Question 1

To increase productivity,service organizations focus on increasing the productivity of labor.

Accepted Answer

A) True 
 B)False

Question 2

To identify defective products,companies incur inspection costs or ________ costs.

Accepted Answer

A) prevention 
B) appraisal 
C) internal failure 
D) external failure 
A) prevention 
B) appraisal 
C) internal failure 
D) external failure

Question 3

________ costs involve efforts to improve product design for more efficient production processes.

Accepted Answer

A) Prevention 
B) Appraisal 
C) Internal failure 
D) External failure 
A) Prevention 
B) Appraisal 
C) Internal failure 
D) External failure

Question 4

Responsibility center managers are often able to explain their center's ________ costs even when they are not responsible for those costs.

Accepted Answer

A) avoidable 
B) uncontrollable 
C) controllable 
D) allocated 
A) avoidable 
B) uncontrollable 
C) controllable 
D) allocated

Question 5

A responsibility center for controlling revenues and costs is called a revenue center.

Accepted Answer

A) True 
 B)False

Question 6

Forever Memories Company has two divisions and the following information available:
a.Net sales were $150,000.$90,000 was attributed to the Cherry Division.
b.Variable costs were $80,000.40% was attributed to the Grape Division.
c.Total separable fixed costs controllable by division managers were $32,000,of which $20,000 applied to the Cherry Division.
d.Total separable fixed costs,not controllable by division managers were $14,000 in the Cherry Division and $4,000 in the Grape Division.
e.Unallocated costs were $7,000.
Required:
Prepare a contribution approach income statement for the company as a whole and each division.

Accepted Answer

The answer of Forever Memories Company has two divisions and...

Question 7

The first and most basic component in a management control system is the employee's goals.

Accepted Answer

A) True 
 B)False

Question 8

Ginger Corporation and Chippy Corporation are movie companies.Comparative data for 20X4 and 20X5 are given below:     Assume that each 20X4 dollar is equivalent to 1.30 of each 20X5 dollar,due to inflation.Taking inflation into account,what is Chippy Corporation's 20X4 productivity measure in terms of revenue per employee?

Accepted Answer

A) $800.00 
B) $885.71 
C) $1,040.00 
D) $1,328.57 
A) $800.00 
B) $885.71 
C) $1,040.00 
D) $1,328.57

Question 9

When developing productivity measures,labor-intensive organizations should use ________ measures and manufacturing companies should use ________ measures.

Accepted Answer

A) labor-based; manufacturing-based 
B) labor-based; material yield 
C) nonfinancial; financial 
D) financial; nonfinancial 
A) labor-based; manufacturing-based 
B) labor-based; material yield 
C) nonfinancial; financial 
D) financial; nonfinancial

Question 10

Measures of performance do not have to be consistent with organizational goals.

Accepted Answer

A) True 
 B)False

Question 11

Increased productivity can be shown by maintaining the number of inputs but increasing the number of outputs.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is NOT a type of quality costs?

Accepted Answer

A) prevention 
B) appraisal 
C) internal failure 
D) development 
A) prevention 
B) appraisal 
C) internal failure 
D) development

Question 13

Rework costs for manufactured products are a form of ________ costs.

Accepted Answer

A) prevention 
B) appraisal 
C) internal failure 
D) external failure 
A) prevention 
B) appraisal 
C) internal failure 
D) external failure

Question 14

The following information pertains to the Lower Division of Peapod Company:   Variable Costs:
  Fixed costs:
  The contribution controllable by a segment manager is ________.

Accepted Answer

A) $7,100 
B) $7,700 
C) $11,100 
D) $12,700 
A) $7,100 
B) $7,700 
C) $11,100 
D) $12,700

Question 15

Sonny Corporation and Cher Corporation are movie companies.Comparative data for 20X0 and 20X1 are given below:     Assume that each 20X0 dollar is equivalent to 1.60 of each 20X1 dollar,due to inflation.Taking inflation into account,what is Sonny Corporation's 20X0 productivity measure in terms of revenue per employee?

Accepted Answer

A) $1,083.08 
B) $1,280.00 
C) $1,422.22 
D) $1,600.00 
A) $1,083.08 
B) $1,280.00 
C) $1,422.22 
D) $1,600.00

Question 16

The four categories of quality costs include production costs,appraisal costs,internal failure costs and external failure costs.

Accepted Answer

A) True 
 B)False

Question 17

When evaluating a segment manager,unallocated costs usually include central corporate costs.

Accepted Answer

A) True 
 B)False

Question 18

________ is the effort to insure that products perform according to customer requirements.

Accepted Answer

A) Cycle time 
B) Managerial effort 
C) Production control 
D) Quality control 
A) Cycle time 
B) Managerial effort 
C) Production control 
D) Quality control

Question 19

A management control system includes the techniques to gather and use information to ________.

Accepted Answer

A) motivate employee behavior 
B) evaluate performance 
C) make planning and control decisions 
D) all of the above 
A) motivate employee behavior 
B) evaluate performance 
C) make planning and control decisions 
D) all of the above

Question 20

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

Accepted Answer

A) True 
 B)False

To increase productivity,service organizations focus on increasing the productivity of labor.

To identify defective products,companies incur inspection costs or ________ costs.

________ costs involve efforts to improve product design for more efficient production processes.

Responsibility center managers are often able to explain their center's ________ costs even when they are not responsible for those costs.

A responsibility center for controlling revenues and costs is called a revenue center.

The first and most basic component in a management control system is the employee's goals.

When developing productivity measures,labor-intensive organizations should use measures and manufacturing companies should use measures.

Measures of performance do not have to be consistent with organizational goals.

Increased productivity can be shown by maintaining the number of inputs but increasing the number of outputs.

Which of the following is NOT a type of quality costs?

Rework costs for manufactured products are a form of ________ costs.

The following information pertains to the Lower Division of Peapod Company: Variable Costs: Fixed costs: The contribution controllable by a segment manager is ________.

The four categories of quality costs include production costs,appraisal costs,internal failure costs and external failure costs.

When evaluating a segment manager,unallocated costs usually include central corporate costs.

________ is the effort to insure that products perform according to customer requirements.

A management control system includes the techniques to gather and use information to ________.

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

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

To increase productivity,service organizations focus on increasing the productivity of labor.

To identify defective products,companies incur inspection costs or ________ costs.

________ costs involve efforts to improve product design for more efficient production processes.

Responsibility center managers are often able to explain their center's ________ costs even when they are not responsible for those costs.

A responsibility center for controlling revenues and costs is called a revenue center.

The first and most basic component in a management control system is the employee's goals.

When developing productivity measures,labor-intensive organizations should use ________ measures and manufacturing companies should use ________ measures.

Measures of performance do not have to be consistent with organizational goals.

Increased productivity can be shown by maintaining the number of inputs but increasing the number of outputs.

Which of the following is NOT a type of quality costs?

Rework costs for manufactured products are a form of ________ costs.

The following information pertains to the Lower Division of Peapod Company: Variable Costs: Fixed costs: The contribution controllable by a segment manager is ________.

The four categories of quality costs include production costs,appraisal costs,internal failure costs and external failure costs.

When evaluating a segment manager,unallocated costs usually include central corporate costs.

________ is the effort to insure that products perform according to customer requirements.

A management control system includes the techniques to gather and use information to ________.

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

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

When developing productivity measures,labor-intensive organizations should use measures and manufacturing companies should use measures.