1)When managerial accountants design an evaluation system that is based on criteria for which a manager is responsible, and it is structured to encourage managers to make decisions that will meet the goals of the company as well as their own personal job goals, the framework used is _____________________.

A.a strategic plan framework

B.a responsibility accounting framework

C.a controllable factors framework

D.an uncontrollable factors framework

2) Responsibility accounting holds managers responsible for __________________.

A.only the costs they have personally approved

B.only the costs that they can control

C.all costs charges to their subunit

D.all costs charged to their subunit plus a share of the company-wide fixed costs

3) Which of the following is not a characteristic of a good performance measurement?

A.consistent

B.uses both long- and short-term performances and standards

C.timely

D.based on activities over which managers have no control or influence

4) What should an organization do if performance measures change?

A.Make sure that the manager being evaluated is aware of the measurement change, as this may affect his or her decision-making

B.make sure that there are significant overriding opportunities for each manager, if the manager is unaware of the change

C.obtain consumer surveys on the change before communicating the change to the manager

D.make sure that the manager benefits without the corporation also benefitting

5) Without proper performance measures, goal congruence is almost impossible to achieve and will likely lead to ________________________________.

A.employees satisfied with the status quo

B.lost profits

C.decreased defects

D.more stable targets

6) The cost of equity is _______________________.

A.the interest associated with debt

B.the rate of return required by investors to incentivize them to invest in a company

C.equal to the amount of asset turnover

D.the weighted average cost of capital

7) The capital structure of Ridley Enterprises is: Debt 40%, Equity 60%. The cost of debt is 13% and the cost of equity is 16.5%. What is the weighted average cost of capital for Ridley Enterprises?

A.14.4%

B.15.1%

C.13.8%

D.16.2%

8) Which of the following statements is false?

A.a balanced scorecard is the compatibility between personal goals and the goals of the organization

B.stakeholders cannot include stockholders

C.a balanced scorecard will include qualitative and quantitative measures

D.the four dimensions of performance that are considered in a balanced scorecard are financial, customer, internal process, and learning and growth

9)The metrics based on financial numbers produced by the accounting system are _________________.

A.stockholders

B.qualitative factors

C.quantitative factors

D.stakeholders

10) The owners of company stock are ___________________________.

A.stockholders

B.quantitative factors

C.stakeholders

D.qualitative factors

11) Why might a manager focused solely on accounting numbers miss opportunities for future benefits?