Question 1

Which of the following is an example of a financial performance measure that would be found in a balanced scorecard?

Accepted Answer

A) Percentage of sales from new customers. 
B) Money spent on employee training programs. 
C) Product costs. 
D) Return on investment. 
E) Money spent on research and development. 
A) Percentage of sales from new customers. 
B) Money spent on employee training programs. 
C) Product costs. 
D) Return on investment. 
E) Money spent on research and development.

Question 2

A ______________________ incurs costs without directly generating revenues.

Accepted Answer

The answer of A ______________________ incurs costs without directly generating...

Question 3

What is the main difference between a cost center and a profit center?

Accepted Answer

A cost center incurs costs but does not

Question 4

A company's Pacific division had sales of $15 billion, net income of $3 billion, and average invested assets of $4 billion.What is this division's investment turnover?

Accepted Answer

A) 1.33 
B) 0.20 
C) 5.00 
D) 3.75 
E) 0.27 
A) 1.33 
B) 0.20 
C) 5.00 
D) 3.75 
E) 0.27

Question 5

Direct expenses

Accepted Answer

A) A department or unit that incurs costs without directly generating revenues. 
B) A center in which a manager is responsible for using the center's assets to generate income for the center. 
C) Costs that are incurred for the joint benefit of more than one department and cannot be readily traced to only one department. 
D) Costs readily traced to a specific department because they are incurred for the sole benefit of that department. 
E) Costs incurred to produce two or more products at the same time.
F)Costs that a manager can strongly influence or control.
G)A department that incurs costs and generates revenues.
H)Assigns managers the responsibility for costs and expenses under their control. 
A) A department or unit that incurs costs without directly generating revenues. 
B) A center in which a manager is responsible for using the center's assets to generate income for the center. 
C) Costs that are incurred for the joint benefit of more than one department and cannot be readily traced to only one department. 
D) Costs readily traced to a specific department because they are incurred for the sole benefit of that department. 
E) Costs incurred to produce two or more products at the same time.
F)Costs that a manager can strongly influence or control.
G)A department that incurs costs and generates revenues.
H)Assigns managers the responsibility for costs and expenses under their control.

Question 6

The allocation bases for assigning indirect costs include:

Accepted Answer

A) Only physical bases. 
B) Only cost bases. 
C) Only value bases. 
D) Only unit bases. 
E) Any appropriate and reasonable bases. 
A) Only physical bases. 
B) Only cost bases. 
C) Only value bases. 
D) Only unit bases. 
E) Any appropriate and reasonable bases.

Question 7

Cycle efficiency is the ratio of value-added time to total cycle time.

Accepted Answer

A) True 
 B)False

Question 8

Responsibility accounting system

Accepted Answer

A) A department or unit that incurs costs without directly generating revenues. 
B) A center in which a manager is responsible for using the center's assets to generate income for the center. 
C) Costs that are incurred for the joint benefit of more than one department and cannot be readily traced to only one department. 
D) Costs readily traced to a specific department because they are incurred for the sole benefit of that department. 
E) Costs incurred to produce two or more products at the same time.
F)Costs that a manager can strongly influence or control.
G)A department that incurs costs and generates revenues.
H)Assigns managers the responsibility for costs and expenses under their control. 
A) A department or unit that incurs costs without directly generating revenues. 
B) A center in which a manager is responsible for using the center's assets to generate income for the center. 
C) Costs that are incurred for the joint benefit of more than one department and cannot be readily traced to only one department. 
D) Costs readily traced to a specific department because they are incurred for the sole benefit of that department. 
E) Costs incurred to produce two or more products at the same time.
F)Costs that a manager can strongly influence or control.
G)A department that incurs costs and generates revenues.
H)Assigns managers the responsibility for costs and expenses under their control.

Question 9

Explain the difference between direct and indirect expenses in accounting for departments.

Accepted Answer

Direct expenses are readily traced to a

Question 10

Under which of the following conditions is a market-based transfer price likely to be used?

Accepted Answer

A) There is no excess capacity. 
B) No market price exists. 
C) Excess capacity exists. 
D) Excess capacity exists and the market price covers fixed costs. 
E) There is only an internal market for the item in question. 
A) There is no excess capacity. 
B) No market price exists. 
C) Excess capacity exists. 
D) Excess capacity exists and the market price covers fixed costs. 
E) There is only an internal market for the item in question.

Question 11

The concepts of direct expenses and controllable costs are essentially the same.

Accepted Answer

A) True 
 B)False

Question 12

Departmental contribution to overhead is calculated as revenues of the department less:

Accepted Answer

A) Controllable costs. 
B) Product and period costs. 
C) Direct costs and expenses. 
D) Direct and indirect costs. 
E) Joint costs. 
A) Controllable costs. 
B) Product and period costs. 
C) Direct costs and expenses. 
D) Direct and indirect costs. 
E) Joint costs.

Question 13

The investment center return on total assets is __________________________ divided by ______________________________.

Accepted Answer

investment center ne

Question 14

Which of the following is most likely to be considered a profit center?

Accepted Answer

A) An individual retail store in a large chain. 
B) The grocery department of a Walmart Supercenter or Target Superstore. 
C) The maintenance department of a large retail operation. 
D) The personnel office of a business. 
E) A stand-alone eye clinic. 
A) An individual retail store in a large chain. 
B) The grocery department of a Walmart Supercenter or Target Superstore. 
C) The maintenance department of a large retail operation. 
D) The personnel office of a business. 
E) A stand-alone eye clinic.

Question 15

A joint cost of producing two products can be allocated between those products on the basis of the relative physical quantities of each product produced.

Accepted Answer

A) True 
 B)False

Question 16

An accounting system that provides information that management can use to evaluate the performance of a department's manager is called a:

Accepted Answer

A) Cost accounting system. 
B) Managerial accounting system. 
C) Responsibility accounting system. 
D) Financial accounting system. 
E) Activity-based accounting system. 
A) Cost accounting system. 
B) Managerial accounting system. 
C) Responsibility accounting system. 
D) Financial accounting system. 
E) Activity-based accounting system.

Question 17

A responsibility accounting system:

Accepted Answer

A) Is designed to measure the performance of managers in terms of uncontrollable costs. 
B) Assigns responsibility for costs to the top managerial level. 
C) Is designed to hold a manager responsible for costs over which the manager has no influence. 
D) Can be applied at any level of an organization. 
E) Is well suited to work in an environment without clear lines of responsibility and authority. 
A) Is designed to measure the performance of managers in terms of uncontrollable costs. 
B) Assigns responsibility for costs to the top managerial level. 
C) Is designed to hold a manager responsible for costs over which the manager has no influence. 
D) Can be applied at any level of an organization. 
E) Is well suited to work in an environment without clear lines of responsibility and authority.

Question 18

An accounting system that provides information that management can use to evaluate the profitability and/or cost effectiveness of a department's activities is a:

Accepted Answer

A) Departmental accounting system. 
B) Cost accounting system. 
C) Service accounting system. 
D) Revenue accounting system. 
E) Standard accounting system. 
A) Departmental accounting system. 
B) Cost accounting system. 
C) Service accounting system. 
D) Revenue accounting system. 
E) Standard accounting system.

Question 19

Contribution to overhead generated by a department is the same as gross profit generated by that department.

Accepted Answer

A) True 
 B)False

Question 20

The process of preparing departmental income statements starts with allocating service departments.

Accepted Answer

A) True 
 B)False

Which of the following is an example of a financial performance measure that would be found in a balanced scorecard?

A ______________________ incurs costs without directly generating revenues.

What is the main difference between a cost center and a profit center?

A company's Pacific division had sales of $15 billion, net income of $3 billion, and average invested assets of $4 billion.What is this division's investment turnover?

Direct expenses

The allocation bases for assigning indirect costs include:

Cycle efficiency is the ratio of value-added time to total cycle time.

Responsibility accounting system

Explain the difference between direct and indirect expenses in accounting for departments.

Under which of the following conditions is a market-based transfer price likely to be used?

The concepts of direct expenses and controllable costs are essentially the same.

Departmental contribution to overhead is calculated as revenues of the department less:

The investment center return on total assets is divided by ____.

Which of the following is most likely to be considered a profit center?

A joint cost of producing two products can be allocated between those products on the basis of the relative physical quantities of each product produced.

An accounting system that provides information that management can use to evaluate the performance of a department's manager is called a:

A responsibility accounting system:

An accounting system that provides information that management can use to evaluate the profitability and/or cost effectiveness of a department's activities is a:

Contribution to overhead generated by a department is the same as gross profit generated by that department.

The process of preparing departmental income statements starts with allocating service departments.

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

Filters

Exam 9: Performance Measurement and Responsibility Accounting

Which of the following is an example of a financial performance measure that would be found in a balanced scorecard?

A ______________________ incurs costs without directly generating revenues.

What is the main difference between a cost center and a profit center?

A company's Pacific division had sales of $15 billion, net income of $3 billion, and average invested assets of $4 billion.What is this division's investment turnover?

Direct expenses

The allocation bases for assigning indirect costs include:

Cycle efficiency is the ratio of value-added time to total cycle time.

Responsibility accounting system

Explain the difference between direct and indirect expenses in accounting for departments.

Under which of the following conditions is a market-based transfer price likely to be used?

The concepts of direct expenses and controllable costs are essentially the same.

Departmental contribution to overhead is calculated as revenues of the department less:

The investment center return on total assets is __________________________ divided by ______________________________.

Which of the following is most likely to be considered a profit center?

A joint cost of producing two products can be allocated between those products on the basis of the relative physical quantities of each product produced.

An accounting system that provides information that management can use to evaluate the performance of a department's manager is called a:

A responsibility accounting system:

An accounting system that provides information that management can use to evaluate the profitability and/or cost effectiveness of a department's activities is a:

Contribution to overhead generated by a department is the same as gross profit generated by that department.

The process of preparing departmental income statements starts with allocating service departments.

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

Filters

The investment center return on total assets is divided by ____.