Exam 9: Management Control Systems and Responsibility Accounting

Ashley Company and Brian Company are two companies in the same industry.Comparative data for two years are given below: A)Compute the customer orders per employee for each company for 20X3 and 20X5. B)What is the change in productivity between the two years for each company?

________ costs include those costs that a manager's decisions and actions can influence to a reasonable degree.

Which statement about performance reports and variances is FALSE?

Costs uncontrolled by a segment manager should be ________ when evaluating the performance of the segment manager.

Costs of defective components or products that are scrapped or reworked are examples of ________ costs.

Cycle time is a performance measure used to monitor the achievement of the ________ goal.

External failure costs associated with quality control do NOT include ________.

Which of the following statements about responsibility centers is FALSE?

The following information is available for Discounted Supplies Inc.and its two divisions,Small Supplies and Large Supplies. Fixed costs controllable by Fixed costs not controlled by Variable costs: What is the contribution by segment for the Small Supplies Division?

Good performance measures should only focus on long-term concerns.

Total quality management(TQM)________.

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

The contribution controllable by segment managers is used to evaluate the performance of segment managers.

Managerial effort does not necessarily have to accompany goal congruence.

The following information pertains to the Upper Division of Yoko Company: Variable Costs: Fixed costs: The contribution by segment is ________.

________ is the drive for some selected goal that creates effort and action toward that goal.

When preparing segmented income statements,unallocated costs do NOT include ________.

________ costs provide evidence about a manager's performance.________ costs do not provide evidence about a manager's performance.

The following information is available for Price Supplies Inc.and its two divisions,Durable Goods and Nondurable Goods. Fixed costs controllable by Fixed costs not controlled by Variable costs: What is the contribution controllable by the manager of the Nondurable Goods Division?

To design a management control system that meets an organization's needs,managers must identify what motivates employees,________ and ________.