Cost Accounting, 14e, Test Bank Ch23
Cost Accounting )
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,Cost Accounting, 14e, Globa Edition (Horngren/Datar/Rajan) F
Chapter 23 Performance Measurement, Compensation, and Multinationa Considerations F
Objective 23.1
1) A report that measures financial and nonfinancial performance measures for various organization
F F F F F F F F F
units in a single report is called a(n):
F F F F F F F
A) balanced scorecard F
B) financial report scorecard F F
C) imbalanced scorecard F
D) unbalanced scorecard F F
Answer: A F
Diff: 1
F
Terms: Balanced Scorecard
F F F
Objective: 1 F
AACSB: Reflective thinking
F F
2) Customer-satisfaction measures are an example of the: F F F F F F
A) goal-congruence approach F
B) balanced scorecard approach F F
C) financial report scorecard approach
F F F
D) investment success approach F F F
Answer: B F
Diff: 1
F
Terms: Balanced Scorecard
F F F
Objective: 1 F
AACSB: Reflective thinking
F F
3) An example of a performance measure with a long-run time horizon is:
F F F F F F F F F F F
A) direct materials efficiency variances
F F F
B) overhead spending variances F F
C) number of new patents developed
F F F F
D) All of these answers are correct.
F F F F F F
Answer: C F
Diff: 2
F
Terms: Balanced Scorecard
F F F
Objective: 1 F
AACSB: Reflective thinking
F F
1
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F F F F
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,4) Does operating income best measure a subunit's financial performance? This question is considered
F F F F F F F F F F F F F
part of which step in designing an accounting-based performance measure?
F F F F F F F F F
A) Choose performance measures that align with top management's financial goals.
F F F F F F F F F
B) Choose the time horizon of each performance measure.
F F F F F F F
C) Choose a definition for each performance measure.
F F F F F F
D) Choose a measurement alternative for each performance measure.
F F F F F F F F
Answer: A F
Diff: 2 F
Terms: Balanced Scorecard
F F F
Objective: 1 F
AACSB: Reflective thinking F F
5) Should assets be defined as total assets or net assets? This question is considered part of which step in
F F F F F F F F F F F F F F F F F F F
designing an accounting-based performance measure?
F F F F
A) Choose performance measures that align with top management's financial goals.
F F F F F F F F F
B) Choose the time horizon of each performance measure.
F F F F F F F
C) Choose a definition for each performance measure.
F F F F F F
D) Choose a measurement alternative for each performance measure.
F F F F F F F F
Answer: C F
Diff: 2 F
Terms: return on investment (ROI)
F F F F F
Objective: 1 F
AACSB: Reflective thinking F F
6) Should assets be measured at historical cost or current cost? This question is considered part of which
F F F F F F F F F F F F F F F F F
step in designing an accounting-based performance measure?
F F F F F F
A) Choose performance measures that align with top management's financial goals.
F F F F F F F F F
B) Choose the time horizon of each performance measure.
F F F F F F F
C) Choose a definition for each performance measure.
F F F F F F
D) Choose a measurement alternative for each performance measure.
F F F F F F F F
Answer: D F
Diff: 2 F
Terms: current cost, return on investment (ROI)
F F F F F F F
Objective: 1 F
AACSB: Reflective thinking F F
7) Which of the following statements about designing an accounting-based performance measure is
F F F F F F F F F F F F
FALSE?
A) The steps may be followed in a random order.
F F F F F F F F
B) The issues considered in each step are independent.
F F F F F F F
C) Management's beliefs are present during the analyses. F F F F F F
D) Behavioral criteria are important when evaluating the steps.
F F F F F F F F
Answer: B F
Diff: 2 F
Terms: Balanced Scorecard
F F F
Objective: 1 F
AACSB: Reflective thinking F F
2
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, 8) Many common performance measures, such as customer satisfaction, rely on internal financial
F F F F F F F F F F F F
accounting information. F
Answer: FALSE F
Explanation: Customer satisfaction would be obtained by surveys that are not in the financial
F F F F F F F F F F F F F F
accounting records. F
Diff: 1
F
Terms: Balanced Scorecard
F F F
Objective: 1 F
AACSB: Analytical skills
F F
9) Some companies present financial and nonfinancial performance measures for various organization
F F F F F F F F F F F
units in a single report called the "balanced scorecard."
F F F F F F F F
Answer: TRUE F F
Diff: 1
F
Terms: Balanced Scorecard
F F F
Objective: 1 F
AACSB: Analytical skills
F F
10) The "balanced scorecard" in most organizations is broken down into the following categories:
F F F F F F F F F F F F F
financial perspective, customer perspective, internal business-process perspective, and productivity
F F F F F F F F F
perspective.
Answer: FALSE F
Explanation: The "balanced scorecard" in most organizations is broken down into the following
F F F F F F F F F F F F F
categories: financial perspective, customer perspective, internal business-process perspective, and
F F F F F F F F F
learning-and-growth perspective. F
Diff: 1
F
Terms: Balanced Scorecard
F F F
Objective: 1 F
AACSB: Reflective thinking
F F
11) The first step in designing accounting based performance measures is to choose a target level of
F F F F F F F F F F F F F F F F
performance and feedback mechanism. F F F
Answer: FALSE F
Explanation: The first step in designing accounting based performance measures is to choose
F F F F F F F F F F F F F
performance measures that align with top management's financial goals.
F F F F F F F F
Diff: 1
F
Terms: performance measure
F F F
Objective: 1 F
AACSB: Reflective thinking
F F
3
Copyright © 2012 Pearson Education
F F F F
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Cost Accounting )
Studocu is not sponsored or endorsed by any college or university
Downloaded by Jdjsid Jxjx ()
,Cost Accounting, 14e, Globa Edition (Horngren/Datar/Rajan) F
Chapter 23 Performance Measurement, Compensation, and Multinationa Considerations F
Objective 23.1
1) A report that measures financial and nonfinancial performance measures for various organization
F F F F F F F F F
units in a single report is called a(n):
F F F F F F F
A) balanced scorecard F
B) financial report scorecard F F
C) imbalanced scorecard F
D) unbalanced scorecard F F
Answer: A F
Diff: 1
F
Terms: Balanced Scorecard
F F F
Objective: 1 F
AACSB: Reflective thinking
F F
2) Customer-satisfaction measures are an example of the: F F F F F F
A) goal-congruence approach F
B) balanced scorecard approach F F
C) financial report scorecard approach
F F F
D) investment success approach F F F
Answer: B F
Diff: 1
F
Terms: Balanced Scorecard
F F F
Objective: 1 F
AACSB: Reflective thinking
F F
3) An example of a performance measure with a long-run time horizon is:
F F F F F F F F F F F
A) direct materials efficiency variances
F F F
B) overhead spending variances F F
C) number of new patents developed
F F F F
D) All of these answers are correct.
F F F F F F
Answer: C F
Diff: 2
F
Terms: Balanced Scorecard
F F F
Objective: 1 F
AACSB: Reflective thinking
F F
1
Copyright © 2012 Pearson Education
F F F F
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,4) Does operating income best measure a subunit's financial performance? This question is considered
F F F F F F F F F F F F F
part of which step in designing an accounting-based performance measure?
F F F F F F F F F
A) Choose performance measures that align with top management's financial goals.
F F F F F F F F F
B) Choose the time horizon of each performance measure.
F F F F F F F
C) Choose a definition for each performance measure.
F F F F F F
D) Choose a measurement alternative for each performance measure.
F F F F F F F F
Answer: A F
Diff: 2 F
Terms: Balanced Scorecard
F F F
Objective: 1 F
AACSB: Reflective thinking F F
5) Should assets be defined as total assets or net assets? This question is considered part of which step in
F F F F F F F F F F F F F F F F F F F
designing an accounting-based performance measure?
F F F F
A) Choose performance measures that align with top management's financial goals.
F F F F F F F F F
B) Choose the time horizon of each performance measure.
F F F F F F F
C) Choose a definition for each performance measure.
F F F F F F
D) Choose a measurement alternative for each performance measure.
F F F F F F F F
Answer: C F
Diff: 2 F
Terms: return on investment (ROI)
F F F F F
Objective: 1 F
AACSB: Reflective thinking F F
6) Should assets be measured at historical cost or current cost? This question is considered part of which
F F F F F F F F F F F F F F F F F
step in designing an accounting-based performance measure?
F F F F F F
A) Choose performance measures that align with top management's financial goals.
F F F F F F F F F
B) Choose the time horizon of each performance measure.
F F F F F F F
C) Choose a definition for each performance measure.
F F F F F F
D) Choose a measurement alternative for each performance measure.
F F F F F F F F
Answer: D F
Diff: 2 F
Terms: current cost, return on investment (ROI)
F F F F F F F
Objective: 1 F
AACSB: Reflective thinking F F
7) Which of the following statements about designing an accounting-based performance measure is
F F F F F F F F F F F F
FALSE?
A) The steps may be followed in a random order.
F F F F F F F F
B) The issues considered in each step are independent.
F F F F F F F
C) Management's beliefs are present during the analyses. F F F F F F
D) Behavioral criteria are important when evaluating the steps.
F F F F F F F F
Answer: B F
Diff: 2 F
Terms: Balanced Scorecard
F F F
Objective: 1 F
AACSB: Reflective thinking F F
2
Copyright © 2012 Pearson Education F F F F
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, 8) Many common performance measures, such as customer satisfaction, rely on internal financial
F F F F F F F F F F F F
accounting information. F
Answer: FALSE F
Explanation: Customer satisfaction would be obtained by surveys that are not in the financial
F F F F F F F F F F F F F F
accounting records. F
Diff: 1
F
Terms: Balanced Scorecard
F F F
Objective: 1 F
AACSB: Analytical skills
F F
9) Some companies present financial and nonfinancial performance measures for various organization
F F F F F F F F F F F
units in a single report called the "balanced scorecard."
F F F F F F F F
Answer: TRUE F F
Diff: 1
F
Terms: Balanced Scorecard
F F F
Objective: 1 F
AACSB: Analytical skills
F F
10) The "balanced scorecard" in most organizations is broken down into the following categories:
F F F F F F F F F F F F F
financial perspective, customer perspective, internal business-process perspective, and productivity
F F F F F F F F F
perspective.
Answer: FALSE F
Explanation: The "balanced scorecard" in most organizations is broken down into the following
F F F F F F F F F F F F F
categories: financial perspective, customer perspective, internal business-process perspective, and
F F F F F F F F F
learning-and-growth perspective. F
Diff: 1
F
Terms: Balanced Scorecard
F F F
Objective: 1 F
AACSB: Reflective thinking
F F
11) The first step in designing accounting based performance measures is to choose a target level of
F F F F F F F F F F F F F F F F
performance and feedback mechanism. F F F
Answer: FALSE F
Explanation: The first step in designing accounting based performance measures is to choose
F F F F F F F F F F F F F
performance measures that align with top management's financial goals.
F F F F F F F F
Diff: 1
F
Terms: performance measure
F F F
Objective: 1 F
AACSB: Reflective thinking
F F
3
Copyright © 2012 Pearson Education
F F F F
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