Exam 12: Responsibility Accounting, Operational Performance Measures, and the Balanced Scorecard

Use the following information to answer the following Questions The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: In addition, the company incurred common fixed costs of $18,000. -The profit margin controllable by the Central Valley segment manager is:

The continual search for the most effective method of accomplishing a task by comparing existing methods and performance levels with those of other organizations, or with other subunits within the same organization is known as a gain-sharing plan.

Distinguishing between controllable and noncontrollable costs on a performance report may result in:

The Asian Division of a multinational manufacturing organization would likely be classified as a:

Decentralized firms can delegate authority by structuring an organization into responsibility centers. Which of the following organizational segments is most like a totally independent, standalone business where managers are expected to "make it on their own"?

The following data relate to Department no. 2 of Velma Corporation: On the basis of this information, fixed costs traceable to Department no. 2 but controllable by others are:

Which of the following would be the best measure on which to base a segment manager's performance evaluation for purposes of granting a bonus?

When managers of subunits throughout an organization strive to achieve the goals set by top management, the result is:

An allocation base for a cost pool should ideally be a cost object.

When using a balanced scorecard, a company's market share is typically classified as an element of the firm's:

Republic Resorts owns numerous hotels on each of the Hawaiian Islands. The company's performance reporting system is structured around the firm's organizational structure, with information flowing from operating departments at a particular property and later respectively grouped by individual hotel, island operation (i.e., division), and the company as a whole. Which of the following best depicts the detail level of the information given to a department manager versus that reported to a company vice-president?

Performance reports help managers:

A cost object is:

Consider the following statements about performance reports: I. Performance reports provide feedback to managers and allow them to better control operations. II. Many performance reports have budget, actual, and variance data. III. Performance reports are often structured around a firm's organizational hierarchy-that is, data relating to lower-level units (e.g., departments) are combined and flow into higher-level units (e.g., stores). Which of the above statements is (are) true?

Tranquil Beaches owns six hotels in Hawaii, collectively known as the Hawaiian Division. The various hotels, including the Surf & Sun, have operating departments (such as Maintenance, Housekeeping, and Food and Beverage) that are evaluated as either cost centers or profit centers. The Food and Beverage Department, for example, is a profit center, with activities divided into three segments: Banquets and Catering, Restaurants, and Kitchen. If Tranquil Beaches uses a performance-reporting system that is based on responsibility accounting, which of the following disclosures is likely to occur?

A revenue center manager:

Use the following information to answer the following Questions Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data: WO's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $60,000. -If advertising expense were allocated to centers based on actual center profitability, the amount of advertising expense allocated to the Irvine center would be closest to:

Compton Corporation, with operations throughout the country, will soon allocate corporate overhead to the firm's various responsibility centers. Which of the following is definitely not a cost object in this situation?

Each department, responsible for different processes, should have goals different from the company as a whole.

Use the following information to answer the following Questions The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: In addition, the company incurred common fixed costs of $18,000. -Bay Area's segment profit margin is: