Updated Latest Cost Accounting 14th Edition Test Bank Chapter 22 Full Chapter Questions and Verified Answers Comprehensive Cost Accounting Study Resource 2026–2027.

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




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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




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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
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