Question 1

Which of the following is true about a strategic-based responsibility accounting system?

Accepted Answer

A) It fails to connect with an organization's overall mission and strategy. 
B) It expands the number of responsibility dimensions from one to two. 
C) It does not work for firms operating in dynamic environments. 
D) It can take the form of a Balanced Scorecard. 
A) It fails to connect with an organization's overall mission and strategy. 
B) It expands the number of responsibility dimensions from one to two. 
C) It does not work for firms operating in dynamic environments. 
D) It can take the form of a Balanced Scorecard. D

Question 2

Lead measures

Accepted Answer

A) are the measures with the highest priority. 
B) are generic to different strategies. 
C) are based on performance drivers. 
D) represent the desired outcomes. 
A) are the measures with the highest priority. 
B) are generic to different strategies. 
C) are based on performance drivers. 
D) represent the desired outcomes. C

Question 3

Setting balanced objectives, target values, and rewards are steps in developing
the __________ .

Accepted Answer

balanced scorecard

Question 4

At the beginning of 2018, Vibgyor Company installed a just-in-time (JIT) purchasing and manufacturing system. The following information has been gathered about one of the company's products: $\begin{array}{lr}
\text { Theoretical annual capacity } & 4,200 \text { units } \
\text { Actual production } & 1,600 \text { units } \
\text { Production hours available } & 600 \text { hours } \
\text { Actual conversion cost per hour } & \$ 15
\end{array}$
The theoretical velocity per hour is:

Accepted Answer

A) 9 units. 
B) 3 units. 
C) 2 units. 
D) 7 units. 
A) 9 units. 
B) 3 units. 
C) 2 units. 
D) 7 units.

Question 5

In the Balanced Scorecard system, core objectives and measures

Accepted Answer

A) are common across all organizations. 
B) are common across all scorecard perspectives. 
C) are common across departments. 
D) none of the above. 
A) are common across all organizations. 
B) are common across all scorecard perspectives. 
C) are common across departments. 
D) none of the above.

Question 6

Strategy translation means:

Accepted Answer

A) choosing the market and customer segments a business unit intends to serve. 
B) identifying the critical internal and business processes that a unit must excel at to deliver value propositions to customers in the targeted market segments. 
C) specifying objectives, measures, targets, and initiatives for the four responsibility dimensions: the financial perspective, the customer perspective, the internal business process perspective, and the learning and growth perspective. 
D) selecting the individual and organizational capabilities required for internal, customer, and financial objectives. 
A) choosing the market and customer segments a business unit intends to serve. 
B) identifying the critical internal and business processes that a unit must excel at to deliver value propositions to customers in the targeted market segments. 
C) specifying objectives, measures, targets, and initiatives for the four responsibility dimensions: the financial perspective, the customer perspective, the internal business process perspective, and the learning and growth perspective. 
D) selecting the individual and organizational capabilities required for internal, customer, and financial objectives.

Question 7

The time it takes to produce one unit of product is called

Accepted Answer

A) velocity. 
B) delivery time. 
C) cycle time. 
D) turnover. 
A) velocity. 
B) delivery time. 
C) cycle time. 
D) turnover.

Question 8

Performance expectations are communicated by setting

Accepted Answer

A) new initiatives. 
B) targets. 
C) a strategic vision. 
D) activity measures. 
A) new initiatives. 
B) targets. 
C) a strategic vision. 
D) activity measures.

Question 9

At the beginning of 2018, Haroldson Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products. $$\begin{array} { l r } 
\text { Theoretical annual capacity } & 9,000 \
\text { Actual production } & 3,600 \
\text { Production hours available } & 3,000 \
\text { Actual cost per unit } & \$ 33
\end{array}$$ The theoretical velocity per hour is

Accepted Answer

A) 3.0 units. 
B) 2.8 units. 
C) 1.5 units. 
D) 1.55units. 
A) 3.0 units. 
B) 2.8 units. 
C) 1.5 units. 
D) 1.55units.

Question 10

In the financial perspective, economic value added would be an appropriate measure for

Accepted Answer

A) revenue growth. 
B) cost reduction. 
C) improving asset utilization. 
D) risk management. 
A) revenue growth. 
B) cost reduction. 
C) improving asset utilization. 
D) risk management.

Question 11

A competitive environment means that organizations will be

Accepted Answer

A) producing increasingly high-volume, low-variety products and services. 
B) focused internally on efficiency. 
C) managing cause and effect linkages to customer satisfaction. 
D) viewing their actions independent of competitors, suppliers, and customers. 
A) producing increasingly high-volume, low-variety products and services. 
B) focused internally on efficiency. 
C) managing cause and effect linkages to customer satisfaction. 
D) viewing their actions independent of competitors, suppliers, and customers.

Question 12

At the beginning of 2018, Terrapin Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products: $\begin{array}{lr}
\text { Theoretical annual capacity } & 3,500 \
\text { Actual production } & 1,800 \
\text { Production hours available } & 700 \
\text { Actual conversi on cost per hour } & \$ 10
\end{array}$ What is the ideal conversion cost per unit?

Accepted Answer

A) $1.02 per unit. 
B) $29.10 per unit. 
C) $2.00 per unit. 
D) $32 per unit. 
A) $1.02 per unit. 
B) $29.10 per unit. 
C) $2.00 per unit. 
D) $32 per unit.

Question 13

Objectives for increasing revenue growth include

Accepted Answer

A) adopting a new pricing strategy. 
B) reducing the cost per unit. 
C) eliminating non-value-added activities. 
D) reducing distribution channel cost. 
A) adopting a new pricing strategy. 
B) reducing the cost per unit. 
C) eliminating non-value-added activities. 
D) reducing distribution channel cost.

Question 14

Which of the following is NOT a condition that must be present for a strategy to become attainable?

Accepted Answer

A) budgetary process must provide the resources necessary to carry out the initiatives 
B) resources must be allocated to strategic initiatives 
C) the organization must decide how much of the strategic targets will be achieved for the coming year 
D) all are conditions that must be met for strategy to become actionable 
A) budgetary process must provide the resources necessary to carry out the initiatives 
B) resources must be allocated to strategic initiatives 
C) the organization must decide how much of the strategic targets will be achieved for the coming year 
D) all are conditions that must be met for strategy to become actionable

Question 15

Which of the following is NOT an advantage of strategic-based responsibility accounting?

Accepted Answer

A) It includes perspectives that serve as a source of competitive advantage. 
B) Responsibility is centralized within the organization. 
C) Change efforts are directed by the mission and strategy. 
D) All are advantages of strategic-based responsibility accounting. 
A) It includes perspectives that serve as a source of competitive advantage. 
B) Responsibility is centralized within the organization. 
C) Change efforts are directed by the mission and strategy. 
D) All are advantages of strategic-based responsibility accounting.

Question 16

Which of the following is NOT true about activity-based responsibility accounting?

Accepted Answer

A) The emphasis changes from cost reduction through change to cost control. 
B) The emphasis includes financial results as well as how things are done. 
C) Responsibility moves from one dimension to two dimensions. 
D) It moves from a control system to a performance management system. 
A) The emphasis changes from cost reduction through change to cost control. 
B) The emphasis includes financial results as well as how things are done. 
C) Responsibility moves from one dimension to two dimensions. 
D) It moves from a control system to a performance management system.

Question 17

In the customer perspective, objectives and measures that drive the creation of customer value are

Accepted Answer

A) customer survey ratings. 
B) post-purchase cost. 
C) on-time deliveries. 
D) all of the above. 
A) customer survey ratings. 
B) post-purchase cost. 
C) on-time deliveries. 
D) all of the above.

Question 18

In a balanced scorecard, performance expectations are communicated by setting __________ .

Accepted Answer

The answer of In a balanced scorecard, performance expectations are...

Question 19

The outcome measures that are a result of past efforts are called:

Accepted Answer

A) Objective measures 
B) External measures 
C) Lag measures 
D) Financial measures 
A) Objective measures 
B) External measures 
C) Lag measures 
D) Financial measures

Question 20

Which of the following would NOT be a core outcome measure for employee capabilities?

Accepted Answer

A) employee satisfaction ratings 
B) number of employees 
C) employee turnover 
D) employee productivity 
A) employee satisfaction ratings 
B) number of employees 
C) employee turnover 
D) employee productivity

Which of the following is true about a strategic-based responsibility accounting system?

Lead measures

Setting balanced objectives, target values, and rewards are steps in developing the __________ .

In the Balanced Scorecard system, core objectives and measures

Strategy translation means:

The time it takes to produce one unit of product is called

Performance expectations are communicated by setting

In the financial perspective, economic value added would be an appropriate measure for

A competitive environment means that organizations will be

Objectives for increasing revenue growth include

Which of the following is NOT a condition that must be present for a strategy to become attainable?

Which of the following is NOT an advantage of strategic-based responsibility accounting?

Which of the following is NOT true about activity-based responsibility accounting?

In the customer perspective, objectives and measures that drive the creation of customer value are

In a balanced scorecard, performance expectations are communicated by setting __________ .

The outcome measures that are a result of past efforts are called:

Which of the following would NOT be a core outcome measure for employee capabilities?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 13: The Balanced Scorecard: Strategic-Based Control

Which of the following is true about a strategic-based responsibility accounting system?

Lead measures

Setting balanced objectives, target values, and rewards are steps in developing the __________ .

In the Balanced Scorecard system, core objectives and measures

Strategy translation means:

The time it takes to produce one unit of product is called

Performance expectations are communicated by setting

In the financial perspective, economic value added would be an appropriate measure for

A competitive environment means that organizations will be

Objectives for increasing revenue growth include

Which of the following is NOT a condition that must be present for a strategy to become attainable?

Which of the following is NOT an advantage of strategic-based responsibility accounting?

Which of the following is NOT true about activity-based responsibility accounting?

In the customer perspective, objectives and measures that drive the creation of customer value are

In a balanced scorecard, performance expectations are communicated by setting __________ .

The outcome measures that are a result of past efforts are called:

Which of the following would NOT be a core outcome measure for employee capabilities?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters