Question 1

A logical integration of management accounting tools to gather and report data and to evaluate performance.

Accepted Answer

Management control system

Question 2

Total quality management

Accepted Answer

A)  is the application of quality principles in the quality control department. 
B)  involves keeping the responsibility for quality control with the management. 
C)  has significant implications for organization goals, structure and management control systems. 
D)  is used by all U.S. companies. 
A)  is the application of quality principles in the quality control department. 
B)  involves keeping the responsibility for quality control with the management. 
C)  has significant implications for organization goals, structure and management control systems. 
D)  is used by all U.S. companies. C

Question 3

A responsibility centre whose success is measured NOT only by its income, but also by relating that income to its invested capital is called a(n)

Accepted Answer

A)  profit centre. 
B)  cost centre. 
C)  investment centre. 
D)  accounting centre. 
A)  profit centre. 
B)  cost centre. 
C)  investment centre. 
D)  accounting centre. C

Question 4

Good performance measures will do all of the following EXCEPT

Accepted Answer

A)  be subjective. 
B)  relate to the goals of the organization. 
C)  balance long-term and short-term concerns. 
D)  reflect the management of key activities. 
A)  be subjective. 
B)  relate to the goals of the organization. 
C)  balance long-term and short-term concerns. 
D)  reflect the management of key activities.

Question 5

Which of the following would NOT be a step in the design of a successful management control system?

Accepted Answer

A)  Specify organizational goals, subgoals and objectives. 
B)  Identify responsibility centres. 
C)  Measure and report financial performance but not nonfinancial performance. 
D)  Develop measures of performance for motivation and goal congruence. 
A)  Specify organizational goals, subgoals and objectives. 
B)  Identify responsibility centres. 
C)  Measure and report financial performance but not nonfinancial performance. 
D)  Develop measures of performance for motivation and goal congruence.

Question 6

A set of activities assigned to a manager or a group of managers or other employees.

Accepted Answer

Responsibi

Question 7

A management control system must evolve with changing times, or the organization risks not being able to manage its resources effectively or efficiently.

Accepted Answer

A) True 
 B)False

Question 8

Any cost that cannot be affected by the management of a responsibility centre within a given time span is a(n)

Accepted Answer

A)  controllable cost. 
B)  quality cost. 
C)  uncontrollable cost. 
D)  opportunity cost. 
A)  controllable cost. 
B)  quality cost. 
C)  uncontrollable cost. 
D)  opportunity cost.

Question 9

Decreasing cycle time

Accepted Answer

A)  requires a low quality product or service. 
B)  creates reduced flexibility and slower reactions to customer needs. 
C)  requires smooth-running processes. 
D)  results in bringing products or services less quickly to customers. 
A)  requires a low quality product or service. 
B)  creates reduced flexibility and slower reactions to customer needs. 
C)  requires smooth-running processes. 
D)  results in bringing products or services less quickly to customers.

Question 10

Which of the following is NOT a characteristic of a management control system?

Accepted Answer

A)  It aids and coordinates the process of making decisions. 
B)  It encourages short-term profitability. 
C)  It motivates individuals throughout the organization to act in concert. 
D)  It coordinates forecasting sales and cost-driver activities, budgeting, and measuring and evaluating performance. 
A)  It aids and coordinates the process of making decisions. 
B)  It encourages short-term profitability. 
C)  It motivates individuals throughout the organization to act in concert. 
D)  It coordinates forecasting sales and cost-driver activities, budgeting, and measuring and evaluating performance.

Question 11

Exertion toward a goal or objective, including all conscious actions that result in more efficiency and effectiveness, is referred to as

Accepted Answer

A)  goal congruence. 
B)  motivation. 
C)  responsibility accounting. 
D)  managerial effort. 
A)  goal congruence. 
B)  motivation. 
C)  responsibility accounting. 
D)  managerial effort.

Question 12

Who is responsible for developing, maintaining and evaluating internal control systems?

Accepted Answer

A)  Managers 
B)  Stockholders 
C)  Accountants 
D)  Both managers and accountants 
A)  Managers 
B)  Stockholders 
C)  Accountants 
D)  Both managers and accountants

Question 13

Managers on all levels are asked to explain the total segment contribution but are held responsible only for the

Accepted Answer

A)  controllable contribution. 
B)  fixed costs. 
C)  variable costs. 
D)  unallocated costs. 
A)  controllable contribution. 
B)  fixed costs. 
C)  variable costs. 
D)  unallocated costs.

Question 14

A set of activities assigned to a manager or a group of managers or other employees is called a(n)

Accepted Answer

A)  internal control system. 
B)  management control system. 
C)  responsibility centre. 
D)  total quality control system. 
A)  internal control system. 
B)  management control system. 
C)  responsibility centre. 
D)  total quality control system.

Question 15

The statistical plot of measures of various product dimensions or attributes is called a

Accepted Answer

A)  quality-control chart. 
B)  productivity chart. 
C)  cycle-time chart. 
D)  conventional chart. 
A)  quality-control chart. 
B)  productivity chart. 
C)  cycle-time chart. 
D)  conventional chart.

Question 16

Nagel Corporation and Connors Company are computer companies. Comparative data for 20X1 and 20X5 are given below.
   Assume that each 20X1 dollar is equivalent to 1.60 of the 20X5 dollars, due to inflation.
-What is Nagel's 20X5 productivity measure in terms of revenues per employee?

Accepted Answer

A)  $2,240.00 
B)  $1,400.00 
C)  $1,428.57 
D)  $1,200.00 
A)  $2,240.00 
B)  $1,400.00 
C)  $1,428.57 
D)  $1,200.00

Question 17

Explicit coordination of individuals' activities, actions and choices is the hallmark of the

Accepted Answer

A)  management control system. 
B)  responsibility centre. 
C)  internal control system. 
D)  quality-control chart. 
A)  management control system. 
B)  responsibility centre. 
C)  internal control system. 
D)  quality-control chart.

Question 18

Conway Corporation and Philips Company are computer companies. Comparative data for 20X1 and 20X3 are given below.
   Assume that each 20X1 dollar is equivalent to 1.45 of the 20X3 dollars, due to inflation.
-What is Conway's 20X1 revenues per employee in term of 20X3 dollars?

Accepted Answer

A)  $1,015.00. 
B)  $700.00. 
C)  $714.29. 
D)  $870.00. 
A)  $1,015.00. 
B)  $700.00. 
C)  $714.29. 
D)  $870.00.

Question 19

The following information is available for Vegetable Company and its two divisions, Carrots and Celery:   Required:
a. Compute the contribution margin for the Carrots Division.
b. Compute the contribution controllable by the manager of the Celery Division.
c. Compute the contribution by segment for the Celery Division.
d. Compute the income before income taxes for the Vegetable Company.

Accepted Answer

a. $175,000 - ($70,000 + $20,000) = $85,

Question 20

Mini Sales and Maxi Sales are two of the largest mail order companies in Canada. Given below is selected information for these two companies for 20X2 and 20X3.   Required:
a. Compute the 20X2 and 20X3 productivity measures in terms of customer orders per employee for Mini Sales and Maxi Sales.
b. Compare the change in productivity between 20X2 and 20X3 for Mini Sales and Maxi Sales. Do you note any problem areas?

Accepted Answer

a. Mini Sales
20X2: 4,600,000/500 = 9,20

A logical integration of management accounting tools to gather and report data and to evaluate performance.

Total quality management

A responsibility centre whose success is measured NOT only by its income, but also by relating that income to its invested capital is called a(n)

Good performance measures will do all of the following EXCEPT

Which of the following would NOT be a step in the design of a successful management control system?

A set of activities assigned to a manager or a group of managers or other employees.

A management control system must evolve with changing times, or the organization risks not being able to manage its resources effectively or efficiently.

Any cost that cannot be affected by the management of a responsibility centre within a given time span is a(n)

Decreasing cycle time

Which of the following is NOT a characteristic of a management control system?

Exertion toward a goal or objective, including all conscious actions that result in more efficiency and effectiveness, is referred to as

Who is responsible for developing, maintaining and evaluating internal control systems?

Managers on all levels are asked to explain the total segment contribution but are held responsible only for the

A set of activities assigned to a manager or a group of managers or other employees is called a(n)

The statistical plot of measures of various product dimensions or attributes is called a

Nagel Corporation and Connors Company are computer companies. Comparative data for 20X1 and 20X5 are given below. Assume that each 20X1 dollar is equivalent to 1.60 of the 20X5 dollars, due to inflation. -What is Nagel's 20X5 productivity measure in terms of revenues per employee?

Explicit coordination of individuals' activities, actions and choices is the hallmark of the

Conway Corporation and Philips Company are computer companies. Comparative data for 20X1 and 20X3 are given below. Assume that each 20X1 dollar is equivalent to 1.45 of the 20X3 dollars, due to inflation. -What is Conway's 20X1 revenues per employee in term of 20X3 dollars?

Management Accounting and Management Decisions

Cost Behaviour and Cost-Volume Relationships

Measurement of Cost Behaviour

Cost Management Systems

Cost Allocation and Activity-Based Costing Systems

Job-Costing Systems

Process-Costing Systems

Relevant Information and Decision Making: Marketing Decisions

Relevant Information and Decision Making: Production Decisions

Capital Budgeting Decisions

The Master Budget

Flexible Budgets and Variance Analysis

Management Control in Decentralized Organizations

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Exam 13: Management Control Systems, the Balanced Scorecard, and Responsibility Accounting

A logical integration of management accounting tools to gather and report data and to evaluate performance.

Total quality management

A responsibility centre whose success is measured NOT only by its income, but also by relating that income to its invested capital is called a(n)

Good performance measures will do all of the following EXCEPT

Which of the following would NOT be a step in the design of a successful management control system?

A set of activities assigned to a manager or a group of managers or other employees.

A management control system must evolve with changing times, or the organization risks not being able to manage its resources effectively or efficiently.

Any cost that cannot be affected by the management of a responsibility centre within a given time span is a(n)

Decreasing cycle time

Which of the following is NOT a characteristic of a management control system?

Exertion toward a goal or objective, including all conscious actions that result in more efficiency and effectiveness, is referred to as

Who is responsible for developing, maintaining and evaluating internal control systems?

Managers on all levels are asked to explain the total segment contribution but are held responsible only for the

A set of activities assigned to a manager or a group of managers or other employees is called a(n)

The statistical plot of measures of various product dimensions or attributes is called a

Nagel Corporation and Connors Company are computer companies. Comparative data for 20X1 and 20X5 are given below. Assume that each 20X1 dollar is equivalent to 1.60 of the 20X5 dollars, due to inflation. -What is Nagel's 20X5 productivity measure in terms of revenues per employee?

Explicit coordination of individuals' activities, actions and choices is the hallmark of the

Conway Corporation and Philips Company are computer companies. Comparative data for 20X1 and 20X3 are given below. Assume that each 20X1 dollar is equivalent to 1.45 of the 20X3 dollars, due to inflation. -What is Conway's 20X1 revenues per employee in term of 20X3 dollars?

Management Accounting and Management Decisions

Cost Behaviour and Cost-Volume Relationships

Measurement of Cost Behaviour

Cost Management Systems

Cost Allocation and Activity-Based Costing Systems

Job-Costing Systems

Process-Costing Systems

Relevant Information and Decision Making: Marketing Decisions

Relevant Information and Decision Making: Production Decisions

Capital Budgeting Decisions

The Master Budget

Flexible Budgets and Variance Analysis

Management Control in Decentralized Organizations

Filters