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

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A logical integration of management accounting tools to gather and report data and to evaluate performance is a(n)

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Which of the following statements is false?

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A management control system is a logical integration of management accounting tools to gather and report data and to evaluate performance.

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Exists when individuals and groups aim at the same organizational goals.

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The drive for some selected goal that creates effort and action toward that goal is called

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A controllable cost

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To achieve goal congruence and managerial effort, designers of management control systems should focus on motivating employees.

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Control systems in nonprofit organizations will never be as highly developed as in profit-seeking firms because measurements are more difficult.

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Controllable costs should be ignored in evaluating the responsibility centre manager's performance.

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The process of identifying what parts of the organization have primary responsibility for each objective, developing measures of achievement and objectives, and creating reports of these measures by organization subunit or responsibility centre.

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A well-designed management control system ignores nonfinancial objectives and focuses on financial objectives to develop and report measures of performance.

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The following information pertains to the Northwest Territory of Jordan, Inc.: The following information pertains to the Northwest Territory of Jordan, Inc.:    -The contribution controllable by segment manager is -The contribution controllable by segment manager is

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The following information pertains to the Southern Territory of Nordeen Company: The following information pertains to the Southern Territory of Nordeen Company:    -The contribution controllable by segment manager is -The contribution controllable by segment manager is

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The process of identifying what parts of the organization have primary responsibility for each objective, developing measures of achievement and objectives, and creating reports of these measures by organization subunit or responsibility centre is known as

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