Question 1

A responsibility center whose success is measured not only by its income, but also by relating that income to its invested capital

Accepted Answer

The answer of A responsibility center whose success is measured...

Question 2

Good performance measures should be reasonably subjective.

Accepted Answer

A) True 
 B)False

Question 3

Improvements in the production process are examples of _____cost.

Accepted Answer

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

Question 4

Identify which of the following statements is true.

Accepted Answer

A) Productivity is a measure of outputs divided by inputs. 
B) The fewer inputs needed to produce a given output, the more productive the organization. 
C) Inputs and outputs are difficult to measure. 
D) All of these answers are correct. 
A) Productivity is a measure of outputs divided by inputs. 
B) The fewer inputs needed to produce a given output, the more productive the organization. 
C) Inputs and outputs are difficult to measure. 
D) All of these answers are correct.

Question 5

A measure of labor productivity may include sales revenue divided by number of employees.

Accepted Answer

A) True 
 B)False

Question 6

The following information pertains to the East Division of Saturn Company.: $\begin{array}{lr}
\text { Net Sales } & \$ 21,000 \
\text { Variable costs: } & \
\text { Cost of merchandise sold } & 10,300 \
\text { Operating expenses } & 2,700 \
\text { Fixed costs: } & \
\text { Controllable by segment manager } & 2,400 \
\text { Controllable by others } & 1,000 \
\text { Unallocated costs } & 600
\end{array}$ The contribution margin is_____.

Accepted Answer

A) $7,100 
B) $7,700 
C) $8,000 
D) $8,700 
A) $7,100 
B) $7,700 
C) $8,000 
D) $8,700

Question 7

The first and most basic component in a management control system is the employee's goals.

Accepted Answer

A) True 
 B)False

Question 8

_____ cost is any cost that cannot be affected by the management of a responsibility center within a given time span.

Accepted Answer

A) Controllable 
B) Quality 
C) Uncontrollable 
D) Opportunity 
A) Controllable 
B) Quality 
C) Uncontrollable 
D) Opportunity

Question 9

Any cost that the management of a responsibility center cannot affect within a given time span

Accepted Answer

The answer of Any cost that the management of a...

Question 10

Segment contribution less _____ describes the segment contribution that is controllable by segment managers.

Accepted Answer

A) discretionary fixed cost 
B) controllable cost 
C) segment margin 
D) uncontrollable costs 
A) discretionary fixed cost 
B) controllable cost 
C) segment margin 
D) uncontrollable costs

Question 11

A responsibility center for which a separate measure of revenues and/or costs is obtained is called an) _____.

Accepted Answer

A) accounting center 
B) segment 
C) contribution center 
D) quality control center 
A) accounting center 
B) segment 
C) contribution center 
D) quality control center

Question 12

Managers on all levels are asked to explain the total segment contribution but are held responsible only for the _____.

Accepted Answer

A) controllable contribution 
B) fixed costs 
C) variable costs 
D) unallocated costs 
A) controllable contribution 
B) fixed costs 
C) variable costs 
D) unallocated costs

Question 13

No cost is completely under the control of a manager.

Accepted Answer

A) True 
 B)False

Question 14

Exists when individuals and groups aim at the same organizational goals

Accepted Answer

The answer of Exists when individuals and groups aim at...

Question 15

The following information pertains to the Southwest Territory of Sooner Company: $\begin{array}{lr}
\text { Net Sales } & \$ 5,250 \
\text { Variable costs: } & \
\text { Cost of merchandise sold } & 1,200 \
\text { Operating expenses } & 450 \
\text { Fixed costs: } & \
\text { Controllable by segment manager } & 600 \
\text { Controllable by others } & 1,250 \
\text { Unallocated costs } & 1,150
\end{array}$ The contribution controllable by a segment manager is _____.

Accepted Answer

A) $3,350 
B) $3,000 
C) $2,500 
D) $2,350 
A) $3,350 
B) $3,000 
C) $2,500 
D) $2,350

Question 16

A management control system must evolve with changing times, or the organization risks not being able to manage its resources effectively or efficiently.

Accepted Answer

A) True 
 B)False

Question 17

Identify which term below refers to the set of activities assigned to a manager or a group of managers or other employees.

Accepted Answer

A) internal control system 
B) management control system 
C) responsibility center 
D) total quality control system 
A) internal control system 
B) management control system 
C) responsibility center 
D) total quality control system

Question 18

To achieve maximum benefits at minimum cost, a management control system must foster _____.

Accepted Answer

A) goal congruence and employee motivation 
B) motivation and responsibility accounting 
C) responsibility accounting and managerial effort 
D) managerial effort and goal congruence 
A) goal congruence and employee motivation 
B) motivation and responsibility accounting 
C) responsibility accounting and managerial effort 
D) managerial effort and goal congruence

Question 19

Exertion toward a goal or objective

Accepted Answer

The answer of Exertion toward a goal or objective...

Question 20

_____ is not a step in the design of a successful management control system.

Accepted Answer

A) Specifying organizational goals, subgoals, and objectives 
B) Identifying responsibility centers 
C) Measuring and reporting financial performance but not nonfinancial performance 
D) Developing measures of performance for motivation and goal congruence 
A) Specifying organizational goals, subgoals, and objectives 
B) Identifying responsibility centers 
C) Measuring and reporting financial performance but not nonfinancial performance 
D) Developing measures of performance for motivation and goal congruence

A responsibility center whose success is measured not only by its income, but also by relating that income to its invested capital

Good performance measures should be reasonably subjective.

Improvements in the production process are examples of _____cost.

Identify which of the following statements is true.

A measure of labor productivity may include sales revenue divided by number of employees.

The first and most basic component in a management control system is the employee's goals.

_____ cost is any cost that cannot be affected by the management of a responsibility center within a given time span.

Any cost that the management of a responsibility center cannot affect within a given time span

Segment contribution less _____ describes the segment contribution that is controllable by segment managers.

A responsibility center for which a separate measure of revenues and/or costs is obtained is called an) _____.

Managers on all levels are asked to explain the total segment contribution but are held responsible only for the _____.

No cost is completely under the control of a manager.

Exists when individuals and groups aim at the same organizational goals

A management control system must evolve with changing times, or the organization risks not being able to manage its resources effectively or efficiently.

Identify which term below refers to the set of activities assigned to a manager or a group of managers or other employees.

To achieve maximum benefits at minimum cost, a management control system must foster _____.

Exertion toward a goal or objective

_____ is not a step in the design of a successful management control system.

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

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Exam 9: Management Control Systems and Responsibility Accounting

A responsibility center whose success is measured not only by its income, but also by relating that income to its invested capital

Good performance measures should be reasonably subjective.

Improvements in the production process are examples of _____cost.

Identify which of the following statements is true.

A measure of labor productivity may include sales revenue divided by number of employees.

The first and most basic component in a management control system is the employee's goals.

_____ cost is any cost that cannot be affected by the management of a responsibility center within a given time span.

Any cost that the management of a responsibility center cannot affect within a given time span

Segment contribution less _____ describes the segment contribution that is controllable by segment managers.

A responsibility center for which a separate measure of revenues and/or costs is obtained is called an) _____.

Managers on all levels are asked to explain the total segment contribution but are held responsible only for the _____.

No cost is completely under the control of a manager.

Exists when individuals and groups aim at the same organizational goals

A management control system must evolve with changing times, or the organization risks not being able to manage its resources effectively or efficiently.

Identify which term below refers to the set of activities assigned to a manager or a group of managers or other employees.

To achieve maximum benefits at minimum cost, a management control system must foster _____.

Exertion toward a goal or objective

_____ is not a step in the design of a successful management control system.

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