Chapter 22 Test Bank

Chapter 22 Test Bank - CHAPTER 22 MANAGEMENT CONTROL...

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Unformatted text preview: CHAPTER 22 MANAGEMENT CONTROL SYSTEMS, TRANSFER PRICING, AND MULTINATIONAL CONSIDERATIONS TRUE/FALSE 1. The goal of a management control system is to improve the collective decisions in an organization in an economically feasible way. Answer : True Difficulty : 1 Objective : 1 Terms to Learn : management control system 2. Management control systems reflect only financial data. Answer : False Difficulty : 1 Objective : 1 Terms to Learn : management control system Management control systems also reflect nonfinancial data. 3. Presenting financial and nonfinancial information in a single report is called the unified reporting method. Answer : False Difficulty : 1 Objective : 1 Terms to Learn : management control system This is called the balanced scorecard. 4. Motivation is the desire to attain a selected goal combined with the resulting drive or pursuit toward that goal. Answer : True Difficulty : 1 Objective : 1 Terms to Learn : motivation 5. The essence of decentralization is the freedom for managers at lower levels of the organization to make decisions. Answer : True Difficulty : 1 Objective : 1 Terms to Learn : decentralization 6. A management control system would include both formal as well as informal control mechanisms. Answer : True Difficulty : 2 Objective : 1 Terms to Learn : management control system 22-1 7. Absenteeism would be an example of a Balanced Scorecard control measure from a customer perspective. Answer : False Difficulty : 2 Objective : 1 Terms to Learn : management control system Absenteeism would be an example of a Balanced Scorecard control measure from a learning and growth perspective. 8. Goal congruence exists when individuals work toward achieving one goal, and groups work toward achieving a different goal. Answer : False Difficulty : 2 Objective : 1 Terms to Learn : goal congruence Goal congruence exists when individuals and groups work toward achieving the same goal. 9. A benefit of decentralization should be increased motivation of subunit managers. Answer : True Difficulty : 2 Objective : 1 Terms to Learn : decentralization 10. Suboptimal decision making is also called congruent decision making. Answer : False Difficulty : 2 Objective : 2 Terms to Learn : incongruent decision making, suboptimal decision making Its also called incongruent decision making. 11. Surveys indicate that decisions made most frequently at the corporate level are related to sources of supplies and products to manufacture. Answer : False Difficulty : 2 Objective : 2 Terms to Learn : decentralization These decisions are made at a decentralized level. 12. An important advantage of decentralized operations is that it improves corporate control. Answer : False Difficulty : 1 Objective : 2 Terms to Learn : decentralization Decentralized operations weaken controls....
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This note was uploaded on 02/27/2012 for the course ACCT 4121 taught by Professor Liu during the Spring '10 term at LSU.

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Chapter 22 Test Bank - CHAPTER 22 MANAGEMENT CONTROL...

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