1. The following characterize management advisory services except:

1. Involve decision for the future.
2. Broader in scope and varied in nature,
3. Utilize more junior staff than senior members of the firm.
4. Relate to specific problems where expert help is required. (rpcpa)

2. Which of the following does not impair independence of a CPA in the rendition of management services?
   1. The CPA performs decision-making services for his client,
   2. The CPA performs services wherein he is in effect acting as an employee of the client.
   3. The CPA eases its objectivity and acts in a manner as if he is advocating for the interest of his client.
   4. The CPA does not extend his service beyond the presentation of recommendations or giving of advice. (rpcpa)
3. Competence in management advisory services is acquired by
   1. Education,
   2. Auditing and other experience.
   3. Actual performance of management advisory services.
   4. All of the these. (rpcpa)

4. The term "discretionary costs" refers to
   1. Costs that are likely to respond to the amount of attention devoted to them by a specified manager.
   2. Costs that are governed mainly by past decisions the established the present levels of operating and organizational capacity and that only change slowly in response to small changes in capacity.
   3. Amortization of costs that were capitalized in previous periods.
   4. Costs that management decides to incur in the current period to enable the company to achieve objectives other than the filling of orders placed by customers.
   5. Costs that will be unaffected by current managerial decisions.

5. An imputed cost is
   1. A cost that may be shifted to the future with little or no effect on current operations.
   2. A cost that cannot be avoided because it has already been incurred.
   3. A cost that does not entail any peso outlay but which is relevant to the decision-making process.
   4. The difference in total costs that results from selecting one choice instead of another.
   5. A cost that continues to be incurred even though there is no activity.

Explain per item number the correct answers i have given in multiple choice!