1.Which of the following balanced scorecard perspectives measures an organizations ability to change?

	a.	Customer
	b.	Internal business processes
	c.	Learning and growth
	d.	Financial

2.The responsibility center in which the manager does not have responsibility and authority over revenues is

	a.	a cost center.
	b.	an investment center.
	c.	a profit center.
	d.	a revenue center.

3.The responsibility center in which the manger does not have responsibility and authority over costs is

	a.	a cost center.
	b.	an investment center.
	c.	a profit center.
	d.	a revenue center.

4.

In what type of organization is decision-making authority spread throughout the organization?

	a.	Centralized organization
	b.	Decentralized organization
	c.	Participative organization
	d.	Top-down organization

5.

One of the most important concepts in responsibility accounting is the

	a.	balanced scorecard.
	b.	controllability principle.
	c.	related-party transactions.
	d.	transfer price.

6.

Adaon Corp has two divisions, North and South. North produces a widget that South could use in the production of units that cost $115 in variable costs, plus the cost of the widget, to manufacture. Norths variable costs are $40 per widget, and fixed manufacturing costs are applied at a rate of $24 per widget. Widgets sell on the open market for $70 each. Adaons policy is that internal transfers will be made at full cost. If South purchases the widgets from North, what will be the transfer price?

	a.	$40
	b.	$64
	c.	$155
	d.	$179

7.

The responsibility center in which the manager has responsibility and authority over revenues, costs and assets is

	a.	a cost center.
	b.	an investment center.
	c.	a profit center.
	d.	a revenue center.

8.Which of the following is the primary tool used by cost centers to manage costs?

	a.	Return on investment
	b.	Budgetary control system
	c.	Balanced scorecard
	d.	Transfer pricing

9.

Which of the following is NOT an advantage of decentralization?

	a.	Allows top managers to focus on strategic issues
	b.	Potential duplication of resources
	c.	Allows for development of managerial expertise
	d.	Managers can react quickly to local information