Managerial Accounting Practice Exam 3 Verified Exam Questions and
Answers Latest update 2026/2027
Question:
choose the 4 groups of performance measures
Answer:
financial, customer, internal business processes, and learning and growth
Question:
components of throughput time
Answer:
process time
- queue time
- inspection time
Question:
the time between when an order is placed and when it is delivered is known as the _________
___________ ____________
Answer:
delivery cycle time
Question:
the manager of a ____________ center does not have control over revenue of the use of investment
funds.
Answer:
cost
Question:
A MCE of less than 1 indicates
Answer:
non-value added time is present
Question:
which of the following evaluation measures are used for investment center managers only - not for
cost profit center managers/
Answer:
ROI
- residual income
, Question:
In decentralized organizations, decision-making authority is
Answer:
spread throughout the organization
Question:
In a decentralized organization
Answer:
top management can concentrate on issues such as an overall strategy
- changes in the operating environment can be responded to rapidly
- lower level managers are trained for higher positions
Question:
Operating assets include
Answer:
equipment
- inventory
- accounts receivable
Question:
How can a company increase its return on investment?
Answer:
increase sales
- reduce operating expenses
Question:
In decentralized organizations, decision making authority is
Answer:
spread throughout the organization
Question:
non financial performance measures
Answer:
help identity what drives organizational performance
Answers Latest update 2026/2027
Question:
choose the 4 groups of performance measures
Answer:
financial, customer, internal business processes, and learning and growth
Question:
components of throughput time
Answer:
process time
- queue time
- inspection time
Question:
the time between when an order is placed and when it is delivered is known as the _________
___________ ____________
Answer:
delivery cycle time
Question:
the manager of a ____________ center does not have control over revenue of the use of investment
funds.
Answer:
cost
Question:
A MCE of less than 1 indicates
Answer:
non-value added time is present
Question:
which of the following evaluation measures are used for investment center managers only - not for
cost profit center managers/
Answer:
ROI
- residual income
, Question:
In decentralized organizations, decision-making authority is
Answer:
spread throughout the organization
Question:
In a decentralized organization
Answer:
top management can concentrate on issues such as an overall strategy
- changes in the operating environment can be responded to rapidly
- lower level managers are trained for higher positions
Question:
Operating assets include
Answer:
equipment
- inventory
- accounts receivable
Question:
How can a company increase its return on investment?
Answer:
increase sales
- reduce operating expenses
Question:
In decentralized organizations, decision making authority is
Answer:
spread throughout the organization
Question:
non financial performance measures
Answer:
help identity what drives organizational performance
