Question 1

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

Accepted Answer

A) a 
B) b 
C) c 
D) d 
A) a 
B) b 
C) c 
D) d

Question 2

Fixed compensation is generally not linked to measured performance; i.e.,it is independent of measured performance.

Accepted Answer

A) True 
 B)False

Question 3

Which one of the following will not occur in an organization that gives managers throughout the organization maximum freedom to make decisions? (CMA adapted)

Accepted Answer

A) more effective solutions to operational problems 
B) individual managers regarding the managers of other segments as they do external parties 
C) two divisions of the organization having competing models that aim for the same market segments 
D) delays in securing approval for the introduction of new products 
E) greater knowledge of the marketplace and improved service to customers 
A) more effective solutions to operational problems 
B) individual managers regarding the managers of other segments as they do external parties 
C) two divisions of the organization having competing models that aim for the same market segments 
D) delays in securing approval for the introduction of new products 
E) greater knowledge of the marketplace and improved service to customers

Question 4

Charleston has four divisions,commercial,retail,research,and consumer,that share the common costs of the company's computer server network.The annual common costs are $3,600,000.You have been provided with the following information for the upcoming year:
Required (use three decimal places in your calculations):
a.The cost accountant determined $2,300,000 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 the total server network costs allocated to each division?

Accepted Answer

Commercial: $752,000

Question 5

If DCC uses a dual rate for allocating its costs based on usage,how much cost will be allocated to the Management Department?

Accepted Answer

A) $168,000 
B) $156,000 
C) $178,286 
D) $147,000 
A) $168,000 
B) $156,000 
C) $178,286 
D) $147,000

Question 6

Which of the following statements is (are)true regarding managerial decisions? (A)The design and use of management control systems affects how an individual makes and implements decisions.
(B)Rational managers will always make decisions that are in the best interest of the organization employing them.

Accepted Answer

A) Only A is true. 
B) Only B is true. 
C) Both A and B are true. 
D) Neither A nor B is true. 
A) Only A is true. 
B) Only B is true. 
C) Both A and B are true. 
D) Neither A nor B is true.

Question 7

Decentralization refers to the delegation of decision-making authority to

Accepted Answer

A) top management. 
B) superiors. 
C) board of directors. 
D) subordinates. 
A) top management. 
B) superiors. 
C) board of directors. 
D) subordinates.

Question 8

Marlin has three divisions,commercial,retail and consumer,that share the common costs of the company's computer server network.The annual common costs are $2,400,000.You have been provided with the following information for the upcoming year:
Required (use three decimal places in your calculations):
a.The cost accountant determined $1,800,000 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 the total server network costs allocated to each division?

Accepted Answer

Commercial: $570,000

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

Fixed compensation is generally not linked to measured performance; i.e.,it is independent of measured performance.

Which one of the following will not occur in an organization that gives managers throughout the organization maximum freedom to make decisions? (CMA adapted)

If DCC uses a dual rate for allocating its costs based on usage,how much cost will be allocated to the Management Department?

Decentralization refers to the delegation of decision-making authority to

Cost Accounting: Information for Decision Making

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Service Department and Joint Cost Allocation

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Nonfinancial and Multiple Measures of Performance

Filters

Exam 12: Fundamentals of Management Control Systems

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

Fixed compensation is generally not linked to measured performance; i.e.,it is independent of measured performance.

Which one of the following will not occur in an organization that gives managers throughout the organization maximum freedom to make decisions? (CMA adapted)

If DCC uses a dual rate for allocating its costs based on usage,how much cost will be allocated to the Management Department?

Decentralization refers to the delegation of decision-making authority to

Cost Accounting: Information for Decision Making

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Service Department and Joint Cost Allocation

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Nonfinancial and Multiple Measures of Performance

Filters