COST ACCOUNTING TESTBANK_CH22

Cost Accounting, 14e, Global Edition (Horngren/Datar/Rajan)

Chapter 22 Management Control Systems, Transfer Pricing, and Multinational Considerations

Objective 22.1



1) Which of the following is NOT a characteristic of a management control system?

A) It aids and coordinates the process of making decisions.

B) It encourages short-term profitability.

C) It motivates individuals throughout the organization to act in concert.

D) It coordinates forecasting sales and cost-driver activities, budgeting, and measuring and evaluating performance.

Answer: B

Diff: 2

Terms: management control system

Objective: 1

AACSB: Reflective thinking



2) The formal management control system includes:

A) performance measures

B) mutual commitments

C) incentive plans

D) Both A and C are correct.

Answer: D

Diff: 1

Terms: management control system

Objective: 1

AACSB: Reflective thinking



3) Exertion towards a goal is:

A) motivation

B) effort

C) goal congruence

D) incentive

Answer: B

Diff: 1

Terms: effort

Objective: 1

AACSB: Reflective thinking

4) The degree of freedom to make decisions is:

A) decentralization

B) autonomy

C) centralization

D) motivation

Answer: B

Diff: 1

Terms: autonomy

Objective: 1

AACSB: Reflective thinking

1

Copyright ? 2012 Pearson Education