Question 1

Why will management control systems in nonprofit organizations probably never be as highly developed as those in profit-seeking firms.

Accepted Answer

1.Organizational goals are not as clear in nonprofit organizations. 2.Professionals in nonprofit organizations are opposed to formal control systems. 3.Measurement of performance measures is more difficult in nonprofit organizations. 4.There is less competitive pressure from other nonprofit organizations to improve management control systems. 5.The role of budgeting is different in nonprofit organizations.The goal in nonprofit organizations is to get the largest possible authorization. 6.Motivations and incentives of individuals in nonprofit organizations are different from those in profit-seeking firms.

Question 2

________ is the logical integration of techniques to gather and report data for planning and control decisions and to evaluate performance.

Accepted Answer

A) An internal control system 
B) A quality control system 
C) A financial reporting system 
D) A management control system 
A) An internal control system 
B) A quality control system 
C) A financial reporting system 
D) A management control system D

Question 3

A good management control system must foster ________.

Accepted Answer

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

Question 4

The purpose of performance measures is to set direction and to motivate managers.

Accepted Answer

A) True 
 B)False

Question 5

Describe a balanced scorecard and identify the categories of key performance indicators advocated by Kaplan and Norton.

Accepted Answer

A balanced scorecard is a popular approa

Question 6

Sunrise Corporation and Sunset Corporation are movie companies.Comparative data for 20X4 and 20X5 are given below:     Assume that each 20X4 dollar is equivalent to 1.75 of each 20X5 dollar,due to inflation.Taking inflation into account,what is Sunrise Corporation's 20X5 productivity measure in terms of revenue per employee?

Accepted Answer

A) $950.00 
B) $990.00 
C) $1,050.00 
D) $1,925.00 
A) $950.00 
B) $990.00 
C) $1,050.00 
D) $1,925.00

Question 7

In a(n)________ center,managers are responsible for costs only.

Accepted Answer

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

Question 8

A(n)________ cost is any cost that management cannot reasonably affect within a given time span.

Accepted Answer

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

Question 9

For most organizations,effective performance measurement requires ________ and ________ measures of performance.

Accepted Answer

A) rolling; static 
B) flexible; static 
C) strategic; continuous 
D) financial; nonfinancial 
A) rolling; static 
B) flexible; static 
C) strategic; continuous 
D) financial; nonfinancial

Question 10

The Slowinski Company provided the following information:
   Variable costs:
   Required:
Prepare a contribution approach income statement for the whole company and for each division.

Accepted Answer

The answer of The Slowinski Company provided the following information:
...

Question 11

Organizational learning may be monitored by measuring employee turnover.

Accepted Answer

A) True 
 B)False

Question 12

Home Depot and Lowe's are two companies in the same industry.Comparative data for two years are given below:
   Assume each 20X1 dollar is equivalent to 1.90 of each 20X6 dollar due to inflation.
Required: 
A)After considering inflation,compute the revenue per employee for each company for 20X1 and 20X6.
B)What is the change in productivity between the five years for each company?

Accepted Answer

A)Home Depot: 20X1: ($905,520 x 1.90)/1,

Question 13

Product profitability is a performance measure used to monitor the achievement of the ________ goal.

Accepted Answer

A) customer satisfaction 
B) business process improvement 
C) employee turnover 
D) financial strength 
A) customer satisfaction 
B) business process improvement 
C) employee turnover 
D) financial strength

Question 14

The following information is available for Wildwood Consulting Company and its two offices:
   Fixed costs:
   Variable costs:
   Unallocated costs were $152,000.
Required: 
A)Compute the contribution margin for the Euclid office.
B)Compute the contribution controllable by the manager of the Royal Office.
C)Compute the contribution by segment for the Euclid office.
D)Compute the income before taxes for the company as a whole.

Accepted Answer

A)$250,000 - $30,000 - $15,000 = $205,00

Question 15

The traditional approach to quality control in the United States was to ________.

Accepted Answer

A) inspect products upon completion and reject or rework the defective products 
B) prevent defects before they occur 
C) set tolerance standards of zero defects 
D) emphasize customer satisfaction over product quality 
A) inspect products upon completion and reject or rework the defective products 
B) prevent defects before they occur 
C) set tolerance standards of zero defects 
D) emphasize customer satisfaction over product quality

Question 16

Adam Corporation and Eve Corporation are movie companies.Comparative data for 20X3 and 20X6 are given below:     Assume that each 20X3 dollar is equivalent to 1.60 of each 20X6 dollar,due to inflation.Taking inflation into account,what is Adam Corporation's 20X6 productivity measure in terms of revenue per employee?

Accepted Answer

A) $1,800.00 
B) $1,875.00 
C) $2,100.00 
D) $3,360.00 
A) $1,800.00 
B) $1,875.00 
C) $2,100.00 
D) $3,360.00

Question 17

An alternative term for cycle time is ________ time.

Accepted Answer

A) productivity 
B) manufacturing 
C) throughput 
D) production 
A) productivity 
B) manufacturing 
C) throughput 
D) production

Question 18

Financial performance measures are often lagging indicators that arrive too late to help prevent problems.

Accepted Answer

A) True 
 B)False

Question 19

Responsibility centers usually have a single goal that the management control system monitors.

Accepted Answer

A) True 
 B)False

Question 20

Internal delays and lost sales are examples of opportunity costs for a firm.

Accepted Answer

A) True 
 B)False

Why will management control systems in nonprofit organizations probably never be as highly developed as those in profit-seeking firms.

________ is the logical integration of techniques to gather and report data for planning and control decisions and to evaluate performance.

A good management control system must foster ________.

The purpose of performance measures is to set direction and to motivate managers.

Describe a balanced scorecard and identify the categories of key performance indicators advocated by Kaplan and Norton.

In a(n)________ center,managers are responsible for costs only.

A(n)________ cost is any cost that management cannot reasonably affect within a given time span.

For most organizations,effective performance measurement requires and measures of performance.

The Slowinski Company provided the following information: Variable costs: Required: Prepare a contribution approach income statement for the whole company and for each division.

Organizational learning may be monitored by measuring employee turnover.

Product profitability is a performance measure used to monitor the achievement of the ________ goal.

The traditional approach to quality control in the United States was to ________.

An alternative term for cycle time is ________ time.

Financial performance measures are often lagging indicators that arrive too late to help prevent problems.

Responsibility centers usually have a single goal that the management control system monitors.

Internal delays and lost sales are examples of opportunity costs for a firm.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 9: Management Control Systems and Responsibility Accounting

Why will management control systems in nonprofit organizations probably never be as highly developed as those in profit-seeking firms.

________ is the logical integration of techniques to gather and report data for planning and control decisions and to evaluate performance.

A good management control system must foster ________.

The purpose of performance measures is to set direction and to motivate managers.

Describe a balanced scorecard and identify the categories of key performance indicators advocated by Kaplan and Norton.

In a(n)________ center,managers are responsible for costs only.

A(n)________ cost is any cost that management cannot reasonably affect within a given time span.

For most organizations,effective performance measurement requires ________ and ________ measures of performance.

The Slowinski Company provided the following information: Variable costs: Required: Prepare a contribution approach income statement for the whole company and for each division.

Organizational learning may be monitored by measuring employee turnover.

Product profitability is a performance measure used to monitor the achievement of the ________ goal.

The traditional approach to quality control in the United States was to ________.

An alternative term for cycle time is ________ time.

Financial performance measures are often lagging indicators that arrive too late to help prevent problems.

Responsibility centers usually have a single goal that the management control system monitors.

Internal delays and lost sales are examples of opportunity costs for a firm.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

For most organizations,effective performance measurement requires and measures of performance.