Question 1

A responsibility center for which a separate measure of revenues and costs is obtained is called a(n)________.

Accepted Answer

A) cost center 
B) contribution center 
C) contribution margin center 
D) segment 
A) cost center 
B) contribution center 
C) contribution margin center 
D) segment

Question 2

Total quality management is the application of quality principles to the most important of an organization's departments to satisfy customers.

Accepted Answer

A) True 
 B)False

Question 3

Market share and customer survey scores are performance measures used to monitor the achievement of the ________ goal.

Accepted Answer

A) business process improvement 
B) organizational learning 
C) customer satisfaction 
D) financial stability 
A) business process improvement 
B) organizational learning 
C) customer satisfaction 
D) financial stability

Question 4

A(n)________ center is NOT a type of responsibility center.

Accepted Answer

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

Question 5

Cycle time is an important cost driver.

Accepted Answer

A) True 
 B)False

Question 6

To calculate income before taxes for a segmented company as a whole,take contribution by segments and subtract ________.

Accepted Answer

A) allocated costs 
B) unallocated costs 
C) costs controllable by segment managers 
D) costs controllable by third parties 
A) allocated costs 
B) unallocated costs 
C) costs controllable by segment managers 
D) costs controllable by third parties

Question 7

The following information pertains to the East Division of Saturn Company:   Variable costs:
  Fixed costs:
  The contribution margin is ________.

Accepted Answer

A) $7,100 
B) $7,700 
C) $8,000 
D) $8,700 
A) $7,100 
B) $7,700 
C) $8,000 
D) $8,700

Question 8

The financial performance of a segment manager is evaluated by ________.

Accepted Answer

A) contribution margin of segment 
B) contribution margin of segment less fixed costs controllable by others 
C) contribution margin of segment less fixed costs controllable by segment manager 
D) contribution by segment 
A) contribution margin of segment 
B) contribution margin of segment less fixed costs controllable by others 
C) contribution margin of segment less fixed costs controllable by segment manager 
D) contribution by segment

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

A popular approach to performance measurement that integrates financial and nonfinancial measures and links them to the organization's goals and objectives is called the ________.

Accepted Answer

A) balanced scorecard 
B) balanced contribution approach 
C) quality control approach 
D) TQM approach 
A) balanced scorecard 
B) balanced contribution approach 
C) quality control approach 
D) TQM approach

Question 11

The ________ report is a report that displays the financial impact of quality.

Accepted Answer

A) Performance 
B) Cost of quality 
C) Cycle time 
D) Production control 
A) Performance 
B) Cost of quality 
C) Cycle time 
D) Production control

Question 12

The balanced scorecard emphasizes the connection between performance measures and ________ goals.

Accepted Answer

A) financial 
B) nonfinancial 
C) financial and nonfinancial 
D) strategic 
A) financial 
B) nonfinancial 
C) financial and nonfinancial 
D) strategic

Question 13

The manager of a(n)________ responsibility center is responsible for the income and invested capital from the center.

Accepted Answer

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

Question 14

What is the first and most basic component in a management control system?

Accepted Answer

A) the organization's long-range budget 
B) the organization's goals 
C) the stockholders' goals 
D) the manager's personal desires 
A) the organization's long-range budget 
B) the organization's goals 
C) the stockholders' goals 
D) the manager's personal desires

Question 15

A hotel has the following organizational goal: Increase customer satisfaction of overnight guests by 50%.Which is the best performance measure of the organizational goal?

Accepted Answer

A) number of new employees trained 
B) turnover rate of hotel employees 
C) overall rating on guest satisfaction survey 
D) percent of guests paying by credit card 
A) number of new employees trained 
B) turnover rate of hotel employees 
C) overall rating on guest satisfaction survey 
D) percent of guests paying by credit card

Question 16

Effective performance measures have all the following characteristics EXCEPT ________.

Accepted Answer

A) used consistently and regularly in evaluating and rewarding employees 
B) readily understood by employees 
C) balance long-term and short-term concerns 
D) unaffected by the actions of managers 
A) used consistently and regularly in evaluating and rewarding employees 
B) readily understood by employees 
C) balance long-term and short-term concerns 
D) unaffected by the actions of managers

Question 17

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 18

The following information pertains to the West Division of Burger Company:   Variable costs:
  Fixed costs:
  The contribution margin is ________.

Accepted Answer

A) $2,750 
B) $3,650 
C) $4,350 
D) $2,500 
A) $2,750 
B) $3,650 
C) $4,350 
D) $2,500

Question 19

Decreasing cycle time ________.

Accepted Answer

A) results in a lower-quality product 
B) creates reduced flexibility in the production process 
C) results in slower reactions to customer requests 
D) requires smooth-running processes 
A) results in a lower-quality product 
B) creates reduced flexibility in the production process 
C) results in slower reactions to customer requests 
D) requires smooth-running processes

Question 20

Which of the following statements about performance measures is FALSE?

Accepted Answer

A) Organizational goals without performance measures do not motivate managers. 
B) Every performance measure used to evaluate employees should be consistent with organizational goals. 
C) An ideal management control system should include at least one performance measure related to every goal. 
D) Performance measures become more specific at higher levels of the organization. 
A) Organizational goals without performance measures do not motivate managers. 
B) Every performance measure used to evaluate employees should be consistent with organizational goals. 
C) An ideal management control system should include at least one performance measure related to every goal. 
D) Performance measures become more specific at higher levels of the organization.

A responsibility center for which a separate measure of revenues and costs is obtained is called a(n)________.

Total quality management is the application of quality principles to the most important of an organization's departments to satisfy customers.

Market share and customer survey scores are performance measures used to monitor the achievement of the ________ goal.

A(n)________ center is NOT a type of responsibility center.

Cycle time is an important cost driver.

To calculate income before taxes for a segmented company as a whole,take contribution by segments and subtract ________.

The following information pertains to the East Division of Saturn Company: Variable costs: Fixed costs: The contribution margin is ________.

The financial performance of a segment manager is evaluated by ________.

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

A popular approach to performance measurement that integrates financial and nonfinancial measures and links them to the organization's goals and objectives is called the ________.

The ________ report is a report that displays the financial impact of quality.

The balanced scorecard emphasizes the connection between performance measures and ________ goals.

The manager of a(n)________ responsibility center is responsible for the income and invested capital from the center.

What is the first and most basic component in a management control system?

A hotel has the following organizational goal: Increase customer satisfaction of overnight guests by 50%.Which is the best performance measure of the organizational goal?

Effective performance measures have all the following characteristics EXCEPT ________.

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

The following information pertains to the West Division of Burger Company: Variable costs: Fixed costs: The contribution margin is ________.

Decreasing cycle time ________.

Which of the following statements about performance measures is FALSE?

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

A responsibility center for which a separate measure of revenues and costs is obtained is called a(n)________.

Total quality management is the application of quality principles to the most important of an organization's departments to satisfy customers.

Market share and customer survey scores are performance measures used to monitor the achievement of the ________ goal.

A(n)________ center is NOT a type of responsibility center.

Cycle time is an important cost driver.

To calculate income before taxes for a segmented company as a whole,take contribution by segments and subtract ________.

The following information pertains to the East Division of Saturn Company: Variable costs: Fixed costs: The contribution margin is ________.

The financial performance of a segment manager is evaluated by ________.

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

A popular approach to performance measurement that integrates financial and nonfinancial measures and links them to the organization's goals and objectives is called the ________.

The ________ report is a report that displays the financial impact of quality.

The balanced scorecard emphasizes the connection between performance measures and ________ goals.

The manager of a(n)________ responsibility center is responsible for the income and invested capital from the center.

What is the first and most basic component in a management control system?

A hotel has the following organizational goal: Increase customer satisfaction of overnight guests by 50%.Which is the best performance measure of the organizational goal?

Effective performance measures have all the following characteristics EXCEPT ________.

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

The following information pertains to the West Division of Burger Company: Variable costs: Fixed costs: The contribution margin is ________.

Decreasing cycle time ________.

Which of the following statements about performance measures is FALSE?

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