Question 1

Goal congruence exists when individuals aim at short-term goals and groups aim at long-term organizational goals.

Accepted Answer

A) True 
 B)False

Question 2

Assume you are preparing an income statement with different segments.To calculate the contribution by segment,take contribution controllable by segment manager minus ________.

Accepted Answer

A)  unallocated costs 
B)  variable operating expenses 
C)  fixed costs controllable by others(not segment manager) 
D)  fixed costs controllable by segment manager 
A)  unallocated costs 
B)  variable operating expenses 
C)  fixed costs controllable by others(not segment manager) 
D)  fixed costs controllable by segment manager

Question 3

The ________ report is a report that displays the financial impact of quality.

Accepted Answer

A)  performance 
B)  cost of quality 
C)  cycle time 
D)  production control 
A)  performance 
B)  cost of quality 
C)  cycle time 
D)  production control

Question 4

A popular approach to performance measurement that integrates financial and nonfinancial measures and links them to the organization's goals and objectives is called the ________.

Accepted Answer

A)  balanced scorecard 
B)  contribution approach 
C)  quality control approach 
D)  TQM approach 
A)  balanced scorecard 
B)  contribution approach 
C)  quality control approach 
D)  TQM approach

Question 5

A set of machines may be a responsibility center for a production supervisor.

Accepted Answer

A) True 
 B)False

Question 6

Little Rock Corporation and Memphis Corporation are movie companies.Comparative data for 20X0 and 20X1 are given below:
$\begin{array}{lll}&&\text { Little Rock } & \text { Memphis } \
&&\text { Corporation } & \text { Corporation } \
\text { Sales revenue }&20 \times 0 & \$ 8,000,000 & \$ 4,400,000 \
&20 \times 1 & 9,600,000 & 6,175,000
\end{array}$
$$\begin{array}{l}
\begin{array} { l l l } 
\text { Number of employees }&20 \times 00 & 10,000 & 5,500 \
&20 \times 1 & 9,000 & 6,500
\end{array}
\end{array}$$
Assume that each 20X0 dollar is equivalent to 1.60 of each 20X1 dollar,due to inflation.Taking inflation into account,what is Little Rock Corporation's 20X0 productivity measure in terms of revenue per employee?

Accepted Answer

A)  $1,083.08 
B)  $1,280.00 
C)  $1,422.22 
D)  $1,600.00 
A)  $1,083.08 
B)  $1,280.00 
C)  $1,422.22 
D)  $1,600.00

Question 7

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

Accepted Answer

A)  considered 
B)  weighed heavily 
C)  weighed lightly 
D)  ignored 
A)  considered 
B)  weighed heavily 
C)  weighed lightly 
D)  ignored

Question 8

________ is the effort to insure that products perform according to customer requirements.

Accepted Answer

A)  Cycle time 
B)  Managerial effort 
C)  Production control 
D)  Quality control 
A)  Cycle time 
B)  Managerial effort 
C)  Production control 
D)  Quality control

Question 9

A responsibility center for controlling revenues and costs is called a revenue center.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  cost of public relations department 
B)  salaries of top management 
C)  corporate level advertising 
D)  segment level advertising 
A)  cost of public relations department 
B)  salaries of top management 
C)  corporate level advertising 
D)  segment level advertising

Question 11

The following information is available for Ohlson Consulting Company and its two offices:
 $\begin{array}{ll}
&\text { Greenfield } & \text { Greendale } \
&\text { Office } & \text { Office }\
\text { Net sales }&\$100,000&\$200,000
\end{array}$ 
Fixed costs:
 $\begin{array} { l  }
 \text { Controllable by division manager}&78,000&48,000 \
 \text { Controllable by others}&4,000&8,000 \
\end{array}$
 
Variable costs:
 $\begin{array} { l  }
 \text {Cost of merchandise sold }&30,000&120,000 \
 \text { Operating expenses}&15,000&60,000 \
\end{array}$
 
Unallocated costs were $152,000.
Required: 
A) Compute the contribution margin for the Greenfield office.
B) Compute the contribution (or loss) controllable by the manager of the Greendale Office.
C) Compute the contribution (or loss) by segment for the Greenfield office.
D) Compute the income (or loss) before taxes for the company as a whole.

Accepted Answer

A)$100,000 - $30,000 - $15,000 = $55,000

Question 12

Wininger Company has the following information available for the past quarter:
$\begin{array}{llll}&\text { Division A }&\text { Division B }&\text { Division C }\
\text { Sales } & \$ 250,000 & \$ 400,000 & \$ 350,000 \
\text { Variable expenses } & 52 \% & 30 \% & 40 \% \
\text { Fixed expenses controllable by division manager } & \$ 60,000 & \$ 200,000 & \$ 175,000 \
\text { Fixed expenses controllable by others } & \$ 10,000 & \$ 5,000 & \$ 7,500
\end{array}$
Unallocated expenses for all three divisions are $22,000.What is the contribution controllable by the division manager in Division B?

Accepted Answer

A)  $53,000 
B)  $75,000 
C)  $80,000 
D)  $280,000 
A)  $53,000 
B)  $75,000 
C)  $80,000 
D)  $280,000

Question 13

Total quality management (TQM)________.

Accepted Answer

A)  does not advocate high quality levels for all products 
B)  is not used in the development of organizational goals 
C)  promotes maximizing the cost of quality 
D)  focuses on the prevention of defects and on the achievement of customer satisfaction 
A)  does not advocate high quality levels for all products 
B)  is not used in the development of organizational goals 
C)  promotes maximizing the cost of quality 
D)  focuses on the prevention of defects and on the achievement of customer satisfaction

Question 14

Once a management control system is designed for a nonprofit organization,it does not have to be altered in the future.

Accepted Answer

A) True 
 B)False

Question 15

________ are characteristics or attributes that managers must achieve to drive the organization toward its goals.

Accepted Answer

A)  Nonfinancial performance measures 
B)  Targets 
C)  Key success factors 
D)  Objectives 
A)  Nonfinancial performance measures 
B)  Targets 
C)  Key success factors 
D)  Objectives

Question 16

A measure of labor productivity is sales revenue divided by the number of employees.

Accepted Answer

A) True 
 B)False

Question 17

The following information pertains to the Northern Division of Johnson Company:
$\begin{array} { l  }
 \text {Net Sales }&\$21,000\
\end{array}$

Variable Costs:
$\begin{array} { l  }
 \text { Cost of merchandise sold}&7,200\ \text {Operating expenses }&2,700\
\end{array}$

Fixed costs:
$\begin{array} { l  }
 \text {Controllable by segment manager }&2,400\ \text {Controllable by others }&1,000\ \text {Unallocated costs }&7,600\
\end{array}$

The contribution by segment is ________.

Accepted Answer

A)  $7,100 
B)  $7,700 
C)  $8,700 
D)  $11,100 
A)  $7,100 
B)  $7,700 
C)  $8,700 
D)  $11,100

Question 18

The entire firm may be a responsibility center for the firm's president.

Accepted Answer

A) True 
 B)False

Question 19

Why do most nonprofit organizations face substantial difficulties in implementing management control systems?

Accepted Answer

A)  The outputs of nonprofit organizations are easy to measure. 
B)  It is difficult to measure the quantity of outputs from nonprofit organizations. 
C)  It is difficult to measure the quality of outputs from nonprofit organizations. 
D)  B and C 
A)  The outputs of nonprofit organizations are easy to measure. 
B)  It is difficult to measure the quantity of outputs from nonprofit organizations. 
C)  It is difficult to measure the quality of outputs from nonprofit organizations. 
D)  B and C

Question 20

In the area of quality control,which of the following statement(s)about Six Sigma is(are)TRUE?

Accepted Answer

A)  The focus is on measuring the number of defects in a production process. 
B)  It is a data-driven approach to eliminate defects. 
C)  The goal is to eliminate all defects in the production process. 
D)  All of the above 
A)  The focus is on measuring the number of defects in a production process. 
B)  It is a data-driven approach to eliminate defects. 
C)  The goal is to eliminate all defects in the production process. 
D)  All of the above

Goal congruence exists when individuals aim at short-term goals and groups aim at long-term organizational goals.

Assume you are preparing an income statement with different segments.To calculate the contribution by segment,take contribution controllable by segment manager minus ________.

The ________ report is a report that displays the financial impact of quality.

A popular approach to performance measurement that integrates financial and nonfinancial measures and links them to the organization's goals and objectives is called the ________.

A set of machines may be a responsibility center for a production supervisor.

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

________ is the effort to insure that products perform according to customer requirements.

A responsibility center for controlling revenues and costs is called a revenue center.

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

Total quality management (TQM)________.

Once a management control system is designed for a nonprofit organization,it does not have to be altered in the future.

________ are characteristics or attributes that managers must achieve to drive the organization toward its goals.

A measure of labor productivity is sales revenue divided by the number of employees.

The entire firm may be a responsibility center for the firm's president.

Why do most nonprofit organizations face substantial difficulties in implementing management control systems?

In the area of quality control,which of the following statement(s)about Six Sigma is(are)TRUE?

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

Goal congruence exists when individuals aim at short-term goals and groups aim at long-term organizational goals.

Assume you are preparing an income statement with different segments.To calculate the contribution by segment,take contribution controllable by segment manager minus ________.

The ________ report is a report that displays the financial impact of quality.

A popular approach to performance measurement that integrates financial and nonfinancial measures and links them to the organization's goals and objectives is called the ________.

A set of machines may be a responsibility center for a production supervisor.

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

________ is the effort to insure that products perform according to customer requirements.

A responsibility center for controlling revenues and costs is called a revenue center.

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

Total quality management (TQM)________.

Once a management control system is designed for a nonprofit organization,it does not have to be altered in the future.

________ are characteristics or attributes that managers must achieve to drive the organization toward its goals.

A measure of labor productivity is sales revenue divided by the number of employees.

The entire firm may be a responsibility center for the firm's president.

Why do most nonprofit organizations face substantial difficulties in implementing management control systems?

In the area of quality control,which of the following statement(s)about Six Sigma is(are)TRUE?

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