Chapter12.Responsibility Accounting, Quality Control, and Environmental Cost Management

Chapter12.Responsibility Accounting, Quality Control, and Environmental Cost Management

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Unformatted text preview: Chapter 12: Responsibility Accounting, Quality Control, and Environmental Cost Management MULTIPLE CHOICE QUESTIONS 1. When managers of subunits throughout an organization strive to achieve the goals set by top management, the result is: A. goal congruence. B. planning and control. C. responsibility accounting. D. delegation of decision making. E. strategic control. Answer: A LO: 1 Type: RC 2. Which of the following is not an example of a responsibility center? A. Cost center. B. Revenue center. C. Profit center. D. Investment center. E. Contribution center. Answer: E LO: 2 Type: RC 3. A manufacturer's raw-material purchasing department would likely be classified as a: A. cost center. B. revenue center. C. profit center. D. investment center. E. contribution center. Answer: A LO: 2 Type: N 4. Hitchcock Corporation is in the process of overhauling the performance evaluation system for its Los Angeles manufacturing division, which produces and sells parts that are popular in the aerospace industry. Which of the following is least likely to be chosen to evaluate the overall operations of the Los Angeles division? A. Cost center. B. Responsibility center. C. Profit center. D. Investment center. E. The profit center and investment center are equally unlikely to be chosen. Answer: A LO: 2 Type: N Chapter 12 81 5. A cost center manager: A. does not have the ability to produce revenue. B. may be involved with the sale of new marketing programs to clients. C. would normally be held accountable for producing an adequate return on invested capital. D. often oversees divisional operations. E. may be the manager who oversees the operations of a retail store. Answer: A LO: 2 Type: N 6. The Telemarketing Department of a residential remodeling company would most likely be evaluated as a: A. cost center. B. revenue center. C. profit center. D. investment center. E. contribution center. Answer: B LO: 2 Type: RC 7. If the head of a hotel's food and beverage operation is held accountable for revenues and costs, the food and beverage operation would be considered a(n): A. cost center. B. revenue center. C. profit center. D. investment center. E. contribution center. Answer: C LO: 2 Type: RC 8. Which of the following would have a low likelihood of being organized as a profit center? A. A movie theater of a company that operates a chain of theaters. B. A maintenance department that charges users for its services. C. The billing department of an Internet Services Provider (ISP). D. The mayor's office in a large city. E. Both "C" and "D" above. Answer: E LO: 2 Type: N 82 Hilton, Managerial Accounting, Seventh Edition 9. Easy-to-Use Software operates stores within five regions. Regional managers are held accountable for marketing, advertising, and sales decisions, and all costs incurred within their region. In addition, regional managers decide whether new stores will open, where the stores will be located, and whether the stores will lease or purchase the facilities. Store managers, in...
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Chapter12.Responsibility Accounting, Quality Control, and Environmental Cost Management

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