35) The drive for some selected goal that creates effort and action toward that goal is called
B) goal congruence.
C) managerial effort.
36) Who is responsible for developing, maintaining and evaluating internal control systems?
D) Both managers and accountants
37) An internal control system consists of all of the following EXCEPT
A) methods to prevent errors and irregularities.
B) procedures to promote goal congruence.
C) methods to promote operating efficiency.
D) procedures to detect errors and irregularities.
38) All of the following are financial objectives of responsibility centres EXCEPT
A) operations budgets.
B) profit targets.
C) customer satisfaction.
D) return on investment.
39) Good performance measures will do all of the following EXCEPT
A) be subjective.
B) relate to the goals of the organization.
C) balance long-term and short-term concerns.
D) reflect the management of key activities.
40) All of the following are nonfinancial objectives of responsibility centres EXCEPT
C) operations budgets.
D) customer satisfaction.
41) Any cost that cannot be affected by the management of a responsibility centre within a given time span is a(n)
A) controllable cost.
B) quality cost.
C) uncontrollable cost.
D) opportunity cost.
42) A controllable cost
A) should be ignored in evaluating the responsibility centre manager’s performance.
B) is a cost that is influenced by a manager’s decisions and actions.
C) is a cost that cannot be affected by the management of a responsibility centre within a given time span.
D) is the same as a sunk cost.
43) Uncontrollable costs
A) are influenced by a manager’s decisions and actions.
B) provide evidence about a manager’s performance.
C) are also referred to as opportunity costs.
D) should be ignored in evaluating the responsibility centre manager’s performance.
44) A management control system can be designed to stress all of the following simultaneously EXCEPT
A) cost behaviour.
B) customer satisfaction.