Question 1

Describe some of the drawbacks of using the operating budget as a control device.

Accepted Answer

When the operating budget is used as a c

Question 2

________ mean(s)that the organization will attempt to reach much higher goals with the current budget.

Accepted Answer

A) Authoritative budgeting 
B) Stretch targets 
C) Consultative budgeting 
D) Budget slack 
A) Authoritative budgeting 
B) Stretch targets 
C) Consultative budgeting 
D) Budget slack

Question 3

Goal congruence in an organization refers to:

Accepted Answer

A) ensuring that appropriate disciplinary actions can be taken against unethical acts. 
B) alignment of employee and organizational objectives. 
C) so that essential tasks get accomplished. 
D) ensuring that the organization's ethical code of conduct is enforced. 
A) ensuring that appropriate disciplinary actions can be taken against unethical acts. 
B) alignment of employee and organizational objectives. 
C) so that essential tasks get accomplished. 
D) ensuring that the organization's ethical code of conduct is enforced.

Question 4

A well-designed management accounting and control system should focus strictly on long-term quantitative performance measures.

Accepted Answer

A) True 
 B)False

Question 5

When the operating budget is used as a control device,managers are more likely to be motivated to budget higher sales than actually anticipated.

Accepted Answer

A) True 
 B)False

Question 6

Outcome-based incentive compensation systems can only be used to motivate appropriate decision-making behavior when employees are empowered to understand the compensation system.

Accepted Answer

A) True 
 B)False

Question 7

The two most common types of control are task control and results control.Define and then explain when each is appropriate to use.

Accepted Answer

Task control is the process of developin

Question 8

Feedback systems that monitor organizational outcomes and correct any deviations from predetermined performance standards are 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.

Question 9

The dimensions of motivation that are important in designing jobs and specific task include all of the following EXCEPT:

Accepted Answer

A) persistence. 
B) control. 
C) direction. 
D) intensity. 
A) persistence. 
B) control. 
C) direction. 
D) intensity.

Question 10

For some employees,pay may not be a motivator.

Accepted Answer

A) True 
 B)False

Question 11

The human resources model of motivation is strongly influenced by Japanese management practices.

Accepted Answer

A) True 
 B)False

Question 12

Ethics is a discipline that focuses on the investigation of standards of conduct and moral judgment.

Accepted Answer

A) True 
 B)False

Question 13

Feedback systems that force a dialogue among all organizational participants about the data that are coming out of the system and what to do about the data are called:

Accepted Answer

A) diagnostic control systems. 
B) monitoring. 
C) preventative controls. 
D) interactive control systems. 
A) diagnostic control systems. 
B) monitoring. 
C) preventative controls. 
D) interactive control systems.

Question 14

A system is in control if it is on the path to achieving its strategic objectives.

Accepted Answer

A) True 
 B)False

Question 15

Individuals are motivated by both financial and nonfinancial means of compensation.

Accepted Answer

A) True 
 B)False

Question 16

The type of control that focuses on measuring and comparing employee performance against stated objectives is called:

Accepted Answer

A) task control. 
B) monitoring. 
C) results control. 
D) preventative control. 
A) task control. 
B) monitoring. 
C) results control. 
D) preventative control.

Question 17

When implementing a new management accounting and control system,it is BEST:

Accepted Answer

A) to allow management to implement their ideas. 
B) for management to involve employees in the implementation. 
C) to involve consultants and implement their experienced ideas. 
D) to engage in benchmarking. 
A) to allow management to implement their ideas. 
B) for management to involve employees in the implementation. 
C) to involve consultants and implement their experienced ideas. 
D) to engage in benchmarking.

Question 18

The five stages in the process of keeping an organization in control are:

Accepted Answer

A) planning, implementing, measuring, evaluating and correcting. 
B) planning, executing, monitoring, evaluating and correcting. 
C) budgeting, implementing, monitoring, evaluation and feedback. 
D) budgeting,executing,measuring,feedback and evaluation. 
A) planning, implementing, measuring, evaluating and correcting. 
B) planning, executing, monitoring, evaluating and correcting. 
C) budgeting, implementing, monitoring, evaluation and feedback. 
D) budgeting,executing,measuring,feedback and evaluation.

Question 19

The performance measurement system for employees' compensation should focus on all facets of performance to:

Accepted Answer

A) ensure that reporting is complete. 
B) encourage gaming of the performance indicator. 
C) provide the highest possible level of internal control. 
D) ensure that employees do not sacrifice performance on unmeasured elements. 
A) ensure that reporting is complete. 
B) encourage gaming of the performance indicator. 
C) provide the highest possible level of internal control. 
D) ensure that employees do not sacrifice performance on unmeasured elements.

Question 20

Group performance should be rewarded with compensation:

Accepted Answer

A) when an individual's work must be coordinated with others. 
B) when employees must coordinate their decision making and other activities with other employees. 
C) in addition to individual performance when working in teams. 
D) never. 
A) when an individual's work must be coordinated with others. 
B) when employees must coordinate their decision making and other activities with other employees. 
C) in addition to individual performance when working in teams. 
D) never.

Describe some of the drawbacks of using the operating budget as a control device.

________ mean(s)that the organization will attempt to reach much higher goals with the current budget.

Goal congruence in an organization refers to:

A well-designed management accounting and control system should focus strictly on long-term quantitative performance measures.

When the operating budget is used as a control device,managers are more likely to be motivated to budget higher sales than actually anticipated.

Outcome-based incentive compensation systems can only be used to motivate appropriate decision-making behavior when employees are empowered to understand the compensation system.

The two most common types of control are task control and results control.Define and then explain when each is appropriate to use.

Feedback systems that monitor organizational outcomes and correct any deviations from predetermined performance standards are referred to as:

The dimensions of motivation that are important in designing jobs and specific task include all of the following EXCEPT:

For some employees,pay may not be a motivator.

The human resources model of motivation is strongly influenced by Japanese management practices.

Ethics is a discipline that focuses on the investigation of standards of conduct and moral judgment.

Feedback systems that force a dialogue among all organizational participants about the data that are coming out of the system and what to do about the data are called:

A system is in control if it is on the path to achieving its strategic objectives.

Individuals are motivated by both financial and nonfinancial means of compensation.

The type of control that focuses on measuring and comparing employee performance against stated objectives is called:

When implementing a new management accounting and control system,it is BEST:

The five stages in the process of keeping an organization in control are:

The performance measurement system for employees' compensation should focus on all facets of performance to:

Group performance should be rewarded with compensation:

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

Describe some of the drawbacks of using the operating budget as a control device.

________ mean(s)that the organization will attempt to reach much higher goals with the current budget.

Goal congruence in an organization refers to:

A well-designed management accounting and control system should focus strictly on long-term quantitative performance measures.

When the operating budget is used as a control device,managers are more likely to be motivated to budget higher sales than actually anticipated.

Outcome-based incentive compensation systems can only be used to motivate appropriate decision-making behavior when employees are empowered to understand the compensation system.

The two most common types of control are task control and results control.Define and then explain when each is appropriate to use.

Feedback systems that monitor organizational outcomes and correct any deviations from predetermined performance standards are referred to as:

The dimensions of motivation that are important in designing jobs and specific task include all of the following EXCEPT:

For some employees,pay may not be a motivator.

The human resources model of motivation is strongly influenced by Japanese management practices.

Ethics is a discipline that focuses on the investigation of standards of conduct and moral judgment.

Feedback systems that force a dialogue among all organizational participants about the data that are coming out of the system and what to do about the data are called:

A system is in control if it is on the path to achieving its strategic objectives.

Individuals are motivated by both financial and nonfinancial means of compensation.

The type of control that focuses on measuring and comparing employee performance against stated objectives is called:

When implementing a new management accounting and control system,it is BEST:

The five stages in the process of keeping an organization in control are:

The performance measurement system for employees' compensation should focus on all facets of performance to:

Group performance should be rewarded with compensation:

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