Question 1

Which of the following is NOT a synonym for an organization's subgoals?

Accepted Answer

A)  Critical success factors 
B)  Critical variables 
C)  Key result areas 
D)  Profit centres 
A)  Critical success factors 
B)  Critical variables 
C)  Key result areas 
D)  Profit centres

Question 2

The time taken to complete a product or service, or any of the components of a product or service.

Accepted Answer

The answer of The time taken to complete a product...

Question 3

A responsibility centre for which costs are accumulated 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.

Question 4

An effective management control system gives each lower-level manager responsibility for a group of activities and objectives and then reports on all of the following EXCEPT

Accepted Answer

A)  the results of activities. 
B)  the manager's influence on those results. 
C)  effects of uncontrollable events. 
D)  effects of controllable events. 
A)  the results of activities. 
B)  the manager's influence on those results. 
C)  effects of uncontrollable events. 
D)  effects of controllable events.

Question 5

Methods and procedures to prevent errors and irregularities, detect errors and irregularities, and promote operating efficiency.

Accepted Answer

Internal c

Question 6

Exertion toward a goal or objective, including all conscious actions that result in more efficiency and effectiveness.

Accepted Answer

The answer of Exertion toward a goal or objective, including...

Question 7

An internal control system consists of all of the following EXCEPT

Accepted Answer

A)  methods to prevent errors and irregularities. 
B)  procedures to promote goal congruence. 
C)  methods to promote operating efficiency. 
D)  procedures to detect errors and irregularities. 
A)  methods to prevent errors and irregularities. 
B)  procedures to promote goal congruence. 
C)  methods to promote operating efficiency. 
D)  procedures to detect errors and irregularities.

Question 8

Segments are responsibility centres for which a separate measure of revenues and costs is obtained.

Accepted Answer

A) True 
 B)False

Question 9

To create a management control system that meets the organization's needs, designers need to consider all of the following EXCEPT

Accepted Answer

A)  existing constraints. 
B)  external reporting requirements. 
C)  internal controls. 
D)  costs versus benefits. 
A)  existing constraints. 
B)  external reporting requirements. 
C)  internal controls. 
D)  costs versus benefits.

Question 10

Quality control is a concern of

Accepted Answer

A)  privately owned companies. 
B)  nonprofit organizations. 
C)  government organizations. 
D)  privately owned companies, nonprofit and government organizations alike. 
A)  privately owned companies. 
B)  nonprofit organizations. 
C)  government organizations. 
D)  privately owned companies, nonprofit and government organizations alike.

Question 11

Define a management control system and identify the issues involved with the design of a successful system.

Accepted Answer

A management control system is a logical

Question 12

Uncontrollable costs

Accepted Answer

A)  are influenced by a manager's decisions and actions. 
B)  provide evidence about a manager's performance. 
C)  are also referred to as opportunity costs. 
D)  should be ignored in evaluating the responsibility centre manager's performance. 
A)  are influenced by a manager's decisions and actions. 
B)  provide evidence about a manager's performance. 
C)  are also referred to as opportunity costs. 
D)  should be ignored in evaluating the responsibility centre manager's performance.

Question 13

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 Connors' 20X5 productivity measure in terms of revenues per employee?

Accepted Answer

A)  $1,476.93 
B)  $1,230.77 
C)  $1,969.23 
D)  $1,090.91 
A)  $1,476.93 
B)  $1,230.77 
C)  $1,969.23 
D)  $1,090.91

Question 14

The following information is available for Hupp Corporation and its two divisions, Apple and Orange:   Required:
a. Compute the contribution margin for the Apple Division.
b. Compute the contribution controllable by the manager of the Orange Division.
c. Compute the contribution by segment for the Apple Division.
d. Compute the income before income taxes for Hupp Corporation.

Accepted Answer

a. $100,000 - ($35,000 + 20,000) = $45,0

Question 15

The effort to insure that products and services perform to customer requirements is called

Accepted Answer

A)  productivity. 
B)  cycle time. 
C)  quality control. 
D)  managerial effort. 
A)  productivity. 
B)  cycle time. 
C)  quality control. 
D)  managerial effort.

Question 16

Profit centres

Accepted Answer

A)  have responsibility for controlling costs as well as revenues. 
B)  control and report costs only. 
C)  measure income and relate that income to their invested capital. 
D)  are the same as investment centres. 
A)  have responsibility for controlling costs as well as revenues. 
B)  control and report costs only. 
C)  measure income and relate that income to their invested capital. 
D)  are the same as investment centres.

Question 17

A responsibility centre whose success is measured not only by its income, but also by relating that income to its invested capital, as in a ratio of income to the value of the capital employed.

Accepted Answer

The answer of A responsibility centre whose success is measured...

Question 18

An investment centre's success is measured only by its income.

Accepted Answer

A) True 
 B)False

Question 19

A report that displays the financial impact of quality is called a

Accepted Answer

A)  cycle time report. 
B)  productivity report. 
C)  financial report. 
D)  quality cost report. 
A)  cycle time report. 
B)  productivity report. 
C)  financial report. 
D)  quality cost report.

Question 20

Which of the following statements regarding management control principles is false?

Accepted Answer

A)  Always expect that individuals will be pulled in the direction of their own self-interest. 
B)  Design incentives so that individuals who pursue their own self-interest are also achieving the organization's objectives. 
C)  Evaluate actual performance based on expected or planned performance. 
D)  Consider financial performance over nonfinancial performance. 
A)  Always expect that individuals will be pulled in the direction of their own self-interest. 
B)  Design incentives so that individuals who pursue their own self-interest are also achieving the organization's objectives. 
C)  Evaluate actual performance based on expected or planned performance. 
D)  Consider financial performance over nonfinancial performance.

Which of the following is NOT a synonym for an organization's subgoals?

The time taken to complete a product or service, or any of the components of a product or service.

A responsibility centre for which costs are accumulated is called a(n)

An effective management control system gives each lower-level manager responsibility for a group of activities and objectives and then reports on all of the following EXCEPT

Methods and procedures to prevent errors and irregularities, detect errors and irregularities, and promote operating efficiency.

Exertion toward a goal or objective, including all conscious actions that result in more efficiency and effectiveness.

An internal control system consists of all of the following EXCEPT

Segments are responsibility centres for which a separate measure of revenues and costs is obtained.

To create a management control system that meets the organization's needs, designers need to consider all of the following EXCEPT

Quality control is a concern of

Define a management control system and identify the issues involved with the design of a successful system.

Uncontrollable costs

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 Connors' 20X5 productivity measure in terms of revenues per employee?

The effort to insure that products and services perform to customer requirements is called

Profit centres

A responsibility centre whose success is measured not only by its income, but also by relating that income to its invested capital, as in a ratio of income to the value of the capital employed.

An investment centre's success is measured only by its income.

A report that displays the financial impact of quality is called a

Which of the following statements regarding management control principles is false?

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

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

Which of the following is NOT a synonym for an organization's subgoals?

The time taken to complete a product or service, or any of the components of a product or service.

A responsibility centre for which costs are accumulated is called a(n)

An effective management control system gives each lower-level manager responsibility for a group of activities and objectives and then reports on all of the following EXCEPT

Methods and procedures to prevent errors and irregularities, detect errors and irregularities, and promote operating efficiency.

Exertion toward a goal or objective, including all conscious actions that result in more efficiency and effectiveness.

An internal control system consists of all of the following EXCEPT

Segments are responsibility centres for which a separate measure of revenues and costs is obtained.

To create a management control system that meets the organization's needs, designers need to consider all of the following EXCEPT

Quality control is a concern of

Define a management control system and identify the issues involved with the design of a successful system.

Uncontrollable costs

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 Connors' 20X5 productivity measure in terms of revenues per employee?

The effort to insure that products and services perform to customer requirements is called

Profit centres

A responsibility centre whose success is measured not only by its income, but also by relating that income to its invested capital, as in a ratio of income to the value of the capital employed.

An investment centre's success is measured only by its income.

A report that displays the financial impact of quality is called a

Which of the following statements regarding management control principles is false?

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