 |
| 1 | |
Which of the following is NOT an important aspect of management performance that affects the contracting relationship? |
| | A) | Independent SBU functions. |
| | B) | Uncertainty during decision-making. |
| | C) | Lack of observability by upper management. |
| | D) | Risk aversion |
|
|
|
| 2 | |
Team-based management is a type of management control system: |
| | A) | informal system at the individual level. |
| | B) | informal system at the team level. |
| | C) | formal system at the individual level. |
| | D) | formal system at the team level. |
| | E) | none of the above. |
|
|
|
| 3 | |
Value stream accounting reports the performance for groups of products in a form of: |
| | A) | the balanced scorecard. |
| | B) | the contribution income statement. |
| | C) | cost center report. |
| | D) | profit center report. |
| | E) | investment center report. |
|
|
|
| 4 | |
Which of the following is NOT a type of Strategic Business Unit? |
| | A) | Profit center. |
| | B) | Investment center. |
| | C) | Growth center. |
| | D) | Revenue center. |
| | E) | Cost center. |
|
|
|
| 5 | |
The move from GAAP to IFRS in the U.S. should be least beneficial for those companies that: |
| | A) | have a large number of reporting entities around the world. |
| | B) | use full-cost-based profit center reporting. |
| | C) | use variable-cost-based profit center reporting. |
| | D) | use profit center evaluation. |
| | E) | All of the above answers are correct. |
|
|
|
| 6 | |
Which of the following is NOT a strategic issue related to Cost centers? |
| | A) | Cost shifting. |
| | B) | Dual allocation. |
| | C) | Budget slack. |
| | D) | Excessive short term focus. |
|
|
|
| 7 | |
What accounting measurement tool is preferred when using profit centers in performance evaluation? |
| | A) | A conventional full-cost income statement. |
| | B) | A gross-margin based income statement. |
| | C) | A contribution income statement. |
| | D) | A discretionary-cost based income statement |
|
|
|
| 8 | |
In the Principal-Agent model the four elements of the manager's behavior are all of the following except: |
| | A) | risk aversion. |
| | B) | uncertainty. |
| | C) | decision making. |
| | D) | effort. |
| | E) | receives pay |
|
|
|
| 9 | |
Crum Corporation has the following costs for the current year (the first year of operations): <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966415/Chap18_q9_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (17.0K)</a>]]>
Crum Corporation budgeted to produce and produced 100 units; it budgeted to sell 100 units and sold 60 units for $500 each.
What is the value of ending inventory assuming that variable costing is being used? |
| | A) | $4,800 |
| | B) | $5,600 |
| | C) | $11,200 |
| | D) | $15,200 |
|
|
|
| 10 | |
Crum Corporation has the following costs for the current year (the first year of operations): <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966415/Chap18_q10_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (17.0K)</a>]]>
Crum Corporation budgeted to produce and produced 100 units; it budgeted to sell 100 units and sold 60 units for $500 each.
What is the value of ending inventory assuming that full costing is being used? |
| | A) | $4,800 |
| | B) | $5,600 |
| | C) | $11,200 |
| | D) | $15,200 |
|
|
|
| 11 | |
Crum Corporation has the following costs for the current year (the first year of operations): <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966415/Chap18_q11_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (17.0K)</a>]]>
Crum Corporation budgeted to produce and produced 100 units; it budgeted to sell 100 units and sold 60 units for $500 each.
What is the operating income for Crum Company assuming that variable costing is being used? |
| | A) | $5,600 |
| | B) | $800 |
| | C) | $9,200 |
| | D) | $7,200 |
|
|
|
| 12 | |
Crum Corporation has the following costs for the current year (the first year of operations): <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966415/Chap18_q12_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (17.0K)</a>]]>
Crum Corporation budgeted to produce and produced 100 units; it budgeted to sell 100 units and sold 60 units for $500 each.
What is the operating income for Crum Company assuming that full costing is being used? |
| | A) | $5,600 |
| | B) | $800 |
| | C) | $9,200 |
| | D) | $7,200 |
|
|
|
| 13 | |
Crum Corporation has the following costs for the current year (the first year of operations): <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966415/Chap18_q13_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (17.0K)</a>]]>
Crum Corporation budgeted to produce and produced 100 units; it budgeted to sell 100 units and sold 60 units for $500 each.
What is the contribution margin for Crum Corporation reported on the contribution income statement? |
| | A) | $21,600 |
| | B) | $36,000 |
| | C) | $14,000 |
| | D) | $8,400 |
|
|
|
| 14 | |
The main concept of the balanced scorecard is that, to evaluate the SBUs progress to strategic success, an organization: |
| | A) | must use both financial and non-financial measures. |
| | B) | cannot use just one single measure. |
| | C) | must respond to customer expectations. |
| | D) | should use multiple measures for a comprehensive evaluation of performance. |
| | E) | all of the above are correct. |
|
|
|
| 15 | |
Although a retail or service company may use either a cost center or a profit center for performance evaluation, a not-for-profit organization is more likely to use be a cost center because: |
| | A) | the organization is likely to focus on managing costs so as not to exceed revenues. |
| | B) | revenue is difficult to measure. |
| | C) | profit is not permitted or possible. |
| | D) | the cost center is easier to implement. |
| | E) | it is mandated by state and federal laws. |
|
|
.