With activity-based costing, the activity measures used to assign the overhead costs are:

a. volume-based

b. non-volume-based

c. both volume and non-volume based

d. traditional-based

The main issues to consider when implementing a balanced scorecard include all the following except:

a. Individual measures should flow from the goals and objectives established by upper management

b. Individual measures should be mutually reinforcing

c. The performance measurement system and the employee evaluation and compensation system should not be linked.

d. Top managers must fully support its implementation

Which of the following is NOT a benefit of decentralization?

a. Top management is relieved of much day-to-day problem solving and is left free to concentrate on strategy, higher-level decision making, and coordinating activities.

b. Lower-level managers may make decisions without fully understanding the "big picture."

c. Decentralization provides lower-level managers with vital experience in making decisions. Without such experience, they would be ill prepared to make decisions when they are promoted to higher-level positions.

d. Added responsibility and decision-making authority often result in increased job satisfaction. It makes the job more interesting and motivates people to put out their best efforts.

Which of the following is not a characteristic of the FIFO method?

a. simple and less detailed than the weighted-average method

b. can be used to assess cost control even when inventory levels are substantial

c. separates beginning work in process inventory from the current period's units and costs

d. cost per equivalent unit is specific to the current period

Which of the following are potential benefits of using multi-dimensional performance reporting?

I Managers are less likely to miss facets of performance that impact financial results.

II Performance measures can be more easily refined as strategies are changed and a better understanding of what works and what doesn't work is obtained.

III In developing the system managers will focus on understanding cause and effect relationships in the way the business operates resulting in the discovery of opportunities for improvements.

a. Only I and II.

b. Only II and III.

c. Only I and III.

d. I, II and III.

In analyzing mixed costs, the most accurate cost formula can be derived by using the:

a. high-low method

b. scatter graph method

c. least-squares regression method

d. engineering method