Exam 9: Management Control Systems and Responsibility Accounting

Goal congruence exists when individuals aim at short?term goals and groups aim at long?term organizational goals.

Responsibility centers usually have a single goal that the management control system monitors.

A responsibility center for controlling revenues as well as costs is called a revenue center.

Warranty costs are a form of _____cost.

An analytical method aimed at achieving near-perfect results on a production line

Retention of target customers is a measure of _____.

A management control principle that will not change is that nonfinancial performance measures are not as good as financial performance measures.

The following information pertains to the Northwest Territory of Burger King Company: Net Sales \ 6,000 Variable costs: Cost of merchandise sold 1,200 Operating expenses 450 Fixed costs: Controllable by segment manager 1,600 Controllable by others 1,250 Unallocated costs 750 The contribution margin is _____.

Objectives are specific tangible actions or activities that can be carried out and observed on a long-term basis.

_____ is the logical integration of management accounting tools to gather and report data and to evaluate performance.

A management control system can be designed to emphasize all of the following simultaneously except _____.

A responsibility center for controlling revenues and costs

When preparing segment income statements, unallocated costs _____.

A performance measure and reporting system that strikes a balance between financial and operating measures, links performance to rewards, and gives explicit recognition to the diversity of organizational goals

A balanced scorecard for a responsibility center _____.

An effective management control system reports on all of the following except:

_____ report is a report that displays the financial impact of quality.

The _____ chart is the statistical plot of measures of various product dimensions or attributes.

A management control system can become perfect.

Fred Corporation and Ginger Company are dance companies.Comparative data for 20X3 and 20X6 are given below. Fred Ginger Corporation Company Sales revenue 203 \ 6,300,000 \ 4,500,000 206 7,500,000 6,000,000 Number of employees 203 3,000 2,250 206 4,000 3,250 Assume that each 20X3 dollar is equivalent to 1.50 of the 20X6 dollars, due to inflation._____ is Fred Corporation's 20X3 revenue per employee in terms of 20X6 dollars.