Cost Accounting, 14e, Test Bank Ch22
Cost Accounting ()ةيمالسإال ةعماجال
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,Cost Accounting, 14e, Globa Edition (Horngren/Datar/Rajan) F
Chapter 22 Management Contro Systems, Transfer Pricing, and Multinationa Considerations F F
Objective 22.1
1) Which of the following is NOT a characteristic of a management control system?
F F F F F F F F F F F F
A) It aids and coordinates the process of making decisions.
F F F F F F F F
B) It encourages short-term profitability.
F F F
C) It motivates individuals throughout the organization to act in concert.
F F F F F F F F F
D) It coordinates forecasting sales and cost-driver activities, budgeting, and measuring and evaluating
F F F F F F F F F F F F
performance.
Answer: B F F
Diff: 2
F
Terms: management control system
F F F F
Objective: 1 F
AACSB: Reflective thinking
F F
2) The formal management control system includes:
F F F F F
A) performance measures F
B) mutual commitments F
C) incentive plans F
D) Both A and C are correct.
F F F F F F
Answer: D F
Diff: 1
F
Terms: management control system
F F F F
Objective: 1 F
AACSB: Reflective thinking
F F
3) Exertion towards a goal is: F F F F
A) motivation
B) effort
C) goal congruence
F
D) incentive F
Answer: B F F
Diff: 1
F F
Terms: F
effort F
Objective: 1 F
AACSB: Reflective thinking
F F
4) The degree of freedom to make decisions is:
F F F F F F F
A) decentralization
B) autonomy
C) centralization
D) motivation
Answer: B
F F F
Diff: 1
F
Terms: autonomy F F
Objective: 1 F
AACSB: Reflective thinking
F F
1
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F F F F
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,5) If an oil refinery used refinery down-time as a Balanced Scorecard control measure, it would
F F F F F F F F F F F F F F F
represent the perspective.
F F
A) financial
B) customer
C) internal business process F F
D) learning and growth F F F
Answer: C F
Diff: 2 F
Terms: management control system
F F F F
Objective: 1 F
AACSB: Reflective thinking F F
6) If a computer manufacturer used its common stock price as a Balanced Scorecard control measure, it
F F F F F F F F F F F F F F F F
would represent the
F perspective. F F
A) financial
B) customer
C) internal business process F F
D) learning and growth F F F
Answer: A F
Diff: 2 F
Terms: management control system
F F F F
Objective: 1 F
AACSB: Reflective thinking F F
7) The goal of a management control system is to improve the collective decisions in an organization in
F F F F F F F F F F F F F F F F F
an economically feasible way.
F F F
Answer: TRUE F F
Diff: 1 F
Terms: management control system
F F F F
Objective: 1 F
AACSB: Communication F
8) Management control systems reflect only financial data.F F F F F F F
Answer: FALSE F
Explanation: Management control systems also reflect nonfinancial data.
F F F F F F F F
Diff: 1 F
Terms: management control system
F F F F
Objective: 1 F
AACSB: Reflective thinking F F
2
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F F F F
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, 9) Of the four perspectives of the balanced scorecard the customer perspective refers to employee
F F F F F F F F F F F F F F
satisfaction, absenteeism, information systems capabilities, and number of processes with real-time
F F F F F F F F F F F
feedback.
Answer: FALSE F
Explanation: Of the four perspectives of the balanced scorecard the learning and growth perspective refers
F F F F F F F F F F F F F F F
to employee satisfaction, absenteeism, information systems capabilities, and number of processes with real-
F F F F F F F F F F F F
time feedback.F
Diff: 1 F
Terms: Balanced Scorecard F F F
Objective: 1 F
AACSB: Reflective thinking F F
10) Motivation is the desire to attain a selected goal combined with the resulting drive or pursuit toward
F F F F F F F F F F F F F F F F F
that goal.F
Answer: TRUE F F
Diff: 1 F
Terms: motivation F F
Objective: 1 F
AACSB: Reflective thinking F F
11) The essence of decentralization is the freedom for managers at lower levels of the organization to
F F F F F F F F F F F F F F F F
make decisions. F
Answer: TRUE F F
Diff: 1 F
Terms: decentralization F F
Objective: 1 F
AACSB: Analytical skills F F
12) The formal management control system includes shared values, loyalties, and mutual commitments
F F F F F F F F F F F F
among members of the company, company culture, and norms about acceptable behavior for managers
F F F F F F F F F F F F F F
and other employees.
F F
Answer: FALSE F
Explanation: The informal management control system includes shared values, loyalties, and mutual
F F F F F F F F F F F F
commitments among members of the company, company culture, and norms about acceptable behavior
F F F F F F F F F F F F F
for managers and other employees.
F F F F
Diff: 2 F
Terms: management control system
F F F F
Objective: 1 F
AACSB: Analytical skills F F
13) A well-designed management control system obtains all of its information from within the company.
F F F F F F F F F F F F F F
Answer: FALSE F
Explanation: Well-designed management control systems use information both from within the
F F F F F F F F F F F
company and from outside the company, such as stock price and customer satisfaction measures. Diff:
F F F F F F F F F F F F F F F
2
Terms: management control system
F F F F
Objective: 1 F
AACSB: Communication F
3
Copyright © 2012 Pearson Education F F F F
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Cost Accounting ()ةيمالسإال ةعماجال
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 22 Management Contro Systems, Transfer Pricing, and Multinationa Considerations F F
Objective 22.1
1) Which of the following is NOT a characteristic of a management control system?
F F F F F F F F F F F F
A) It aids and coordinates the process of making decisions.
F F F F F F F F
B) It encourages short-term profitability.
F F F
C) It motivates individuals throughout the organization to act in concert.
F F F F F F F F F
D) It coordinates forecasting sales and cost-driver activities, budgeting, and measuring and evaluating
F F F F F F F F F F F F
performance.
Answer: B F F
Diff: 2
F
Terms: management control system
F F F F
Objective: 1 F
AACSB: Reflective thinking
F F
2) The formal management control system includes:
F F F F F
A) performance measures F
B) mutual commitments F
C) incentive plans F
D) Both A and C are correct.
F F F F F F
Answer: D F
Diff: 1
F
Terms: management control system
F F F F
Objective: 1 F
AACSB: Reflective thinking
F F
3) Exertion towards a goal is: F F F F
A) motivation
B) effort
C) goal congruence
F
D) incentive F
Answer: B F F
Diff: 1
F F
Terms: F
effort F
Objective: 1 F
AACSB: Reflective thinking
F F
4) The degree of freedom to make decisions is:
F F F F F F F
A) decentralization
B) autonomy
C) centralization
D) motivation
Answer: B
F F F
Diff: 1
F
Terms: autonomy F F
Objective: 1 F
AACSB: Reflective thinking
F F
1
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F F F F
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,5) If an oil refinery used refinery down-time as a Balanced Scorecard control measure, it would
F F F F F F F F F F F F F F F
represent the perspective.
F F
A) financial
B) customer
C) internal business process F F
D) learning and growth F F F
Answer: C F
Diff: 2 F
Terms: management control system
F F F F
Objective: 1 F
AACSB: Reflective thinking F F
6) If a computer manufacturer used its common stock price as a Balanced Scorecard control measure, it
F F F F F F F F F F F F F F F F
would represent the
F perspective. F F
A) financial
B) customer
C) internal business process F F
D) learning and growth F F F
Answer: A F
Diff: 2 F
Terms: management control system
F F F F
Objective: 1 F
AACSB: Reflective thinking F F
7) The goal of a management control system is to improve the collective decisions in an organization in
F F F F F F F F F F F F F F F F F
an economically feasible way.
F F F
Answer: TRUE F F
Diff: 1 F
Terms: management control system
F F F F
Objective: 1 F
AACSB: Communication F
8) Management control systems reflect only financial data.F F F F F F F
Answer: FALSE F
Explanation: Management control systems also reflect nonfinancial data.
F F F F F F F F
Diff: 1 F
Terms: management control system
F F F F
Objective: 1 F
AACSB: Reflective thinking F F
2
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F F F F
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, 9) Of the four perspectives of the balanced scorecard the customer perspective refers to employee
F F F F F F F F F F F F F F
satisfaction, absenteeism, information systems capabilities, and number of processes with real-time
F F F F F F F F F F F
feedback.
Answer: FALSE F
Explanation: Of the four perspectives of the balanced scorecard the learning and growth perspective refers
F F F F F F F F F F F F F F F
to employee satisfaction, absenteeism, information systems capabilities, and number of processes with real-
F F F F F F F F F F F F
time feedback.F
Diff: 1 F
Terms: Balanced Scorecard F F F
Objective: 1 F
AACSB: Reflective thinking F F
10) Motivation is the desire to attain a selected goal combined with the resulting drive or pursuit toward
F F F F F F F F F F F F F F F F F
that goal.F
Answer: TRUE F F
Diff: 1 F
Terms: motivation F F
Objective: 1 F
AACSB: Reflective thinking F F
11) The essence of decentralization is the freedom for managers at lower levels of the organization to
F F F F F F F F F F F F F F F F
make decisions. F
Answer: TRUE F F
Diff: 1 F
Terms: decentralization F F
Objective: 1 F
AACSB: Analytical skills F F
12) The formal management control system includes shared values, loyalties, and mutual commitments
F F F F F F F F F F F F
among members of the company, company culture, and norms about acceptable behavior for managers
F F F F F F F F F F F F F F
and other employees.
F F
Answer: FALSE F
Explanation: The informal management control system includes shared values, loyalties, and mutual
F F F F F F F F F F F F
commitments among members of the company, company culture, and norms about acceptable behavior
F F F F F F F F F F F F F
for managers and other employees.
F F F F
Diff: 2 F
Terms: management control system
F F F F
Objective: 1 F
AACSB: Analytical skills F F
13) A well-designed management control system obtains all of its information from within the company.
F F F F F F F F F F F F F F
Answer: FALSE F
Explanation: Well-designed management control systems use information both from within the
F F F F F F F F F F F
company and from outside the company, such as stock price and customer satisfaction measures. Diff:
F F F F F F F F F F F F F F F
2
Terms: management control system
F F F F
Objective: 1 F
AACSB: Communication F
3
Copyright © 2012 Pearson Education F F F F
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