Horngren’s Cost Accounting A Managerial Emphasis 17th Global Edition by Srikant M. Datar test bank
C) It helps in evaluating performance.
D) It helps in the analysis of actual performance.
Answer: A
Diff: 1
Objective: 4
AACSB: Analytical thinking
3) Which of the tools shown below would be the most effective planning tool?
A) performance evaluation report
B) fishbone diagram
C) control chart
D) budget
Answer: D
Diff: 2
Objective: 4
AACSB: Analytical thinking
4) A report showing the actual financial results for a period compared to the budgeted financial results for that same period would most likely be called a:
A) strategic plan
B) management forecast
C) performance report
D) revised plan
Answer: C
Diff: 2
Objective: 4
AACSB: Analytical thinking
5) A budget:
A) is the qualitative expression of a proposed plan of action by management
B) is an aid for coordinating what needs to be done to execute a plan
C) helps in identifying problems and uncertainties
D) promotes production automation
Answer: B
Diff: 2
Objective: 4
AACSB: Analytical thinking
6) Management accountants serve as key business partners in the planning process because they understand the key ________ factors that create ________.
A) success; value
B) accounting; profits
C) financial; value
D) success; income
Answer: A
Diff: 1
Objective: 4
AACSB: Analytical thinking
7) A budget serves as much as a control tool as a planning tool because:
A) it aids in the coordination and communication among various business functions
B) it helps to evaluate customer needs and feedback
C) it is a benchmark against which actual performance can be compared
D) it helps to make predictions about the future
Answer: C
Diff: 2
Objective: 4
AACSB: Analytical thinking
8) Which of the following is an example of an extrinsic reward?
A) receiving a high rating on customer service
B) appreciation mail from a customer
C) promotions based on performance
D) verbal appreciation from CEO
Answer: C
Diff: 1
Objective: 4
AACSB: Application of knowledge
9) Which of the following is an example of an intrinsic reward?
A) bonuses paid to employees
B) recognition of job well done
C) promotions based on performance
D) salaries paid to employees
Answer: B
Diff: 1
Objective: 4
AACSB: Application of knowledge
10) Linking rewards to performance:
A) helps to motivate managers
B) allows companies to charge premium prices
C) should only be based on financial information
D) enhances agency costs
Answer: A
Diff: 2
Objective: 4
AACSB: Analytical thinking
11) Control measures should:
A) be set and not changed until the next budget cycle so as to provide an effective benchmark
B) be set by excluding nonfinancial information
C) be kept confidential from employees so that competitors don't have an opportunity to gain a competitive advantage
D) be linked by feedback to help learning and future planning
Answer: D
Diff: 2
Objective: 4
AACSB: Analytical thinking
12) A well-conceived plan allows managers the ability to:
A) set static goals and still be flexible
B) control lower-level managers from implementing change
C) conservatively estimate costs so that actual operating results will be favorable when comparisons are made
D) take advantage of unforeseen opportunities
Answer: D
Diff: 2
Objective: 4
AACSB: Analytical thinking
13) In which of the following activities would evaluation and learning be most prevalent?
A) controlling operations
B) planning
C) organizing and directing resources
D) identification of uncertainties and risk
Answer: A
Diff: 2
Objective: 4
AACSB: Analytical thinking
14) Examining past performance and exploring alternative ways to make better informed decisions in the future is:
A) control
B) planning
C) learning
D) implementation
Answer: C
Diff: 2
Objective: 4
AACSB: Analytical thinking
15) The last step in the decision-making process is to make decisions by choosing among alternatives.
Answer: FALSE
Explanation: The last step in the decision-making process is to implement the decision, evaluate performance, and learn.
Diff: 1
Objective: 4
AACSB: Analytical thinking