Question 1

Which of the following is NOT descriptive of responsibility centers?

Accepted Answer

A) They are used to isolate a unit so that it can be evaluated separately from the rest of the corporation. 
B) Each responsibility center has its own budget and is evaluated on its use of budgeted resources. 
C) The responsibility center coordinates all the functional areas and project developments to implement the strategic decision plan. 
D) The center uses resources to produce a service or a product. 
E) A responsibility center is headed by the manager responsible for the center's performance. 
A) They are used to isolate a unit so that it can be evaluated separately from the rest of the corporation. 
B) Each responsibility center has its own budget and is evaluated on its use of budgeted resources. 
C) The responsibility center coordinates all the functional areas and project developments to implement the strategic decision plan. 
D) The center uses resources to produce a service or a product. 
E) A responsibility center is headed by the manager responsible for the center's performance.

Question 2

The present value of the anticipated future stream of cash flows from the business plus the value of the company if liquidated is referred to as

Accepted Answer

A) return on assets. 
B) ROVA. 
C) shareholder value. 
D) earnings per share. 
E) ROI. 
A) return on assets. 
B) ROVA. 
C) shareholder value. 
D) earnings per share. 
E) ROI.

Question 3

Unlike ROI, managers cannot manipulate the numbers of EVA.

Accepted Answer

A) True 
 B)False

Question 4

International transfer pricing is primarily used to evaluate performance.

Accepted Answer

A) True 
 B)False

Question 5

A study of 79 MNC's revealed that international transfer pricing from one county unit to another is primarily used to

Accepted Answer

A) evaluate performance. 
B) minimize taxes. 
C) increase profits. 
D) improve communication. 
E) all of the above 
A) evaluate performance. 
B) minimize taxes. 
C) increase profits. 
D) improve communication. 
E) all of the above

Question 6

Discuss the benchmarking process.

Accepted Answer

Benchmarking is "the continual process o

Question 7

ACB is an accounting method for allocating direct and fixed costs to individual products.

Accepted Answer

A) True 
 B)False

Question 8

Behavior, output, and input controls are all interchangeable.

Accepted Answer

A) True 
 B)False

Question 9

Which company experienced a tarnished reputation and scandal after experiencing behavior substitution when employees altered their behavior on the job to fit the reward system?

Accepted Answer

A) Sears, Roebuck, & Co. 
B) J)C. Penney 
C) Neiman Marcus 
D) Saks 
E) Macy's 
A) Sears, Roebuck, & Co. 
B) J)C. Penney 
C) Neiman Marcus 
D) Saks 
E) Macy's

Question 10

A survey of 600 business units found that compensation programs emphasizing bonuses and other incentives were most used in those units emphasizing

Accepted Answer

A) stability strategies. 
B) retrenchment strategies. 
C) cooperative strategies. 
D) international strategies. 
E) growth strategies. 
A) stability strategies. 
B) retrenchment strategies. 
C) cooperative strategies. 
D) international strategies. 
E) growth strategies.

Question 11

When GE offered its CEO 250,000 performance share units tied to performance targets achieved over five years, it was using which method of matching rewards to the accomplishment of strategic objectives?

Accepted Answer

A) strategic-funds method 
B) segmentation method 
C) long-term evaluation method 
D) individual evaluation method 
E) weighted-factor method 
A) strategic-funds method 
B) segmentation method 
C) long-term evaluation method 
D) individual evaluation method 
E) weighted-factor method

Question 12

The evaluation and control process ensures that the company is achieving what it set out to accomplish.

Accepted Answer

A) True 
 B)False

Question 13

The over-billing of customers in Sears's auto repair shops was an example of suboptimization.

Accepted Answer

A) True 
 B)False

Question 14

RFID

Accepted Answer

A) is radio frequency identification. 
B) is an electronic tagging technology. 
C) reduces losses from counterfeiting. 
D) is used as wireless computer passes for toll roads. 
E) all of the above 
A) is radio frequency identification. 
B) is an electronic tagging technology. 
C) reduces losses from counterfeiting. 
D) is used as wireless computer passes for toll roads. 
E) all of the above

Question 15

The inventory turnover ratio is an example of a(n)

Accepted Answer

A) steering control. 
B) activity control. 
C) behavior control. 
D) output control. 
E) influencing control. 
A) steering control. 
B) activity control. 
C) behavior control. 
D) output control. 
E) influencing control.

Question 16

One of the obstacles to effective control is the difficulty in developing appropriate measures of important activities and outputs.

Accepted Answer

A) True 
 B)False

Question 17

Performance is the end result of activity.

Accepted Answer

A) True 
 B)False

Question 18

The comparison of the expected cost of production against the actual cost of production typically occurs in the

Accepted Answer

A) investment center. 
B) revenue center. 
C) standard cost center. 
D) profit center. 
E) expense center. 
A) investment center. 
B) revenue center. 
C) standard cost center. 
D) profit center. 
E) expense center.

Question 19

What responsibility centers are judged for effectiveness rather than efficiency?

Accepted Answer

A) investment center 
B) revenue center 
C) standard cost center 
D) profit center 
E) expense center 
A) investment center 
B) revenue center 
C) standard cost center 
D) profit center 
E) expense center

Question 20

Management audits have been developed to evaluate activities such as corporate social responsibility, functional areas such as the marketing department, and divisions such as the international division.

Accepted Answer

A) True 
 B)False

Which of the following is NOT descriptive of responsibility centers?

The present value of the anticipated future stream of cash flows from the business plus the value of the company if liquidated is referred to as

Unlike ROI, managers cannot manipulate the numbers of EVA.

International transfer pricing is primarily used to evaluate performance.

A study of 79 MNC's revealed that international transfer pricing from one county unit to another is primarily used to

Discuss the benchmarking process.

ACB is an accounting method for allocating direct and fixed costs to individual products.

Behavior, output, and input controls are all interchangeable.

Which company experienced a tarnished reputation and scandal after experiencing behavior substitution when employees altered their behavior on the job to fit the reward system?

A survey of 600 business units found that compensation programs emphasizing bonuses and other incentives were most used in those units emphasizing

When GE offered its CEO 250,000 performance share units tied to performance targets achieved over five years, it was using which method of matching rewards to the accomplishment of strategic objectives?

The evaluation and control process ensures that the company is achieving what it set out to accomplish.

The over-billing of customers in Sears's auto repair shops was an example of suboptimization.

RFID

The inventory turnover ratio is an example of a(n)

One of the obstacles to effective control is the difficulty in developing appropriate measures of important activities and outputs.

Performance is the end result of activity.

The comparison of the expected cost of production against the actual cost of production typically occurs in the

What responsibility centers are judged for effectiveness rather than efficiency?

Management audits have been developed to evaluate activities such as corporate social responsibility, functional areas such as the marketing department, and divisions such as the international division.

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Suggestions for Case Analysis

Filters

Exam 11: Evaluation and Control

Which of the following is NOT descriptive of responsibility centers?

The present value of the anticipated future stream of cash flows from the business plus the value of the company if liquidated is referred to as

Unlike ROI, managers cannot manipulate the numbers of EVA.

International transfer pricing is primarily used to evaluate performance.

A study of 79 MNC's revealed that international transfer pricing from one county unit to another is primarily used to

Discuss the benchmarking process.

ACB is an accounting method for allocating direct and fixed costs to individual products.

Behavior, output, and input controls are all interchangeable.

Which company experienced a tarnished reputation and scandal after experiencing behavior substitution when employees altered their behavior on the job to fit the reward system?

A survey of 600 business units found that compensation programs emphasizing bonuses and other incentives were most used in those units emphasizing

When GE offered its CEO 250,000 performance share units tied to performance targets achieved over five years, it was using which method of matching rewards to the accomplishment of strategic objectives?

The evaluation and control process ensures that the company is achieving what it set out to accomplish.

The over-billing of customers in Sears's auto repair shops was an example of suboptimization.

RFID

The inventory turnover ratio is an example of a(n)

One of the obstacles to effective control is the difficulty in developing appropriate measures of important activities and outputs.

Performance is the end result of activity.

The comparison of the expected cost of production against the actual cost of production typically occurs in the

What responsibility centers are judged for effectiveness rather than efficiency?

Management audits have been developed to evaluate activities such as corporate social responsibility, functional areas such as the marketing department, and divisions such as the international division.

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Suggestions for Case Analysis

Filters