Question 1

Companies who adopt a MACS generally agree with the human resources model of motivation.

Accepted Answer

A) True 
 B)False  True

Question 2

The evaluation phase of the process of control in MACS focuses on:

Accepted Answer

A) comparing the planned level to current performance to identify discrepancies and consider corrective measures. 
B) measuring the current level of performance. 
C) returning the system to an in control state. 
D) selecting measures to determine how well objectives are met. 
A) comparing the planned level to current performance to identify discrepancies and consider corrective measures. 
B) measuring the current level of performance. 
C) returning the system to an in control state. 
D) selecting measures to determine how well objectives are met. A

Question 3

Pressures on managers to act unethically include all of the following EXCEPT:

Accepted Answer

A) pressures to act in the long-run best interest of the shareholders. 
B) solicitations for confidential information. 
C) requests to falsify reports. 
D) requests to bias information in favor of certain stakeholders. 
A) pressures to act in the long-run best interest of the shareholders. 
B) solicitations for confidential information. 
C) requests to falsify reports. 
D) requests to bias information in favor of certain stakeholders. A

Question 4

The most common incentive compensation plans include all of the following EXCEPT:

Accepted Answer

A) extrinsic rewards. 
B) stock options. 
C) profit sharing. 
D) employee stock ownership plans. 
A) extrinsic rewards. 
B) stock options. 
C) profit sharing. 
D) employee stock ownership plans.

Question 5

Video surveillance is an example of results control.

Accepted Answer

A) True 
 B)False

Question 6

Profit sharing Knight Medical Devices makes devices and equipment that it sells to hospitals.The organization has a profit-sharing plan that is worded as follows:
The company will make available a profit-sharing pool that will be the lower of the following two items:
1.40% of income before taxes in excess of the target profit level,which is 18% of net assets,or
2.$14 million.
The individual employee is paid a share of the profit-sharing pool equal to the ratio of that employee's salary to the total salary paid to all employees.
Required
(a) If the company earned $90 million of earnings before taxes and had net assets of $200 million,what would be the amount available for distribution from the profit-sharing pool?
(b) Suppose that Bob Knight's salary was $136,000 and that total salaries paid in the company were $50 million.What would Bob's profit share be?

Accepted Answer

(a)Profit sharing pool
lower of [90,000,

Question 7

Profit sharing rewards short-term performance while stock options attempt to reward long-term performance.

Accepted Answer

A) True 
 B)False

Question 8

What is stretch budgeting? Why is it used?

Accepted Answer

A stretch budget is one that exceeds a p

Question 9

When management implements their own ideas without involving employees,goal congruence may not occur.

Accepted Answer

A) True 
 B)False

Question 10

A major role for management accounting and control systems is to motivate behavior consistent with the desires of the organization.

Accepted Answer

A) True 
 B)False

Question 11

All of the following are true regarding a control system for a MACS EXCEPT:

Accepted Answer

A) a control system includes developing organizational objectives and executing a plan for implementation. 
B) a control system includes monitoring the current level of performance and comparing it to the planned level of performance. 
C) the same performance measures apply to all organizations. 
D) the basic control process applies to all organizations. 
A) a control system includes developing organizational objectives and executing a plan for implementation. 
B) a control system includes monitoring the current level of performance and comparing it to the planned level of performance. 
C) the same performance measures apply to all organizations. 
D) the basic control process applies to all organizations.

Question 12

In compensation plans,a cash bonus:

Accepted Answer

A) is based on individual or group performance. 
B) does not affect long-term pay. 
C) is usually triggered when performance exceeds a target. 
D) All of the above are correct. 
A) is based on individual or group performance. 
B) does not affect long-term pay. 
C) is usually triggered when performance exceeds a target. 
D) All of the above are correct.

Question 13

Aero Company has implemented a gain sharing compensation plan for its production employees. The plan is a Scanlon plan and the base period payroll costs are $10,000. The value of production in the base period was $100,000.  The plan calls for labor savings to be added to, or excess labor costs to be deducted from, the bonus pool each quarter. The payroll costs and value of production in each quarter of the current year were:  
-The bonus pool at the end of the year totals:

Accepted Answer

A) ($4,000). 
B) -0-. 
C) $4,000. 
D) None of the above is correct. 
A) ($4,000). 
B) -0-. 
C) $4,000. 
D) None of the above is correct.

Question 14

When a subordinate is caught padding an expense report,the supervisor should FIRST:

Accepted Answer

A) ignore the incident if it is the first offense. 
B) report the incident to the personnel department. 
C) confront the employee and ask him to submit a corrected expense report. 
D) take action that complies with the organization's code of ethics. 
A) ignore the incident if it is the first offense. 
B) report the incident to the personnel department. 
C) confront the employee and ask him to submit a corrected expense report. 
D) take action that complies with the organization's code of ethics.

Question 15

An example of an intrinsic reward is recognizing employee accomplishment with a plaque.

Accepted Answer

A) True 
 B)False

Question 16

Monitoring is the process of measuring the system's current level of performance.

Accepted Answer

A) True 
 B)False

Question 17

Information is relevant in a MACS if:

Accepted Answer

A) it can be applied in a flexible manner. 
B) it is inaccurate. 
C) it is inconsistent. 
D) it is late. 
A) it can be applied in a flexible manner. 
B) it is inaccurate. 
C) it is inconsistent. 
D) it is late.

Question 18

A primary purpose of an organization's code of ethics is to encourage behavior that is consistent with the company's ethical and cultural norms.

Accepted Answer

A) True 
 B)False

Question 19

If the organization's code of ethics is more stringent than an individual's code of ethics,conflicts may arise.

Accepted Answer

A) True 
 B)False

Question 20

When a manager's and employee's goals are aligned with organizational goals,it is referred to as:

Accepted Answer

A) a diagnostic control system. 
B) the intensity factor. 
C) goal congruence. 
D) monitoring. 
A) a diagnostic control system. 
B) the intensity factor. 
C) goal congruence. 
D) monitoring.

Companies who adopt a MACS generally agree with the human resources model of motivation.

The evaluation phase of the process of control in MACS focuses on:

Pressures on managers to act unethically include all of the following EXCEPT:

The most common incentive compensation plans include all of the following EXCEPT:

Video surveillance is an example of results control.

Profit sharing rewards short-term performance while stock options attempt to reward long-term performance.

What is stretch budgeting? Why is it used?

When management implements their own ideas without involving employees,goal congruence may not occur.

A major role for management accounting and control systems is to motivate behavior consistent with the desires of the organization.

All of the following are true regarding a control system for a MACS EXCEPT:

In compensation plans,a cash bonus:

When a subordinate is caught padding an expense report,the supervisor should FIRST:

An example of an intrinsic reward is recognizing employee accomplishment with a plaque.

Monitoring is the process of measuring the system's current level of performance.

Information is relevant in a MACS if:

A primary purpose of an organization's code of ethics is to encourage behavior that is consistent with the company's ethical and cultural norms.

If the organization's code of ethics is more stringent than an individual's code of ethics,conflicts may arise.

When a manager's and employee's goals are aligned with organizational goals,it is referred to as:

How Management Accounting Information Supports Decision Making

The Balanced Scorecard and Strategy Map

Using Costs in Decision Making

Accumulating and Assigning Costs to Products

Activity-Based Cost Systems

Measuring and Managing Customer Relationships

Measuring and Managing Process Performance

Measuring and Managing Life-Cycle Costs

Using Budgets for Planning and Coordination

Financial Control

Filters

Exam 9: Behavioral and Organizational Issues in Management Accounting and Control Systems

Companies who adopt a MACS generally agree with the human resources model of motivation.

The evaluation phase of the process of control in MACS focuses on:

Pressures on managers to act unethically include all of the following EXCEPT:

The most common incentive compensation plans include all of the following EXCEPT:

Video surveillance is an example of results control.

Profit sharing rewards short-term performance while stock options attempt to reward long-term performance.

What is stretch budgeting? Why is it used?

When management implements their own ideas without involving employees,goal congruence may not occur.

A major role for management accounting and control systems is to motivate behavior consistent with the desires of the organization.

All of the following are true regarding a control system for a MACS EXCEPT:

In compensation plans,a cash bonus:

When a subordinate is caught padding an expense report,the supervisor should FIRST:

An example of an intrinsic reward is recognizing employee accomplishment with a plaque.

Monitoring is the process of measuring the system's current level of performance.

Information is relevant in a MACS if:

A primary purpose of an organization's code of ethics is to encourage behavior that is consistent with the company's ethical and cultural norms.

If the organization's code of ethics is more stringent than an individual's code of ethics,conflicts may arise.

When a manager's and employee's goals are aligned with organizational goals,it is referred to as:

How Management Accounting Information Supports Decision Making

The Balanced Scorecard and Strategy Map

Using Costs in Decision Making

Accumulating and Assigning Costs to Products

Activity-Based Cost Systems

Measuring and Managing Customer Relationships

Measuring and Managing Process Performance

Measuring and Managing Life-Cycle Costs

Using Budgets for Planning and Coordination

Financial Control

Filters