Question 1

For a firm to have balanced measures, the measures selected must be balanced between

Accepted Answer

A)  lag and lead measures. 
B)  objective and subjective measures. 
C)  financial and nonfinancial measures. 
D)  all of the above. 
A)  lag and lead measures. 
B)  objective and subjective measures. 
C)  financial and nonfinancial measures. 
D)  all of the above.

Question 2

Which of the following is not a strategic theme of the financial perspective?

Accepted Answer

A)  revenue growth 
B)  asset utilization 
C)  employee capability 
D)  risk management 
A)  revenue growth 
B)  asset utilization 
C)  employee capability 
D)  risk management

Question 3

Compare and contrast activity-based measures and strategic-based measures.

Accepted Answer

Activity-based measures are concerned wi

Question 4

Activity-based responsibility and strategic-based responsibility incorporate some of the same elements. However, strategic-based responsibility adds some new elements to the common dimensions. What are the elements in common and what new elements are included?

Accepted Answer

Activity-based responsibility and strate

Question 5

In the financial perspective, economic value added would be an appropriate measure for

Accepted Answer

A)  revenue growth. 
B)  cost reduction. 
C)  improving asset utilization. 
D)  risk management. 
A)  revenue growth. 
B)  cost reduction. 
C)  improving asset utilization. 
D)  risk management.

Question 6

The targets aimed at transforming the organization within a period of 3 to 5 years are called __________ targets.

Accepted Answer

The answer of The targets aimed at transforming the organization...

Question 7

Which of the following statements is true regarding lag measures?

Accepted Answer

A)  lag measures are measures that relate to customers 
B)  lag measures are factors that drive future performance 
C)  lag measures are performance drivers 
D)  lag measures include measures such as customer profitability 
A)  lag measures are measures that relate to customers 
B)  lag measures are factors that drive future performance 
C)  lag measures are performance drivers 
D)  lag measures include measures such as customer profitability

Question 8

The following measures belong to one of four perspectives on the balanced scorecard:
1 Return on investment
2 Time to market
3 Number of new customers
4 Percentage of revenues from new sources
5 Quality costs
6 Employee productivity
Required:
a. Identify the perspective appropriate for each measure listed above.
b. Suggest a possible strategic objective that might be associated with each measure.

Accepted Answer

a. 1 Return on investment -- financial
2

Question 9

Which of the following is a perspective of strategic-based responsibility accounting but is NOT a perspective of activity-based responsibility accounting?

Accepted Answer

A)  financial perspective 
B)  process perspective 
C)  customer perspective 
D)  all of the above 
A)  financial perspective 
B)  process perspective 
C)  customer perspective 
D)  all of the above

Question 10

Strategy translation means specifying objectives and percentage of revenues from sale of products.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is NOT a condition that must be present for a strategy to become attainable?

Accepted Answer

A)  budgetary process must provide the resources necessary to carry out the initiatives 
B)  resources must be allocated to strategic initiatives 
C)  the organization must decide how much of the strategic targets will be achieved for the coming year 
D)  all are conditions that must be met for strategy to become actionable 
A)  budgetary process must provide the resources necessary to carry out the initiatives 
B)  resources must be allocated to strategic initiatives 
C)  the organization must decide how much of the strategic targets will be achieved for the coming year 
D)  all are conditions that must be met for strategy to become actionable

Question 12

Articulation of the balanced scorecard should not be made to individuals within the organization.

Accepted Answer

A) True 
 B)False

Question 13

Performance measures are derived from a company's vision, strategy, and objectives.

Accepted Answer

A) True 
 B)False

Question 14

In a strategic-based responsibility accounting system, stretch targets are established for individual performance measures.

Accepted Answer

A) True 
 B)False

Question 15

Outcome measures that are a result of past efforts are called __________ measures.

Accepted Answer

The answer of Outcome measures that are a result of...

Question 16

Cycle time is

Accepted Answer

A)  the time it takes to collect the account after the sale. 
B)  the time it takes to turn inventory over. 
C)  the time it takes to deliver the product after it is sold. 
D)  the time it takes to produce one unit of product. 
A)  the time it takes to collect the account after the sale. 
B)  the time it takes to turn inventory over. 
C)  the time it takes to deliver the product after it is sold. 
D)  the time it takes to produce one unit of product.

Question 17

From the customer perspective, which of the following might be an appropriate measure for improving product quality?

Accepted Answer

A)  customer profitability 
B)  cost per customer 
C)  percentage of returns 
D)  number of patents pending 
A)  customer profitability 
B)  cost per customer 
C)  percentage of returns 
D)  number of patents pending

Question 18

The outcome measures that are a result of past efforts are called:

Accepted Answer

A)  Objective measures 
B)  External measures 
C)  Lag measures 
D)  Financial measures 
A)  Objective measures 
B)  External measures 
C)  Lag measures 
D)  Financial measures

Question 19

Activity-based responsibility accounting employs dynamic standards and emphasizes and supports continuous improvement.

Accepted Answer

A) True 
 B)False

Question 20

Communicating strategy through measurements requires both scope and flexibility. Which of the following statements is true?

Accepted Answer

A)  Flexibility requires subjective and objective measurement as well as nonfinancial measures. 
B)  Flexibility requires that measures be optimal and dynamic. 
C)  Scope implies that internal and external measures are needed. 
D)  Both a and c are true. 
A)  Flexibility requires subjective and objective measurement as well as nonfinancial measures. 
B)  Flexibility requires that measures be optimal and dynamic. 
C)  Scope implies that internal and external measures are needed. 
D)  Both a and c are true.

For a firm to have balanced measures, the measures selected must be balanced between

Which of the following is not a strategic theme of the financial perspective?

Compare and contrast activity-based measures and strategic-based measures.

Activity-based responsibility and strategic-based responsibility incorporate some of the same elements. However, strategic-based responsibility adds some new elements to the common dimensions. What are the elements in common and what new elements are included?

In the financial perspective, economic value added would be an appropriate measure for

The targets aimed at transforming the organization within a period of 3 to 5 years are called __________ targets.

Which of the following statements is true regarding lag measures?

Which of the following is a perspective of strategic-based responsibility accounting but is NOT a perspective of activity-based responsibility accounting?

Strategy translation means specifying objectives and percentage of revenues from sale of products.

Which of the following is NOT a condition that must be present for a strategy to become attainable?

Articulation of the balanced scorecard should not be made to individuals within the organization.

Performance measures are derived from a company's vision, strategy, and objectives.

In a strategic-based responsibility accounting system, stretch targets are established for individual performance measures.

Outcome measures that are a result of past efforts are called __________ measures.

Cycle time is

From the customer perspective, which of the following might be an appropriate measure for improving product quality?

The outcome measures that are a result of past efforts are called:

Activity-based responsibility accounting employs dynamic standards and emphasizes and supports continuous improvement.

Communicating strategy through measurements requires both scope and flexibility. Which of the following statements is true?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 13: The Balanced Scorecard: Strategic-Based Control

For a firm to have balanced measures, the measures selected must be balanced between

Which of the following is not a strategic theme of the financial perspective?

Compare and contrast activity-based measures and strategic-based measures.

Activity-based responsibility and strategic-based responsibility incorporate some of the same elements. However, strategic-based responsibility adds some new elements to the common dimensions. What are the elements in common and what new elements are included?

In the financial perspective, economic value added would be an appropriate measure for

The targets aimed at transforming the organization within a period of 3 to 5 years are called __________ targets.

Which of the following statements is true regarding lag measures?

Which of the following is a perspective of strategic-based responsibility accounting but is NOT a perspective of activity-based responsibility accounting?

Strategy translation means specifying objectives and percentage of revenues from sale of products.

Which of the following is NOT a condition that must be present for a strategy to become attainable?

Articulation of the balanced scorecard should not be made to individuals within the organization.

Performance measures are derived from a company's vision, strategy, and objectives.

In a strategic-based responsibility accounting system, stretch targets are established for individual performance measures.

Outcome measures that are a result of past efforts are called __________ measures.

Cycle time is

From the customer perspective, which of the following might be an appropriate measure for improving product quality?

The outcome measures that are a result of past efforts are called:

Activity-based responsibility accounting employs dynamic standards and emphasizes and supports continuous improvement.

Communicating strategy through measurements requires both scope and flexibility. Which of the following statements is true?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters