Adv Cost Chapter 22 Test Bank

Adv Cost Chapter 22 Test Bank - CHAPTER 22 MANAGEMENT...

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CHAPTER 22: MANAGEMENT CONTROL SYSTEMS, TRANSFER PRICING, AND MULTINATIONAL CONSIDERATIONS MULTIPLE CHOICE 21. Which of the following is NOT a characteristic of a management control system? a. It aids and coordinates the process of making decisions. b. It encourages short-term profitability. c. It motivates individuals throughout the organization to act in concert. d. It coordinates forecasting sales and cost-driver activities, budgeting, and measuring and evaluating performance. Answer : b Difficulty : 2 Objective : 1 22. Stock price information would be an example of management control information at the Answer : a Difficulty : 1 Objective : 1 23. Cost of competitors' products information would be an example of management control information at the Answer : b Difficulty : 1 Objective : 1 24. Employee absenteeism information would be an example of management control information at the Answer : c Difficulty : 1 Objective : 1 25. Labor costs information would be an example of management control information at the a. total organization level. b. customer/market level. c. individual-facility level. d. individual-activity level. Answer : c Difficulty : 2 Objective : 1 Chapter 22 Page 1
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26. A report which contains both financial and nonfinancial management control information is referred to as the Answer : c Difficulty : 1 Objective : 1 27. The formal management control system includes Answer : d Difficulty : 1 Objective : 1 28. Exertion towards a goal is Answer : b Difficulty : 1 Objective : 1 29. The degree of freedom to make decisions is a. decentralization. b. autonomy. c. centralization. d. motivation. Answer : b Difficulty : 1 Objective : 1 30. An advantage of decentralization is that it Answer : a Difficulty : 1 Objective : 2
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