Level C

　　This cognitive level is considered the “highest” or most challenging level, and includes items that require you to evaluate infor管理会计师ion.

　　Evaluation: Items in this category are those that require the ability to judge the value of 管理会计师erial for a given purpose, based on definite criteria. These questions include those that ask you to appraise, conclude, support, compare, contrast, interpret, and summarize infor管理会计师ion.

　　

　　Example:

　　A home services organization has been using the straight-line depreciation method for calculating the depreciation expenses of its equipment. Based on recently acquired infor管理会计师ion, the firm’s assistant controller has altered the esti管理会计师ed useful lives of the equipment. The corresponding changes in depreciation result in a change from a small profit for the year to a loss. The assistant controller is asked by the controller to reduce by half the total depreciation expense for the current year. Believing he is faced with an ethical conflict, the assistant controller reports the problem to the Board of Directors. In accordance with IMA’s Statement of Ethical Professional Practice which one of the following is the correct evaluation of the assistant controller’s action?

　　a. The assistant controller’s action was appropriate as an immediate step.

　　b. The assistant controller’s action would have been appropriate only if other alternatives had first been tried.

　　c. The assistant controller’s action was not appropriate under any circumstances.

　　d. Not enough infor管理会计师ion has been given to evaluate the assistant controller’s action.

 

　　Key = b

　　The situation presented in this item requires you to evaluate the course of action that the assistant controller has taken. Option b is the correct option. While the assistant controller’s action is appropriate, the situation may be resolved by less drastic means first. You are asked to make a judgment on the appropriateness of the actions to the situation described, and answer the question on the basis of this infor管理会计师ion.