Cost Accounting, 14e, Test Bank Ch23
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,Cost Accounting, 14e, Global Edition (Horngren/Datar/Rajan)
Chapter 23 Performance Measurement, Compensation, and Multinational Considerations
Objective 23.1
1) A report that measures financial and nonfinancial performance measures for various organization
units in a single report is called a(n):
A) balanced scorecard
B) financial report scorecard
C) imbalanced scorecard
D) unbalanced scorecard
Answer: A
Diff: 1
Terms: Balanced Scorecard
Objective: 1
AACSB: Reflective thinking
2) Customer-satisfaction measures are an example of the:
A) goal-congruence approach
B) balanced scorecard approach
C) financial report scorecard approach
D) investment success approach
Answer: B
Diff: 1
Terms: Balanced Scorecard
Objective: 1
AACSB: Reflective thinking
3) An example of a performance measure with a long-run time horizon is:
A) direct materials efficiency variances
B) overhead spending variances
C) number of new patents developed
D) All of these answers are correct.
Answer: C
Diff: 2
Terms: Balanced Scorecard
Objective: 1
AACSB: Reflective thinking
1
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,4) Does operating income best measure a subunit's financial performance? This question is considered
part of which step in designing an accounting-based performance measure?
A) Choose performance measures that align with top management's financial goals.
B) Choose the time horizon of each performance measure.
C) Choose a definition for each performance measure.
D) Choose a measurement alternative for each performance measure.
Answer: A
Diff: 2
Terms: Balanced Scorecard
Objective: 1
AACSB: Reflective thinking
5) Should assets be defined as total assets or net assets? This question is considered part of which step in
designing an accounting-based performance measure?
A) Choose performance measures that align with top management's financial goals.
B) Choose the time horizon of each performance measure.
C) Choose a definition for each performance measure.
D) Choose a measurement alternative for each performance measure.
Answer: C
Diff: 2
Terms: return on investment (ROI)
Objective: 1
AACSB: Reflective thinking
6) Should assets be measured at historical cost or current cost? This question is considered part of which
step in designing an accounting-based performance measure?
A) Choose performance measures that align with top management's financial goals.
B) Choose the time horizon of each performance measure.
C) Choose a definition for each performance measure.
D) Choose a measurement alternative for each performance measure.
Answer: D
Diff: 2
Terms: current cost, return on investment (ROI)
Objective: 1
AACSB: Reflective thinking
7) Which of the following statements about designing an accounting-based performance measure is
FALSE?
A) The steps may be followed in a random order.
B) The issues considered in each step are independent.
C) Management's beliefs are present during the analyses.
D) Behavioral criteria are important when evaluating the steps.
Answer: B
Diff: 2
Terms: Balanced Scorecard
Objective: 1
AACSB: Reflective thinking
2
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, 8) Many common performance measures, such as customer satisfaction, rely on internal financial
accounting information.
Answer: FALSE
Explanation: Customer satisfaction would be obtained by surveys that are not in the financial
accounting records.
Diff: 1
Terms: Balanced Scorecard
Objective: 1
AACSB: Analytical skills
9) Some companies present financial and nonfinancial performance measures for various organization
units in a single report called the "balanced scorecard."
Answer: TRUE
Diff: 1
Terms: Balanced Scorecard
Objective: 1
AACSB: Analytical skills
10) The "balanced scorecard" in most organizations is broken down into the following categories:
financial perspective, customer perspective, internal business-process perspective, and productivity
perspective.
Answer: FALSE
Explanation: The "balanced scorecard" in most organizations is broken down into the following
categories: financial perspective, customer perspective, internal business-process perspective, and
learning-and-growth perspective.
Diff: 1
Terms: Balanced Scorecard
Objective: 1
AACSB: Reflective thinking
11) The first step in designing accounting based performance measures is to choose a target level of
performance and feedback mechanism.
Answer: FALSE
Explanation: The first step in designing accounting based performance measures is to choose
performance measures that align with top management's financial goals.
Diff: 1
Terms: performance measure
Objective: 1
AACSB: Reflective thinking
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 23 Performance Measurement, Compensation, and Multinational Considerations
Objective 23.1
1) A report that measures financial and nonfinancial performance measures for various organization
units in a single report is called a(n):
A) balanced scorecard
B) financial report scorecard
C) imbalanced scorecard
D) unbalanced scorecard
Answer: A
Diff: 1
Terms: Balanced Scorecard
Objective: 1
AACSB: Reflective thinking
2) Customer-satisfaction measures are an example of the:
A) goal-congruence approach
B) balanced scorecard approach
C) financial report scorecard approach
D) investment success approach
Answer: B
Diff: 1
Terms: Balanced Scorecard
Objective: 1
AACSB: Reflective thinking
3) An example of a performance measure with a long-run time horizon is:
A) direct materials efficiency variances
B) overhead spending variances
C) number of new patents developed
D) All of these answers are correct.
Answer: C
Diff: 2
Terms: Balanced Scorecard
Objective: 1
AACSB: Reflective thinking
1
Copyright © 2012 Pearson Education
Downloaded by Jdjsid Jxjx ()
,4) Does operating income best measure a subunit's financial performance? This question is considered
part of which step in designing an accounting-based performance measure?
A) Choose performance measures that align with top management's financial goals.
B) Choose the time horizon of each performance measure.
C) Choose a definition for each performance measure.
D) Choose a measurement alternative for each performance measure.
Answer: A
Diff: 2
Terms: Balanced Scorecard
Objective: 1
AACSB: Reflective thinking
5) Should assets be defined as total assets or net assets? This question is considered part of which step in
designing an accounting-based performance measure?
A) Choose performance measures that align with top management's financial goals.
B) Choose the time horizon of each performance measure.
C) Choose a definition for each performance measure.
D) Choose a measurement alternative for each performance measure.
Answer: C
Diff: 2
Terms: return on investment (ROI)
Objective: 1
AACSB: Reflective thinking
6) Should assets be measured at historical cost or current cost? This question is considered part of which
step in designing an accounting-based performance measure?
A) Choose performance measures that align with top management's financial goals.
B) Choose the time horizon of each performance measure.
C) Choose a definition for each performance measure.
D) Choose a measurement alternative for each performance measure.
Answer: D
Diff: 2
Terms: current cost, return on investment (ROI)
Objective: 1
AACSB: Reflective thinking
7) Which of the following statements about designing an accounting-based performance measure is
FALSE?
A) The steps may be followed in a random order.
B) The issues considered in each step are independent.
C) Management's beliefs are present during the analyses.
D) Behavioral criteria are important when evaluating the steps.
Answer: B
Diff: 2
Terms: Balanced Scorecard
Objective: 1
AACSB: Reflective thinking
2
Copyright © 2012 Pearson Education
Downloaded by Jdjsid Jxjx ()
, 8) Many common performance measures, such as customer satisfaction, rely on internal financial
accounting information.
Answer: FALSE
Explanation: Customer satisfaction would be obtained by surveys that are not in the financial
accounting records.
Diff: 1
Terms: Balanced Scorecard
Objective: 1
AACSB: Analytical skills
9) Some companies present financial and nonfinancial performance measures for various organization
units in a single report called the "balanced scorecard."
Answer: TRUE
Diff: 1
Terms: Balanced Scorecard
Objective: 1
AACSB: Analytical skills
10) The "balanced scorecard" in most organizations is broken down into the following categories:
financial perspective, customer perspective, internal business-process perspective, and productivity
perspective.
Answer: FALSE
Explanation: The "balanced scorecard" in most organizations is broken down into the following
categories: financial perspective, customer perspective, internal business-process perspective, and
learning-and-growth perspective.
Diff: 1
Terms: Balanced Scorecard
Objective: 1
AACSB: Reflective thinking
11) The first step in designing accounting based performance measures is to choose a target level of
performance and feedback mechanism.
Answer: FALSE
Explanation: The first step in designing accounting based performance measures is to choose
performance measures that align with top management's financial goals.
Diff: 1
Terms: performance measure
Objective: 1
AACSB: Reflective thinking
3
Copyright © 2012 Pearson Education
Downloaded by Jdjsid Jxjx ()
