Exam 9: Management Control Systems and Responsibility Accounting

Productivity is a measure of inputs divided by outputs.

The organizational goal of a hotel chain is to increase customer satisfaction.Which of the following is NOT a valid performance measure to meet the organizational goal?

Which of the following statements about performance reports and variances is FALSE?

Costs for a department store in Austin,Texas are listed below.The headquarters of the company are located in Dallas,Texas.From the view of the store manager in Austin,identify each cost as one of the following: A. Variable cost B. Fixed cost controllable by stcre manager C. Fixed cost controllable by others (not store manager) D. Unallocated cost _____ 1.Insurance on Austin store _____ 2.Sales supervisor's salary in Austin store _____ 3.Depreciation expense on Austin store _____ 4.Corporate-level advertising costs _____ 5.Temporary sales staff wages in Austin store _____ 6.Cost of merchandise sold in Austin store _____ 7.Local advertising costs for Austin store _____ 8.CEO salary _____ 9.Salary of store manager in Austin store _____ 10.Public relations department at corporate headquarters _____ 11.Supplies for break room in Austin store _____ 12.Salaries of attorneys at corporate headquarters _____ 13.Salaries of accountants at corporate headquarters _____ 14.Wages of janitors at Austin store _____ 15.Wages of janitors at corporate headquarters

________ is the logical integration of techniques to gather and use data for planning and control decisions and to evaluate performance.

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

GEM Company has the following information available: Quality engineering of products \ 20,000 Quality training of employees \ 2,000 Net cost of scrap \ 30,000 Rework labor \ 4,500 Warranty repairs \ 100,000 Product recalls \ 200,000 Liability arising from defective products \ 1,000,000 Maintenance of test equipment \ 44,000 Quality improvement projects \ 55,000 Setups for testing \ 3,000 Supplies used in testing \ 5,500 Downtime caused by defects \ 70,000 Disposal of defective products \ 80,000 Required: Prepare the quality cost report for the GEM Company.

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

The balanced scorecard is a system that strikes a balance between ________ and ________ performance measures.

Decreasing cycle time often results in bringing products more quickly to customers.

Which of the following is the first and most basic component in a management control system?

A grocery store manager is responsible for the operating performance of three grocery stores in a small city.From the manager's point of view,which of the following is NOT a controllable cost?

The traditional approach to quality control in the United States was to ________.

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

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

The following information is available for Halquist Stone Company and its two divisions,Crushed Stone and Fieldstone. Whole Crushed Company Stone Fieldstone Net sales \1 00,000 \6 0,000 \4 0,000 Fixed costs controllable by Division Manager 16,500 12,500 4,000 Fixed costs controlled by others 8,000 5,000 3,000 Variable costs: Controllable by segment manager 24,500 17,500 7,000 Controllable by others 16,400 10,000 6,400 Unallocated costs 1,000 What is the contribution controllable by the manager of the Crushed Stone Division?

The following information pertains to the Southern Division of Swenson Company: Net Sales \5 ,000 Variable Costs: Cost of merchandise sold 1200 Operating expenses 450 Fixed costs: Controllable by segment manager 600 Controllable by others 250 Unallocated costs 750 The contribution by segment is ________.

Property taxes on a building used by a segment are not considered when evaluating the performance of the segment manager.

The following information pertains to the Midwest Division of Clearly Natural Company: Net Sales 125,000 Variable Costs: Cost of merchandise sold 7,200 Operating expenses 2,700 Fixed costs: Controllable by segment manager 2,400 Controllable by others 1,000 Unallocated costs 600 The contribution controllable by a segment manager is ________.

The following information is available for Nobelski Books and its two divisions,Textbooks and Tablets. Whole Company textbooks tablets Net sales \1 00,000 \5 0,000 \5 0,000 Fixed costs controllable by Division Manager 16,500 12,500 4,000 Fixed costs controlled by others 8,000 5,000 3,000 Variable costs: Controllable by segment manager 24,500 17,500 7,000 Controllable by others 16,400 10,000 6,400 Unallocated costs 1,000 What is the contribution by segment for the Tablets Division?