Exam 9: Management Control Systems and Responsibility Accounting

The keys to successful management control in any organization are proper training of employees,motivation of employees and consistent monitoring of performance measures.

________ costs provide evidence about a manager's performance.________ costs do not provide evidence about a manager's performance.

Which one of the following is NOT a nonfinancial performance measure of customer satisfaction on a commercial airline?

Lorna Corporation and Carol Corporation are moving companies.Comparative data for 20X4 and 20X5 are given below: Lorna Carol Corporation Corporation Sales revenue 20\times4 \ 8,400,000 \ 4,400,000 20\times5 9,900,000 6.175,000 Number of employees 20\times4 8,000 5,500 20\times5 10,000 6,500 Assume that each 20X4 dollar is equivalent to 1.75 of each 20X5 dollar,due to inflation.Taking inflation into account,what is Lorna Corporation's 20X4 productivity measure in terms of revenue per employee?

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

A manager at a local home improvement store is considering the following costs.Which of the following is a cost controllable by the manager?

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

To evaluate the financial performance of a segment,and not the financial performance of the segment's manager,use ________.

________ costs include those costs that a manager's decisions and actions can influence to a reasonable degree.

Goal congruence exists when ________.

Shaley Company has two divisions and the following information available: a.Net sales were $130,000.$90,000 was attributed to the Jewel Division. b.Variable costs were $80,000.40% was attributed to the Song Division. c.Total separable fixed costs controllable by division managers were $30,000,of which $20,000 applied to the Jewel Division. d.Total separable fixed costs,not controllable by division managers were $10,000 in the Jewel Division and $4,000 in the Song Division. e.Unallocated costs were $7,000. Required: 1.Prepare a contribution approach income statement for the company as a whole and each division. 2.Which division manager should receive a bonus? Why?

In most organizational settings,superior ________ performance usually follows from superior ________ performance.

Which of the following is NOT a type of quality costs?

Which of the following costs is NOT an appraisal cost for quality control?

A company manufactures household furniture at several different plants.When preparing segmented income statements for each plant,unallocated costs do NOT include ________.

Inspection costs of incoming raw materials are ________ costs.

The following information pertains to the Southern Division of Olson Company: Net Sales \5 ,250 Variable Costs: Cost of merchandise sold 1,200 Operating expenses 450 Fixed costs: Controllable by segment manager 600 Controllable by others 1,250 Unallocated costs 1,150 The contribution controllable by a segment manager is ________.

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

The classic balanced scorecard developed by Robert Kaplan and David Norton includes four categories of key performance indicators.Which of the following items is NOT one of the categories used by Kaplan and Norton?

Wingate Company has the following information available for three divisions of the company: Division A Division B Division C Sales \ 250,000 \ 400,000 \ 350,000 Variable expenses 52\% 30\% 40\% Fixed expenses controllable by division manager \ 60,000 \ 200,000 \ 175,000 Fixed expenses controllable by others \ 10,000 \ 5,000 \ 7,500 Unallocated expenses for all three divisions are $22,000.What is the contribution by Division A?