Chap 7 11. If a performance report contains items that are in a manager\'s contr
ID: 2457176 • Letter: C
Question
Chap 7
11. If a performance report contains items that are in a manager's control, the entire responsibility accounting system can be called into question.
a. True
b. False
12. Flexible budgeting is utilized to evaluate a cost center’s performance.
a. True
b. False
13. A flexible budget is derived by dividing actual unit costs by the standard unit costs.
a. True
b. False
14. One of the drawback of the return on investment performance measure is that it considers both operating and nonoperating income.
a. True
b. False
15. When calculating ROI, assets invested represent the average of the beginning and ending asset balances for a given period.
a. True
b. False
16. For residual income figures to be comparable on a companywide basis, all investment centers must have equal access to resources and similar asset investment bases.
a. True
b. False
17. The economic value added performance measure focuses on long-term financial performance.
a. True
b. False
18. Variable costing is a method of reporting that deals only with a manager's controllable costs, variable costs.
a. True
b. False
19. A variable costing income statement is also called a traditional income statement.
a. True
b. False
20. The balanced scorecard links the perspectives of an organization's stakeholders with the organization's mission and vision, performance measures, strategic plan, and resources.
a. True
b. False
Explanation / Answer
11. If a performance report contains items that are in a manager's control, the entire responsibility accounting system can be called into question.
a. True
12. Flexible budgeting is utilized to evaluate a cost center’s performance.
a. True
13. A flexible budget is derived by dividing actual unit costs by the standard unit costs.
b. False
14. One of the drawback of the return on investment performance measure is that it considers both operating and nonoperating income.
b. False
15. When calculating ROI, assets invested represent the average of the beginning and ending asset balances for a given period.
a. True
16. For residual income figures to be comparable on a companywide basis, all investment centers must have equal access to resources and similar asset investment bases.
a. True
17. The economic value added performance measure focuses on long-term financial performance.
a. True
18. Variable costing is a method of reporting that deals only with a manager's controllable costs, variable costs.
a. True
19. A variable costing income statement is also called a traditional income statement.
b. False
20. The balanced scorecard links the perspectives of an organization's stakeholders with the organization's mission and vision, performance measures, strategic plan, and resources.
a. True
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