Question 1

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

Accepted Answer

A) There are fewer discretionary fixed costs in nonprofit organizations. 
B) Organizational goals are clearer in nonprofit organizations. 
C) Measurement of goals is easier in nonprofit organizations. 
D) The motivation and incentives of employees in nonprofit organizations differ from those of employees in profit-seeking firms. 
A) There are fewer discretionary fixed costs in nonprofit organizations. 
B) Organizational goals are clearer in nonprofit organizations. 
C) Measurement of goals is easier in nonprofit organizations. 
D) The motivation and incentives of employees in nonprofit organizations differ from those of employees in profit-seeking firms.

Question 2

To increase and improve employees' work efforts in organizations,organizations should link ________ to ________ such as bonuses.

Accepted Answer

A) motivation; goal congruence 
B) managerial effort; key success factors 
C) goals; motivators 
D) performance measures; personal rewards 
A) motivation; goal congruence 
B) managerial effort; key success factors 
C) goals; motivators 
D) performance measures; personal rewards

Question 3

Evaluations of the responsibility center manager's performance should ignore uncontrollable costs.

Accepted Answer

A) True 
 B)False

Question 4

No cost is completely under the control of a segment manager.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements about managerial effort is FALSE?

Accepted Answer

A) Managerial effort is the exertion towards a goal. 
B) Managerial effort must accompany goal congruence. 
C) Managerial effort includes all conscious actions that result in more efficiency and effectiveness. 
D) Managerial effort does not have to accompany goal congruence. 
A) Managerial effort is the exertion towards a goal. 
B) Managerial effort must accompany goal congruence. 
C) Managerial effort includes all conscious actions that result in more efficiency and effectiveness. 
D) Managerial effort does not have to accompany goal congruence.

Question 6

The following information is available for Animal Company and its two divisions,Reptiles and Mammals.
   Fixed costs:
   Variable costs:
   Required: 
A)Compute the contribution margin for the Reptiles Division.
B)Compute the contribution controllable by the manager of the Mammal Division.
C)Compute the contribution by segment for the Mammal Division.
D)Compute the income before taxes for the whole company.

Accepted Answer

A)$170,000 - $28,000 - $8,000 = $134,000

Question 7

Which is NOT a fixed cost controllable by a segment manager?

Accepted Answer

A) salespersons' salaries for segment 
B) advertising costs in local paper to promote segment 
C) training costs for new employees at segment 
D) segment manager's salary 
A) salespersons' salaries for segment 
B) advertising costs in local paper to promote segment 
C) training costs for new employees at segment 
D) segment manager's salary

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

To increase and improve employees' work efforts in organizations,organizations should link to such as bonuses.

Evaluations of the responsibility center manager's performance should ignore uncontrollable costs.

No cost is completely under the control of a segment manager.

Which of the following statements about managerial effort is FALSE?

Which is NOT a fixed cost controllable by a segment manager?

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

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

To increase and improve employees' work efforts in organizations,organizations should link ________ to ________ such as bonuses.

Evaluations of the responsibility center manager's performance should ignore uncontrollable costs.

No cost is completely under the control of a segment manager.

Which of the following statements about managerial effort is FALSE?

Which is NOT a fixed cost controllable by a segment manager?

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

To increase and improve employees' work efforts in organizations,organizations should link to such as bonuses.