c23 - MULTIPLE CHOICE 21. A report that measures financial...

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nonfinancial performance measures for various organization units in a single report is called a(n) a. balanced scorecard. b. financial report scorecard. c. imbalanced scorecard. d. unbalanced scorecard. Answer: 22. a Difficulty: 1 Objective: 1 Customer-satisfaction measures are an example of a. goal-congruence approach. b. balanced scorecard approach. c. financial report scorecard approach. d. investment success approach. Answer: b Difficulty: 1 Objective: 1 23. An example of a performance measure with a long-run time horizon a. is direct materials efficiency variances. b. is overhead spending variances. c. is number of new patents developed. d. include all of the above measures. Answer: c Difficulty: 2 Objective: 1 24. Does operating income best measure a subunit's financial performance? This question is considered part of which step in designing an accounting-based performance measure? a. Choose performance measures that align with top management's financial goals. b. Choose the time horizon of each performance measure. c. Choose a definition for each performance measure. d. Choose a measurement alternative for each performance measure. Answer: a Difficulty: 2 Objective: 2 25. Should assets be defined as total assets or net assets? This question is considered part of which step in designing an accounting-based performance measure? a. Choose performance measures that align with top management's financial goals. b. Choose the time horizon of each performance measure. c. Choose a definition for each performance measure. d. Choose a measurement alternative for each performance measure. Answer: c Difficulty: 2 Objective: 2 Chapter 23 Page 4 26. Should assets be measured at historical cost or current cost? This question is considered part of which step in designing an accounting-based performance measure? a. Choose performance measures that align with top management's financial goals b. Choose the time horizon of each performance measure c. Choose a definition for each performance measure d. Choose a measurement alternative for each performance measure Answer: d Difficulty: 2 Objective: 2 27. Which of the following statements about designing an accounting-based performance measure is FALSE? a. The steps may be followed in a random order. b. The issues considered in each step are independent. c. Management's beliefs are present during the analyses. d. Behavioral criteria are important when evaluating the steps. Answer: b Difficulty: 2 Objective: 2 28. Managers usually use the term return on investment to evaluate a. the performance of a subdivision. b. a potential project. c. the performance of a subunit. d. both (a) and (c). Answer: d Difficulty: 2 Objective: 3 29. The return on investment is usually considered the most popular approach to incorporating the investment base into a performance measure because a. it blends all the ingredients of
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This note was uploaded on 08/28/2010 for the course ACCTG 101 taught by Professor Smith during the Spring '10 term at Alabama State University.

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c23 - MULTIPLE CHOICE 21. A report that measures financial...

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