Question 1

A performance management and evaluation system is a set of procedures that account for and report on

Accepted Answer

A) qualitative performance. 
B) standard performance. 
C) employee performance. 
D) financial and nonfinancial performance. 
A) qualitative performance. 
B) standard performance. 
C) employee performance. 
D) financial and nonfinancial performance.

Question 2

The alignment of an organization's strategy with all the perspectives of the balanced scorecard results in performance objectives that benefit all stakeholders.

Accepted Answer

A) True 
 B)False

Question 3

Why is it important that a manager's evaluation be based only on those revenues and costs that he or she can control?

Accepted Answer

It is important that a manager's evaluat

Question 4

What are some of the limitations of using ROI,residual income,and EVA to measure the performance of investment centers?

Accepted Answer

All three measure focus on short-term fi

Question 5

Which of the following represents the number of sales dollars generated by each dollar invested in assets?

Accepted Answer

A) Asset turnover 
B) Average assets invested 
C) Profit margin 
D) Operating income 
A) Asset turnover 
B) Average assets invested 
C) Profit margin 
D) Operating income

Question 6

When developing performance measures,management must consider a number of different issues besides what to measure and how to measure.

Accepted Answer

A) True 
 B)False

Question 7

A report for a responsibility center includes costs and revenues that are not controlled by a manager.

Accepted Answer

A) True 
 B)False

Question 8

Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the questions below.   
-Using the information provided for Dry Cat Food division,what is the direct labor variance between the actual results and the flexible budget?

Accepted Answer

A) $10 (U) 
B) $10 (F) 
C) $60 (U) 
D) $60 (F) 
A) $10 (U) 
B) $10 (F) 
C) $60 (U) 
D) $60 (F)

Question 9

Which of the following is a common assumption in the balanced scorecard?

Accepted Answer

A) An organization will get only what it measures 
B) An organization will achieve the benchmark set 
C) Organization goals can be set only for a short-term period 
D) An organization does not the follow traditional costing method 
A) An organization will get only what it measures 
B) An organization will achieve the benchmark set 
C) Organization goals can be set only for a short-term period 
D) An organization does not the follow traditional costing method

Question 10

How effective a performance management and evaluation system is depends on how well the goals of individual responsibility centers,the entire company,and managers are coordinated.

Accepted Answer

A) True 
 B)False

Question 11

A performance management and evaluation system is mainly utilized to account for and report on financial performance.

Accepted Answer

A) True 
 B)False

Question 12

One of the drawback of the return on investment performance measure is that it considers both operating and nonoperating income.

Accepted Answer

A) True 
 B)False

Question 13

Unlike ROI,residual income is expressed in dollars.

Accepted Answer

A) True 
 B)False

Question 14

Identify and describe the five different responsibility centers,and provide one example of each.

Accepted Answer

@#LAT-DLM& A responsibility center whose manager i

Question 15

Economic value added is synonymous with shareholder wealth created by an investment center.

Accepted Answer

A) True 
 B)False

Question 16

Use the following performance report for a profit center of Portia Corporation for the month ended December 31 to answer the questions below.  
Using the information provided for Portia Corporation,what was the actual profit center income?

Accepted Answer

A) $10 
B) $6 
C) $4 
D) $54 
A) $10 
B) $6 
C) $4 
D) $54

Question 17

The use of quantitative tools to gauge an organization's performance in relation to a specific goal or an expected outcome is known as

Accepted Answer

A) responsibility accounting. 
B) an asset turnover. 
C) a performance center. 
D) a performance measurement. 
A) responsibility accounting. 
B) an asset turnover. 
C) a performance center. 
D) a performance measurement.

Question 18

While measuring performance,managers must be able to distinguish between what is being measured and the actual measures used to monitor performance and compare results.

Accepted Answer

A) True 
 B)False

Question 19

Why might stock options not be the best way to promote coordination of goals?

Accepted Answer

A) Stock prices can fluctuate quickly. 
B) Many of the variables that affect stock prices are beyond a manager's control. 
C) Employees generally do not value stock options very highly. 
D) None of these choices 
A) Stock prices can fluctuate quickly. 
B) Many of the variables that affect stock prices are beyond a manager's control. 
C) Employees generally do not value stock options very highly. 
D) None of these choices

Question 20

Which of the following types of incentives encourages an employee to think as both investor and employee?

Accepted Answer

A) Profit-sharing plans 
B) Awards 
C) Cash bonuses 
D) Stock option programs 
A) Profit-sharing plans 
B) Awards 
C) Cash bonuses 
D) Stock option programs

Exam 23: Flexible Budgets and Performance Analysis

A performance management and evaluation system is a set of procedures that account for and report on

The alignment of an organization's strategy with all the perspectives of the balanced scorecard results in performance objectives that benefit all stakeholders.

Why is it important that a manager's evaluation be based only on those revenues and costs that he or she can control?

What are some of the limitations of using ROI,residual income,and EVA to measure the performance of investment centers?

Which of the following represents the number of sales dollars generated by each dollar invested in assets?

When developing performance measures,management must consider a number of different issues besides what to measure and how to measure.

A report for a responsibility center includes costs and revenues that are not controlled by a manager.

Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the questions below. -Using the information provided for Dry Cat Food division,what is the direct labor variance between the actual results and the flexible budget?

Which of the following is a common assumption in the balanced scorecard?

How effective a performance management and evaluation system is depends on how well the goals of individual responsibility centers,the entire company,and managers are coordinated.

A performance management and evaluation system is mainly utilized to account for and report on financial performance.

One of the drawback of the return on investment performance measure is that it considers both operating and nonoperating income.

Unlike ROI,residual income is expressed in dollars.

Identify and describe the five different responsibility centers,and provide one example of each.

Economic value added is synonymous with shareholder wealth created by an investment center.

Use the following performance report for a profit center of Portia Corporation for the month ended December 31 to answer the questions below. Using the information provided for Portia Corporation,what was the actual profit center income?

The use of quantitative tools to gauge an organization's performance in relation to a specific goal or an expected outcome is known as

While measuring performance,managers must be able to distinguish between what is being measured and the actual measures used to monitor performance and compare results.

Why might stock options not be the best way to promote coordination of goals?

Which of the following types of incentives encourages an employee to think as both investor and employee?

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

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