Question 1

How does the human resource model of motivation differ from the scientific management school?

Accepted Answer

The scientific management school is base

Question 2

Gain sharing is a system for distributing cash bonuses from a pool when the total amount available is a function of performance relative to some target.

Accepted Answer

A) True 
 B)False

Question 3

The key group of users for an organization's ethical code of conduct is:

Accepted Answer

A) the board of directors. 
B) shareholders. 
C) managers. 
D) All of the above are governed by the code. 
A) the board of directors. 
B) shareholders. 
C) managers. 
D) All of the above are governed by the code.

Question 4

Authoritative budgeting occurs when a superior simply tells subordinates what their budget will be.

Accepted Answer

A) True 
 B)False

Question 5

________ involve(s)a joint decision-making process in which all parties agree about setting the budget targets.

Accepted Answer

A) The pseudo-participation 
B) Budgeting games 
C) Budget slack 
D) The participation method 
A) The pseudo-participation 
B) Budgeting games 
C) Budget slack 
D) The participation method

Question 6

The underlying philosophy of the scientific management school developed at the turn of the century was:

Accepted Answer

A) to foster a work environment that encouraged creativity. 
B) to use multiple performance measures. 
C) that people find work objectionable and money is a primary motivator. 
D) that employees want to feel they contributed value to their organization. 
A) to foster a work environment that encouraged creativity. 
B) to use multiple performance measures. 
C) that people find work objectionable and money is a primary motivator. 
D) that employees want to feel they contributed value to their organization.

Question 7

Extrinsic rewards for compensation:

Accepted Answer

A) are always motivating. 
B) are from another person and reinforce distinguished behavior. 
C) result from a feeling of job satisfaction. 
D) are always financial. 
A) are always motivating. 
B) are from another person and reinforce distinguished behavior. 
C) result from a feeling of job satisfaction. 
D) are always financial.

Question 8

Empowering employees in management accounting and control system design requires all of the following EXCEPT:

Accepted Answer

A) allowing employees to participate in decision making. 
B) having highly-motivated employees in every position. 
C) ensuring that employees understand the information they are using and generating. 
D) enabling employees' comprehension of performance measure computations. 
A) allowing employees to participate in decision making. 
B) having highly-motivated employees in every position. 
C) ensuring that employees understand the information they are using and generating. 
D) enabling employees' comprehension of performance measure computations.

Question 9

Codes of ethics developed by professional organizations reflect broad moral principles such as:

Accepted Answer

A) loyalty. 
B) discretion. 
C) competence. 
D) All of the above are correct. 
A) loyalty. 
B) discretion. 
C) competence. 
D) All of the above are correct.

Question 10

The impetus for developing ways to improve employees' morale and job satisfaction was:

Accepted Answer

A) the scientific management school. 
B) the balanced scorecard. 
C) results control system. 
D) the human relations movement. 
A) the scientific management school. 
B) the balanced scorecard. 
C) results control system. 
D) the human relations movement.

Question 11

Which BEST describes the control function in a management accounting and control system?

Accepted Answer

A) MACS seeks out areas that are out-of-control but not for corrective action. 
B) MACS achieves cost reduction targets that are continually adjusted downward. 
C) MACS guides and motivates employees to achieve organizational objectives. 
D) MACS ensures performance standard goals are being met. 
A) MACS seeks out areas that are out-of-control but not for corrective action. 
B) MACS achieves cost reduction targets that are continually adjusted downward. 
C) MACS guides and motivates employees to achieve organizational objectives. 
D) MACS ensures performance standard goals are being met.

Question 12

A control system in which organizational participants focus on data coming out of the system and ways to deal with it is known as a(n):

Accepted Answer

A) employee self-control system. 
B) diagnostic control system. 
C) task and results control system. 
D) interactive control system. 
A) employee self-control system. 
B) diagnostic control system. 
C) task and results control system. 
D) interactive control system.

Question 13

________ is a form of earnings management in which expense recognition may be deferred to a future period with the goal of increasing net income in the current period.

Accepted Answer

A) Gain sharing 
B) Smoothing 
C) Data falsification 
D) Gaming 
A) Gain sharing 
B) Smoothing 
C) Data falsification 
D) Gaming

Question 14

Management accounting must gather relevant and reliable performance information to administer intrinsic rewards.

Accepted Answer

A) True 
 B)False

Question 15

All of the following are examples of extrinsic rewards for compensation EXCEPT:

Accepted Answer

A) job satisfaction. 
B) stock options. 
C) a cash bonus. 
D) recognition in the company newsletter. 
A) job satisfaction. 
B) stock options. 
C) a cash bonus. 
D) recognition in the company newsletter.

Question 16

A recent survey conducted by the American Management Association showed that the monitoring of company employees is decreasing due to privacy issues.

Accepted Answer

A) True 
 B)False

Question 17

The relevance of information in a MACS includes providing all of the following EXCEPT:

Accepted Answer

A) the most accurate information possible. 
B) a global framework that can be applied uniquely to each division or unit. 
C) feedback on performance measures in a timely fashion. 
D) different costing methods for each division. 
A) the most accurate information possible. 
B) a global framework that can be applied uniquely to each division or unit. 
C) feedback on performance measures in a timely fashion. 
D) different costing methods for each division.

Question 18

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 labor savings for Quarter 1 are:

Accepted Answer

A) ($2,000). 
B) ($1,000). 
C) $1,000. 
D) $2,000. 
A) ($2,000). 
B) ($1,000). 
C) $1,000. 
D) $2,000.

Question 19

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

Accepted Answer

A) research and development, design, manufacturing, marketing, and service. 
B) comparing the planned level to current performance to identify discrepancies. 
C) measuring the current level of performance. 
D) selecting measures to determine how well objectives are met. 
A) research and development, design, manufacturing, marketing, and service. 
B) comparing the planned level to current performance to identify discrepancies. 
C) measuring the current level of performance. 
D) selecting measures to determine how well objectives are met.

Question 20

Hierarchical organizations with many layers of management are referred to as flat organizations.

Accepted Answer

A) True 
 B)False

How does the human resource model of motivation differ from the scientific management school?

Gain sharing is a system for distributing cash bonuses from a pool when the total amount available is a function of performance relative to some target.

The key group of users for an organization's ethical code of conduct is:

Authoritative budgeting occurs when a superior simply tells subordinates what their budget will be.

________ involve(s)a joint decision-making process in which all parties agree about setting the budget targets.

The underlying philosophy of the scientific management school developed at the turn of the century was:

Extrinsic rewards for compensation:

Empowering employees in management accounting and control system design requires all of the following EXCEPT:

Codes of ethics developed by professional organizations reflect broad moral principles such as:

The impetus for developing ways to improve employees' morale and job satisfaction was:

Which BEST describes the control function in a management accounting and control system?

A control system in which organizational participants focus on data coming out of the system and ways to deal with it is known as a(n):

________ is a form of earnings management in which expense recognition may be deferred to a future period with the goal of increasing net income in the current period.

Management accounting must gather relevant and reliable performance information to administer intrinsic rewards.

All of the following are examples of extrinsic rewards for compensation EXCEPT:

A recent survey conducted by the American Management Association showed that the monitoring of company employees is decreasing due to privacy issues.

The relevance of information in a MACS includes providing all of the following EXCEPT:

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

Hierarchical organizations with many layers of management are referred to as flat organizations.

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

How does the human resource model of motivation differ from the scientific management school?

Gain sharing is a system for distributing cash bonuses from a pool when the total amount available is a function of performance relative to some target.

The key group of users for an organization's ethical code of conduct is:

Authoritative budgeting occurs when a superior simply tells subordinates what their budget will be.

________ involve(s)a joint decision-making process in which all parties agree about setting the budget targets.

The underlying philosophy of the scientific management school developed at the turn of the century was:

Extrinsic rewards for compensation:

Empowering employees in management accounting and control system design requires all of the following EXCEPT:

Codes of ethics developed by professional organizations reflect broad moral principles such as:

The impetus for developing ways to improve employees' morale and job satisfaction was:

Which BEST describes the control function in a management accounting and control system?

A control system in which organizational participants focus on data coming out of the system and ways to deal with it is known as a(n):

________ is a form of earnings management in which expense recognition may be deferred to a future period with the goal of increasing net income in the current period.

Management accounting must gather relevant and reliable performance information to administer intrinsic rewards.

All of the following are examples of extrinsic rewards for compensation EXCEPT:

A recent survey conducted by the American Management Association showed that the monitoring of company employees is decreasing due to privacy issues.

The relevance of information in a MACS includes providing all of the following EXCEPT:

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

Hierarchical organizations with many layers of management are referred to as flat organizations.

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