Question 1

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 2

Mendocino Company would like to increase its operational efficiency. For the first quarter of operations during the current year, the following data were reported:
   
a. Compute the manufacturing cycle efficiency (MCE) for the quarter.
b. If by use of JIT all wait time during production is eliminated, what will be the new MCE? (round to two decimal places if necessary)

Accepted Answer

a. MCE = 3.9/(3.9 +

Question 3

Which type of responsibility accounting addresses directed continuous improvement in environments that consist of competitive conditions and dynamic change?

Accepted Answer

A)  activity-based responsibility accounting 
B)  functional-based responsibility accounting 
C)  process-based responsibility accounting 
D)  strategic-based responsibility accounting 
A)  activity-based responsibility accounting 
B)  functional-based responsibility accounting 
C)  process-based responsibility accounting 
D)  strategic-based responsibility accounting

Question 4

To link measures to a strategy, they must be derived from management and be balanced.

Accepted Answer

A) True 
 B)False

Question 5

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 6

In a balanced scorecard, performance expectations are communicated by setting .

Accepted Answer

The answer of In a balanced scorecard, performance expectations are...

Question 7

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 8

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 9

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 10

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 11

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 12

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 13

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 14

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 15

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 16

The outcome measures that relate to customers 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 17

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.

Question 18

Tavarek Industries has the theoretical capability to produce 127,500 units per month but currently produces 102,000 units. The conversion cost for the month is $3,750,000. There are 8,500 production hours available within the plant per month. In addition to processing time, to produce a unit takes 15 minutes of move time and 10 minutes of wait time.
Required:
1. Compute the theoretical and actual velocities per hour
2. Compute the theoretical and actual cycle times (minutes per unit produced)
3. Compute the current MCE

Accepted Answer

1. Theoretical velocity = Theoretical ca

Question 19

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 20

The balanced scorecard is a strategic-based performance management system that identifies four perspectives.

Accepted Answer

A) True 
 B)False

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

Which type of responsibility accounting addresses directed continuous improvement in environments that consist of competitive conditions and dynamic change?

To link measures to a strategy, they must be derived from management and be balanced.

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

In a balanced scorecard, performance expectations are communicated by setting .

Double-loop feedback occurs under what conditions?

Lead measures are critical to strategy because

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

Objectives for increasing revenue growth include

Which of the following features make stretch targets feasible?

Which of the following would be an external measure?

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

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?

Which of the following would NOT be an objective measure?

The outcome measures that relate to customers are called:

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

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

The balanced scorecard is a strategic-based performance management system that identifies four perspectives.

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

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

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

Which type of responsibility accounting addresses directed continuous improvement in environments that consist of competitive conditions and dynamic change?

To link measures to a strategy, they must be derived from management and be balanced.

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

In a balanced scorecard, performance expectations are communicated by setting .

Double-loop feedback occurs under what conditions?

Lead measures are critical to strategy because

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

Objectives for increasing revenue growth include

Which of the following features make stretch targets feasible?

Which of the following would be an external measure?

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

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?

Which of the following would NOT be an objective measure?

The outcome measures that relate to customers are called:

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

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

The balanced scorecard is a strategic-based performance management system that identifies four perspectives.

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

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