Exam 12: Fundamentals of Management Control Systems

If DCC uses a dual-rate for allocating its costs,how much cost will be allocated to the Management Department,assuming the Management Department actually made 2,100,000 copies during the year?

The use of dual rates in a cost allocation system assumes that common costs can be

Which of the following statements is false?

The cost accountant determined $1,700,000 of the server network's costs were fixed and should be allocated based on the number of connections.The remaining costs should be allocated based on the time on the network.What is total server network costs allocated to the Consumer Division assuming the company uses dual-rates to allocate common costs?

The primary reason to use a dual rate allocation system is to focus a manager's performance evaluation on factors under the manager's direct control.

Which of the following is not a characteristic of a decentralized organization?

An operating unit of an organization is called an investment center if it is responsible

One advantage of centralization is better use of top management's time on strategic decisions.

When managers are held responsible for costs and the input-output relationship is well specified,a(n)________________________ is established.

Decentralization is the delegation of the authority to make decisions in the organization's name to subordinates.

The cost accountant determined $2,700,000 of the communication network's costs were fixed and should be allocated based on the number of calls.The remaining costs should be allocated based on the time on the network.What is total communication network costs allocated to the Small Box Division assuming the company uses dual-rates to allocate common costs?

If DCC uses a dual-rate for allocating its costs,how much cost will be allocated to the Management Department,assuming the Management Department actually made 2,950,000 copies during the year?

In general,organizations are more centralized in the early stages of their existence and more decentralized as they grow.

What is the allocation rate for the upcoming year assuming Boxes-2-Go uses the single-rate method and allocates common costs based on the time on the network?

The cost accountant determined $2,700,000 of the communication network's costs were fixed and should be allocated based on the number of calls.The remaining costs should be allocated based on the time on the network.What is the total communication network costs allocated to the Large Box Division assuming the company uses dual-rates to allocate common costs?

An operating unit of an organization is called a profit center if it is responsible

Assets invested in a responsibility center are included in a performance report of

Properly designed management control systems have both fixed compensation and contingent compensation.

Responsibility accounting defines an operating center that is responsible for revenue and costs as a(n)(CMA adapted)

Which of the following items would not be classified as a contingent compensation item?