Management Accouting Chapeter 12 Problems

ACCT 5060

Final Exam

Spring 2011 Name:__________________________________

1. The four key behavioral considerations in management accounting and control system design include all of the following EXCEPT:

a. integrating the organization's pay scale

b. using a mix of short- and long-term qualitative and quantitative performance measures

c. empowering employees to be involved in decision making and MACS design

d. developing an appropriate incentive system to reward performance

2. Pressures on managers to act unethically include all of the following EXCEPT:

a. pressures to act in the long-run best interest of the shareholders

b. solicitations for confidential information

c. requests to falsify reports

d. requests to bias information in favor of certain stakeholders

3. To the extent that an ethical hierarchy exists, _____ have the highest authority.

a. societal norms

b. legal rules

c. organizational norms

d. personal norms

4. When a manager's and employee's goals are aligned with organizational goals, it is referred to as:

a. a diagnostic control system

b. the intensity factor

c. goal congruence

d. monitoring

5. The roles of performance measurement systems in organizations include all of the following EXCEPT:

a. motivate employees to help the organization achieve its strategic objectives

b. help managers with resource allocation

c. create value from intangible assets as well as their physical and financial assets

d. communicate the company's strategic objectives

6. The Balanced Scorecard is said to be "balanced" because it measures:

a. short-term and long-term objectives

b. financial and nonfinancial objectives

c. internal and external objectives

d. All of the above are correct.

7. The ______________ perspective of the Balanced Scorecard asks, "At which processes must we excel to satisfy our customers and shareholders?"

a. learning and growth

b. customer

c. process

d. shareholder

8. The __________ perspective of the Balanced Scorecard focuses on creating value for customers.

a. Value

b. Financial

c. Stakeholder

d. Customer

9. Measures of employees' skills and capabilities are included in the ________ perspective of the Balanced Scorecard.

a. financial

b. internal

c. customer

d. learning and growth perspective

10. A chain of cause-and-effect relationships that appropriately link the four

balanced scorecard perspectives is:

a. a high return on investment causes customer loyalty that results in skilled production workers that improve process quality

b. skilled production workers help to produce process quality that results in customer loyalty that helps to increase return on investment

c. customer loyalty results in a high return on investment that results in the ability to attract skilled production workers that improve process quality

d. improved process quality results in a high return on investment that causes customer loyalty that results in the ability to attract skilled production workers

11. Participative budgeting is an approach to budgeting that

a. is top-down in nature.

b. allows top management to set the budget.

c. discourages budget slack.

d. is more likely to motivate people to work towards the organization's goals t

than a top-down approach.

12. Which of the following is not included in the operating budget?

a. Budgeted balance sheet

b. Sales budget

c. Selling and administrative budget

d. Raw materials purchases budget

13. A primary financial budget is the

a.. Production budget

b. Cash budget

c. Inventory budget

d. Selling and administrative budget

14. Jackel Company produces hand tools. A sales budget for the next four months is as follows: March 10,000 units, April 13,000, May 16,000 and June 21,000. Jackel Company's ending finished goods inventory policy is 10% of the following month's sales. What is budgeted finished goods inventory for May?

a. 1,000

b. 1,300

c. 1,600

d. 2,100

15. In which