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

Wilson Corporation and Beattie Company are computer companies. Comparative data for 20X1 and 20X6 are given below. Assume that each 20X1 dollar is equivalent to 1.72 of the 20X6 dollars, due to inflation. Required: a. Compute Wilson's and Beattie's 20X1 and 20X6 revenues per employee in 20X6 dollars. b. Compare Wilson's change in productivity between 20X1 and 20X6 with that for Beattie. Do you note any problems that may require action?

The Cabinet Company provided the following information: Required: Prepare a contribution approach income statement for the company as a whole and also for the divisions.

The management control system is distinguished from a financial accounting system by its focus on all of the following EXCEPT

Goal congruence exists when individuals aim at short-term goals and groups aim at long-term organizational goals.

A responsibility centre for controlling revenues as well as costs.

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 Philips' 20X3 productivity measure in terms of revenues per employee?

It is common in Canadian companies to ensure that an internal control system is in place to prevent errors and irregularities and promote operating efficiency.

All of the following are nonfinancial objectives of responsibility centres EXCEPT

The following information pertains to the Southern Territory of Nordeen Company: -The contribution margin is

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 20X1 revenues per employee in terms of 20X5 dollars?

Which of the following statements regarding responsibility centres is false?

Goal congruence exists when

A responsibility centre for controlling revenues as well as costs is called a profit centre.

A responsibility centre for which costs are accumulated.

Information to support the management control system often comes primarily from the organization's

Specific tangible achievements that can be observed on a short-term basis are called

A responsibility centre for which a separate measure of revenues and/or costs is obtained is called a(n)

Once a management control system is designed for an organization, it will meet the organization's goals indefinitely.

The following information pertains to the Northwest Territory of Jordan, Inc.: -The contribution margin is

All of the following are categories of quality costs EXCEPT