Question 1

Double-loop feedback occurs under what conditions?

Accepted Answer

A)  When managers receive information about both the effectiveness of strategy implementation as well as the validity of assumptions. 
B)  When managers receive feedback information from two information sources. 
C)  When managers validate the feedback information by double checking it. 
D)  When managers receive information about the effectiveness of the controls and the effectiveness of the implementation. 
A)  When managers receive information about both the effectiveness of strategy implementation as well as the validity of assumptions. 
B)  When managers receive feedback information from two information sources. 
C)  When managers validate the feedback information by double checking it. 
D)  When managers receive information about the effectiveness of the controls and the effectiveness of the implementation.

Question 2

A strategic-based responsibility accounting system transforms the strategy of a company into operational objectives and measures.

Accepted Answer

A) True 
 B)False

Question 3

At the beginning of 2014, Terrapin Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products:   What is the ideal conversion cost per unit?

Accepted Answer

A)  $1.02 per unit. 
B)  $29.10 per unit. 
C)  $2.00 per unit. 
D)  $32 per unit. 
A)  $1.02 per unit. 
B)  $29.10 per unit. 
C)  $2.00 per unit. 
D)  $32 per unit.

Question 4

Barney's Town is a local clothing store in New York. Barney's Town has been experiencing increased competition from the national clothing chains. In an effort to improve performance, management intends to create a Balanced Scorecard. In a meeting, several measures were suggested by various managers.
Management has identified a key problem. Customers are taking too long to pay their department store's charge card bills, and the company has an abnormal amount of bad debts. If this problem were solved, the company would have far more cash to invest in store improvements. Investigation has revealed that much of the problem with late payments and unpaid bills is apparently due to disputes about incorrect charges on the customer bills. Incorrect charges usually occur because sales clerks enter data incorrectly on the charge account slip.
The performance measures suggested by the managers are given below:
   Required:

Accepted Answer

The answer of Barney's Town is a local clothing store...

Question 5

Mendocino Company would like to increase its operational efficiency. For the first quarter of operations during the current year, the following data were reported:
   Required:

Accepted Answer

The answer of Mendocino Company would like to increase its...

Question 6

On-time delivery performance is calculated as

Accepted Answer

A)  orders delivered on time/total number of orders delivered. 
B)  orders delivered on time/total sales dollars. 
C)  orders delivered on time/total production. 
D)  orders delivered/orders delivered on time. 
A)  orders delivered on time/total number of orders delivered. 
B)  orders delivered on time/total sales dollars. 
C)  orders delivered on time/total production. 
D)  orders delivered/orders delivered on time.

Question 7

The customer perspective defines the customer and market segments in which the business unit will compete.

Accepted Answer

A) True 
 B)False

Question 8

The most common form of strategic-based responsibility accounting system is the worksheet.

Accepted Answer

A) True 
 B)False

Question 9

Montepulciano Industries is planning to change its manufacturing plant by automating and installing a flexible manufacturing system. The company is also changing its performance measures as well as its operating procedures. In an effort to evaluate performance and determine where improvements can be made, management has gathered the following data relating to activities over the last four months:
   Many of these measures are new and the president has asked you to interpret the results. Throughput is the time it takes to turn materials into a completed product. Delivery cycle time is the time between receiving an order and shipping the goods.
Required:
Using the performance measures given, do the following:

Accepted Answer

The answer of Montepulciano Industries is planning to change its...

Question 10

Compensation should be based on performance and paid based on percentage of objective achieved.

Accepted Answer

A) True 
 B)False

Question 11

Stretch targets are

Accepted Answer

A)  aimed at stretching the firm's resources. 
B)  aimed at static standards. 
C)  aimed at transforming the organization within three to five years if achieved. 
D)  aimed at transforming the organization immediately. 
A)  aimed at stretching the firm's resources. 
B)  aimed at static standards. 
C)  aimed at transforming the organization within three to five years if achieved. 
D)  aimed at transforming the organization immediately.

Question 12

The strategy map connects the balanced scorecard strategy with an organization's administration.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT a measure commonly used to evaluate asset utilization?

Accepted Answer

A)  return on investment 
B)  economic value added 
C)  market share 
D)  all of the above 
A)  return on investment 
B)  economic value added 
C)  market share 
D)  all of the above

Question 14

Increasing customer value occurs when

Accepted Answer

A)  the customer receives more benefits. 
B)  the customer perceives a greater gap between benefits and sacrifice. 
C)  customer costs are reduced. 
D)  none of the above. 
A)  the customer receives more benefits. 
B)  the customer perceives a greater gap between benefits and sacrifice. 
C)  customer costs are reduced. 
D)  none of the above.

Question 15

In the Balanced Scorecard system, core objectives and measures

Accepted Answer

A)  are common across all organizations. 
B)  are common across all scorecard perspectives. 
C)  are common across departments. 
D)  none of the above. 
A)  are common across all organizations. 
B)  are common across all scorecard perspectives. 
C)  are common across departments. 
D)  none of the above.

Question 16

How does the Balanced Scorecard communicate strategy to the organization? How is strategy translated into performance measures?

Accepted Answer

Balanced scorecard operationalizes strat

Question 17

In the customer perspective, objectives and measures that drive the creation of customer value are

Accepted Answer

A)  customer survey ratings. 
B)  post-purchase cost. 
C)  on-time deliveries. 
D)  all of the above. 
A)  customer survey ratings. 
B)  post-purchase cost. 
C)  on-time deliveries. 
D)  all of the above.

Question 18

A set of linked objectives aimed at an overall goal is the definition of a __________ strategy.

Accepted Answer

The answer of A set of linked objectives aimed at...

Question 19

The outcome measures that can be readily quantified and verified are called:

Accepted Answer

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

Question 20

Double-loop feedback can be defined as

Accepted Answer

A)  feedback that deals with both the effectiveness of strategy implementation and the validity of the assumptions underlying the strategy. 
B)  feedback that emphasizes the effectiveness of strategy implementation and the costs of implementation. 
C)  feedback that emphasizes the validity and assumptions underlying the strategy and the costs of the strategy. 
D)  feedback on lead indicators and lag indicators. 
A)  feedback that deals with both the effectiveness of strategy implementation and the validity of the assumptions underlying the strategy. 
B)  feedback that emphasizes the effectiveness of strategy implementation and the costs of implementation. 
C)  feedback that emphasizes the validity and assumptions underlying the strategy and the costs of the strategy. 
D)  feedback on lead indicators and lag indicators.

Double-loop feedback occurs under what conditions?

A strategic-based responsibility accounting system transforms the strategy of a company into operational objectives and measures.

At the beginning of 2014, Terrapin Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products: What is the ideal conversion cost per unit?

Mendocino Company would like to increase its operational efficiency. For the first quarter of operations during the current year, the following data were reported: Required:

On-time delivery performance is calculated as

The customer perspective defines the customer and market segments in which the business unit will compete.

The most common form of strategic-based responsibility accounting system is the worksheet.

Compensation should be based on performance and paid based on percentage of objective achieved.

Stretch targets are

The strategy map connects the balanced scorecard strategy with an organization's administration.

Which of the following is NOT a measure commonly used to evaluate asset utilization?

Increasing customer value occurs when

In the Balanced Scorecard system, core objectives and measures

How does the Balanced Scorecard communicate strategy to the organization? How is strategy translated into performance measures?

In the customer perspective, objectives and measures that drive the creation of customer value are

A set of linked objectives aimed at an overall goal is the definition of a __________ strategy.

The outcome measures that can be readily quantified and verified are called:

Double-loop feedback can be defined as

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

Double-loop feedback occurs under what conditions?

A strategic-based responsibility accounting system transforms the strategy of a company into operational objectives and measures.

At the beginning of 2014, Terrapin Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products: What is the ideal conversion cost per unit?

Mendocino Company would like to increase its operational efficiency. For the first quarter of operations during the current year, the following data were reported: Required:

On-time delivery performance is calculated as

The customer perspective defines the customer and market segments in which the business unit will compete.

The most common form of strategic-based responsibility accounting system is the worksheet.

Compensation should be based on performance and paid based on percentage of objective achieved.

Stretch targets are

The strategy map connects the balanced scorecard strategy with an organization's administration.

Which of the following is NOT a measure commonly used to evaluate asset utilization?

Increasing customer value occurs when

In the Balanced Scorecard system, core objectives and measures

How does the Balanced Scorecard communicate strategy to the organization? How is strategy translated into performance measures?

In the customer perspective, objectives and measures that drive the creation of customer value are

A set of linked objectives aimed at an overall goal is the definition of a __________ strategy.

The outcome measures that can be readily quantified and verified are called:

Double-loop feedback can be defined as

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