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INTRODUCTION TO MANAGEMENT ACCOUNTING 16TH EDITION BY HORNGREN – TEST BANK

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  • ISBN-10 ‏ : ‎ 0133058816
  • ISBN-13 ‏ : ‎ 978-0133058819

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SKU:tb1002197

INTRODUCTION TO MANAGEMENT ACCOUNTING 16TH EDITION BY HORNGREN – TEST BANK

Introduction to Management Accounting, 16e (Horngren)
Chapter 9 Management Control Systems and Responsibility Accounting

9.1 Questions

1) Elements of the planning and control process for a management control system do NOT include ________.
A) measure, monitor and report
B) plan and execute
C) evaluate and reward
D) feedback and control
Answer: D
Diff: 1
LO: 9-1
AACSB: Reflective thinking skills
Learning Outcome: None

2) Planning in the management control system does NOT include ________.
A) defining goals
B) establishing plans to achieve goals
C) carrying out plans to achieve goals
D) measuring performance measures
Answer: D
Diff: 1
LO: 9-1
AACSB: Reflective thinking skills
Learning Outcome: None

3) The organizational goal of a hotel chain is to increase customer satisfaction. Which of the following is NOT a valid performance measure to meet the organizational goal?
A) number of repeat customers
B) number of complaints by customers
C) occupancy rate
D) average room rate
Answer: D
Diff: 1
LO: 9-1
AACSB: Reflective thinking skills
Learning Outcome: None

4) ________ is the logical integration of techniques to gather and use data for planning and control decisions and to evaluate performance.
A) An internal control system
B) A quality control system
C) A financial reporting system
D) A management control system
Answer: D
Diff: 1
LO: 9-1
AACSB: Reflective thinking skills
Learning Outcome: None
5) A management control system includes the techniques to gather and use information to ________.
A) motivate employee behavior
B) evaluate performance
C) make planning and control decisions
D) all of the above
Answer: D
Diff: 1
LO: 9-1
AACSB: Reflective thinking skills
Learning Outcome: None

6) Which of the following is the first and most basic component in a management control system?
A) the organization’s long-range budget
B) the organization’s goals
C) the stockholders’ goals
D) managerial effort
Answer: B
Diff: 1
LO: 9-1
AACSB: Reflective thinking skills
Learning Outcome: None

7) ________ are characteristics or attributes that managers must achieve to drive the organization toward its goals.
A) Nonfinancial performance measures
B) Targets
C) Key success factors
D) Objectives
Answer: C
Diff: 1
LO: 9-1
AACSB: Reflective thinking skills
Learning Outcome: None

8) Which of the following statements about performance measures is FALSE?
A) Organizational goals without performance measures do not motivate managers.
B) Every performance measure used to evaluate employees should be consistent with organizational goals.
C) An ideal management control system should include at least one performance measure related to every goal.
D) Performance measures become more specific at higher levels of the organization.
Answer: D
Diff: 2
LO: 9-1
AACSB: Reflective thinking skills
Learning Outcome: None
9) A hotel has the following organizational goal: Increase employee satisfaction. Which one of the following is the best performance measure of the organizational goal?
A) number of new employees trained
B) turnover rate of hotel employees
C) overall rating on employee service on guest satisfaction survey
D) percent of guests writing complaints about employees
Answer: B
Diff: 1
LO: 9-1
AACSB: Analytic skills
Learning Outcome: None

10) A management control system is a logical integration of techniques to gather and use data and to evaluate performance.
Answer: TRUE
Diff: 1
LO: 9-1
AACSB: Reflective thinking skills
Learning Outcome: None

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