Question 1

Measuring the number of defects can assess the improvement in organizational learning.

Accepted Answer

A) True 
 B)False

Question 2

Responsibility accounting includes _____.

Accepted Answer

A) identifying what parts of the organization have primary responsibility for each objective 
B) developing measures of achievement and objectives 
C) creating reports 
D) all of these answers are correct 
A) identifying what parts of the organization have primary responsibility for each objective 
B) developing measures of achievement and objectives 
C) creating reports 
D) all of these answers are correct

Question 3

A responsibility center for which a separate measure of revenues and/or costs is obtained

Accepted Answer

The answer of A responsibility center for which a separate...

Question 4

Both benefits and costs of management control systems are often difficult to measure.

Accepted Answer

A) True 
 B)False

Question 5

Evaluations of the responsibility center manager's performance should ignore uncontrollable costs.

Accepted Answer

A) True 
 B)False

Question 6

Discretionary fixed costs are usually considered as uncontrollable when evaluating a segment manager.

Accepted Answer

A) True 
 B)False

Question 7

Fred Corporation and Ginger Company are dance companies.Comparative data for 20X3 and 20X6 are given below. $\begin{array}{lrrr}
&&\text { Fred } & \text { Ginger } \
&&\text { Corporation } & \text { Company }\\hline
\text { Sales revenue } & 20 \mathrm{X} 3 & \$ 6,300,000 & \$ 4,500,000 \
& 20 \mathrm{X} 6 & 7,500,000 & 6,000,000 \
& & & \
\text { Number of employees } & 20 \mathrm{X} 3 & 3,000 & 2,250 \
& 20 \mathrm{X} 6 & 4,000 & 3,250
\end{array}$ Assume that each 20X3 dollar is equivalent to 1.60 of the 20X6 dollars, due to inflation._____ is Fred Corporation's 20X6 productivity measure in terms of revenue per employee.

Accepted Answer

A) $3,360.00 
B) $2,100.00 
C) $1,875.00 
D) $1,800.00 
A) $3,360.00 
B) $2,100.00 
C) $1,875.00 
D) $1,800.00

Question 8

Uncontrollable costs _____.

Accepted Answer

A) are influenced by a manager's decisions and actions 
B) provide evidence about a manager's performance 
C) are also referred to as opportunity costs 
D) should be ignored in evaluating the responsibility center manager 
A) are influenced by a manager's decisions and actions 
B) provide evidence about a manager's performance 
C) are also referred to as opportunity costs 
D) should be ignored in evaluating the responsibility center manager

Question 9

Material handling cost per unit volume is a measure of _____.

Accepted Answer

A) financial strength 
B) customer satisfaction 
C) business process improvement 
D) organizational learning 
A) financial strength 
B) customer satisfaction 
C) business process improvement 
D) organizational learning

Question 10

Unallocated costs usually include central corporate costs when evaluating a segment manager.

Accepted Answer

A) True 
 B)False

Question 11

Smile Company had the following results: $\begin{array}{lr}
\text { Rolls of film processed } & 350,000 \
\text { Sales revenue } & \$ 1,200,000 \
\text { Direct-labor hours worked } & 5,500 \
\text { Direct-labor cost } & \$ 47,000
\end{array}$ If productivity is computed using a physical measure, productivity is _____.

Accepted Answer

A) $3.43 per roll 
B) $260.87 per direct-labor hour 
C) 2,553% of direct-labor cost 
D) 63.64 rolls per direct-labor hour 
A) $3.43 per roll 
B) $260.87 per direct-labor hour 
C) 2,553% of direct-labor cost 
D) 63.64 rolls per direct-labor hour

Question 12

Characteristics or attributes that managers must achieve to drive the organization toward its goals

Accepted Answer

The answer of Characteristics or attributes that managers must achieve...

Question 13

In the management control system, feedback and learning affect all phases.

Accepted Answer

A) True 
 B)False

Question 14

_____ are characteristics or attributes that managers must achieve to drive the organization toward its goals.

Accepted Answer

A) Specific performance measures 
B) Targets 
C) Key success factors 
D) Goals 
A) Specific performance measures 
B) Targets 
C) Key success factors 
D) Goals

Question 15

The following information is available for Hardbound Inc.and its two divisions, Books and Periodicals: $\begin{array}{cccc}&\text { Company } & \text { Books } & \text { Periodicals } \
&\text { as a whole } & \text { Division } & \text { Division }\\hline
\text { Net sales } & \$ 100,000 & \$ 50,000 & \$ 50,000\
\text { Fixed costs: }\
\text { Controllable by }\
\text { division manager } & 26,500 & 22,500 & 4,000 \
\text { Controllable by others } & 18,000 & 15,000 & 3,000 \
\text { Variable costs: } & & & \
\text { Cost of merchandise sold } & 24,500 & 17,500 & 7,000 \
\text { Operating expenses } & 16,400 & 10,000 & 6,400
\end{array}$ Unallocated costs 4,000 _____ is the contribution margin for the Periodicals Division.

Accepted Answer

A) $29,600 
B) $36,600 
C) $43,000 
D) $32,600 
A) $29,600 
B) $36,600 
C) $43,000 
D) $32,600

Question 16

An approach to quality that focuses on prevention of defects and on customer satisfaction

Accepted Answer

Total qual

Question 17

Decreasing cycle time results in bringing products or services more quickly to customers.

Accepted Answer

A) True 
 B)False

Question 18

Investment center managers are responsible for controlling only revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 19

A set of machines may be a responsibility center for a production supervisor.

Accepted Answer

A) True 
 B)False

Question 20

Inspection costs are a form of _____cost.

Accepted Answer

A) prevention 
B) appraisal 
C) internal failure 
D) external failure 
A) prevention 
B) appraisal 
C) internal failure 
D) external failure

Measuring the number of defects can assess the improvement in organizational learning.

Responsibility accounting includes _____.

A responsibility center for which a separate measure of revenues and/or costs is obtained

Both benefits and costs of management control systems are often difficult to measure.

Evaluations of the responsibility center manager's performance should ignore uncontrollable costs.

Discretionary fixed costs are usually considered as uncontrollable when evaluating a segment manager.

Uncontrollable costs _____.

Material handling cost per unit volume is a measure of _____.

Unallocated costs usually include central corporate costs when evaluating a segment manager.

Smile Company had the following results: Rolls of film processed 350,000 Sales revenue \ 1,200,000 Direct-labor hours worked 5,500 Direct-labor cost \ 47,000 If productivity is computed using a physical measure, productivity is _____.

Characteristics or attributes that managers must achieve to drive the organization toward its goals

In the management control system, feedback and learning affect all phases.

_____ are characteristics or attributes that managers must achieve to drive the organization toward its goals.

An approach to quality that focuses on prevention of defects and on customer satisfaction

Decreasing cycle time results in bringing products or services more quickly to customers.

Investment center managers are responsible for controlling only revenues and expenses.

A set of machines may be a responsibility center for a production supervisor.

Inspection costs are a form of _____cost.

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Basic Accounting: Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 9: Management Control Systems and Responsibility Accounting

Measuring the number of defects can assess the improvement in organizational learning.

Responsibility accounting includes _____.

A responsibility center for which a separate measure of revenues and/or costs is obtained

Both benefits and costs of management control systems are often difficult to measure.

Evaluations of the responsibility center manager's performance should ignore uncontrollable costs.

Discretionary fixed costs are usually considered as uncontrollable when evaluating a segment manager.

Uncontrollable costs _____.

Material handling cost per unit volume is a measure of _____.

Unallocated costs usually include central corporate costs when evaluating a segment manager.

Smile Company had the following results: Rolls of film processed 350,000 Sales revenue \ 1,200,000 Direct-labor hours worked 5,500 Direct-labor cost \ 47,000 If productivity is computed using a physical measure, productivity is _____.

Characteristics or attributes that managers must achieve to drive the organization toward its goals

In the management control system, feedback and learning affect all phases.

_____ are characteristics or attributes that managers must achieve to drive the organization toward its goals.

An approach to quality that focuses on prevention of defects and on customer satisfaction

Decreasing cycle time results in bringing products or services more quickly to customers.

Investment center managers are responsible for controlling only revenues and expenses.

A set of machines may be a responsibility center for a production supervisor.

Inspection costs are a form of _____cost.

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Basic Accounting: Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters