Final Exam Flashcards
(20 cards)
which of the following responsibility of accounting system translates a strategy of an organization into operational objectives and measures?
a. Financial based responsibility accounting.
b. Operational based responsibility accounting
c. Strategic based responsibility accounting.
d. Activity based responsibility accounting.
c. Strategic based responsibility accounting.
what are the three elements of a strategic based control system?
a. Financial perspective, performance measures, and process perspective.
b. Strategy, customer perspective, and financial perspective.
c. Strategy performance measures and incentive programs
d. Infrastructure perspective, incentive perspective, and process perspective.
c. Strategy performance measures and incentive programs.
which of the following statements about a strategic based responsibility accounting system is true
a. It can take the form of a balance scorecard.
b. It fails to connect with an organizations overall mission, and strategy.
c. It does not work for firms operating and dynamic environments
d. It expands a number responsibility dimensions from one to two.
a. It can take the form of a balance scorecard
performance measures must be integrated so that they are mutually consistent and
a. Reinforcing.
b. Defined by financial outcomes.
c. Tied to competitors processes
d. Measurable.
a. Reinforcing.
which of the following is not an advantage of strategic based responsibility accounting?
a. Change efforts are directed by the mission and strategy.
b. It includes perspectives that service of force of competitive advantage.
c. Responsibility centralized within the organization.
d. All of these choices are correct.
c. Responsibility is centralized within the organization.
The most common strategic based performance management system is
a. Variance analysis with standard costs as benchmarks.
b. The balanced scorecard.
c. Financial budgets.
d. All of these choices are correct.
b. The balanced scorecard.
which of the following statements about a balance scorecard is true?
a. It is a strategic based performance management system that identify objectives and measures for four different perspectives.
b. It is the most common form of an activity based responsibility accounting system.
c. It fails to connect with an organizations overall mission, and strategy.
d. It does not work for firms operating and dynamic environments
a. It is a strategic based performance management system that identifies objectives and measures for four different perspectives
lead measures are critical to strategy because
a. They are an independent part of the system.
b. They are based on an actual activity.
c. They are outcome measures
d. There should be a casual linkage with strategy.
d. There should be a casual linkage with strategy.
strategy based responsibility, accounting
a. Includes the process perspective.
b. It is focused on system wide efficiency.
c. Is linked to strategy.
d. Reinforce his team accountability.
c. Is linked to strategy.
which of the following statements regarding lag measures is true?
a. Lag measures or factors that drive future performance
b. Lag measure measures are performance drivers.
c. Lag measures include measures such as customer profitability.
d. Leg measures or measures that relate to customers
c. Lag measures include measures such as customer profitability
The outcome measures that are expressed in monetary terms are called
a. Financial measures.
b. Lag measure.
c. Objective measures.
d. External measures.
a. Financial measures.
for affirmative balance measures, the measures selected must be balance between
a. Objective and subjective measures.
b. Lag and lead measures.
c. Financial and non-financial measure.
d. All of these choices are correct.
d. All of these choices are correct.
The outcome measures that can be readily qualified and verified or called
a. Leg measures.
b. External measures.
c. Financial measures.
d. Objective measures
d. Objective measures.
The outcome measures that relate to customers are called
a. Objective measures
b. Financial measures.
c. External measures.
d. lag measures
c. External measures
which of the following would be a non-financial measure?
a. Cost per unit.
b. Return on investment.
c. Customer profitability.
d. Dissatisfied customers.
d. Dissatisfied customers
which of the following would be a subjective measure?
a. Market share.
b. Return on investment.
c. Employee capabilities.
d. Cost per unit.
c. Employee capabilities.
which of the following features make stretch targets feasible?
a. The targets are set at desired love is for 20 years to ensure long-term performance.b. The measures are based on currently attainable standard cost.
c. The targets are set in isolation by top management.
d. The measures are linked by casual relationships.
d. The measures are linked by casual relationships.
communicating strategy through measurements requires both scope and flexibility. Which of the following statements is true?
a. Flexibility requires subjective and objective measurements as well as non-financial measures and scope implies that internal and external measures are needed.
b. Flexibility requires objective, but not objective measurement
c. Scope implies that only internal measures are needed.
d. Flexibility requires that measures, be optimal and dynamic.
a. Flexibility requires subjective and objective measurement, as well as non-financial measures and scope implies that internal and external measures are needed.
which of the following is not a strategic theme of the financial perspective?
a. Risk management.
b. Revenue growth.
c. Asset utilization.
d. Employee capability.
d. Employee capability.
Business strategy is concerned with
a. Identifying critical internal in business processes in which to excel.
b. Choosing market and customer segments to be served
c. Selecting individual and organizational properties required for the internal, customer, and the financial objectives.
d. All of these choices are correct.
d. All of these choices are correct.
