Reference no: EM132527150

Question 1) Which of the following does not describe a management control system?

A. establishes a company's strategic goals

B. monitors a company's strategic goals

C. implements a company's strategic goals

D. a system that only measures profitability

Question 2) A key advantage of a decentralized organization is ________________________

A. duplication of efforts

B. increased administrative costs

C. quicker decisions and response time

D. the ease of aligning segment and company goals

Question 3) Segments are uniquely identifiable components of the business and can be categorized by all of the following except _____________________________

A. number of employees

B. products produced

C. services provided

D. geographical location

Question 4) In a centralized organization, where are goals established?

A. by each segment of the organization

B. at the highest level of the organization and promoted downward

C. at the lower level of the organization and promoted upward

D. outside the organization based on best practices in the industry

Question 5) Which of the following is not a type of responsibility center?

A. profit center

B. investment center

C. cost center

D. concentrated cost center

Question 6) A responsibility center in which managers are held accountable for both revenues and expenses is called a

A. cost center

B. discretionary cost center

C. revenue center

D. profit center

Question 7) An important goal of a responsibility accounting framework is to help insure which of the following?

A. investments made by each segment are minimized

B. identification of operating segments that should be closed

C. segment and company financial goals are congruent

D. decision-making is made by the top executives

Question 8) An example of an uncontrollable cost would include all of the following except

A. per-gallon cost of fuel for the company's delivery trucks

B. federal income tax rate paid by the company

C. real estate taxes charged by the country in which the business operates

D. hourly rate of pay for the company's purchasing manager

Question 9) A transfer pricing arrangement that uses the price that would be charged to an external customer is a

A. market-based approach

B. negotiated approach

C. cost approach

D. decentralized approach