1. Behavioral considerations of a well-designed management accounting and control system include all of the following except:
A) short-term qualitative and quantitative measures.
B) incentive compensation.
C) information accuracy.
D) the organization's ethical code of conduct.
2. The two major categories of technical considerations for a management accounting and control system are:
A) design and accuracy of information.
B) relevance of information and scope of system.
C) service and timely information.
D) development and flexibility.
3. When implementing a new management accounting and control system, it is BEST:
A) to allow management to implement their ideas.
B) for management to involve employees in the implementation.
C) to involve consultants and implement their experienced ideas.
D) to engage in benchmarking.
4. The evaluation phase of the process of control in MACS focuses on:
A) comparing the planned level to current performance to identify discrepancies and consider corrective measures.
B) measuring the current level of performance.
C) returning the system to an in control state.
D) selecting measures to determine how well objectives are met.
5. Which BEST describes the purpose of a management accounting and control system (MACS)?
A) A MACS defines the value chain and identifies nonvalue-added activities for a business.
B) A MACS helps decision makers determine whether strategies and objectives are being met.
C) A MACS offers a system of controls to ensure employees are meeting predetermined standards.
D) A MACS provides a signal for management attention when areas are out-of-control.
6. Behavioral considerations of a well-designed management accounting and control system include all of the following EXCEPT:
A) short-term qualitative and quantitative measures.
B) incentive compensation.
C) information accuracy.
D) the organization's ethical code of conduct.
7. The two major categories of technical considerations for a management accounting and control system are:
A) design and accuracy of information.
B) relevance of information and scope of system.
C) service and timely information.
D) development and flexibility.
8. When implementing a new management accounting and control system, it is BEST:
A) to allow management to implement their ideas.
B) for management to involve employees in the implementation.
C) to involve consultants and implement their experienced ideas.
D) to engage in benchmarking.
9. In a management accounting and control system design, behavioral expectations are BEST incorporated by:
A) using a mix of short-term and quantitative performance measures.
B) developing a task-related control system.
C) including the organization's code of conduct.
D) monitoring behavior with time and motion studies.
10. Assumptions of the human resources model of motivation include all of the following EXCEPT:
A) employees prefer to follow highly-detailed, prescribed procedures.
B) individuals are motivated by both financial and nonfinancial awards.
C) employees are knowledgeable about their jobs.
D) individuals are highly creative, ethical, and responsible.
11. The contemporary management view of motivation, the ________ is based on initiatives to improve the quality of working life.
A) balanced scorecard
B) human resources model of motivation
C) scientific management school
D) results control system
12. To promote ethical decision making:
A) consequences of unethical behavior should be left undefined to allow for flexibility.
B) a statement of the organization's code of ethics should be communicated to each employee.
C) violators of the code of ethics should be allowed several warnings before severe consequences are imposed.
D) management should be excused from adhering to the organization's ethical code of conduct when it conflicts with personal values.
13. The elements of an effective ethical control system include all of the following EXCEPT:
A) a statement of the employee's ethical responsibilities.
B) an ongoing internal audit of the efficiency of the organization's ethical control system.
C) a statement of the organization's values and code of ethics.
D) a reward system for tur
14. The theory of constraints:
A) emphasizes long-term optimization.
B) maintains that carefully managing production bottlenecks will increase operating income.
C) helps managers make special one-time decisions.
D) suggests that some component parts should be outsourced.
15. Constraints from the theory of constraints may include:
A) the availability of direct materials in manufacturing.
B) linear square feet of display space for a retailer.
C) direct labor in the service industry.
D) All of the above are correct.
16. The contribution margin ratio always increases when the
a. Variable costs as a percentage of net sales increase
b. Variable costs as a percentage of net sales decrease
c. Break-even point decreases
d. Break-even point increases