Question 1

________ performance measures are often ________ indicators that arrive too late to prevent problems in organizations.

Accepted Answer

A)  Nonfinancial; leading 
B)  Nonfinancial; lagging 
C)  Financial; leading 
D)  Financial; lagging 
A)  Nonfinancial; leading 
B)  Nonfinancial; lagging 
C)  Financial; leading 
D)  Financial; lagging

Question 2

Which of the following statements about performance measures is FALSE?

Accepted Answer

A)  Organizational goals without performance measures do not motivate managers. 
B)  Every performance measure used to evaluate employees should be consistent with organizational goals. 
C)  An ideal management control system should include at least one performance measure related to every goal. 
D)  Performance measures become more specific at higher levels of the organization. 
A)  Organizational goals without performance measures do not motivate managers. 
B)  Every performance measure used to evaluate employees should be consistent with organizational goals. 
C)  An ideal management control system should include at least one performance measure related to every goal. 
D)  Performance measures become more specific at higher levels of the organization.

Question 3

The ________ chart is the statistical plot of measures of various product quality dimensions or attributes.

Accepted Answer

A)  cycle-time 
B)  productivity-control 
C)  quality-control 
D)  throughput-time 
A)  cycle-time 
B)  productivity-control 
C)  quality-control 
D)  throughput-time

Question 4

Good performance measures should only focus on long-term concerns.

Accepted Answer

A) True 
 B)False

Question 5

To design a management control system that meets an organization's needs,managers must identify what motivates employees,________ and ________.

Accepted Answer

A)  develop performance measures based on these employee motivators; establish a monitoring and reporting structure for the performance measures 
B)  develop performance measures to encourage managerial effort; establish a monitoring and reporting structure for productivity 
C)  develop performance measures that meet organizational objectives; establish an accounting system to measure productivity 
D)  develop performance measures based on goal congruence; establish an accounting system to measure goal congruence 
A)  develop performance measures based on these employee motivators; establish a monitoring and reporting structure for the performance measures 
B)  develop performance measures to encourage managerial effort; establish a monitoring and reporting structure for productivity 
C)  develop performance measures that meet organizational objectives; establish an accounting system to measure productivity 
D)  develop performance measures based on goal congruence; establish an accounting system to measure goal congruence

Question 6

Responsibility centers usually have a single goal that the management control system monitors.

Accepted Answer

A) True 
 B)False

Question 7

Decreasing cycle time ________.

Accepted Answer

A)  results in a lower-quality product 
B)  creates reduced flexibility in the production process 
C)  results in slower reactions to customer requests 
D)  requires smooth-running processes 
A)  results in a lower-quality product 
B)  creates reduced flexibility in the production process 
C)  results in slower reactions to customer requests 
D)  requires smooth-running processes

Question 8

An alternative term for cycle time is ________ time.

Accepted Answer

A)  productivity 
B)  manufacturing 
C)  throughput 
D)  production 
A)  productivity 
B)  manufacturing 
C)  throughput 
D)  production

Question 9

In a(n)________ center,managers are responsible for costs only.

Accepted Answer

A)  profit 
B)  cost 
C)  investment 
D)  accounting 
A)  profit 
B)  cost 
C)  investment 
D)  accounting

Question 10

Lower cycle times often lead to ________ quality products and ________ defect rates.

Accepted Answer

A)  lower; lower 
B)  lower; higher 
C)  higher; higher 
D)  higher; lower 
A)  lower; lower 
B)  lower; higher 
C)  higher; higher 
D)  higher; lower

Question 11

Wendell 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 $25,000.What is the contribution by Division C?

Accepted Answer

A)  $2,500 
B)  $27,500 
C)  $35,000 
D)  $210,000 
A)  $2,500 
B)  $27,500 
C)  $35,000 
D)  $210,000

Question 12

The Gregory Company provided the following information:
 $\begin{array}{llll}&\text { Whole } & \text { Uttice } & \text { Factory } \
&\text { Company } & \text { Division } & \text { Division }\
\text { Net sales } & \$ 99,000 & \$ 66,000 & \$ 33,000 \
\text { Fixed costs controllable by div. managers } & 16,000 & 10,000 & 6,000 \
\text { Fixed costs controllable by others } & 10,000 & 5,000 & 5,000
\end{array}$ 
Variable costs:
 $\begin{array} { l  }
 \text {Cost of merchandise sold  }&38,000&22,000&16,000 \
 \text {Operating expenses }&8,000&5,000&3,000 \
 \text {Unallocated costs }&6,000 \
\end{array}$
 
Required:
Prepare a contribution approach income statement for the whole company and for each division.

Accepted Answer

The answer of The Gregory Company provided the following information:
...

Question 13

Financial performance measures are usually not included in a balanced scorecard.

Accepted Answer

A) True 
 B)False

Question 14

A key driver of performance is the culture within the organization that fosters continual learning and growth.

Accepted Answer

A) True 
 B)False

Question 15

Planning in the management control system does NOT include ________.

Accepted Answer

A)  defining goals 
B)  establishing plans to achieve goals 
C)  carrying out plans to achieve goals 
D)  measuring performance measures 
A)  defining goals 
B)  establishing plans to achieve goals 
C)  carrying out plans to achieve goals 
D)  measuring performance measures

Question 16

When evaluating a segment manager,unallocated costs usually include central corporate costs.

Accepted Answer

A) True 
 B)False

Question 17

When preparing segmented income statements,unallocated costs include ________.

Accepted Answer

A)  costs controlled by others(not segment managers) 
B)  central corporate costs 
C)  costs controllable by segment managers 
D)  costs traced to segments 
A)  costs controlled by others(not segment managers) 
B)  central corporate costs 
C)  costs controllable by segment managers 
D)  costs traced to segments

Question 18

An example of a nonfinancial goal is ________.

Accepted Answer

A)  increase customer satisfaction 
B)  increase profits 
C)  increase segment margin 
D)  increase required return on investment 
A)  increase customer satisfaction 
B)  increase profits 
C)  increase segment margin 
D)  increase required return on investment

Question 19

Organizational learning may be monitored by measuring employee turnover.

Accepted Answer

A) True 
 B)False

Question 20

________ is the drive for some selected goal that creates effort and action toward that goal.

Accepted Answer

A)  Goal congruence 
B)  Managerial effort 
C)  Motivation 
D)  Personal rewards 
A)  Goal congruence 
B)  Managerial effort 
C)  Motivation 
D)  Personal rewards

performance measures are often indicators that arrive too late to prevent problems in organizations.

Which of the following statements about performance measures is FALSE?

The ________ chart is the statistical plot of measures of various product quality dimensions or attributes.

Good performance measures should only focus on long-term concerns.

To design a management control system that meets an organization's needs,managers must identify what motivates employees, and .

Responsibility centers usually have a single goal that the management control system monitors.

Decreasing cycle time ________.

An alternative term for cycle time is ________ time.

In a(n)________ center,managers are responsible for costs only.

Lower cycle times often lead to quality products and defect rates.

Financial performance measures are usually not included in a balanced scorecard.

A key driver of performance is the culture within the organization that fosters continual learning and growth.

Planning in the management control system does NOT include ________.

When evaluating a segment manager,unallocated costs usually include central corporate costs.

When preparing segmented income statements,unallocated costs include ________.

An example of a nonfinancial goal is ________.

Organizational learning may be monitored by measuring employee turnover.

________ is the drive for some selected goal that creates effort and action toward that goal.

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

________ performance measures are often ________ indicators that arrive too late to prevent problems in organizations.

Which of the following statements about performance measures is FALSE?

The ________ chart is the statistical plot of measures of various product quality dimensions or attributes.

Good performance measures should only focus on long-term concerns.

To design a management control system that meets an organization's needs,managers must identify what motivates employees,________ and ________.

Responsibility centers usually have a single goal that the management control system monitors.

Decreasing cycle time ________.

An alternative term for cycle time is ________ time.

In a(n)________ center,managers are responsible for costs only.

Lower cycle times often lead to ________ quality products and ________ defect rates.

Financial performance measures are usually not included in a balanced scorecard.

A key driver of performance is the culture within the organization that fosters continual learning and growth.

Planning in the management control system does NOT include ________.

When evaluating a segment manager,unallocated costs usually include central corporate costs.

When preparing segmented income statements,unallocated costs include ________.

An example of a nonfinancial goal is ________.

Organizational learning may be monitored by measuring employee turnover.

________ is the drive for some selected goal that creates effort and action toward that goal.

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

performance measures are often indicators that arrive too late to prevent problems in organizations.

To design a management control system that meets an organization's needs,managers must identify what motivates employees, and .

Lower cycle times often lead to quality products and defect rates.