Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

To calculate income before taxes for a segmented company as a whole,take contribution by segments and subtract ________.

Accepted Answer

A)  allocated costs 
B)  unallocated costs 
C)  costs controllable by segment managers 
D)  costs controllable by third parties 
A)  allocated costs 
B)  unallocated costs 
C)  costs controllable by segment managers 
D)  costs controllable by third parties

Question 3

Classifying costs as controllable or uncontrollable by a segment manager is ________ and ________.

Accepted Answer

A)  objective; easily undertaken 
B)  objective; subject to controversy 
C)  subjective; easily undertaken 
D)  subjective; subject to controversy 
A)  objective; easily undertaken 
B)  objective; subject to controversy 
C)  subjective; easily undertaken 
D)  subjective; subject to controversy

Question 4

Nonfinancial performance measures are often lagging indicators that arrive too late to help prevent problems.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Which of the following statements about productivity is FALSE?

Accepted Answer

A)  Productivity is a measure of outputs divided by inputs. 
B)  The fewer inputs needed to produce a given output, the more productive the organization. 
C)  Inputs and outputs are difficult to measure. 
D)  Productivity measures can be compared over time without making adjustments for inflation. 
A)  Productivity is a measure of outputs divided by inputs. 
B)  The fewer inputs needed to produce a given output, the more productive the organization. 
C)  Inputs and outputs are difficult to measure. 
D)  Productivity measures can be compared over time without making adjustments for inflation.

Question 7

Gerald Corporation and Nell Corporation are two companies in the same industry.Comparative data for two years are given below:
 $\begin{array}{lll}&&\text { Gerald } & \text { Nell } \
&&\text { Corporation } & \text { Corporation }\\hline
\text { Sales revenue }&20 \times 1 & \$ 905,520 & \$ 1,090,000 \
&20 \times 6 & 1,950,000 & 2,962,500 \
\text { Number of employees }&20 \times 1 & 1,750 & 2,500 \
&20 \times 6 & 2.250 & 4.375
\end{array}$ 
Assume each 20X1 dollar is equivalent to 2.00 dollars in 20X6 due to inflation.
Required: 
A) After considering inflation, compute the revenue per employee for each company for 20X1 and 20X6.
B) What is the change in productivity between the five years for each company?

Accepted Answer

A)Gerald Corporation:
20X1: ($905,520 ×

Question 8

The purpose of performance measures is to set direction and to motivate managers.

Accepted Answer

A) True 
 B)False

Question 9

A profit center can exist in a nonprofit organization.

Accepted Answer

A) True 
 B)False

Question 10

For most organizations,an effective management control system requires performance measures that are ________ and ________.

Accepted Answer

A)  rolling; static 
B)  flexible; static 
C)  strategic; continuous 
D)  financial; nonfinancial 
A)  rolling; static 
B)  flexible; static 
C)  strategic; continuous 
D)  financial; nonfinancial

Question 11

A hotel has the following organizational goal: Increase employee satisfaction.Which one of the following is the best performance measure of the organizational goal?

Accepted Answer

A)  number of new employees trained 
B)  turnover rate of hotel employees 
C)  overall rating on employee service on guest satisfaction survey 
D)  percent of guests writing complaints about employees 
A)  number of new employees trained 
B)  turnover rate of hotel employees 
C)  overall rating on employee service on guest satisfaction survey 
D)  percent of guests writing complaints about employees

Question 12

Segment contribution margin less ________ describes the segment contribution that is controllable by segment managers.

Accepted Answer

A)  fixed costs controllable by segment managers 
B)  fixed costs controlled by others(not segment managers) 
C)  unallocated costs 
D)  uncontrollable costs 
A)  fixed costs controllable by segment managers 
B)  fixed costs controlled by others(not segment managers) 
C)  unallocated costs 
D)  uncontrollable costs

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Good performance measures should be reasonably subjective.

Accepted Answer

A) True 
 B)False

Question 15

Management control systems in nonprofit organizations will probably never be as highly developed as those in profit-seeking firms.Which of the following is NOT a reason for this to occur?

Accepted Answer

A)  Organizational goals are less clear in nonprofit organizations. 
B)  Employees in nonprofit organizations have different motivation drivers and incentive drivers than their counterparts in profit-seeking firms. 
C)  There is less competitive pressure to improve management control systems in nonprofit organizations. 
D)  There are low levels of discretionary fixed costs in nonprofit organizations. 
A)  Organizational goals are less clear in nonprofit organizations. 
B)  Employees in nonprofit organizations have different motivation drivers and incentive drivers than their counterparts in profit-seeking firms. 
C)  There is less competitive pressure to improve management control systems in nonprofit organizations. 
D)  There are low levels of discretionary fixed costs in nonprofit organizations.

Question 16

The balanced scorecard focuses management attention on the ________.

Accepted Answer

A)  measures of productivity 
B)  measures that drive an organization to achieve its goals 
C)  measures that increase cycle time 
D)  measures that decrease quality costs 
A)  measures of productivity 
B)  measures that drive an organization to achieve its goals 
C)  measures that increase cycle time 
D)  measures that decrease quality costs

Question 17

When comparing productivity measures over time,changes in the rate of inflation may cause the comparisons to be misleading.

Accepted Answer

A) True 
 B)False

Question 18

When preparing segmented income statements,fixed costs controllable by others,and not the segment manager,include ________.

Accepted Answer

A)  depreciation on building used by a segment 
B)  local advertising costs for a segment 
C)  local promotion costs for a segment 
D)  salary of supervisor of sales staff for a segment 
A)  depreciation on building used by a segment 
B)  local advertising costs for a segment 
C)  local promotion costs for a segment 
D)  salary of supervisor of sales staff for a segment

Question 19

Describe a balanced scorecard and identify the categories of key performance indicators advocated by Kaplan and Norton.

Accepted Answer

A balanced scorecard is a popular approa

Question 20

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

Accepted Answer

A) True 
 B)False

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

To calculate income before taxes for a segmented company as a whole,take contribution by segments and subtract ________.

Classifying costs as controllable or uncontrollable by a segment manager is and .

Nonfinancial performance measures are often lagging indicators that arrive too late to help prevent problems.

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

Which of the following statements about productivity is FALSE?

The purpose of performance measures is to set direction and to motivate managers.

A profit center can exist in a nonprofit organization.

For most organizations,an effective management control system requires performance measures that are and .

A hotel has the following organizational goal: Increase employee satisfaction.Which one of the following is the best performance measure of the organizational goal?

Segment contribution margin less ________ describes the segment contribution that is controllable by segment managers.

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

Good performance measures should be reasonably subjective.

Management control systems in nonprofit organizations will probably never be as highly developed as those in profit-seeking firms.Which of the following is NOT a reason for this to occur?

The balanced scorecard focuses management attention on the ________.

When comparing productivity measures over time,changes in the rate of inflation may cause the comparisons to be misleading.

When preparing segmented income statements,fixed costs controllable by others,and not the segment manager,include ________.

Describe a balanced scorecard and identify the categories of key performance indicators advocated by Kaplan and Norton.

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

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

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

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

To calculate income before taxes for a segmented company as a whole,take contribution by segments and subtract ________.

Classifying costs as controllable or uncontrollable by a segment manager is ________ and ________.

Nonfinancial performance measures are often lagging indicators that arrive too late to help prevent problems.

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

Which of the following statements about productivity is FALSE?

The purpose of performance measures is to set direction and to motivate managers.

A profit center can exist in a nonprofit organization.

For most organizations,an effective management control system requires performance measures that are ________ and ________.

A hotel has the following organizational goal: Increase employee satisfaction.Which one of the following is the best performance measure of the organizational goal?

Segment contribution margin less ________ describes the segment contribution that is controllable by segment managers.

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

Good performance measures should be reasonably subjective.

Management control systems in nonprofit organizations will probably never be as highly developed as those in profit-seeking firms.Which of the following is NOT a reason for this to occur?

The balanced scorecard focuses management attention on the ________.

When comparing productivity measures over time,changes in the rate of inflation may cause the comparisons to be misleading.

When preparing segmented income statements,fixed costs controllable by others,and not the segment manager,include ________.

Describe a balanced scorecard and identify the categories of key performance indicators advocated by Kaplan and Norton.

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

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

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

Classifying costs as controllable or uncontrollable by a segment manager is and .

For most organizations,an effective management control system requires performance measures that are and .