Chap 7

21. An organization's four basic stakeholder groups include investors, employees, internal business processes, and customers.

a. True

b. False

22. The alignment of an organization's strategy with all the perspectives of the balanced scorecard results in performance objectives that benefit all stakeholders.

a. True

b. False

23. It is necessary for managers to fully understand the causal relationship between their actions and the organization's overall performance to get results.

a. True

b. False

24. Cash bonuses are usually given to encourage short-term performance.

a. True

b. False

25. How effective a performance management and evaluation system is depends on how well the goals of individual responsibility centers, the entire company, and managers are coordinated.

a. True

b. False

Chap 8

1. Standard costs are based solely on actual costs incurred in past.

a. True

b. False

2. Cost centers have well-defined links between the cost of the resources and the resulting products.

a. True

b. False

3. Although expensive to install and maintain, a standard cost accounting system can save a company considerable amounts of money by reducing resource waste.

a. True

b. False

4. Standard costing can be used only with a process costing system.

a. True

b. False

5. Comparing what did happen with what should have happened aids in the performance evaluation of a company.

a. True

b. False