Management Accounting Information for Decision Making 7th edition by Atkinson Test bank

C) create value from intangible assets as well as their physical and financial assets.
D) communicate the company's strategic objectives.
 
Answer:  C

 
LO4
Terms:  Intangible assets
Difficulty:  2

31. Many intangible assets:

A) do not appear on the balance sheet since it is difficult to place a reliable financial value on them.
B) should be evaluated with return on investment and other performance measures.
C) can be measured and managed with current financial control systems.
D) are unimportant because they have no physical substance.
 
Answer:  A
 
 
LO4
Terms:  Intangible assets
Difficulty:  1

32. Intangible assets that are currently reported on the balance sheet include:

A) loyal and profitable customer relationships.
B) organizational culture.
C) employee skills and motivation.
D) the cost of a patent giving exclusive rights to a process.
 
Answer:  D
 
 
LO4
Terms:  Balanced scorecard
Difficulty:  1

33. The use of multiple-performance measures in the balanced scorecard would be expected to lead to all of the following except:

A) more extensive use of financial measures such as cost and profit.
B) employees recognizing the various dimensions of their work.
C) the use of new performance measures such as customer satisfaction and employee morale.
D) group-level performance measures.
 
Answer:  A
 
 
LO4
Terms:  Balanced scorecard
Difficulty:  1

34. The balanced scorecard is said to be "balanced" because it measures:

A) short-term and long-term objectives.
B) financial and nonfinancial objectives.
C) internal and external objectives.
D) All of the above are correct.
 
Answer:  B

 
LO4
Terms:  Balanced scorecard
Difficulty:  1

35. ________ translate(s) an organization's mission, vision, and strategy into a comprehensive set of performance measures that provide the framework for implementing its strategy.

A) Critical success factors
B) The value proposition
C) Objectives
D) The balanced scorecard
 
Answer:  D
 
 
LO4
Terms:  Financial perspective
Difficulty:  2

36. The ________ perspective of the balanced scorecard asks, "How is success measured by our shareholders?"

A) learning and growth
B) customer
C) financial
D) shareholder
 
Answer:  C
 
 
LO4
Terms:  Customer perspective
Difficulty:  1

37. The ________ perspective of the balanced scorecard focuses on creating value for customers.

A) Value
B) Financial
C) Stakeholder
D) Customer
 
Answer:  D
 
 
LO4
Terms:  Learning and growth perspective
Difficulty:  1

38. Measures of employees' skills and capabilities are included in the ________ perspective of the balanced scorecard.

A) financial
B) internal
C) customer
D) learning and growth perspective
 
Answer:  D

 
LO5
Terms:  Nonfinancial information
Difficulty:  2

39. The act of simply measuring and reporting information on certain processes:

A) focuses the attention of employees on those processes that are being measured.
B) diverts the employee's attention to other activities that are not being measured.
C) disproves the saying "What gets measured gets managed."
D) has no effect on employee behavior.
 
Answer:  A
 
 
LO5
Terms:  Financial information, nonfinancial information
Difficulty:  2

40. Which statement below is false?

A) "What gets measured gets managed."
B) People react to measurements.
C) Employees spend more attention on those variables that are not getting measured.