Please answer the 10 multiple choice questions:

1. When discussing the roles of budgets, a control role includes:

identifying organizational objectives and short-term goals.

developing long-term strategies and short-term plans.

measuring and assessing performance against budgeted amounts.

developing the master budget.

2. A decentralized organization does all the following EXCEPT it:

encourages local success rather than organizational success.

trains employees in skills needed for decision making.

assigns responsibility to front-line employees.

adapts to the local business environment.

3. Customer financial performance:

are best measured with financial metrics.

are reflected on the balanced scorecard as part of the learning and growth perspective.

can be improved by offering special features, and highly responsive customer service.

is improved by focusing on a combination of financial and nonfinancial metrics.

4. When implementing a new management accounting and control system, it is BEST:

to allow management to implement their ideas.

for management to involve employees in the implementation.

to involve consultants and implement their experienced ideas.

to engage in benchmarking.

5. _________ mean(s) that the organization will attempt to reach much higher goals with the current budget.

Traditional budgeting

Stretch goals

The beyond budgeting approach

Budget slack

6. Many intangible assets:

do not appear on the balance sheet since it is difficult to place a reliable financial value on them.

should be evaluated with ROI and other performance measures.

can be measured and managed with current financial control systems.

are unimportant because they have no physical substance.

7. A chain of cause-and-effect relationships that appropriately link the four balanced scorecard

a high return on investment causes customer loyalty that results in skilled production workers that improve process quality.

skilled production workers help to produce process quality that results in customer loyalty that helps to increase return on investment.

customer loyalty results in a high return on investment that results in the ability to attract skilled production workers that improve process quality.

improved process quality results in a high return on investment that causes customer loyalty that results in the ability to attract skilled production workers.

8. Which of the following is NOT a role of budgeting in organizations?

performance evaluation.

historical financial statements.

allocation of resources.

motivation of employees.

9. The MOST likely result of a negotiated transfer price is that it:

takes away the ultimate responsibility of the resulting transfer price from the two parties.

may reflect the relative negotiating skills of the two parties.

generally results in transferring more than the optimum number of units.

reflects purely economic considerations.

10. The variances that should be investigated by management include:

only unfavorable variances.

only favorable variances.

all variances, both favorable and unfavorable.

both favorable and unfavorable variances that are considered significant in amount for the company.