Managerial Accounting Exam Test Questions with 100%
Verified Answers
True or false: In strongly decentralized organizations, even the lowest-level managers can
make decisions. - -true
Decision-making authority lies mostly with higher-level managers in strongly _____
organizations. - -centralized
In a decentralized organization ______. - -- top management can concentrate on
issues such as overall strategy
- lower-level managers are trained for higher positions.
- changes in the operating environment can be responded to rapidly
Lower-level management goals that are inconsistent with company goals are a possible
disadvantage of _____. - -decentralization
Any part of an organization whose manager has control over and is accountable for cost,
profit, or investments is a(n) _____ center. - -responsibility
Lower-level managers' decision-making authority can be linked to the outcomes of those
decisions through _____ accounting systems. - -responsibility
An organization in which decision-making authority is spread throughout the organization
is: - -decentralized
Which of the following is not one of the three primary types of responsibility centers? -
-sales
, Decision-making authority lies mostly with higher-level managers in strongly ______. -
-centralized organizations
Which of the following is not a characteristic of decentralization? - -Decentralization
reduces how accountable lower-level managers are for the outcomes of their decisions.
Disadvantages of decentralization include ______. - -- lack of coordination
- clashing objectives between departments and the organization
- spreading innovative ideas may be difficult
Which of the following statements is incorrect regarding responsibility accounting? -
-Responsibility accounting refers to the process of evaluating top management on
the decisions made by lower-level managers.
In a _______ organization lower-level managers are empowered to make decisions which
can ________ motivation and job satisfaction. - -decentralized, increase
Lower-level management goals that are inconsistent with company goals are a possible
disadvantage of _____. - -decentralization
Which of the following business segments would not be considered a cost center? - -
Retail outlet
Service departments, such as the accounting department, are generally considered _____
centers, while sales offices are often considered _____ centers. - -1. cost
2. profit
Verified Answers
True or false: In strongly decentralized organizations, even the lowest-level managers can
make decisions. - -true
Decision-making authority lies mostly with higher-level managers in strongly _____
organizations. - -centralized
In a decentralized organization ______. - -- top management can concentrate on
issues such as overall strategy
- lower-level managers are trained for higher positions.
- changes in the operating environment can be responded to rapidly
Lower-level management goals that are inconsistent with company goals are a possible
disadvantage of _____. - -decentralization
Any part of an organization whose manager has control over and is accountable for cost,
profit, or investments is a(n) _____ center. - -responsibility
Lower-level managers' decision-making authority can be linked to the outcomes of those
decisions through _____ accounting systems. - -responsibility
An organization in which decision-making authority is spread throughout the organization
is: - -decentralized
Which of the following is not one of the three primary types of responsibility centers? -
-sales
, Decision-making authority lies mostly with higher-level managers in strongly ______. -
-centralized organizations
Which of the following is not a characteristic of decentralization? - -Decentralization
reduces how accountable lower-level managers are for the outcomes of their decisions.
Disadvantages of decentralization include ______. - -- lack of coordination
- clashing objectives between departments and the organization
- spreading innovative ideas may be difficult
Which of the following statements is incorrect regarding responsibility accounting? -
-Responsibility accounting refers to the process of evaluating top management on
the decisions made by lower-level managers.
In a _______ organization lower-level managers are empowered to make decisions which
can ________ motivation and job satisfaction. - -decentralized, increase
Lower-level management goals that are inconsistent with company goals are a possible
disadvantage of _____. - -decentralization
Which of the following business segments would not be considered a cost center? - -
Retail outlet
Service departments, such as the accounting department, are generally considered _____
centers, while sales offices are often considered _____ centers. - -1. cost
2. profit
