01. Responsibility accounting provides information that meets the criterion that control reports should be related to personal responsibility. A. True B. False 02. The frequency of the preparation of managerial performance reports (control reports) should be the shortest period of time in which management can usefully intervene and in which significant changes in performance have occurred or are likely to occur. A. True B. False 03. Which of the following is the best advice to follow in the evaluation phase of a management control system? A. Investigate all variances. B. Investigate all unfavorable variances. C. Investigate all significant unfavorable variances. D. Investigate all significant favorable and unfavorable variances. 04. Property taxes on a corporation's call center building would be best described as a: A. Standard cost. B. Committed cost. C. Engineered cost. D. Discretionary cost. 05. When comparing Julys actual performance to standard performance for the shoe department of a department store, which of the following is an appropriate standard to use? A. The shoe departments budgeted performance for July. B. The shoe departments actual performance for July of last year. C. The actual performance in July of the shoe departments in the companys other department stores. D. Any or all of the above. 06. A cost that is relevant for one type of decision may be irrelevant in another type of decision. A. True B. False 07. In evaluating short-run alternative choice decisions, which of the following conditions is necessary for differential costs? A. future oriented B. can be taken directly from the data in a companys accounting system C. both A and B above D. neither A nor B above 08. The property taxes on a manufacturing companys factory would be considered: A. a fixed cost. B. a product cost. C. a committed cost. D. all of the above. 09. Tam Computer Company currently manufactures the disk drives it uses in its computers. The costs of produce 5,000 of these disk drives last year were as follows: Sunn Electronics has offered to provide Tam with all of its disk drive needs for $27 per drive. If Tam accepts this offer, Tam will be able use the freed up space to generate $40,000 of income each year in the production of its computer keyboards. In addition, $8 per drive of the other costs above could be totally eliminated. Based on this information, would Tam be better off to make the drives or buy the drives and by how much? A. $15,000 better to buy B. $20,000 better to buy C. $35,000 better to buy D. $60,000 better to make E. $65,000 better to make 10. One of the employees of Sojurn Corporation recently was involved in an accident with one of the corporation's delivery vans. The corporation is either going to repair the damaged van or sell it as is and buy a comparable used van. Information related to this decision is provided below: Based on the information above, Sojurn would be better off by: A. $1,000 to buy the comparable van. B. $2,000 to buy the comparable van. C. $2,000 to repair the damaged van. D. $3,000 to repair the damaged van. E. $4,000 to repair the damaged van