Question 1

Retention of target customers is a measure of:

Accepted Answer

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

Question 2

The following information pertains to the Upper Division of Mars Company: $$\begin{array} { l l } 
\text { Net Sales } & \$ 21,000 \
\text { Variable costs: } & \
\text { Cost of merchandise sold } & 7,200 \
\text { Operating expenses } & 2,700 \
\text { Fixed costs: } & \
\text { Controllable by segment manager } & 2,400 \
\text { Controllable by others } & 1,000 \
\text { Unalloc ated costs } & 600
\end{array}$$ The contribution by segment is:

Accepted Answer

A)  $8,700 
B)  $7,100 
C)  $7,700 
D)  $11,100 
A)  $8,700 
B)  $7,100 
C)  $7,700 
D)  $11,100

Question 3

The purpose of a quality- control chart is:

Accepted Answer

A)  to graphically represent the quality control program 
B)  to track the financial cost of quality 
C)  to detect process deviation before the process generates defects 
D)  to determine the effectiveness of the quality control program 
A)  to graphically represent the quality control program 
B)  to track the financial cost of quality 
C)  to detect process deviation before the process generates defects 
D)  to determine the effectiveness of the quality control program

Question 4

Key performance indicators for a balanced scorecard are usually grouped in two categories.

Accepted Answer

A) True 
 B)False

Question 5

would not be appraisal costs.

Accepted Answer

A)  Warranty costs 
B)  Product quality audit costs 
C)  Testing costs 
D)  Inspection costs 
A)  Warranty costs 
B)  Product quality audit costs 
C)  Testing costs 
D)  Inspection costs

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The following information pertains to the South Territory of Sammy Company: $$\begin{array} { l l } 
\text { Net Sales } & \$ 5,000 \
\text { Variable costs: } & \
\text { Cost of merchandise sold } & 1,200 \
\text { Operating exp enses } & 450 \
\text { Fixed costs: } & \
\text { Controllable by segment manager } & 600 \
\text { Controllable by others } & 250 \
\text { Unalloc ated costs } & 150
\end{array}$$ The contribution by segment is:

Accepted Answer

A)  $2,750 
B)  $2,350 
C)  $3,350 
D)  $2,500 
A)  $2,750 
B)  $2,350 
C)  $3,350 
D)  $2,500

Question 8

The following information is available for Learning R' Us and its two divisions-Books and Periodicals: $\begin{array}{llll}&\text { Company as } & \text { Books } & \text { Periodicals } \
&\text { a whole } & \text { Division } & \text { Division }\\hline
\text { Net sales }&\$100,000&\$60,000&\$40,000\
\text { Fixed costs: }\\text { Controllable by }\
\text { division man ager } & 16,500 & 12,500 & 4,000 \
\text { Controllable by others } & 8,000 & 5,000 & 3,000 \
\text { Variable costs: } & & &\\text { Cost of merch andise sold } & 24,500 & 17,500 & 7,000 \
\text { Operating expenses } & 16,400 & 10,000 & 6,400 \
\text { Unalloc ated costs } & 1,000 & &
\end{array}$ is the contribution controllable by the manager of the Books Division.

Accepted Answer

A)  $42,500 
B)  $20,000 
C)  $32,500 
D)  $35,000 
A)  $42,500 
B)  $20,000 
C)  $32,500 
D)  $35,000

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The contribution margin is especially helpful for predicting the impact on income of long- run changes in activity volume.

Accepted Answer

A) True 
 B)False

Question 11

A logical integration of management accounting tools to gather and report data and to evaluate performance

Accepted Answer

Management

Question 12

Financial measures often are lagging indicators that arrive too late to help prevent problems.

Accepted Answer

A) True 
 B)False

Question 13

A management control system must to achieve maximum benefits at minimum cost.

Accepted Answer

A)  be the same as the financial accounting system 
B)  foster goal congruence and managerial effort 
C)  look at the short term only 
D)  motivate managers with quarterly bonuses based on performance 
A)  be the same as the financial accounting system 
B)  foster goal congruence and managerial effort 
C)  look at the short term only 
D)  motivate managers with quarterly bonuses based on performance

Question 14

The following information is available for Learning R' Us and its two divisions-Books and Periodicals: $\begin{array}{llll}&\text { Company as } & \text { Books } & \text { Periodicals } \
&\text { a whole } & \text { Division } & \text { Division }\\hline
\text { Net sales }&\$100,000&\$60,000&\$40,000\
\text { Fixed costs: }\\text { Controllable by }\
\text { division man ager } & 16,500 & 12,500 & 4,000 \
\text { Controllable by others } & 8,000 & 5,000 & 3,000 \
\text { Variable costs: } & & &\\text { Cost of merch andise sold } & 24,500 & 17,500 & 7,000 \
\text { Operating expenses } & 16,400 & 10,000 & 6,400 \
\text { Unalloc ated costs } & 1,000 & &
\end{array}$ is the contribution margin for the Books Division.

Accepted Answer

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

Question 15

What is the most important criterion in judging the effectiveness of a measure of performance?

Accepted Answer

The most important criterion f

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  effects of uncontrollable events 
B)  the manager's influence on those results 
C)  effects of controllable events 
D)  the results of activities 
A)  effects of uncontrollable events 
B)  the manager's influence on those results 
C)  effects of controllable events 
D)  the results of activities

Question 18

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

Accepted Answer

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

Question 19

is a report that displays the financial impact of quality.

Accepted Answer

A)  Cost of quality report 
B)  Cycle time report 
C)  Financial report 
D)  Productivity report 
A)  Cost of quality report 
B)  Cycle time report 
C)  Financial report 
D)  Productivity report

Question 20

"Nonfinancial measures of performance can be controlled just like financial measures." Do you agree? Explain.

Accepted Answer

Control of nonfinancial performance requ

Retention of target customers is a measure of:

The following information pertains to the Upper Division of Mars Company: Net Sales \ 21,000 Variable costs: Cost of merchandise sold 7,200 Operating expenses 2,700 Fixed costs: Controllable by segment manager 2,400 Controllable by others 1,000 Unalloc ated costs 600 The contribution by segment is:

The purpose of a quality- control chart is:

Key performance indicators for a balanced scorecard are usually grouped in two categories.

would not be appraisal costs.

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

The following information pertains to the South Territory of Sammy Company: Net Sales \ 5,000 Variable costs: Cost of merchandise sold 1,200 Operating exp enses 450 Fixed costs: Controllable by segment manager 600 Controllable by others 250 Unalloc ated costs 150 The contribution by segment is:

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

The contribution margin is especially helpful for predicting the impact on income of long- run changes in activity volume.

A logical integration of management accounting tools to gather and report data and to evaluate performance

Financial measures often are lagging indicators that arrive too late to help prevent problems.

A management control system must to achieve maximum benefits at minimum cost.

What is the most important criterion in judging the effectiveness of a measure of performance?

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

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

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

is a report that displays the financial impact of quality.

"Nonfinancial measures of performance can be controlled just like financial measures." Do you agree? Explain.

Managerial Accounting and the Business Organization

Introduction to Cost Behavior and Cost Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information and Decision-Making: Marketing Decisions

Relevant Information and Decision-Making: Product Decisions

The Master Budget

Flexible Budget and Variance Analysis

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Job-Costing

Process-Costing Systems

Overhead Application: Variable and Absorbtion Costing

Basic Accounting Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Filters

Exam 9: Management Control Systems and Responsibility Accounting

Retention of target customers is a measure of:

The following information pertains to the Upper Division of Mars Company: Net Sales \ 21,000 Variable costs: Cost of merchandise sold 7,200 Operating expenses 2,700 Fixed costs: Controllable by segment manager 2,400 Controllable by others 1,000 Unalloc ated costs 600 The contribution by segment is:

The purpose of a quality- control chart is:

Key performance indicators for a balanced scorecard are usually grouped in two categories.

would not be appraisal costs.

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

The following information pertains to the South Territory of Sammy Company: Net Sales \ 5,000 Variable costs: Cost of merchandise sold 1,200 Operating exp enses 450 Fixed costs: Controllable by segment manager 600 Controllable by others 250 Unalloc ated costs 150 The contribution by segment is:

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

The contribution margin is especially helpful for predicting the impact on income of long- run changes in activity volume.

A logical integration of management accounting tools to gather and report data and to evaluate performance

Financial measures often are lagging indicators that arrive too late to help prevent problems.

A management control system must to achieve maximum benefits at minimum cost.

What is the most important criterion in judging the effectiveness of a measure of performance?

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

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

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

is a report that displays the financial impact of quality.

"Nonfinancial measures of performance can be controlled just like financial measures." Do you agree? Explain.

Managerial Accounting and the Business Organization

Introduction to Cost Behavior and Cost Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information and Decision-Making: Marketing Decisions

Relevant Information and Decision-Making: Product Decisions

The Master Budget

Flexible Budget and Variance Analysis

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Job-Costing

Process-Costing Systems

Overhead Application: Variable and Absorbtion Costing

Basic Accounting Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Filters