Adjective/Adverb Choice

Adjectives and adverbs function differently in the sentence. Adjec­tives modify nouns, but adverbs can modify verbs, adjectives, other adverbs, participles, and the whole clause. Many adverbs end in -ly. Adjectives have a number of different endings. A few words have the same form for both adjective and adverb uses.

Do not use an adverb as the complement of a linking verb (the most common linking verbs are be, feel, taste, appear, seem, and become)

Subject Linking verbs Predicate adjective

modifies subject

He felt happy about his schedule.

The boss seemed serious.

As he practiced, he became quick at making reports.

• Good and well have different meanings after linking verbs. Well means "in good physical health": e.g. The accountant is well (not sick). The worker is good. (well-worked).

• If you want to modify the verb, use an adverb.

The old auditor could not hear well. (Well modifies hear, not auditor.)

1. Add an appropriate adjective, adverb or preposition from the lists to each of the following sentences:

Adjectives: credit high co-operative obsolete some given essential

Adverbs: immediately probably invariably always between often increasingly

a) People who go into a business for the first time will ________ appreciate the

help of a _________ bank manager.

b) Funds will _________ be required to purchase equipment.

c) Chief Accountants will not _________agree to spend money even though the

equipment is regarded as________ .

d) Capital outlay will..................be called for to replace..................machinery.

e) Almost all business conducted..................firms is on a..................basis.

f) While .................. payments can be deferred, others are due for payment

g) Sometimes when a business expands..................it encounters cash flow prob­lems.

h)..................rates of tax make it..................difficult to succeed in business.

i) Income minus expenditure during a..................year equals profit.

LISTENING

1. Listen to the text “Costs in their proper place” to be able to answer the following questions:

(a) What is the name of the new book about management accounting?

(b) What do the letters ABC stand for?

2. The sentences below summarise the main ideas of the paragraphs in the text. As you listen for the second time try to put each summary in the chronological order.

Paragraph summary	Paragraph number
1. Managers used an unsuitable costing method. 2. Using the 'peanut-butter' method will damage companies. 3. The success of the new costing method is not clear. 4. New methods of costing should be applied. 5. Accounting needs to adapt to new production systems. 6. A book has criticized traditional accounting. 7. A new costing system has been suggested.

3. Listen again and pay attention to how the following words are used in the text.

seminal tracts compelling

moved on bore no resemblance batch

apportioned make-up opting to exponents

a. Put each word into one of the sentences below, using the correct grammatical form. Try to do this without using a dictionary.1) The latest ________ of sales figures have just arrived.

2) He's an ________ of Japanese management methods.

3) There are too many ________ on business management to read them all.

4) Paul Samuelson wrote one of the ________ economic textbooks.

5) ________ costs between direct and indirect ones is sometimes difficult.

6) Some of the workers at the factory have ________ take early retirement.

7) These expenditure figures ________ to the original estimates.

8) Is there any ________ reason for changing our accounting procedures?

9) The ________ of the order is expected to be very varied.

10) Management methods in Russia have ________ a lot since the end of the Communist regime.

b. Having used the words and phrases in a) in sentences, now match each of them to its correct definition below.

Definition	Word/phrase
1. people who support a theory, idea or plan
2. strong, powerful
3. to be completely different from
4. group, amount
5. recognised as very important
6. progressed, advanced
7. pieces of writing
8. structure, mixture
9. to divide, share out
10. to choose, decide

4. Listen again and fulfil the following tasks.

1) 'Peanut butter accounting' gets its name, according to the text, because:

1. it is an easy method to apply.

2. it was developed in the United Stales.

3. it does not relate costs to particular products.

4. it spreads costs too inaccurately

2) Is 'peanut butter accounting' a good system for managers to use?

3) What point did Kaplan make before the publication of his book?

4) Has accountancy changed to deal with this?

5) In the following paragraph choose the alternatives which are correct according to the text.

Because of the previous system of (production/accounting) used, managers' decisions about (how/when) to produce were based on (unrealistic/accurate) cost figures. Thus a product's costs were calculated according to the (materials/hours) needed to make it. This method was (suitable/not suitable) because of changes in (production methods/labour costs). This meant that costs (were/were not) being accurately related to (each product/all products).

6) What evidence do we have that ABC works?

7) What evidence is lacking about the success or otherwise of ABC?

8) What argument is used as support of ABC?

9) From the list below choose the proposals which Kaplan makes to solve the 'peanut butter' problem.

Proposal	Suggested by Kaplan
1. Concentrate only on the financial aspects of production. 2. Pay careful attention to an individual product's costs. 3. Divide costs between fixed and variable ones. 4. Disregard whether costs are direct or indirect. 5. Seek to find the sources of costs.

SPEAKING

1. Knoblauch, Inc. manufactures rugby jerseys for collegiate sport teams selling its merchandise through university bookstores. Identify a specific item in the company’s manufacturing, selling, or administrative processes for which the cost would be classified as:

a. raw material, b. direct labour, c. variable manufacturing overheard,

d. fixed manufacturing overhead, e. fixed administrative expense,

f. indirect selling expense, g. direct selling expense.

2. Conduct this one-to-one negotiation with уour partner.

Role Play

Student A

You are the Purchasing Manager at a pharmaceutical company in Oslo. You're negotiating a deal with an engineering company in Budapest. You desperately want to buy some equipment from them that will enable you to package your products. The terms of the negotiation are listed below. Your task is to get twelve stars or more. You begin the negotiation.

Student B

You are the Marketing Manager at an engineering company in Budapest. You are negotiating a deal with a pharmaceutical company in Oslo. You have a cash flow problem and very much need to sell some packaging equipment you have produced that will enable the pharmaceutical company to package their products. The terms of the negotiation are listed below. Your task is to get twelve stars or more.

Student A

PRICE ***$15,000 or less **$15,000417,500 *more than $17,500	PAYMENT ***90-day credit **60-day credit *30-day credit		DELIVERY D ATE ***at the beginning of next month **by end of next month * in two months
TRAINING *** two-day training in Oslo by their staff ** one-day training in Oslo by their staff * one-day training in Budapest by their staff		DELIVERY COSTS **to be paid by them *to be paid by you
MAINTENANCE *** less than $ 500 ** $500-$ 1,100 * $1,100 or more		WARRANTY *** 36 months **24 months *18 months or less