Question 1

Objectives for increasing revenue growth include

Accepted Answer

A)  adopting a new pricing strategy. 
B)  reducing the cost per unit. 
C)  eliminating non-value-added activities. 
D)  reducing distribution channel cost. 
A)  adopting a new pricing strategy. 
B)  reducing the cost per unit. 
C)  eliminating non-value-added activities. 
D)  reducing distribution channel cost.

Question 2

For strategic alignment, incentive compensation should be based on __________ performance, compared to target values.

Accepted Answer

The answer of For strategic alignment, incentive compensation should be...

Question 3

Which of the following would NOT be an objective measure?

Accepted Answer

A)  customer profitability 
B)  employee capabilities 
C)  return on investment 
D)  cost per unit 
A)  customer profitability 
B)  employee capabilities 
C)  return on investment 
D)  cost per unit

Question 4

Which of the following is NOT an advantage of strategic-based responsibility accounting?

Accepted Answer

A)  It includes perspectives that serve as a source of competitive advantage. 
B)  Responsibility is centralized within the organization. 
C)  Change efforts are directed by the mission and strategy. 
D)  All are advantages of strategic-based responsibility accounting. 
A)  It includes perspectives that serve as a source of competitive advantage. 
B)  Responsibility is centralized within the organization. 
C)  Change efforts are directed by the mission and strategy. 
D)  All are advantages of strategic-based responsibility accounting.

Question 5

Activity-based responsibility accounting adds which of the following to the financial-based responsibility accounting perspective?

Accepted Answer

A)  consumer perspective 
B)  functional perspective 
C)  process perspective 
D)  learning perspective 
A)  consumer perspective 
B)  functional perspective 
C)  process perspective 
D)  learning perspective

Question 6

Which of the following would be a lead measure?

Accepted Answer

A)  customer profitability 
B)  cost per employee 
C)  return on investment 
D)  employee training hours 
A)  customer profitability 
B)  cost per employee 
C)  return on investment 
D)  employee training hours

Question 7

Which of the following statements comparing activity-based performance and strategic-based performance evaluation is NOT true?

Accepted Answer

A)  Strategic-based performance evaluation expands the set of metrics. 
B)  Only strategic-based performance evaluation leads to cost reductions. 
C)  Only strategic-based performance standards set stretch targets for all four perspectives. 
D)  Both systems encourage quality improvements. 
A)  Strategic-based performance evaluation expands the set of metrics. 
B)  Only strategic-based performance evaluation leads to cost reductions. 
C)  Only strategic-based performance standards set stretch targets for all four perspectives. 
D)  Both systems encourage quality improvements.

Question 8

Lead measures

Accepted Answer

A)  are the measures with the highest priority. 
B)  are generic to different strategies. 
C)  are based on performance drivers. 
D)  represent the desired outcomes. 
A)  are the measures with the highest priority. 
B)  are generic to different strategies. 
C)  are based on performance drivers. 
D)  represent the desired outcomes.

Question 9

The following measures belong to one of four perspectives on the balanced scorecard:
1 Satisfaction of customer
2 Satisfaction of employees
3 Cycle time
4 Product cost per unit
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 Satisfaction of customer -- custome

Question 10

Lead measures are critical to strategy because

Accepted Answer

A)  they are based on actual activity. 
B)  they are an independent part of the system. 
C)  there should be a causal linkage with strategy. 
D)  they are outcome measures. 
A)  they are based on actual activity. 
B)  they are an independent part of the system. 
C)  there should be a causal linkage with strategy. 
D)  they are outcome measures.

Question 11

Which feature is related solely to strategic-based responsibility and not to activity-based responsibility?

Accepted Answer

A)  financial perspective 
B)  process perspective 
C)  team accountability 
D)  customer perspective 
A)  financial perspective 
B)  process perspective 
C)  team accountability 
D)  customer perspective

Question 12

Directed continuous improvement is accomplished by linking initiatives to

Accepted Answer

A)  processes. 
B)  strategy and mission. 
C)  financial outcomes. 
D)  measures. 
A)  processes. 
B)  strategy and mission. 
C)  financial outcomes. 
D)  measures.

Question 13

Which of the following might be a measure of employee motivation, empowerment, and alignment?

Accepted Answer

A)  process efficiency 
B)  suggestions per employee 
C)  customer satisfaction 
D)  units product cost 
A)  process efficiency 
B)  suggestions per employee 
C)  customer satisfaction 
D)  units product cost

Question 14

A competitive environment means that organizations will be

Accepted Answer

A)  producing increasingly high-volume, low-variety products and services. 
B)  focused internally on efficiency. 
C)  managing cause and effect linkages to customer satisfaction. 
D)  viewing their actions independent of competitors, suppliers, and customers. 
A)  producing increasingly high-volume, low-variety products and services. 
B)  focused internally on efficiency. 
C)  managing cause and effect linkages to customer satisfaction. 
D)  viewing their actions independent of competitors, suppliers, and customers.

Question 15

Which of the following would be an external measure?

Accepted Answer

A)  return on investments 
B)  employee satisfaction 
C)  process efficiency 
D)  all of the above 
A)  return on investments 
B)  employee satisfaction 
C)  process efficiency 
D)  all of the above

Question 16

A manufacturing cell has the theoretical capability of producing 40,000 microchips per quarter. The conversion cost per quarter is $25,000. There are 4,000 production hours available within the cell per quarter. The theoretical cycle time per unit in minutes is

Accepted Answer

A)  0.625 minutes. 
B)  6.000 minutes. 
C)  8.400 minutes. 
D)  37.500 minutes. 
A)  0.625 minutes. 
B)  6.000 minutes. 
C)  8.400 minutes. 
D)  37.500 minutes.

Question 17

A strategy map

Accepted Answer

A)  links the cause-and-effect relationships in the proposed strategy, creating a testable strategy. 
B)  maps the organization's strategies over time. 
C)  documents the performance results of an organization. 
D)  strategizes about the organization's competitors. 
A)  links the cause-and-effect relationships in the proposed strategy, creating a testable strategy. 
B)  maps the organization's strategies over time. 
C)  documents the performance results of an organization. 
D)  strategizes about the organization's competitors.

Question 18

Which of the following features make stretch targets feasible?

Accepted Answer

A)  The targets are set in isolation by top management. 
B)  The measures are linked by causal relationships. 
C)  The measures are based on currently attainable standard costs. 
D)  The targets are set at desired levels for twenty years to ensure long-term performance. 
A)  The targets are set in isolation by top management. 
B)  The measures are linked by causal relationships. 
C)  The measures are based on currently attainable standard costs. 
D)  The targets are set at desired levels for twenty years to ensure long-term performance.

Question 19

What are the two additional perspectives that are added to the activity-based approach to achieve strategic-based responsibility?

Accepted Answer

A)  a customer perspective and a learning and growth perspective 
B)  an infrastructure perspective and a process perspective 
C)  a customer perspective and a financial perspective 
D)  a financial perspective and a process perspective 
A)  a customer perspective and a learning and growth perspective 
B)  an infrastructure perspective and a process perspective 
C)  a customer perspective and a financial perspective 
D)  a financial perspective and a process perspective

Question 20

Performance expectations are communicated by setting

Accepted Answer

A)  new initiatives. 
B)  targets. 
C)  a strategic vision. 
D)  activity measures. 
A)  new initiatives. 
B)  targets. 
C)  a strategic vision. 
D)  activity measures.

Objectives for increasing revenue growth include

For strategic alignment, incentive compensation should be based on __________ performance, compared to target values.

Which of the following would NOT be an objective measure?

Which of the following is NOT an advantage of strategic-based responsibility accounting?

Activity-based responsibility accounting adds which of the following to the financial-based responsibility accounting perspective?

Which of the following would be a lead measure?

Which of the following statements comparing activity-based performance and strategic-based performance evaluation is NOT true?

Lead measures

Lead measures are critical to strategy because

Which feature is related solely to strategic-based responsibility and not to activity-based responsibility?

Directed continuous improvement is accomplished by linking initiatives to

Which of the following might be a measure of employee motivation, empowerment, and alignment?

A competitive environment means that organizations will be

Which of the following would be an external measure?

A manufacturing cell has the theoretical capability of producing 40,000 microchips per quarter. The conversion cost per quarter is $25,000. There are 4,000 production hours available within the cell per quarter. The theoretical cycle time per unit in minutes is

A strategy map

Which of the following features make stretch targets feasible?

What are the two additional perspectives that are added to the activity-based approach to achieve strategic-based responsibility?

Performance expectations are communicated by setting

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

Objectives for increasing revenue growth include

For strategic alignment, incentive compensation should be based on __________ performance, compared to target values.

Which of the following would NOT be an objective measure?

Which of the following is NOT an advantage of strategic-based responsibility accounting?

Activity-based responsibility accounting adds which of the following to the financial-based responsibility accounting perspective?

Which of the following would be a lead measure?

Which of the following statements comparing activity-based performance and strategic-based performance evaluation is NOT true?

Lead measures

Lead measures are critical to strategy because

Which feature is related solely to strategic-based responsibility and not to activity-based responsibility?

Directed continuous improvement is accomplished by linking initiatives to

Which of the following might be a measure of employee motivation, empowerment, and alignment?

A competitive environment means that organizations will be

Which of the following would be an external measure?

A manufacturing cell has the theoretical capability of producing 40,000 microchips per quarter. The conversion cost per quarter is $25,000. There are 4,000 production hours available within the cell per quarter. The theoretical cycle time per unit in minutes is

A strategy map

Which of the following features make stretch targets feasible?

What are the two additional perspectives that are added to the activity-based approach to achieve strategic-based responsibility?

Performance expectations are communicated by setting

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