Question 1

What is the role of accounting in formulating strategy?

Accepted Answer

A) quantifying opportunities and threats 
B) preparing budgets 
C) making estimates of costs and benefits of various alternatives 
D) all of the above 
A) quantifying opportunities and threats 
B) preparing budgets 
C) making estimates of costs and benefits of various alternatives 
D) all of the above

Question 2

Which of the following statements is true about performance evaluation in a multinational organization?

Accepted Answer

A) A division that is performing poorly indicates that the manager of that division has performed poorly. 
B) Good performance by a division indicates that its manager has been performing to expectations. 
C) Divisional performance is the same as managerial performance. 
D) None of the above is true. 
A) A division that is performing poorly indicates that the manager of that division has performed poorly. 
B) Good performance by a division indicates that its manager has been performing to expectations. 
C) Divisional performance is the same as managerial performance. 
D) None of the above is true.

Question 3

Which of the following is NOT a perspective under the balanced scorecard approach?

Accepted Answer

A) parent company perspective 
B) internal business perspective 
C) customer perspective 
D) financial perspective 
A) parent company perspective 
B) internal business perspective 
C) customer perspective 
D) financial perspective

Question 4

Which of the following calculations will yield return on investment (ROI)?

Accepted Answer

A) annual net income/book value of investment 
B) average annual net income/book value of investment 
C) average annual net income/present value of investment 
D) book value of investment/annual net income 
A) annual net income/book value of investment 
B) average annual net income/book value of investment 
C) average annual net income/present value of investment 
D) book value of investment/annual net income

Question 5

MSM Ltd has a strategy of being the first to market with new products and so it measures the number of new products introduced each year. Where does this measure fit in the balanced scorecard?

Accepted Answer

A) financial perspective 
B) customer perspective 
C) internal business process perspective 
D) innovation and learning perspective 
A) financial perspective 
B) customer perspective 
C) internal business process perspective 
D) innovation and learning perspective

Question 6

The Squeaky Division of Household Products Corporation showed a net loss of £5,000,000 last year,but Squeaky's manager received a bonus for outstanding performance. Why would Household Products' management control system appropriately allow for this apparent inconsistency?

Accepted Answer

A) Economic factors outside the manager's control caused the loss. 
B) Household Products' management control system is ineffective. 
C) The bonus represents a payoff to Squeaky's manager to keep her quiet about the loss. 
D) The loss was due to controllable factors. 
A) Economic factors outside the manager's control caused the loss. 
B) Household Products' management control system is ineffective. 
C) The bonus represents a payoff to Squeaky's manager to keep her quiet about the loss. 
D) The loss was due to controllable factors.

Question 7

The balanced scorecard includes non-financial measures of performance with the financial measures of performance traditionally used. Which of the following are included in the balanced scorecard?

Accepted Answer

A) customer satisfaction 
B) internal business processes 
C) innovation and learning 
D) all of the above 
A) customer satisfaction 
B) internal business processes 
C) innovation and learning 
D) all of the above

What is the role of accounting in formulating strategy?

Which of the following statements is true about performance evaluation in a multinational organization?

Which of the following is NOT a perspective under the balanced scorecard approach?

Which of the following calculations will yield return on investment (ROI)?

MSM Ltd has a strategy of being the first to market with new products and so it measures the number of new products introduced each year. Where does this measure fit in the balanced scorecard?

The Squeaky Division of Household Products Corporation showed a net loss of £5,000,000 last year,but Squeaky's manager received a bonus for outstanding performance. Why would Household Products' management control system appropriately allow for this apparent inconsistency?

The balanced scorecard includes non-financial measures of performance with the financial measures of performance traditionally used. Which of the following are included in the balanced scorecard?

Introduction to International Accounting

Worldwide Accounting Diversity

International Convergence of Financial Reporting

International Financial Reporting Standards: Part I

International Financial Reporting Standards: Part II

Comparative Accounting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Additional Financial Reporting Issues

Analysis of Foreign Financial Statements

International Taxation

International Transfer Pricing

Comparative International Auditing and Corporate Governance

International Corporate Social Reporting

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Exam 13: Strategic Accounting Issues in Multinational Corporations

What is the role of accounting in formulating strategy?

Which of the following statements is true about performance evaluation in a multinational organization?

Which of the following is NOT a perspective under the balanced scorecard approach?

Which of the following calculations will yield return on investment (ROI)?

MSM Ltd has a strategy of being the first to market with new products and so it measures the number of new products introduced each year. Where does this measure fit in the balanced scorecard?

The Squeaky Division of Household Products Corporation showed a net loss of £5,000,000 last year,but Squeaky's manager received a bonus for outstanding performance. Why would Household Products' management control system appropriately allow for this apparent inconsistency?

The balanced scorecard includes non-financial measures of performance with the financial measures of performance traditionally used. Which of the following are included in the balanced scorecard?

Introduction to International Accounting

Worldwide Accounting Diversity

International Convergence of Financial Reporting

International Financial Reporting Standards: Part I

International Financial Reporting Standards: Part II

Comparative Accounting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Additional Financial Reporting Issues

Analysis of Foreign Financial Statements

International Taxation

International Transfer Pricing

Comparative International Auditing and Corporate Governance

International Corporate Social Reporting

Filters