ACCT 6100 (Exam 2) Questions With Complete Solutions
allocation base Correct Answers a measure of activity
associated with the pool of common costs being distributed to
the cost objects
Both Correct Answers Do budgets communicate and coordinate
information vertically or horizontally?
Bottom up Correct Answers _____ budgets are those submitted
by lower levels of the organization to higher levels and usually
imply greater decision management.
Budget Correct Answers Management's formal quantification of
the operations of an organization for a future period. It is an
aggregate forecast of all transactions expected to occur.
Budget lapsing Correct Answers Where unspent funds do not
carry over to the next year
Budgeting Correct Answers ___ assigns decision rights and
provides performance measures.
byproducts Correct Answers outputs of a joint production
process that have low sales values compared to the sales values
of the other outputs
CEO Correct Answers To manage the trade-off between
decision management and decision control, many organizations
put the _____ in charge of the budgeting process. This person
retains the final decision rights.
, common cost Correct Answers a cost that is incurred to support
a number of cost objects but that cannot be traced to them
individually since several users share the same resource
Control Correct Answers When confronted with a choice
between control and decision making, accounting systems tend
to favor ____.
controllability principle Correct Answers Holding managers
responsible for only those decisions for which they have
authority
Controllable costs Correct Answers All costs affected by a
managers decisions
cost allocation Correct Answers The assignment of indirect,
common, or joint costs to different departments, processes,
products, or services
Cost centers Correct Answers ____ measure the costs and
outputs of a subunit
cost object Correct Answers A product, process. department, or
program that managers wish to cost.
Death spiral Correct Answers A ____ results when utilization of
a common resource with significant fixed costs falls, creating
excess capacity.
allocation base Correct Answers a measure of activity
associated with the pool of common costs being distributed to
the cost objects
Both Correct Answers Do budgets communicate and coordinate
information vertically or horizontally?
Bottom up Correct Answers _____ budgets are those submitted
by lower levels of the organization to higher levels and usually
imply greater decision management.
Budget Correct Answers Management's formal quantification of
the operations of an organization for a future period. It is an
aggregate forecast of all transactions expected to occur.
Budget lapsing Correct Answers Where unspent funds do not
carry over to the next year
Budgeting Correct Answers ___ assigns decision rights and
provides performance measures.
byproducts Correct Answers outputs of a joint production
process that have low sales values compared to the sales values
of the other outputs
CEO Correct Answers To manage the trade-off between
decision management and decision control, many organizations
put the _____ in charge of the budgeting process. This person
retains the final decision rights.
, common cost Correct Answers a cost that is incurred to support
a number of cost objects but that cannot be traced to them
individually since several users share the same resource
Control Correct Answers When confronted with a choice
between control and decision making, accounting systems tend
to favor ____.
controllability principle Correct Answers Holding managers
responsible for only those decisions for which they have
authority
Controllable costs Correct Answers All costs affected by a
managers decisions
cost allocation Correct Answers The assignment of indirect,
common, or joint costs to different departments, processes,
products, or services
Cost centers Correct Answers ____ measure the costs and
outputs of a subunit
cost object Correct Answers A product, process. department, or
program that managers wish to cost.
Death spiral Correct Answers A ____ results when utilization of
a common resource with significant fixed costs falls, creating
excess capacity.
