 |
| 1 | |
Which of the following statements is false? |
| | A) | When the managers of subunits throughout an organization all strive to achieve the goals set by top management, it is called goal congruence. |
| | B) | Responsibility accounting is used to foster goal congruence. |
| | C) | Top management is generally responsible for the tasks performed in an organization's subunits. |
| | D) | Examples of an organization's subunits include divisions, departments, and segments. |
| | E) | Managerial accountants play a major role in measuring department performance. |
|
|
|
| 2 | |
Goose Island Brewery, was a pioneer in the U.S. craft beer industry. They are based out of Chicago, Illinois and manufacture numerous types of ale ranging from classic and seasonal varieties to heavier dark ales reminiscent of European varieties. Beginning in 1988, Goose Island started operating pub style restaurants in the Chicago area. Currently Goose Island operates two restaurants known as "brewpubs". Each restaurant employs a full time restaurant manager who is accountable for the profit earned by their restaurant. The restaurant manager is responsible for making all daily operational decisions (for example hiring all of the staff, setting wage rates, and establishing procedures and standards for operations). Capital improvements (i.e. investment decisions) must go through the corporate office and be approved by, Steve Bryant (VP of Food & Beverage). Menu decisions and food purchases are made by the restaurant manager in conjunction with the head chef. The chef is responsible for hiring kitchen staff, buying food & supplies and oversees the entire food preparation process. The head chef is responsible for providing high quality food at the lowest possible cost.
The two underlined statements are inconsistent with one another. First it is stated that the restaurant manager hires ALL staff; then it is stated that the chef hires kitchen staff.
From Goose Island's perspective, the kitchen would be considered a: |
| | A) | Cost center |
| | B) | Revenue Center |
| | C) | Profit Center |
| | D) | Investment Center |
| | E) | A and D |
|
|
|
| 3 | |
Goose Island Brewery, was a pioneer in the U.S. craft beer industry. They are based out of Chicago, Illinois and manufacture numerous types of ale ranging from classic and seasonal varieties to heavier dark ales reminiscent of European varieties. Beginning in 1988, Goose Island started operating pub style restaurants in the Chicago area. Currently Goose Island operates two restaurants known as "brewpubs". Each restaurant employs a full time restaurant manager who is accountable for the profit earned by their restaurant. The restaurant manager is responsible for making all daily operational decisions (for example hiring all of the staff, setting wage rates, and establishing procedures and standards for operations). Capital improvements (i.e. investment decisions) must go through the corporate office and be approved by, Steve Bryant (VP of Food & Beverage). Menu decisions and food purchases are made by the restaurant manager in conjunction with the head chef. The chef is responsible for hiring kitchen staff, buying food & supplies and oversees the entire food preparation process. The head chef is responsible for providing high quality food at the lowest possible cost.
The two underlined statements are inconsistent with one another. First it is stated that the restaurant manager hires ALL staff; then it is stated that the chef hires kitchen staff.
From Goose Island's perspective, an individual brewpub would be considered a: |
| | A) | Cost center |
| | B) | Revenue Center |
| | C) | Profit Center |
| | D) | Investment Center |
| | E) | A and D |
|
|
|
| 4 | |
Goose Island Brewery, was a pioneer in the U.S. craft beer industry. They are based out of Chicago, Illinois and manufacture numerous types of ale ranging from classic and seasonal varieties to heavier dark ales reminiscent of European varieties. Beginning in 1988, Goose Island started operating pub style restaurants in the Chicago area. Currently Goose Island operates two restaurants known as "brewpubs". Each restaurant employs a full time restaurant manager who is accountable for the profit earned by their restaurant. The restaurant manager is responsible for making all daily operational decisions (for example hiring all of the staff, setting wage rates, and establishing procedures and standards for operations). Capital improvements (i.e. investment decisions) must go through the corporate office and be approved by, Steve Bryant (VP of Food & Beverage). Menu decisions and food purchases are made by the restaurant manager in conjunction with the head chef. The chef is responsible for hiring kitchen staff, buying food & supplies and oversees the entire food preparation process. The head chef is responsible for providing high quality food at the lowest possible cost.
The two underlined statements are inconsistent with one another. First it is stated that the restaurant manager hires ALL staff; then it is stated that the chef hires kitchen staff.
From Goose Island's perspective, the food & beverage division would be considered a: |
| | A) | Cost center |
| | B) | Revenue Center |
| | C) | Profit Center |
| | D) | Investment Center |
| | E) | A and D |
|
|
|
| 5 | |
Consider the following cost pool for teacher enhancement: <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/9352606310/856415/ch12_5.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"> (16.0K)</a>]]>
The total of the teacher enhancement cost pool is $520,000. What amount of the cost pool should be allocated to the teacher evaluation responsibility center? |
| | A) | $65,000 |
| | B) | $104,000 |
| | C) | $13,000 |
| | D) | $195,000 |
| | E) | $182,000 |
|
|
|
| 6 | |
The behavioral effects of responsibility-accounting systems: |
| | A) | can be significant. |
| | B) | can encourage cost/benefit analyses among managers. |
| | C) | can motivate desirable actions by upper-level management. |
| | D) | can do all of the above. |
| | E) | can do none of the above |
|
|
|
| 7 | |
Which of the following statements is true? |
| | A) | Traditional responsibility-accounting systems tend to focus on financial performance measures. |
| | B) | Contemporary cost management systems are beginning to focus more and more on activities. |
| | C) | The data base created by an activity-based costing (ABC) system enables management to employ activity-responsibility accounting. |
| | D) | Responsibility-accounting systems can be used to motivate desirable actions. |
| | E) | All of the statements are true. |
|
|
|
| 8 | |
Segment A generated sales revenues of $400,000 and variable operating expenses of $180,000. Its controllable fixed expenses were $40,000. It was assigned 20% of $200,000 of fixed costs controlled by others. The common fixed costs were $25,000. What was the Segment A's contribution margin? |
| | A) | $115,000 |
| | B) | $180,000 |
| | C) | $155,000 |
| | D) | $140,000 |
| | E) | 55% of its revenue |
|
|
|
| 9 | |
Segment A generated sales revenues of $400,000 and variable operating expenses of $180,000. Its controllable fixed expenses were $40,000. It was assigned 20% of $200,000 of fixed expenses traceable to Segment A but controlled by others. The common fixed costs were $25,000. What was the Segment A's segment profit margin? |
| | A) | $220,000 |
| | B) | $180,000 |
| | C) | $155,000 |
| | D) | $200,000 |
| | E) | $140,000 |
|
|
|
| 10 | |
Which term is used to refer to the extent to which a product is designed to perform well in its intended use? |
| | A) | Quality of design |
| | B) | Quality of conformance |
| | C) | Grade |
| | D) | Product quality |
| | E) | Customer profitability |
|
|
|
| 11 | |
Which term is used to refer to the extent to which a product meets the specifications of its design? |
| | A) | Quality of design |
| | B) | Quality of conformance |
| | C) | Grade |
| | D) | Product quality |
| | E) | Customer profitability |
|
|
|
| 12 | |
Into which type of cost are inspection costs classified? |
| | A) | Appraisal costs |
| | B) | External failure costs |
| | C) | Internal failure costs |
| | D) | Prevention costs |
| | E) | All of the above |
|
|
|
| 13 | |
Which of the following is true under the contemporary view of the optimal level of product quality? |
| | A) | It occurs when failure costs are equal to prevention and appraisal costs. |
| | B) | It occurs at the 1% defect level. |
| | C) | It occurs at the zero defect level. |
| | D) | It occurs when total quality costs are less than failure costs. |
| | E) | None of the above |
|
|
|
| 14 | |
Which is a tool used in total quality management (TQM) that aims at achieving near-perfect results in a production process? |
| | A) | Pareto diagram |
| | B) | Six Sigma |
| | C) | ISO 9000 standards |
| | D) | Frequency chart |
| | E) | ISO 9004 |
|
|
|
| 15 | |
Laser Corporation manufactures ink cartridges. During 2008 Laser was confronted with the following environmental situations related to its manufacturing operations:
(i) Costs incurred to remove four leaky underground storage tanks (used to store chemicals in the early eighties).
(ii) Although it is impossible to know for sure, it is believed that the leaking storage tanks contributed to groundwater contamination found in the local water system.
(iii) Laser employs two full time environmental engineers who monitor Laser's production process for potential environmental hazards.
(iv) The cost of disposing hazardous waste.
Which of the above costs would be considered a visible, private cost? |
| | A) | i, ii, iii, iv |
| | B) | i, ii & iv |
| | C) | i, iii & iv |
| | D) | i, ii, iii |
| | E) | i & iii |
|
|
.