Question 1

A sales budget is a forecast of the expected flow of monetary receipts and expenditures.

Accepted Answer

A) True 
 B)False

Question 2

One limitation of activity-based accounting is that managers must still make some arbitrary cost allocations based on volume.

Accepted Answer

A) True 
 B)False

Question 3

In the cost-benefit model, the vertical axis indicates the relationship between costs and benefits of control, ranging from __________ to __________.

Accepted Answer

A)  stable, unstable 
B)  zero, high 
C)  unprofitable, profitable 
D)  inefficient, efficient 
A)  stable, unstable 
B)  zero, high 
C)  unprofitable, profitable 
D)  inefficient, efficient

Question 4

Danielle Jarrett is the owner of Designer Boutique. Her store has an inventory turnover ratio of about 10 (unusually high for this type of business). Which of the following statements is not true?

Accepted Answer

A)  This ratio suggests efficient operations. 
B)  This suggests a relatively small amount of money is tied up in inventory. 
C)  This suggests that Cheryl may be able to use some of her resources elsewhere. 
D)  A ratio of 10 means that Cheryl has $10 in sales for every $1 of total assets. 
A)  This ratio suggests efficient operations. 
B)  This suggests a relatively small amount of money is tied up in inventory. 
C)  This suggests that Cheryl may be able to use some of her resources elsewhere. 
D)  A ratio of 10 means that Cheryl has $10 in sales for every $1 of total assets.

Question 5

Since the September 11, 2001 attacks, governments and businesses have substantially increased their use of __________ controls.

Accepted Answer

A)  preventive 
B)  corrective 
C)  security-based 
D)  profile-based 
A)  preventive 
B)  corrective 
C)  security-based 
D)  profile-based

Question 6

Fiduciary responsibility indicates that final authority resides with the courts and congress.

Accepted Answer

A) True 
 B)False

Question 7

One way to develop effective, formal organizational controls is to use a cost-benefit analysis. A cost-benefit analysis addresses each of the following questions except __________.

Accepted Answer

A)  For what desired behaviors and results should organizational controls be developed? 
B)  What are the costs and benefits of the control system required to achieve the organization's desired behaviors and results? 
C)  What chance does a competitor have of creating a better control system? 
D)  What are the costs and benefits associated with alternative control systems? 
A)  For what desired behaviors and results should organizational controls be developed? 
B)  What are the costs and benefits of the control system required to achieve the organization's desired behaviors and results? 
C)  What chance does a competitor have of creating a better control system? 
D)  What are the costs and benefits associated with alternative control systems?

Question 8

Cost-benefit analysis addresses __________ basic questions.

Accepted Answer

A)  two 
B)  three 
C)  five 
D)  ten 
A)  two 
B)  three 
C)  five 
D)  ten

Question 9

Discuss provisions of the Sarbanes-Oxley Act that offers external control mechanisms for corporate governance.

Accepted Answer

The Sarbanes-Oxley Act, passed into law

Question 10

Proxy statements are internal control mechanisms.

Accepted Answer

A) True 
 B)False

Question 11

Rocky Swanson is involved in an attempt to reduce absenteeism at Sprocket Manufacturing. At present, he is identifying the key characteristics that need to be measured before corrective actions can be taken. Rocky is in the __________ stage of the corrective control model.

Accepted Answer

A)  first 
B)  second 
C)  third 
D)  fourth 
A)  first 
B)  second 
C)  third 
D)  fourth

Question 12

Benefits of using activity-based accounting include all of the following except ________.

Accepted Answer

A)  costs are pinpointed by activity instead of being charged to overhead 
B)  cost allocations are based on the portion of activities that can be directly traced to a finished product 
C)  allocation of costs can be traced to the volume of production 
D)  costs associated with an activity for a particular product can now be traced 
A)  costs are pinpointed by activity instead of being charged to overhead 
B)  cost allocations are based on the portion of activities that can be directly traced to a finished product 
C)  allocation of costs can be traced to the volume of production 
D)  costs associated with an activity for a particular product can now be traced

A sales budget is a forecast of the expected flow of monetary receipts and expenditures.

One limitation of activity-based accounting is that managers must still make some arbitrary cost allocations based on volume.

In the cost-benefit model, the vertical axis indicates the relationship between costs and benefits of control, ranging from to .

Danielle Jarrett is the owner of Designer Boutique. Her store has an inventory turnover ratio of about 10 (unusually high for this type of business). Which of the following statements is not true?

Since the September 11, 2001 attacks, governments and businesses have substantially increased their use of __________ controls.

Fiduciary responsibility indicates that final authority resides with the courts and congress.

One way to develop effective, formal organizational controls is to use a cost-benefit analysis. A cost-benefit analysis addresses each of the following questions except __________.

Cost-benefit analysis addresses __________ basic questions.

Discuss provisions of the Sarbanes-Oxley Act that offers external control mechanisms for corporate governance.

Proxy statements are internal control mechanisms.

Rocky Swanson is involved in an attempt to reduce absenteeism at Sprocket Manufacturing. At present, he is identifying the key characteristics that need to be measured before corrective actions can be taken. Rocky is in the __________ stage of the corrective control model.

Benefits of using activity-based accounting include all of the following except ________.

Managing in a Dynamic Environment

The Evolution of Management

Environmental Forces

Managing Globally

Entrepreneurship

Ethics and Stakeholder Social Responsibility

Planning and Strategy

Fundamentals of Decision Making

Planning and Decision Aids

Organizational Design

Organizational Change and Learning

Managing Human Resources

Work Motivation

Dynamics of Leadership

Organizational Communication

Managing Work Teams

Organizational Culture and Cultural Diversity

Filters

Exam 10: Controlling in Organizations

A sales budget is a forecast of the expected flow of monetary receipts and expenditures.

One limitation of activity-based accounting is that managers must still make some arbitrary cost allocations based on volume.

In the cost-benefit model, the vertical axis indicates the relationship between costs and benefits of control, ranging from __________ to __________.

Danielle Jarrett is the owner of Designer Boutique. Her store has an inventory turnover ratio of about 10 (unusually high for this type of business). Which of the following statements is not true?

Since the September 11, 2001 attacks, governments and businesses have substantially increased their use of __________ controls.

Fiduciary responsibility indicates that final authority resides with the courts and congress.

One way to develop effective, formal organizational controls is to use a cost-benefit analysis. A cost-benefit analysis addresses each of the following questions except __________.

Cost-benefit analysis addresses __________ basic questions.

Discuss provisions of the Sarbanes-Oxley Act that offers external control mechanisms for corporate governance.

Proxy statements are internal control mechanisms.

Rocky Swanson is involved in an attempt to reduce absenteeism at Sprocket Manufacturing. At present, he is identifying the key characteristics that need to be measured before corrective actions can be taken. Rocky is in the __________ stage of the corrective control model.

Benefits of using activity-based accounting include all of the following except ________.

Managing in a Dynamic Environment

The Evolution of Management

Environmental Forces

Managing Globally

Entrepreneurship

Ethics and Stakeholder Social Responsibility

Planning and Strategy

Fundamentals of Decision Making

Planning and Decision Aids

Organizational Design

Organizational Change and Learning

Managing Human Resources

Work Motivation

Dynamics of Leadership

Organizational Communication

Managing Work Teams

Organizational Culture and Cultural Diversity

Filters

In the cost-benefit model, the vertical axis indicates the relationship between costs and benefits of control, ranging from to .