestly to inquiries regarding the adequacy of professional judgments but is not bound to communicate them if not directly asked. B) The management accountant is bound to communicate this error in judgment only if another client cannot be found. C) The management accountant is not bound to communicate this error. D) The management accountant is bound to communicate unfavorable and favorable judgments made, even if not directly asked.
Employees should be encouraged to do all of the following except
a. Participate in the management of their own performance b. Keep their own performance records c. Meet regularly with the supervisor to discuss performance successes and challenges d. File grievances when they are not happy about a performance evaluation