Question 1

For a centralized company,the major planning and controlling decisions are made by top management.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a key performance indicator of the internal business perspective of the balanced scorecard?

Accepted Answer

A) number of units produced per hour 
B) employee turnover 
C) cash flow 
D) number of cross-trained employees 
A) number of units produced per hour 
B) employee turnover 
C) cash flow 
D) number of cross-trained employees

Question 3

The balanced scorecard focuses only on lead indicators,because lag indicators are not important for performance evaluation.

Accepted Answer

A) True 
 B)False

Question 4

Madsen,Inc.intends to increase its profits by 50% in the next fiscal year.Which of the following is most likely to be a lead indicator in Madsen's performance report?

Accepted Answer

A) return on investment 
B) number of repeat customers 
C) net profit margin 
D) sales revenue growth 
A) return on investment 
B) number of repeat customers 
C) net profit margin 
D) sales revenue growth

Question 5

Companies with diverse products can obtain better costing information using multiple departmental rates rather than using activity-based costing.

Accepted Answer

A) True 
 B)False

Question 6

Centralized operations are better for small companies due to the smaller scope of their operations.

Accepted Answer

A) True 
 B)False

Question 7

Activity-based costing (ABC)focuses on the costs of activities when allocating indirect costs to products and services.

Accepted Answer

A) True 
 B)False

Question 8

A cost center responsibility report ________.

Accepted Answer

A) includes depreciation expense 
B) typically focuses on the flexible budget variance 
C) is the same as a performance report 
D) shows all costs incurred by the department 
A) includes depreciation expense 
B) typically focuses on the flexible budget variance 
C) is the same as a performance report 
D) shows all costs incurred by the department

Question 9

The primary objective in setting transfer prices is to achieve goal congruence by selecting a price that will maximize the overall company profits.

Accepted Answer

A) True 
 B)False

For a centralized company,the major planning and controlling decisions are made by top management.

Which of the following is a key performance indicator of the internal business perspective of the balanced scorecard?

The balanced scorecard focuses only on lead indicators,because lag indicators are not important for performance evaluation.

Madsen,Inc.intends to increase its profits by 50% in the next fiscal year.Which of the following is most likely to be a lead indicator in Madsen's performance report?

Companies with diverse products can obtain better costing information using multiple departmental rates rather than using activity-based costing.

Centralized operations are better for small companies due to the smaller scope of their operations.

Activity-based costing (ABC)focuses on the costs of activities when allocating indirect costs to products and services.

A cost center responsibility report ________.

The primary objective in setting transfer prices is to achieve goal congruence by selecting a price that will maximize the overall company profits.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 24: Cost Allocation and Responsibility Accounting

For a centralized company,the major planning and controlling decisions are made by top management.

Which of the following is a key performance indicator of the internal business perspective of the balanced scorecard?

The balanced scorecard focuses only on lead indicators,because lag indicators are not important for performance evaluation.

Madsen,Inc.intends to increase its profits by 50% in the next fiscal year.Which of the following is most likely to be a lead indicator in Madsen's performance report?

Companies with diverse products can obtain better costing information using multiple departmental rates rather than using activity-based costing.

Centralized operations are better for small companies due to the smaller scope of their operations.

Activity-based costing (ABC)focuses on the costs of activities when allocating indirect costs to products and services.

A cost center responsibility report ________.

The primary objective in setting transfer prices is to achieve goal congruence by selecting a price that will maximize the overall company profits.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Short-Term Business Decisions

Capital Investment Decisions

Filters