Question 1

Segments are responsibility centers for which a separate measure of revenues and costs is obtained.

Accepted Answer

A) True 
 B)False

Question 2

The four categories of quality cost include production costs, appraisal costs, internal failure costs, and external failure costs.

Accepted Answer

A) True 
 B)False

Question 3

The term "cost center" is used indiscriminately to describe centers that may or may not be assigned responsibility for the capital investment.

Accepted Answer

A) True 
 B)False

Question 4

Service organizations focus on increasing the productivity of labor.

Accepted Answer

A) True 
 B)False

Question 5

All of the following are nonfinancial objectives of responsibility centers except _____.

Accepted Answer

A) quality 
B) productivity 
C) operations budgets 
D) customer satisfaction 
A) quality 
B) productivity 
C) operations budgets 
D) customer satisfaction

Question 6

The following information is available for Stained Inc.and its two divisions, Books and Periodicals: $\begin{array}{cccc}&\text { Company } & \text { Books } & \text { Periodicals } \
&\text { as a whole } & \text { Division } & \text { Division }\\hline
\text { Net sales } & \$ 100,000 & \$ 60,000 & \$ 40,000\
\text { Fixed costs: }\
\text { Controllable by }\
\text { division manager } & 16,500 & 12,500 & 4,000 \
\text { Controllable by others } & 8,000 & 5,000 & 3,000 \
\text { Variable costs: } & & & \
\text { Cost of merchandise sold } & 24,500 & 17,500 & 7,000 \
\text { Operating expenses } & 16,400 & 10,000 & 6,400\
\text { Unallocated costs }&1,000
\end{array}$ Unallocated costs 8,000 _____ is the contribution by segment for the Books Division.

Accepted Answer

A) $32,500 
B) $20,000 
C) $15,000 
D) $42,500 
A) $32,500 
B) $20,000 
C) $15,000 
D) $42,500

Question 7

An)_____ center is not a type of responsibility center.

Accepted Answer

A) investment 
B) cost 
C) profit 
D) budget 
A) investment 
B) cost 
C) profit 
D) budget

Question 8

_____ time is an alternate term for cycle time.

Accepted Answer

A) Manufacturing 
B) Throughput 
C) Production 
D) Completion 
A) Manufacturing 
B) Throughput 
C) Production 
D) Completion

Question 9

Systems designers in organizations must contend with particularly difficult trade-offs among objectives.

Accepted Answer

A) True 
 B)False

Question 10

Identify which of the following statements regarding responsibility centers is false.

Accepted Answer

A) Responsibility centers usually have one objective. 
B) Management control systems monitor responsibility center objectives. 
C) Responsibility centers are usually classified according to their financial responsibility. 
D) Cost centers, profit centers, and investments centers are all examples of responsibility centers. 
A) Responsibility centers usually have one objective. 
B) Management control systems monitor responsibility center objectives. 
C) Responsibility centers are usually classified according to their financial responsibility. 
D) Cost centers, profit centers, and investments centers are all examples of responsibility centers.

Question 11

The following information is available for Snoopy Inc.and its two divisions, Books and Periodicals: $\begin{array}{cccc}&\text { Company } & \text { Books } & \text { Periodicals } \
&\text { as a whole } & \text { Division } & \text { Division }\\hline
\text { Net sales } & \$ 100,000 & \$ 60,000 & \$ 40,000\
\text { Fixed costs: }\
\text { Controllable by }\
\text { division manager } & 16,500 & 12,500 & 4,000 \
\text { Controllable by others } & 8,000 & 5,000 & 3,000 \
\text { Variable costs: } & & & \
\text { Cost of merchandise sold } & 24,500 & 17,500 & 7,000 \
\text { Operating expenses } & 16,400 & 10,000 & 6,400\
\text { Unallocated costs }&1,000
\end{array}$ Unallocated costs 1,000 _____ is the net income for the Snoopy Inc.

Accepted Answer

A) $29,600 
B) $34,600 
C) $15,000 
D) $33,600 
A) $29,600 
B) $34,600 
C) $15,000 
D) $33,600

Question 12

The following information is available for Yellowed Inc.and its two divisions, Books and Periodicals: $\begin{array}{cccc}&\text { Company } & \text { Books } & \text { Periodicals } \
&\text { as a whole } & \text { Division } & \text { Division }\\hline
\text { Net sales } & \$ 100,000 & \$ 50,000 & \$ 50,000\
\text { Fixed costs: }\
\text { Controllable by }\
\text { division manager } & 16,500 & 12,500 & 4,000 \
\text { Controllable by others } & 8,000 & 5,000 & 3,000 \
\text { Variable costs: } & & & \
\text { Cost of merchandise sold } & 24,500 & 17,500 & 7,000 \
\text { Operating expenses } & 16,400 & 10,000 & 6,400\
\text { Unallocated costs }&1,000
\end{array}$ Unallocated costs 1,000 _____ is the contribution by segment for the Periodicals Division.

Accepted Answer

A) $29,600 
B) $36,600 
C) $28,600 
D) $32,600 
A) $29,600 
B) $36,600 
C) $28,600 
D) $32,600

Question 13

Managerial effort does not necessarily have to accompany goal congruence.

Accepted Answer

A) True 
 B)False

Question 14

A designer of management control systems always must determine this

Accepted Answer

Cost and b

Question 15

Decreasing cycle time _____.

Accepted Answer

A) requires a low-quality product or service 
B) creates reduced flexibility and slower reactions to customer needs 
C) requires smooth-running processes 
D) results in bringing products or services less quickly to customers 
A) requires a low-quality product or service 
B) creates reduced flexibility and slower reactions to customer needs 
C) requires smooth-running processes 
D) results in bringing products or services less quickly to customers

Question 16

Employee turnover rate 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 17

_____ is the first step in designing a management control system.

Accepted Answer

A) Evaluating management's performance 
B) Establishing organizational goals 
C) Preparing financial statements 
D) Distinguishing between profit centers and cost centers 
A) Evaluating management's performance 
B) Establishing organizational goals 
C) Preparing financial statements 
D) Distinguishing between profit centers and cost centers

Question 18

A set of activities assigned to a manager or a group of managers or other employees

Accepted Answer

Responsibi

Question 19

Managers on all levels are held responsible for the total segment contribution.

Accepted Answer

A) True 
 B)False

Question 20

Once a management control system is designed for an organization, it will meet the organization's goals indefinitely.

Accepted Answer

A) True 
 B)False

Segments are responsibility centers for which a separate measure of revenues and costs is obtained.

The four categories of quality cost include production costs, appraisal costs, internal failure costs, and external failure costs.

The term "cost center" is used indiscriminately to describe centers that may or may not be assigned responsibility for the capital investment.

Service organizations focus on increasing the productivity of labor.

All of the following are nonfinancial objectives of responsibility centers except _____.

An)_____ center is not a type of responsibility center.

_____ time is an alternate term for cycle time.

Systems designers in organizations must contend with particularly difficult trade-offs among objectives.

Identify which of the following statements regarding responsibility centers is false.

Managerial effort does not necessarily have to accompany goal congruence.

A designer of management control systems always must determine this

Decreasing cycle time _____.

Employee turnover rate is a measure of _____.

_____ is the first step in designing a management control system.

A set of activities assigned to a manager or a group of managers or other employees

Managers on all levels are held responsible for the total segment contribution.

Once a management control system is designed for an organization, it will meet the organization's goals indefinitely.

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

Segments are responsibility centers for which a separate measure of revenues and costs is obtained.

The four categories of quality cost include production costs, appraisal costs, internal failure costs, and external failure costs.

The term "cost center" is used indiscriminately to describe centers that may or may not be assigned responsibility for the capital investment.

Service organizations focus on increasing the productivity of labor.

All of the following are nonfinancial objectives of responsibility centers except _____.

An)_____ center is not a type of responsibility center.

_____ time is an alternate term for cycle time.

Systems designers in organizations must contend with particularly difficult trade-offs among objectives.

Identify which of the following statements regarding responsibility centers is false.

Managerial effort does not necessarily have to accompany goal congruence.

A designer of management control systems always must determine this

Decreasing cycle time _____.

Employee turnover rate is a measure of _____.

_____ is the first step in designing a management control system.

A set of activities assigned to a manager or a group of managers or other employees

Managers on all levels are held responsible for the total segment contribution.

Once a management control system is designed for an organization, it will meet the organization's goals indefinitely.

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