Question 1

All of the following may be implemented to help ensure that an organization attains goal congruence EXCEPT:

Accepted Answer

A) performance measures for employees aligned with organizational objectives. 
B) employee participation in decision making. 
C) employee self-control. 
D) a reward system for employees aligned with strategic goals. 
A) performance measures for employees aligned with organizational objectives. 
B) employee participation in decision making. 
C) employee self-control. 
D) a reward system for employees aligned with strategic goals.

Question 2

Input-based compensation:

Accepted Answer

A) is considered superior to output-based compensation. 
B) requires employees' understanding of company objectives. 
C) bases compensation on employees' training and job qualifications. 
D) is generally affected by factors beyond employees' control. 
A) is considered superior to output-based compensation. 
B) requires employees' understanding of company objectives. 
C) bases compensation on employees' training and job qualifications. 
D) is generally affected by factors beyond employees' control.

Question 3

All of the following are criticisms of stock options used in compensation plans EXCEPT:

Accepted Answer

A) organizations have been too generous in rewarding stock options. 
B) stock options rely on internal measures. 
C) stock option's value may reflect many factors beyond the employee's control. 
D) the option's price is often too close to the market price at issuance. 
A) organizations have been too generous in rewarding stock options. 
B) stock options rely on internal measures. 
C) stock option's value may reflect many factors beyond the employee's control. 
D) the option's price is often too close to the market price at issuance.

Question 4

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 base ratio is:

Accepted Answer

A) 0.09. 
B) 0.10. 
C) 0.105. 
D) None of the above is correct. 
A) 0.09. 
B) 0.10. 
C) 0.105. 
D) None of the above is correct.

Question 5

What assumptions does the human resource model of motivation make about employees? Why is it important for management to understand these assumptions?

Accepted Answer

Assumptions of the human resource model

Question 6

________ occur(s)when subordinates ask for excess resources above and beyond what they need to accomplish budget objectives.

Accepted Answer

A) Pseudo participation 
B) Effective budgeting 
C) Budget slack 
D) Participative budgeting 
A) Pseudo participation 
B) Effective budgeting 
C) Budget slack 
D) Participative budgeting

Question 7

Consequences resulting from violating an organization's code of ethics should intentionally be vague to allow for maximum flexibility.

Accepted Answer

A) True 
 B)False

Question 8

The four key behavioral considerations in management accounting and control system design include all of the following EXCEPT:

Accepted Answer

A) integrating the organization's pay scale. 
B) using a mix of short- and long-term qualitative and quantitative performance measures. 
C) empowering employees to be involved in decision making and MACS design. 
D) developing an appropriate incentive system to reward performance. 
A) integrating the organization's pay scale. 
B) using a mix of short- and long-term qualitative and quantitative performance measures. 
C) empowering employees to be involved in decision making and MACS design. 
D) developing an appropriate incentive system to reward performance.

Question 9

Scanlon plan Knox Company manufactures consumer products such as cleansers,air fresheners,and detergents.During a recent quarter,the value of the products made was $100 million,and the labor costs were $6 million.The company has decided to use a Scanlon plan with this quarter being used to establish the base ratio for the plan.The formula is to be applied quarterly with differences,positive or negative,added to the bonus pool.The pool is to be distributed on a 35%/65% basis between the employees and the company at the end of the fourth quarter.The following production and cost levels were recorded during the first year of the plan's operation:

Accepted Answer

The Scanlon plan bas

Question 10

Consistency is an important technical consideration for a MACS because:

Accepted Answer

A) the system includes the organization's ethical code of conduct. 
B) the system provides feedback 
C) the system needs to be applied globally across all the segments of the organization 
D) the system's applications need to be capable of being customized for local decisions. 
A) the system includes the organization's ethical code of conduct. 
B) the system provides feedback 
C) the system needs to be applied globally across all the segments of the organization 
D) the system's applications need to be capable of being customized for local decisions.

Question 11

In a management accounting and control system design,behavioral expectations are BEST incorporated by:

Accepted Answer

A) using a mix of short-term and quantitative performance measures. 
B) developing a task-related control system. 
C) including the organization's code of conduct. 
D) monitoring behavior with time and motion studies. 
A) using a mix of short-term and quantitative performance measures. 
B) developing a task-related control system. 
C) including the organization's code of conduct. 
D) monitoring behavior with time and motion studies.

Question 12

Budgeting slack is most likely to occur when a firm uses the budget only as a planning device and not for control.

Accepted Answer

A) True 
 B)False

Question 13

Intrinsic rewards are any rewards that one person provides to another to recognize a job well done.

Accepted Answer

A) True 
 B)False

Question 14

Surveys regarding compensation plans in practice suggest that:

Accepted Answer

A) incentive compensation systems are generally extremely efficient. 
B) people believe that incentive compensation plans in the U.S. are increasingly unfair. 
C) increased top management incentives generally correlate with greater shareholder wealth. 
D) senior executives are paid mediocre salaries for superior performance. 
A) incentive compensation systems are generally extremely efficient. 
B) people believe that incentive compensation plans in the U.S. are increasingly unfair. 
C) increased top management incentives generally correlate with greater shareholder wealth. 
D) senior executives are paid mediocre salaries for superior performance.

Question 15

Which of the following is an essential element of employee empowerment?

Accepted Answer

A) allowing employees to participate in decision making 
B) ensuring employees understand the information they are generating 
C) ensuring employees understand the information they are using 
D) All of the above. 
A) allowing employees to participate in decision making 
B) ensuring employees understand the information they are generating 
C) ensuring employees understand the information they are using 
D) All of the above.

Question 16

Incentive compensation is MOST suited to:

Accepted Answer

A) all centralized organizations. 
B) centralized organizations where the employees are skilled and empowered. 
C) all decentralized organizations. 
D) decentralized organizations where the employees are skilled and empowered to react to conditions and make decisions. 
A) all centralized organizations. 
B) centralized organizations where the employees are skilled and empowered. 
C) all decentralized organizations. 
D) decentralized organizations where the employees are skilled and empowered to react to conditions and make decisions.

Question 17

Stock-related incentive compensation plans include all of the following EXCEPT:

Accepted Answer

A) stock options. 
B) stock appreciation rights. 
C) participation units. 
D) merit pay. 
A) stock options. 
B) stock appreciation rights. 
C) participation units. 
D) merit pay.

Question 18

The text reported survey results that linked cheating during a game of golf to unethical conduct on the job.

Accepted Answer

A) True 
 B)False

Question 19

________ refers to the amount of time that an employee will stay with a job or specific task.

Accepted Answer

A) Persistence 
B) Intensity 
C) Duration 
D) Motivation 
A) Persistence 
B) Intensity 
C) Duration 
D) Motivation

Question 20

Intrinsic rewards for compensation:

Accepted Answer

A) are generally overused. 
B) are most effective when they are financial rewards. 
C) may have motivational effects greater than extrinsic rewards. 
D) require extensive use of management accounting information. 
A) are generally overused. 
B) are most effective when they are financial rewards. 
C) may have motivational effects greater than extrinsic rewards. 
D) require extensive use of management accounting information.

All of the following may be implemented to help ensure that an organization attains goal congruence EXCEPT:

Input-based compensation:

All of the following are criticisms of stock options used in compensation plans EXCEPT:

What assumptions does the human resource model of motivation make about employees? Why is it important for management to understand these assumptions?

________ occur(s)when subordinates ask for excess resources above and beyond what they need to accomplish budget objectives.

Consequences resulting from violating an organization's code of ethics should intentionally be vague to allow for maximum flexibility.

The four key behavioral considerations in management accounting and control system design include all of the following EXCEPT:

Consistency is an important technical consideration for a MACS because:

In a management accounting and control system design,behavioral expectations are BEST incorporated by:

Budgeting slack is most likely to occur when a firm uses the budget only as a planning device and not for control.

Intrinsic rewards are any rewards that one person provides to another to recognize a job well done.

Surveys regarding compensation plans in practice suggest that:

Which of the following is an essential element of employee empowerment?

Incentive compensation is MOST suited to:

Stock-related incentive compensation plans include all of the following EXCEPT:

The text reported survey results that linked cheating during a game of golf to unethical conduct on the job.

________ refers to the amount of time that an employee will stay with a job or specific task.

Intrinsic rewards for 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

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

All of the following may be implemented to help ensure that an organization attains goal congruence EXCEPT:

Input-based compensation:

All of the following are criticisms of stock options used in compensation plans EXCEPT:

What assumptions does the human resource model of motivation make about employees? Why is it important for management to understand these assumptions?

________ occur(s)when subordinates ask for excess resources above and beyond what they need to accomplish budget objectives.

Consequences resulting from violating an organization's code of ethics should intentionally be vague to allow for maximum flexibility.

The four key behavioral considerations in management accounting and control system design include all of the following EXCEPT:

Consistency is an important technical consideration for a MACS because:

In a management accounting and control system design,behavioral expectations are BEST incorporated by:

Budgeting slack is most likely to occur when a firm uses the budget only as a planning device and not for control.

Intrinsic rewards are any rewards that one person provides to another to recognize a job well done.

Surveys regarding compensation plans in practice suggest that:

Which of the following is an essential element of employee empowerment?

Incentive compensation is MOST suited to:

Stock-related incentive compensation plans include all of the following EXCEPT:

The text reported survey results that linked cheating during a game of golf to unethical conduct on the job.

________ refers to the amount of time that an employee will stay with a job or specific task.

Intrinsic rewards for 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