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