15) Explicit coordination of individuals’ activities, actions and choices is the hallmark of the

A) management control system.

B) responsibility centre.

C) internal control system.

D) quality-control chart.

16) 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.

17) Which of the following would NOT be a step in the design of a successful management control system?

A) Specify organizational goals, subgoals and objectives.

B) Identify responsibility centres.

C) Measure and report financial performance but not nonfinancial performance.

D) Develop measures of performance for motivation and goal congruence.

18) A logical integration of management accounting tools to gather and report data and to evaluate performance is a(n)

A) internal control system.

B) quality control system.

C) financial reporting system.

D) management control system.

19) Information to support the management control system often comes primarily from the organization’s

A) internal control system.

B) top management.

C) stockholders.

D) financial accounting system.

20) The management control system is distinguished from a financial accounting system by its focus on all of the following EXCEPT

A) generally accepted accounting principles.

B) organizational goals and objectives.

C) internal management decision making.

D) motivation and evaluation of performance consistent with the organization’s goals.

21) The first step in designing a management control system is

A) evaluating management’s performance.

B) establishing organizational goals.

C) preparing financial statements.

D) distinguishing between profit centres and cost centres.

22) Specific tangible achievements that can be observed on a short-term basis are called

A) principles.

B) guidelines.

C) objectives.

D) assumptions.

23) Which of the following is NOT a synonym for an organization’s subgoals?

A) Critical success factors

B) Critical variables

C) Key result areas

D) Profit centres

24) To create a management control system that meets the organization’s needs, designers need to consider all of the following EXCEPT

A) existing constraints.

B) external reporting requirements.

C) internal controls.


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