Chapter 13

1. Activity-based responsibility accounting focuses on processes and uses both operational and financial measures.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQNR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMR-GB1D-GCDN-CO3D-RPTW-
COSU-RAJU-CESS-CPJU-GOSU-N3UG-CCSU-YPBU-GCAD-1C33-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

2. Activity-based responsibility accounting employs dynamic standards and emphasizes and supports continuous
improvement.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQND
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMF-GY5U-KPT1-CO4U-G3TZ-GASU-
YQBU-8YSU-N3MN-GOSU-KPDD-GCSU-ECT1-GF1U-NCJZ-E7JI-YT4D-JFNN-4OTI-

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Chapter 13
GO4W-NQNBEE

3. A strategic-based responsibility accounting system transforms the strategy of a company into operational objectives and
measures.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQBU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ3-GI1S-N3JI-CAHD-OQMR-CASU-
GQMR-CRSU-RAUG-GOSS-ECDN-GRSS-NCJ3-CF1D-K3BA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

4. The most common form of strategic-based responsibility accounting system is the worksheet.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQB1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
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Chapter 13
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJU-GR5U-CCMR-8B1G-G3BA-COSU-
1PDN-8YSU-RQDG-GOSS-RA3Z-GYSS-KAT3-C3TU-CPB3-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

5. In a strategic-based responsibility accounting system, stretch targets are established for individual performance
measures.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQBT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMG-CR4U-NP3I-GHAG-C3BS-GOSS-
CPT3-8YSU-YPUN-GOSU-1A3W-GASS-GPBA-GBTG-EA3W-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

6. The balanced scorecard is a strategic-based performance management system that identifies four perspectives.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM

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Chapter 13
QUESTION ID: JFND-GO33-GINU-NQBO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMR-GE4G-NA3I-GA3D-KPT1-GRSU-
NPBU-CRSS-NPBS-GOSU-1CUF-GESS-N3BU-GA5D-Y3JT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

7. Strategy translation means specifying objectives and percentage of revenues from sale of products.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQBZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJI-8R3U-GCTU-8RAU-OCUB-8YSU-
OAMF-CRSS-KCBO-GOSU-QCUB-GOSU-CP3A-CFTG-GAJA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

8. The customer perspective defines the customer and market segments in which the business unit will compete.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM

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Chapter 13
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQBS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ3-CCHS-NPMF-CO5U-NAUN-COSU-
N3B1-CESU-QPBA-GOSU-K3JU-8YSS-EP3O-GO3D-OPUF-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

9. Customer value is the sum of realization and sacrifice what the customer gives up and receives.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-12 - Strategic Marketing
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQBI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMB-GY3U-1QDB-CPTU-GPTT-8YSU-
O3T3-8YSU-CAMD-GOSS-NCJ3-GOSU-OPUB-CO5U-RC33-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

10. Strategic information availability include processes with real-time feedback.

a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.

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Chapter 13
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQBW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMB-GOAD-KQBS-8YAU-KPTA-
8YSU-ECT1-8RSS-EA5G-GOSU-QA5G-CESU-1QMF-CFOU-RQMG-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

11. Performance measures are derived from a company's vision, strategy, and objectives.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 1/18/2017 12:12 AM
QUESTION ID: JFND-GO33-GINU-NQKN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJI-CO3D-NCMR-GC3G-EPMF-CCSU-
KA3Z-CESU-YA31-GOSU-1PTA-8RSU-NAMD-CE4S-EPDN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

12. To link measures to a strategy, they must be derived from management and be balanced.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding

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Chapter 13
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQKB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMN-CWAD-1P3Z-GW5G-NPB1-
GRSU-1AUN-8YSS-KPMB-GOSU-QATU-GRSU-1AJ1-CC4U-GAJI-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

13. Double-loop feedback occurs when managers get information about the effectiveness and the validity of the strategy.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQJ3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ1-CE3D-CC5N-CW5U-RQMD-GYSU-
GCDB-8RSU-CCUG-GOSS-NC5B-8RSU-NQMB-GPOS-NATS-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

14. The strategy map connects the balanced scorecard strategy with an organization's administration.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning

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Chapter 13
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 1/18/2017 12:13 AM
QUESTION ID: JFND-GO33-GINU-NQJA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMD-8YAD-OPJO-CIUG-KQBS-GRSS-
K3UF-8RSU-YPTT-GOSS-GPJW-CWSS-E3TZ-GOHG-GCTT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

15. A testable strategy is a set of linked objectives aimed at an overall goal.

a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQKG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMD-CW3S-NPMD-GRHD-KCB3-
GRSS-EQMF-CESS-CQMN-GOSU-OAUR-GYSU-EP5G-GOHD-1CT1-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

16. In order for the balanced scorecard to succeed, the entire organization must be behind it.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-4 - LO: 13.04
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement

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Chapter 13
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQKF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMF-GTOS-ECDR-G3TU-KP5D-8YSU-
OATW-8RSS-CA5R-GOSU-CAMB-GYSU-KPT3-CRHU-QQMB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

17. Articulation of the balanced scorecard should not be made to individuals within the organization.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-4 - LO: 13.04
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQKR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJI-GOAS-GCTO-8BOU-1A5G-GASU-
KQDF-8YSU-QQB1-GOSS-KAMD-CASU-RC3W-GRHU-RPMF-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

18. Incentives must be structured and resources allocated to support the strategy chosen.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-4 - LO: 13.04
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
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Chapter 13
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQKD
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJA-GRHD-K3JS-CCHD-OAJ3-COSU-
YQMF-8YSU-NQJO-GOSU-R3BA-CASU-RPUB-GCHD-EC3U-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

19. Performance expectations must be established once objectives and measures have been executed and advertised.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-4 - LO: 13.04
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQJU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJS-CITS-RCBW-CRAS-RCTO-8YSS-
KQJI-CESS-KCMG-GOSS-KP5R-GRSU-CA3U-GJ1D-QA5F-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

20. Compensation should be based on performance and paid based on percentage of objective achieved.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-4 - LO: 13.04
NATIONAL STANDARDS: United States - BUSPROG - Analytic

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Chapter 13
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQJ1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMG-CEHS-RQBO-GH4D-QA3A-
GHSS-ECTO-CRSS-EP5B-GOSU-NPTU-GESU-NPTI-GYAG-NPUF-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

21. Outcome measures that are a result of past efforts are called __________ measures.
ANSWER: lag
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQJT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMR-8R5D-R3BZ-CAAG-KQJI-CESU-
G3MR-CRSU-QQBW-GOSU-YCBW-8RSS-NC3O-GR4D-CA3U-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

22. Outcome measures that are expressed in monetary terms are called __________ measures.
ANSWER: financial
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
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Chapter 13
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQJO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ3-CIUD-1ATI-GHAD-GPDR-GHSU-
K3T1-CRSU-CP3Z-GOSS-NPBS-GHSS-CAJU-GRHD-1CJU-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

23. Dissatisfied customers are an example of a __________ measure.

ANSWER: nonfinancial
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQJZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJA-8RAU-RQJS-CEAS-GP3S-GESS-
GC5B-CRSU-C3UR-GOSU-RP3I-GOSS-NPUD-CAHU-CPDB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

24. The targets aimed at transforming the organization within a period of 3 to 5 years are called __________ targets.
ANSWER: stretch
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM

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Chapter 13
QUESTION ID: JFND-GO33-GINU-NQJS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMB-G3TD-KCDR-8R3S-G3JW-8RSS-
GA3I-CESU-CPTU-GOSS-NPTW-GWSS-RP3A-G3TD-EPUD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

25. Choosing general goals, customer segment, and nature of a business are all concern
of strategy __________ .
ANSWER: translation
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQJI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMN-8B1G-RCJ3-CJUD-R3TU-8RSS-
C3TZ-8RSU-YC5F-GOSS-KA3I-8YSU-EQJZ-GC4G-GPUF-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

26. Setting balanced objectives, target values, and rewards are steps in developing
the __________ .
ANSWER: balanced scorecard
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NQJW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
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Chapter 13
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMB-GT1D-OQMB-GB1D-QAMN-
GESU-1AUB-CRSU-QCMB-GOSU-1QBA-GESU-GP5G-GO5D-OA3I-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

27. Training hours is an example of a(n) __________ measure.

ANSWER: lead
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTKN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJZ-GA3U-KP3W-GE3U-KQJ1-CRSU-
QAJW-8YSU-YPBS-GOSS-CQJT-GASU-KP3T-GYHD-Y3B3-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

28. A set of linked objectives aimed at an overall goal is the definition of a __________ strategy.
ANSWER: testable
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTKB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ3-GJ1G-CA3T-GAHG-CQDG-COSS-
K3JS-CRSU-QAJA-GOSU-GC5B-GESU-G3T3-GRAS-GQMD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

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Chapter 13
29. For strategic alignment, incentive compensation should be based on __________ performance, compared to target
values.
ANSWER: actual
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-4 - LO: 13.04
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTJ3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMR-CPOS-CP3T-8BTS-KPUN-CESU-
RC3U-8YSU-1QMN-GOSU-1PUF-CASU-EATT-GB1U-Y3T1-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

30. In a balanced scorecard, performance expectations are communicated by setting __________ .

ANSWER: targets
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-4 - LO: 13.04
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTJA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJT-GPTD-EPJZ-GFUG-C3UN-GESS-
KA5N-CESU-RPTT-GOSU-RQBT-8YSU-Y3BO-GOAS-CP5R-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

31. Activity-based responsibility accounting adds which of the following to the financial-based responsibility accounting
perspective?
a. consumer perspective
Copyright Cengage Learning. Powered by Cognero. Page 15
Chapter 13
b. functional perspective
c. process perspective
d. learning perspective
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTKG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJT-8FOU-OQMN-GYHS-GC5G-8RSU-
CAMB-8YSU-YCB1-GOSU-KCDD-8YSS-ECJZ-GW3S-CCJ1-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

32. A competitive environment means that organizations will be

a. producing increasingly high-volume, low-variety products and services.
b. focused internally on efficiency.
c. managing cause and effect linkages to customer satisfaction.
d. viewing their actions independent of competitors, suppliers, and customers.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-12 - Strategic Marketing
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTKF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ3-G3OS-RAMD-CTTD-EATO-CWSS-
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Chapter 13
KQJS-8RSU-C3BT-GOSU-G3UF-8YSS-KQMF-CW5U-OPDD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

33. Which of the following responsibility accounting systems translates the strategy of an organization into operational
objectives and measures?
a. Financial-based responsibility accounting
b. Operational-based responsibility accounting
c. Activity-based responsibility accounting
d. Strategic-based responsibility accounting
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP- APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 2/3/2017 5:28 AM
QUESTION ID: JFND-GO33-GINU-NTKR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJW-GEAD-NC3S-CR4G-E3JA-GCSU-
C3JW-8YSS-K3TO-GOSS-EA5G-8RSU-OQB1-GWAD-QA33-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

34. Which of the following is NOT true about activity-based responsibility accounting?
a. The emphasis changes from cost reduction through change to cost control.
b. The emphasis includes financial results as well as how things are done.
c. Responsibility moves from one dimension to two dimensions.
d. It moves from a control system to a performance management system.
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding

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Chapter 13
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTKD
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMB-CCHU-N3TW-GITD-GCBU-
CASS-CA5N-CRSU-CATT-GOSU-CCBS-GASU-N3MD-GA3G-N3DD-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

35. What are the two additional perspectives that are added to the activity-based approach to achieve strategic-based
responsibility?
a. a customer perspective and a learning and growth perspective
b. an infrastructure perspective and a process perspective
c. a customer perspective and a financial perspective
d. a financial perspective and a process perspective
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTJU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJZ-8R5S-KP31-GCAD-KPUR-8RSS-
G3J3-8RSS-NCUF-GOSS-CPUR-GASS-GPJZ-8FUD-GCDG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

36. Which of the following is true about a strategic-based responsibility accounting system?
a. It fails to connect with an organization's overall mission and strategy.
b. It expands the number of responsibility dimensions from one to two.
c. It does not work for firms operating in dynamic environments.
d. It can take the form of a Balanced Scorecard.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False

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Chapter 13
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 2/3/2017 5:31 AM
QUESTION ID: JFND-GO33-GINU-NTJ1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJT-CEAS-ECDR-CEAS-CCTI-8RSS-
NAJW-8YSU-1CDB-GOSU-RC3W-GASS-CC33-GR3G-NQBT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

37. Directed continuous improvement is accomplished by linking initiatives to

a. processes.
b. strategy and mission.
c. financial outcomes.
d. measures.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTJT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJW-GJ1G-NCTT-8FOS-KA5G-CRSU-
1AJT-CESU-YCBO-GOSU-EAJU-CASU-YQBU-GF1S-CAJT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

38. Which of the following is NOT an advantage of strategic-based responsibility accounting?

a. It includes perspectives that serve as a source of competitive advantage.
b. Responsibility is centralized within the organization.
c. Change efforts are directed by the mission and strategy.
d. All are advantages of strategic-based responsibility accounting.

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Chapter 13
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTJO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ1-GYHD-13DF-CO3D-1P5G-CCSS-
EQBU-8YSU-GA33-GOSU-KA5D-GESU-13TT-CFOS-ECUG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

39. Which of the following is a perspective of strategic-based responsibility accounting but is NOT a perspective of
activity-based responsibility accounting?
a. financial perspective
b. process perspective
c. customer perspective
d. all of the above
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTJZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ1-GFTD-RAUB-GF1U-ECDB-CASS-
CPBW-CESU-OPDF-GOSU-Y3B3-GESS-GATU-GEHD-O3MG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

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Chapter 13
40. The most common strategic-based performance management system is
a. variance analysis with standard costs as benchmarks.
b. the balanced scorecard.
c. financial budgets.
d. all of the above.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTJS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMD-GEHG-NP3O-CRAD-1QJU-
GWSU-CPJI-8RSU-O3BU-GOSU-1CMR-CCSU-QQDD-GEAD-OPJT-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

41. Which of the following is true of a Balanced Scorecard?

a. It fails to connect with an organization's overall mission and strategy.
b. It is the most common form of an activity-based responsibility accounting system.
c. It does not work for firms operating in dynamic environments.
d. It is a strategic-based performance management system that identifies objectives and measures for four
different perspectives.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 2/3/2017 5:33 AM
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Chapter 13
QUESTION ID: JFND-GO33-GINU-NTJI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ1-CP1G-KPMF-GFOU-1P5B-GESU-
OQBW-CESS-ECJU-GOSS-GP5F-GESS-RAJI-GW4S-G3DR-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

42. Lead measures are critical to strategy because

a. they are based on actual activity.
b. they are an independent part of the system.
c. there should be a causal linkage with strategy.
d. they are outcome measures.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTJW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMB-CTOU-RAMN-GJ1U-1CBS-CRSS-
NPDD-8RSU-O3JI-GOSS-N3BZ-CASU-KPUG-CO5G-KC33-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

43. A major difference between activity-based responsibility accounting and strategic-based responsibility accounting is
a. only strategic-based responsibility accounting is linked to strategy.
b. only strategic-based responsibility accounting is focused on systemwide efficiency.
c. only strategic-based responsibility accounting includes the process perspective.
d. only strategic-based responsibility accounting reinforces team accountability.
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement

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Chapter 13
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NT1N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJA-CEHS-ECT3-GA4D-NQJO-GRSS-
KQBI-CESU-R3MD-GOSU-OPJT-GCSU-EAT3-GE4D-QCTT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

44. Which feature is related solely to strategic-based responsibility and not to activity-based responsibility?
a. financial perspective
b. process perspective
c. team accountability
d. customer perspective
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-12 - Strategic Marketing
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NT1B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMN-GH3G-E3JW-CF1S-NCDF-GOSS-
EAJA-CESS-KA3W-GOSU-QPTO-GRSS-ECDD-GO3G-N3UN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

45. Which is a major difference between activity-based measures and strategic-based measures?
a. Strategic-based measures are linked to strategy.
b. Strategic-based measures are used to align objectives.
c. Strategic-based measures are balanced measures.
d. all of the above.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
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Chapter 13
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTT3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMR-CA5S-R3T1-CTTS-R3TI-GASU-
CA33-8YSS-RCMN-GOSS-RPJT-COSU-R3UN-GC5D-RATW-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

46. Which of the following statements is true regarding lag measures?

a. lag measures are measures that relate to customers
b. lag measures are factors that drive future performance
c. lag measures are performance drivers
d. lag measures include measures such as customer profitability
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTTA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJI-GJUD-Q3UG-CTTS-RA3W-CWSS-
K3JO-CESS-K3JW-GOSU-GPUR-CCSS-EATW-GR3U-YC5D-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

47. The outcome measures that are expressed in monetary terms are called:
a. Objective measures
b. External measures
c. Lag measures

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Chapter 13
d. Financial measures
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP- APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NT1G
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJZ-CTOS-K3JA-G31D-NQMD-CASU-
YAMR-8YSU-GC3U-GOSU-O3TO-CASS-K3MD-8R5U-OQDB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

48. For a firm to have balanced measures, the measures selected must be balanced between
a. lag and lead measures.
b. objective and subjective measures.
c. financial and nonfinancial measures.
d. all of the above.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NT1F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJU-CW5D-YQMF-CR3G-EP5N-8YSU-
YP5R-CRSU-KCBO-GOSU-GPTZ-CCSU-YAJA-CW4G-E3UD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
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Chapter 13

49. The outcome measures that are a result of past efforts are called:
a. Objective measures
b. External measures
c. Lag measures
d. Financial measures
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP- APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NT1R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMB-8F1G-KQJW-GHAU-CPMG-
COSU-E3BA-8YSU-O3BI-GOSU-YP5N-GHSU-CPMR-8F1G-RPMR-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

50. The outcome measures that can be readily quantified and verified are called:
a. External measures
b. Objective measures
c. Financial measures
d. Lag measures
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP- APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
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Chapter 13
QUESTION ID: JFND-GO33-GINU-NT1D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMF-CEAU-1CBU-GA4D-CCUD-
GRSU-KCTW-8YSU-EAUN-GOSS-E3BU-GASS-C3UG-CA3D-Q3BU-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

51. The outcome measures that relate to customers are called:

a. External measures
b. Objective measures
c. Financial measures
d. Lag measures
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP- APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTTU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJS-G7UG-R3B3-GRAU-YCTO-CCSU-
CA5F-CESU-OA3O-GOSU-RCBA-CASU-YQMB-8Y5G-N3TU-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

52. Which of the following would be a nonfinancial measure?

a. customer profitability
b. dissatisfied customers
c. return on investment
d. cost per unit
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry

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Chapter 13
United States - v1 - IMA-12 - Strategic Marketing
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTT1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJA-GJTU-1AJU-8YHU-OCBA-COSU-
GAUG-CESU-RCTZ-GOSS-NCDD-GRSS-EPJ1-GR3D-GPB3-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

53. Which of the following would be an external measure?

a. return on investments
b. employee satisfaction
c. process efficiency
d. all of the above
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTTT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJO-GCAU-E3TS-G31S-GCTI-GASU-
OPBW-8YSS-CCJT-GOSS-CPTT-CASU-RP5G-CO4S-KATZ-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

54. Which of the following would be a subjective measure?

a. employee capabilities
b. market share
c. return on investment
d. cost per unit
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
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Chapter 13
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTTO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJI-GEHD-N3JW-GO3U-1A3I-GYSS-
GQMD-8YSU-RATI-GOSU-K3TO-8RSU-QATU-G3OU-Q3T1-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

55. Which of the following would NOT be an objective measure?

a. customer profitability
b. employee capabilities
c. return on investment
d. cost per unit
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTTZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ3-8RHD-CAJI-GIUG-NAJZ-GESS-
ECMR-8YSS-G3B1-GOSU-EA3A-8YSU-RP5F-GAAD-GQDN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

56. Which of the following would be a lead measure?

a. customer profitability
b. cost per employee
c. return on investment

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Chapter 13
d. employee training hours
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTTS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJS-CTTD-CC5G-GR5G-EPJ3-8RSU-
CC3W-8YSS-RQMF-GOSS-ECJT-CESU-N3J1-GC3D-OATI-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

57. Lead measures

a. are the measures with the highest priority.
b. are generic to different strategies.
c. are based on performance drivers.
d. represent the desired outcomes.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTTI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJO-G7TS-RAJS-GFOU-OAUB-GHSU-
NPBO-CESS-K3DB-GOSS-RP31-GASU-GC3O-GHAG-C3BT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
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Chapter 13

58. Which of the following would be a lag measure?

a. budget forecasts
b. sales per employee
c. plant investment
d. employee training hours
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTTW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJZ-GJTS-GPJU-C31S-GPT1-8YSU-
1QJA-8YSU-QPJ3-GOSS-RPTI-8RSU-RPUF-GW3S-ECMR-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

59. Which of the following features make stretch targets feasible?

a. The targets are set in isolation by top management.
b. The measures are linked by causal relationships.
c. The measures are based on currently attainable standard costs.
d. The targets are set at desired levels for twenty years to ensure long-term performance.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
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Chapter 13
QUESTION ID: JFND-GO33-GINU-NO4N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMR-CFOU-NP3U-GI1D-QQMB-CASS-
EPUR-CESS-NPUB-GOSS-KP3O-GWSS-EAJ1-CFOU-YPTI-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

60. Communicating strategy through measurements requires both scope and flexibility. Which of the following statements
is true?
a. Flexibility requires subjective and objective measurement as well as nonfinancial measures.
b. Flexibility requires that measures be optimal and dynamic.
c. Scope implies that internal and external measures are needed.
d. Both a and c are true.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NO4B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMB-GE5D-KPB1-GR3D-Y3J3-CRSS-
GP5G-CESS-E3TS-GOSU-CCMF-CRSU-N3MF-GA5G-RQDN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

61. Which of the following statements comparing activity-based performance and strategic-based performance evaluation
is NOT true?
a. Strategic-based performance evaluation expands the set of metrics.
b. Only strategic-based performance evaluation leads to cost reductions.
c. Only strategic-based performance standards set stretch targets for all four perspectives.
d. Both systems encourage quality improvements.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic

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Chapter 13
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NO33
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJW-GW5G-KATT-GITG-K3UD-GCSS-
E3UR-CESU-OCMB-GOSS-RP3I-CRSS-KCUF-GR4U-CC3S-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

62. Stretch targets are

a. aimed at stretching the firm's resources.
b. aimed at static standards.
c. aimed at transforming the organization within three to five years if achieved.
d. aimed at transforming the organization immediately.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NO3A
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMR-GEHU-1PTI-CTOU-K3DG-
CWSU-NPDF-CRSU-CPTA-GOSS-N3TS-CASS-KC3Z-CTTD-RA3A-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

63. Which of the following is not a strategic theme of the financial perspective?
a. revenue growth
b. asset utilization
c. employee capability
d. risk management
ANSWER: c
POINTS: 1

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Chapter 13
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NO4G
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMN-GPOU-QPT3-GO4G-KCBS-
GWSU-KPUR-8YSU-GCMR-GOSS-ECTW-CASU-Q3MF-8Y4U-RC3Z-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

64. Business strategy is concerned with

a. choosing market and customer segments.
b. identifying critical internal and business processes.
c. selecting individual and organizational properties required.
d. all of the above.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NO4F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ1-CR3G-RPUR-CAAD-GQDB-8RSU-
CPJS-8RSS-EC3U-GOSS-KCUN-GHSU-Y3MD-CJOU-CPDN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

65. Strategy translation means:

a. choosing the market and customer segments a business unit intends to serve.

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Chapter 13
b. identifying the critical internal and business processes that a unit must excel at to deliver value propositions to
customers in the targeted market segments.
c. specifying objectives, measures, targets, and initiatives for the four responsibility dimensions: the financial
perspective, the customer perspective, the internal business process perspective, and the learning and growth
perspective.
d. selecting the individual and organizational capabilities required for internal, customer, and financial
objectives.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 2/3/2017 5:36 AM
QUESTION ID: JFND-GO33-GINU-NO4R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMG-GIOS-EQJA-CO3D-KQBA-COSS-
KCMB-8RSU-KQBW-GOSS-C3TZ-GWSS-GCJI-C3UD-RA5D-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

66. Which of the following is NOT a step in developing the Balanced Scorecard?
a. setting balanced objectives
b. outlining control procedures
c. setting target values
d. rewards
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM

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Chapter 13
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NO4D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMG-CFUD-EAMR-GA5D-CATI-
COSS-G3UB-8RSS-NC3W-GOSU-RA5B-8RSU-CCJA-CJUD-CCUB-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

67. In the financial perspective, economic value added would be an appropriate measure for
a. revenue growth.
b. cost reduction.
c. improving asset utilization.
d. risk management.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NO3U
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJW-GR4U-KAUG-CIOS-ECDB-CESU-
GC3Z-8YSU-Q3DF-GOSU-KA3T-CRSU-KP3A-GP1D-KQBW-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

68. Objectives for increasing revenue growth include

a. adopting a new pricing strategy.
b. reducing the cost per unit.
c. eliminating non-value-added activities.
d. reducing distribution channel cost.
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
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Chapter 13
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NO31
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMG-CWAU-EP5F-GY5G-N3TO-
GOSU-KPBZ-8RSS-GCJU-GOSS-NAJT-GASU-N3T1-GP1U-C3DD-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

69. Which of the following is NOT a measure commonly used to evaluate asset utilization?
a. return on investment
b. economic value added
c. market share
d. all of the above
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NO3T
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJO-CCHU-RQMD-CCHG-GA5R-
CASS-GPJZ-8RSU-RPMD-GOSU-OP31-CRSS-G3JW-GEHS-G3BO-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

70. Diversifying customers and product lines are initiatives important to

a. revenue growth.
b. cost reduction.
c. asset utilization.
d. risk management.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate

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Chapter 13
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NO3O
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMR-CT1U-OCBU-CTOS-GP5N-CRSU-
QCDD-CRSU-CPB3-GOSU-OQDN-CRSU-QPJA-GJ1D-GPDF-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

71. In the customer perspective, objectives and measures that drive the creation of customer value are
a. customer survey ratings.
b. post-purchase cost.
c. on-time deliveries.
d. all of the above.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-12 - Strategic Marketing
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NO3Z
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJU-G31S-R3JZ-GT1U-KATT-GESU-
N3B3-8YSS-NCUR-GOSU-EA5F-GYSS-GAUN-8BUG-RA5B-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

72. On-time delivery performance is calculated as

a. orders delivered on time/total number of orders delivered.
b. orders delivered on time/total sales dollars.

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Chapter 13
c. orders delivered on time/total production.
d. orders delivered/orders delivered on time.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NO3S
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMN-8BUD-KPJZ-GAAG-CQBS-COSS-
RC5G-CRSU-RCUR-GOSS-K3UB-GRSU-O3JU-CW5U-NPUB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

73. Increasing customer value occurs when

a. the customer receives more benefits.
b. the customer perceives a greater gap between benefits and sacrifice.
c. customer costs are reduced.
d. none of the above.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-12 - Strategic Marketing
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NO3I
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJZ-GA5S-KCBS-GITD-N3UB-COSS-
GAUR-8RSS-GPTU-GOSS-GPJ3-GOSS-NC5D-GR5U-QATZ-E7JI-YT4D-JFNN-4OTI-
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Chapter 13
GO4W-NQNBEE

74. In the Balanced Scorecard system, core objectives and measures

a. are common across all organizations.
b. are common across all scorecard perspectives.
c. are common across departments.
d. none of the above.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NO3W
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJI-GFTG-N3T1-CW4U-YPTU-GASS-
N3J3-8YSU-KCBO-GOSU-NCB3-CASS-NQJU-GAAU-CA3T-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

75. From the customer perspective, which of the following might be considered a core objective rather than a performance
value?
a. decrease price
b. increase customer retention
c. improve image
d. improve product quality
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-12 - Strategic Marketing
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
Copyright Cengage Learning. Powered by Cognero. Page 40
Chapter 13
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTNN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ3-8FUD-QP31-GEAS-RC3A-GOSU-
13BT-8YSU-CQBA-GOSU-QCBT-GRSU-1C3T-CC4D-1P5F-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

76. From the customer perspective, which of the following might be an appropriate measure for improving product
quality?
a. customer profitability
b. cost per customer
c. percentage of returns
d. number of patents pending
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-12 - Strategic Marketing
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTNB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMB-GY5U-13BU-CC5G-CP3W-GYSU-
EAJU-CRSU-NA5R-GOSU-CPJS-GCSU-13TZ-8F1S-NPDR-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

77. An operational measure of quality is

a. defects per unit.
b. number of defective units.
c. pounds of scrap.
d. all of the above.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02

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Chapter 13
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTB3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMB-CJOU-Y3BS-GEHG-EP5N-8RSU-
CCJW-8YSS-GQBO-GOSU-GPJW-GESU-EQB3-CITS-CPTO-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

78. The formula for computing Manufacturing Cycle Efficiency (MCE) is

a. Processing Time / (Processing time + Move time + Inspection time + Waiting time + Other non-value-added
time).
b. Theoretical Capacity / Production hours available.
c. Cycle time per unit × velocity.
d. none of the above.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTBA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJO-GB1U-RAJ1-CR3S-NCJ3-CESU-
CPUD-CRSU-QCJ3-GOSU-CQDG-CESU-C3BU-GITU-CCUD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

79. The time it takes to produce one unit of product is called

a. velocity.
b. delivery time.
c. cycle time.
d. turnover.
ANSWER: c
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Chapter 13
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTNG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJA-8FTD-RA5B-GTTD-KCJS-GRSU-
KP5F-CESS-GC3S-GOSS-GPUN-GYSS-CA5R-CEHU-RQMF-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

80. Cycle time is

a. the time it takes to collect the account after the sale.
b. the time it takes to turn inventory over.
c. the time it takes to deliver the product after it is sold.
d. the time it takes to produce one unit of product.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTNF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJW-CF1S-CQBT-CA5S-KA3S-CASU-
OPUG-8RSU-1A3O-GOSU-YAJO-GWSU-C3DN-CCAU-EPDN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

81. The number of units that can be produced in a given period of time is called

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Chapter 13
a. turnover.
b. cycle time.
c. velocity.
d. efficiency.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTNR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJS-GI1G-NPMF-CO4D-EPDG-GWSU-
RCTA-CESS-GATO-GOSS-EPUG-8RSU-1PUN-CFOU-O3UG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

82. Delivery performance can be improved by

a. decreasing cycle time.
b. increasing cycle time.
c. decreasing velocity.
d. increasing turnover.
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTND

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Chapter 13
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ1-CW4S-EQBZ-CO5U-RC3Z-8RSS-
RPB3-CRSU-EQDN-GOSU-YAJU-GYSS-CATU-CR4S-RCJW-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

83. A manufacturing cell has the theoretical capability of producing 55,000 microchips per quarter. The conversion cost
per quarter is $30,000. There are 5,000 production hours available within the cell per quarter.
The theoretical velocity per hour is:
a. 15 units.
b. 6 units.
c. 11 units.
d. 8 units.
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS: Theoretical capability / Production hours available =
55,000 microchips / 5,000 hours = 11 microchips per hour
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 10 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 2/3/2017 5:40 AM
QUESTION ID: JFND-GO33-GINU-NTBU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMB-CI1G-G3BI-CPOU-GQMD-GOSU-
GP5G-CRSU-QQJT-GOSS-GC5F-CWSS-KQMG-8R4D-NC3O-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

84. Which of the following might be a measure of employee motivation, empowerment, and alignment?
a. process efficiency
b. suggestions per employee
c. customer satisfaction
d. units product cost
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
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Chapter 13
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTB1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJA-GF1G-NC3W-CWHS-RA3I-GWSS-
CATI-CRSU-QPJA-GOSU-1CDB-CWSU-OC3Z-GEHD-ECDB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

85. Which of the following is NOT a major enabling factor of the learning and growth perspective?
a. customer attributes
b. information system capabilities
c. employee attitudes
d. employee capabilities
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-12 - Strategic Marketing
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTBT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJS-8BTU-1A3T-GPTD-GPDN-GOSU-
GP3A-8YSS-CP5F-GOSS-NCMF-GOSU-NPTW-CFTG-E3BZ-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

86. At the beginning of 2018, Vibgyor Company installed a just-in-time (JIT) purchasing and manufacturing system. The
following information has been gathered about one of the company's products:
Theoretical annual capacity 4,200 units
Actual production 1,600 units
Production hours available 600 hours
Actual conversion cost per hour $15
The theoretical velocity per hour is:

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Chapter 13
a. 9 units.
b. 3 units.
c. 2 units.
d. 7 units.
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS: Theoretical annual capacity / Production hours available
= 4,200 units / 600 hours = 7 units per hour
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 10 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 2/3/2017 8:20 AM
QUESTION ID: JFND-GO33-GINU-NTBO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJO-CW4D-EQMR-GPOU-YPUB-
CWSU-1AJZ-8RSS-NPDG-GOSU-RQMD-GCSU-NCBO-GCHD-QP3S-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

87. At the beginning of 2018, Terrapin Company installed a JIT purchasing and manufacturing system. The following
information has been gathered about one of the company's products:

Theoretical annual capacity 3,500

Actual production 1,800
Production hours available 700
Actual conversion cost per hour $10
What is the ideal conversion cost per unit?
a. $1.02 per unit.
b. $29.10 per unit.
c. $2.00 per unit.
d. $32 per unit.
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS: 3,500 / 700 = 5.0 units per hour $10 / 5 = $2.00 per unit
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
Copyright Cengage Learning. Powered by Cognero. Page 47
Chapter 13
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 10 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 1/17/2017 3:24 AM
QUESTION ID: JFND-GO33-GINU-NTBZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ3-CP1U-OCBI-GW3G-KPUN-CWSU-
NQJO-8RSS-EP3Z-GOSS-NP3I-GHSS-EAUR-CFUD-EA3W-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

88. Homegrown, Inc., manufactures a product that experiences the following activities:
Processing (three departments) 60 hours
Moving (four moves) 15 hours
Waiting time 45 hours
Storage time (before delivery) 120 hours
The MCE for the product is
a. 0.33.
b. 0.25.
c. 0.27.
d. 0.18.
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: 60 / (60 + 15 + 45 + 120) = 0.25
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 10 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 1/16/2017 11:40 PM
QUESTION ID: JFND-GO33-GINU-NTBS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMN-GY5U-Q3DG-GR5U-GATS-
GOSU-NC5B-CRSU-NCJS-GOSU-KCJA-COSU-N3JU-CF1G-NA3T-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

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Chapter 13
89. A manufacturing cell has the theoretical capability of producing 40,000 microchips per quarter. The conversion cost
per quarter is $25,000. There are 4,000 production hours available within the cell per quarter. The theoretical cycle time
per unit in minutes is

a. 0.625 minutes.
b. 6.000 minutes.
c. 8.400 minutes.
d. 37.500 minutes.
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: 4,000 × 60 = 240,000 minutes / 40,000 units
= 6.0 minutes per unit
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 10 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NTBI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMN-GH5G-CAUN-GRHU-1A5F-
GOSS-GPDN-CRSS-KPUG-GOSU-R3JZ-GESS-KQBI-GB1S-ECT1-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

90. At the beginning of 2018, Haroldson Company installed a JIT purchasing and manufacturing system. The following
information has been gathered about one of the company's products.

Theoretical annual capacity 9,000

Actual production 3,600
Production hours available 3,000
Actual cost per unit $33
The theoretical velocity per hour is
a. 3.0 units.
b. 2.8 units.
c. 1.5 units.
d. 1.55units.
ANSWER: a
RATIONALE: SUPPORTING CALCULATIONS: 9,000 / 3,000 = 3.0 units
POINTS: 1
DIFFICULTY: Moderate
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QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 10 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 1/16/2017 4:22 AM
QUESTION ID: JFND-GO33-GINU-NTBW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ1-8RHD-GCJ1-GAAU-1PMR-GHSU-
QPDN-8RSS-R3UB-GOSU-CAMR-GWSS-ECMF-GE5G-ECBW-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

91. At the beginning of 2018, Haroldson Company installed a JIT purchasing and manufacturing system. The following
information has been gathered about one of the company's products.

Theoretical annual capacity 9,000

Actual production 3,600
Production hours available 3,000
Actual cost per unit $33
What is the ideal conversion cost per unit?
a. $39.60 per unit.
b. $16.50 per unit.
c. $99 per unit
d. $11 per unit.
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS: 9,000 / 3,000 = 3 units per hour $33 / 3 = $11 per unit
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 10 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 1/16/2017 4:27 AM
QUESTION ID: JFND-GO33-GINU-NC1N

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Chapter 13
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJW-GR3U-OA3U-CO4D-YA3O-CESS-
GCT3-8YSU-O3BI-GOSU-ECJS-CCSU-EPB3-GHHS-ECJW-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

92. Capable, Inc., manufactures a product that goes through the following activities:
Processing (three departments) 21 hours
Moving (four moves) 6 hours
Waiting time 10 hours
Storage time (before delivery) 19 hours
What is the manufacturing cycle efficiency (MCE) of the product? (Round answer to two decimal places.)
a. 0.42
b. 0.38
c. 0.21
d. 0.41
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: MCE = Processing time / (Processing time + Moving
time + Waiting time + Storage time) = 21 hours / (21 hours + 6 hours + 10 hours + 19 hours)
= 0.38
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 10 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 2/3/2017 5:46 AM
QUESTION ID: JFND-GO33-GINU-NC1B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMG-GH3D-OCUF-CO4S-GP3W-
CWSU-OPJA-8RSU-OCBZ-GOSU-GAJI-GOSS-RPB1-CE3S-C3BO-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

93. The perspective that defines the capabilities needed by the organization to create long-term improvement is the
a. financial perspective.
b. customer perspective.
c. process perspective.
d. learning and growth perspective.
ANSWER: d
POINTS: 1

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Chapter 13
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NCT3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ1-GH3D-YA3W-GPTG-NAUD-
CWSU-QATS-CESS-EQBI-GOSU-R3BW-CCSU-C3TO-CE5U-OAJA-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

94. Which of the following would NOT be a core outcome measure for employee capabilities?
a. employee satisfaction ratings
b. number of employees
c. employee turnover
d. employee productivity
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NCTA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJT-CEHD-ECT1-GJUG-KC3S-GYSS-
ECTU-8RSS-CC3T-GOSS-NC31-GRSU-NCDF-GE4U-K3BA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

95. Which of the following would be considered a lead measure for employee capabilities?
a. employee satisfaction

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Chapter 13
b. employee turnover
c. employee productivity
d. number of training hours
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NC1G
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJA-CW4U-OQBA-GO3G-CQJI-8YSS-
KPJ1-8YSS-GPMR-GOSS-GPDG-GWSU-YPTI-GCHG-GPDB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

96. The learning and growth perspective has three major objectives. Which of the following is an objective of the learning
and growth process?
a. increase the number of new products
b. increase customer acquisition
c. increase motivation and alignment
d. improve asset utilization
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NC1F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
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GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJA-CP1U-CCBZ-CFUG-CQB1-8RSU-
GQJZ-8YSU-NP3O-GOSS-CAJI-8YSS-RC3I-CW3D-OA3U-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

97. Which of the following is true of double-loop feedback?

a. It is the foundation for strategic learning.
b. It occurs whenever managers receive feedback information from two information sources.
c. It is provided in a traditional performance management system.
d. It emphasizes only the effectiveness of implementation.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 2/3/2017 5:48 AM
QUESTION ID: JFND-GO33-GINU-NC1R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ1-C3TD-RQJT-GW4U-O3TO-GCSS-
ECBI-8YSS-NQJI-GOSS-N3TZ-GRSU-K3TW-C31U-K3TA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

98. Which of the following would not be an outcome measure?

a. net income
b. market share
c. return on investment
d. training hours
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding

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Chapter 13
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NC1D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJZ-GW5G-CCUG-8R3D-EPMR-CWSS-
KAUR-8RSS-NPJA-GOSS-EA3I-GYSS-NCBA-GPUD-Q3UD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

99. The critical performance measures of the Balanced Scorecard have some special properties. Which of the following is
NOT one of those properties?
a. scorecard measures are linked by cause-and-effect relationships
b. performance measures are derived from strategy
c. benchmarking plays a critical role
d. performance measures should be balanced between outcome and lead measures
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NCTU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMN-8B1D-EA3A-8RHS-CQJZ-GWSU-
EP31-CRSU-EA3A-GOSU-OC3O-GCSU-1CUG-8YHS-CPMG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

100. Failure of a strategy might be due to

a. incorrect calculations.
b. incorrect feedback.
c. implementation problems.
d. invalid controls.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False

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Chapter 13
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NCT1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMB-CO5D-QQJI-CE4U-QPBI-GYSU-
OC3Z-CRSU-QCBO-GOSS-G3JO-GWSU-R3DG-CAAD-N3DD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

101. Which of the following statements is true of a testable strategy?

a. It is not suitable for firms operating in dynamic environments.
b. It is a set of personal goals aimed at short-term results.
c. It is a set of linked objectives aimed at an overall goal.
d. It aims at integrating financial and process measures to allow managers achieve individual goals.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 2/3/2017 5:51 AM
QUESTION ID: JFND-GO33-GINU-NCTT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ3-8R5G-NQJS-8BTU-GAMD-CCSS-
C3B3-8RSU-NCBS-GOSU-O3UG-GESU-EAMG-GYHD-QP5N-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

102. A testable strategy can be constructed

a. by prioritizing objectives.
b. by sequencing if-then statements.
c. by creating alternative scenarios.
d. by creating lead measures.

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ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NCTO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMG-CO5G-EQMF-GA5U-C3T1-
COSU-KQDF-8YSU-KAJT-GOSS-E3B1-CESS-R3MD-GW5D-KPDF-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

103. A strategy map

a. links the cause-and-effect relationships in the proposed strategy, creating a testable strategy.
b. maps the organization's strategies over time.
c. documents the performance results of an organization.
d. strategizes about the organization's competitors.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NCTZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJZ-GFTU-QAJZ-CCAU-1QDG-CCSU-
NPBW-8YSS-CAMD-GOSU-RC33-COSU-13TO-8Y3U-RQBZ-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

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104. Double-loop feedback can be defined as
a. feedback that deals with both the effectiveness of strategy implementation and the validity of the assumptions
underlying the strategy.
b. feedback that emphasizes the effectiveness of strategy implementation and the costs of implementation.
c. feedback that emphasizes the validity and assumptions underlying the strategy and the costs of the strategy.
d. feedback on lead indicators and lag indicators.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP- APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NCTS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJZ-CPTD-NPTZ-GWAD-RA3U-8RSS-
GQJ3-CRSS-RAJT-GOSU-13UN-CASU-RP3S-GHAD-KCUR-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

105. If only the return on investment were used to measure performance, it would be considered
a. double-loop feedback.
b. triple-loop feedback.
c. a testable strategy.
d. single-loop feedback.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP- APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
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Chapter 13
QUESTION ID: JFND-GO33-GINU-NCTI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJA-COHU-1AJA-8RHD-YCDN-GESS-
KAUG-8RSU-GCJS-GOSU-YQBS-GWSS-NCJ3-CWAU-O3DR-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

106. A balanced scorecard is designed to bring about organizational change. Which of the following is a means of
alignment?
a. Employees must share ownership of objectives, measures, targets, and initiatives.
b. Incentives must be structured to support strategy.
c. Resources must be allocated to support strategy.
d. all of the above.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-4 - LO: 13.04
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP- APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NCTW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJZ-8FTG-KPTO-8Y3D-1QDG-CASU-
GPT1-CESU-Q3UG-GOSU-QCDR-GESU-NCTT-CAHS-KP3A-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

107. A Balanced Scorecard becomes a means of communicating the strategy of an organization to its employees and
managers. Which of the following is a downside of communicating this information?
a. The expanded set of metrics for performance evaluation will not be followed.
b. The alignment of performance measures to the objectives of an organization gets neglected.
c. Sensitive information may end up in the hands of competitors.
d. The reward system gets tied just to traditional financial measures.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-4 - LO: 13.04
NATIONAL STANDARDS: United States - BUSPROG - Analytic

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Chapter 13
STATE STANDARDS: United States - v1 - ACBSP-APC-26 - Management Functions
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 2/3/2017 6:07 AM
QUESTION ID: JFND-GO33-GINU-NC4N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJZ-CTUG-C3TO-CIOS-GPJA-CRSS-
KPDD-CRSS-GAJO-GOSU-YAUF-GOSU-KA3U-CTUG-EPTA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

108. Which of the following is NOT a condition that must be present for a strategy to become attainable?
a. budgetary process must provide the resources necessary to carry out the initiatives
b. resources must be allocated to strategic initiatives
c. the organization must decide how much of the strategic targets will be achieved for the coming year
d. all are conditions that must be met for strategy to become actionable
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-4 - LO: 13.04
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:40 AM
DATE MODIFIED: 10/7/2016 9:40 AM
QUESTION ID: JFND-GO33-GINU-NC4B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMN-8Y3S-C3UB-GTUD-EPBO-GESS-
C3MR-8RSU-GCJS-GOSU-KAJU-GHSU-QATS-GWHU-YCJA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

109. Performance expectations are communicated by setting

a. new initiatives.
b. targets.
c. a strategic vision.
d. activity measures.
ANSWER: b
POINTS: 1

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Chapter 13
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-4 - LO: 13.04
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 10/7/2016 9:41 AM
QUESTION ID: JFND-GO33-GINU-NC33
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJO-GB1U-NCJI-8RHG-CCBT-GCSU-
NQMG-8YSS-KAUB-GOSU-OCMG-GESU-ECTW-CCHG-GATT-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

110. In a Balanced Scorecard framework, to ensure that balanced attention is given to all measures, incentive
compensation is paid when:
a. expected operational performance of a company meets the actual performance.
b. expected financial performance of a company meets the actual performance.
c. each strategic measure exceeds a prespecified minimum threshold value.
d. each strategic measure equals a prespecified minimum threshold value.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-4 - LO: 13.04
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP- APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Remembering
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 2/3/2017 6:09 AM
QUESTION ID: JFND-GO33-GINU-NC3A
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJS-GFTU-KCUR-8YAD-OA5R-GWSU-
C3TA-CESS-NATU-GOSU-RQJZ-GHSU-EPMR-CA4S-CQJT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

111. Compare and contrast activity-based measures and strategic-based measures.

ANSWER: Activity-based measures are concerned with standards: process-oriented, financial, value-
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Chapter 13
added, dynamic, and optimal. Strategic perspective adopts standards for each of the
perspectives. Standards are used to communicate strategy, align objectives, and link strategy
to the objectives. Strategic-based measures seek balance. The strategic approach aligns,
reinforces, and communicates strategy and its objectives.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 20 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 10/7/2016 9:41 AM
QUESTION ID: JFND-GO33-GINU-NC4G
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJW-GPOU-KPT1-GW4U-QPBO-
CRSU-GCJA-8YSU-EC5F-GOSU-YCTI-8YSU-NQJA-GFTD-OCDG-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

112. Activity-based responsibility and strategic-based responsibility incorporate some of the same elements. However,
strategic-based responsibility adds some new elements to the common dimensions. What are the elements in common and
what new elements are included?
ANSWER: Activity-based responsibility and strategic-based responsibility both are concerned with
systemwide efficiency, team accountability, financial perspective, and process perspective.
However, strategic-based responsibility is linked to strategy, and adds a customer perspective
and the learning and growth perspective. Strategic-based responsibility adds direction to
improvement efforts by tying responsibility to the firm's strategy. It includes only the
perspectives that are sources for competitive advantage and diffuses responsibility to those
throughout the organization.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 20 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 10/7/2016 9:41 AM
QUESTION ID: JFND-GO33-GINU-NC4F
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Chapter 13
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMG-G7TU-E3UF-8B1U-EQBZ-GASS-
K3JO-CRSU-RPUF-GOSU-O3TZ-8YSU-YA5F-GBTU-GAMG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

113. Activity-based evaluation and strategic-based evaluation incorporate some of the same elements. However, strategic-
based responsibility adds some new elements to the common dimensions. What are the elements in common and what
new elements are included?
ANSWER: Activity-based evaluation and strategic-based evaluation both focus on time reductions,
quality improvements, cost reductions, and trend measurements. However, strategic-based
evaluation also includes an expanded set of metrics and sets stretch targets for all four
perspectives. Stretch targets are set at levels that will transform the organization within a
period of three to five years.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
United States - v1 - AICPA-01 - BB-Industry
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 20 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 10/7/2016 9:41 AM
QUESTION ID: JFND-GO33-GINU-NC4R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJA-CO5S-N3T3-CC4D-RPBW-COSS-
RPJ1-8RSS-NP5G-GOSS-CCTW-8YSU-RQMN-GHAD-Q3UG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

114. Strategic-based performance measures are balanced measures. Give examples of four types of balanced measures.
ANSWER: There are lead and lag measures. Lead measures drive future performance (research) and lag
measures are results of past efforts (profitability). There are objective and subjective
measures. Objective measures can be quantified and verified (market share), and subjective
measures are less quantifiable and judgmental (capabilities). There are financial and
nonfinancial measures. Financial measures are expressed in monetary terms (profit), and
nonfinancial measures use nonmonetary measures (number of returns). There are internal
measures and external measures. Internal measures relate to processes and capabilities
(efficiency), and external measures relate to customers and stakeholders (satisfaction). Using
many different types of measures allows a close link to strategy.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-1 - LO: 13.01
NATIONAL STANDARDS: United States - BUSPROG - Analytic
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Chapter 13
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 20 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 10/7/2016 9:41 AM
QUESTION ID: JFND-GO33-GINU-NC4D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJU-CC5D-YPTW-GWHU-GCTW-
COSU-1PMD-8RSU-EATO-GOSU-G3JA-GHSU-CCDN-CPUD-OA5R-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE

115. The following measures belong to one of four perspectives on the balanced scorecard:
1. Return on investment
2. Time to market
3. Number of new customers
4. Percentage of revenues from new sources
5. Quality costs
6. Employee productivity
Required:

a. Identify the perspective appropriate for each measure listed above.

b. Suggest a possible strategic objective that might be associated with each measure.
ANSWER: a.
1. Return on investment — financial
2. Time to market — process
3. # of new customers — customer
4. % of revenues from new sources — financial
5. Quality costs — process
6. Employee productivity — learning and growth
b.
1. Return on investment — improve asset utilization
2. Time to market — decrease product development cycle time
3. # of new customers — increase customer acquisition
4. % of revenues from new
— develop new customers and markets
sources
5. Quality costs — increase process quality
6. Employee productivity — increase employee capabilities
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-25 - Managerial Characteristics/Terminology
Copyright Cengage Learning. Powered by Cognero. Page 64
Chapter 13
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's – Understanding
NOTES: Time Estimate - 20 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 2/3/2017 8:10 AM
QUESTION ID: JFND-GO33-GINU-NC3U
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMN-GEHG-ECJ3-GR3G-EA3S-8YSU-
EA3Z-CESS-KAT1-GOSS-CC3O-GHSU-E3JO-CPTD-YCDN-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

116. Grey Company would like to increase its operational efficiency. For the first quarter of operations during the current
year, the following data were reported:

Days
Inspection time 2
Process time 5
Move time 3
Wait time 6
Required:

Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round to two decimal
a.
places.)
If all wait time during production is eliminated using the just-in-time method, what will be the
b.
new MCE? (Round to two decimal places.)
ANSWER:
MCE = Process time / (Process time + Move time + Inspection time + Wait time) =
a.
5 days / (5 days + 3 days + 2 days + 6 days ) = 0.31
MCE = Process time / (Process time + Move time + Inspection time + Wait time) =
b.
5 days / (5 days + 3 days + 2 days) = 0.50
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 15 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 2/3/2017 8:55 AM
QUESTION ID: JFND-GO33-GINU-NC31
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMR-GH4U-YCBT-CA3D-NCDG-
CESU-1CJT-8YSS-KPDN-GOSS-NC31-GASS-RQMG-CO3G-RQBZ-E7JI-YT4D-JFNN-
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Chapter 13
4OTI-GO4W-NQNBEE

117. The following measures belong to one of four perspectives on the balanced scorecard:
1. Satisfaction of customer
2. Satisfaction of employees
3. Cycle time
4. Product cost per unit
Required:
a. Identify the perspective appropriate for each measure listed above.
b. Suggest a possible strategic objective that might be associated with each measure.
ANSWER: a.
1. Satisfaction of customer — customer
2. Satisfaction of employees — learning and growth
3. Cycle time — process
4. Product cost per unit — financial
b.
1. Satisfaction of customer — increase customer repeat business
2. Satisfaction of employees — increase motivation and alignment
3. Cycle time — decrease production time
4. Product cost per unit — decrease product costs

POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 15 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 2/3/2017 8:09 AM
QUESTION ID: JFND-GO33-GINU-NC3T
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJA-COHG-CAUB-8R3D-N3DD-GRSU-
NCTT-CRSU-NC31-GOSU-OCJO-GESS-EPMB-GYHS-CQBO-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

118. Montepulciano Industries is planning to change its manufacturing plant by automating and installing a flexible
manufacturing system. The company is also changing its performance measures as well as its operating procedures. In an
effort to evaluate performance and determine where improvements can be made, management has gathered the following
data relating to activities over the last four months:

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Chapter 13
Month
1 2 3 4
Quality Control Measures:
Number of defects 191 161 122 93
Number of warranty claims 56 33 33 29
Number of customer complaints 107 93 71 57

Material Control Measures:

Purchase order lead time 9 days 87 days 6 days 4 days
Scrap as a percentage of total cost 1% 2% 3% 4%

Machine Performance Measures:

Percentage of machine downtime 2% 4% 4% 7%
Use as a percentage of availability 96% 91% 89% 87%
Setup time (hours) 6 9 10 13

Delivery Performance Measures:

Throughput time (days) 6.0 7.5 9.0 10.0
Delivery cycle time (days) 15.0 19.0 21.0 24.0
Manufacturing cycle efficiency 35.0% 26.7% 21.1% 18.0%
Percentage on-time deliveries 97% 95% 92% 84%
Total units 4,221 4,089 3,818 3,705
Many of these measures are new and the president has asked you to interpret the results. Throughput is the time it takes to
turn materials into a completed product. Delivery cycle time is the time between receiving an order and shipping the
goods.

Required:
Using the performance measures given, do the following:

a. Identify the areas where the company seems to be improving.

b. Identify the areas where the company seems to be deteriorating.
ANSWER:
a. Areas where the company is improving:

In the area of quality control, there seem to be improvements. The number of defects has
decreased by over 50 percent in the last four months. Warranty claims and customer
complaints have also decreased. The combination of these effects has had an overall
improvement in quality. Material control has mixed reviews. The purchase order lead
time has decreased by one half. Materials purchases are arriving in less time, a likely
result of JIT purchasing. However, scrap as a percentage of cost is increasing.

b. Areas of deterioration:

In the area of material control, the scrap as a percentage of total cost has quadrupled,
probably due to the poor machine performance. The area of machine performance was
negative. Machine downtime has tripled, probably due to the increased setup time. The
increased setup time is a great concern. Use of the machines as a percentage of
availability is also declining rapidly, perhaps because of the increased setup time. All
delivery performance measures are moving in the wrong direction—throughput time and
delivery cycle time are both increasing, and the manufacturing cycle efficiency and on-
time deliveries are decreasing. It appears that the company is performing poorer
customer service.
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Chapter 13

POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 20 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 2/3/2017 8:09 AM
QUESTION ID: JFND-GO33-GINU-NC3O
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJZ-CTOU-1PDN-GYHG-CPJT-GESS-
NCTA-8YSS-GCJ3-GOSS-C3BS-CCSU-KPTS-GJOU-NPJT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

119. How does the Balanced Scorecard communicate strategy to the organization? How is strategy translated into
performance measures?
ANSWER: Balanced scorecard operationalizes strategy by setting operational objectives and
performance measures for these objectives. The scorecard defines management's desired
relationships among the financial, customer, process, and learning and growth perspectives.
The scorecard establishes causal links between the perspectives by establishing objectives,
measures, targets, and initiatives for each perspective. Each strategy is testable.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 20 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 10/7/2016 9:41 AM
QUESTION ID: JFND-GO33-GINU-NC3Z
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMR-GCHD-N3BT-GPTD-OA3T-GESS-
RPBO-CESU-GPMG-GOSU-1PMF-GRSU-KPB1-CFTD-EA33-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

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Chapter 13
120. Why does the Balanced Scorecard differ from company to company? Whose responsibility is the implementation?
ANSWER: A company's Balanced Scorecard should be derived from and support its strategy. Since
different companies have different strategies, their Balanced Scorecards should be different.
Successful implementation requires the commitment of the entire organization.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 5 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 10/7/2016 9:41 AM
QUESTION ID: JFND-GO33-GINU-NC3S
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ1-GW3U-1QJZ-GAAD-NCDN-CRSS-
GA5N-8YSU-QQMR-GOSU-GAJ3-GCSS-GC5R-CJ1U-YCDG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

121. Lionheart Manufacturing has a theoretical capability to produce 20,250 printers per quarter but currently produces
10,125 printers. The conversion cost per quarter is $4,860,000. There are 6,750 production hours available within the
plant per quarter. In addition to the processing minutes per unit used, the production of printers uses 12 minutes of move
time, 8 minutes of wait time, and 10 minutes of rework time. (All work is done by cell workers.)

Required:

a. Compute the theoretical and actual velocities per hour and the theoretical and actual cycle times (minutes per unit
produced).
b. Compute the ideal and actual amounts of conversion cost assigned to each printer.
c. Calculate the current MCE.
d. If poor employee training is the root cause of wait time and move time, develop an improvement strategy as a series of
if-then statements that will reduce the conversion cost per printer.
ANSWER: a. Theoretical velocity = 20,250 / 6,750 = 3 printers per hour
Actual velocity = 10,125 / 6,750 = 1.5 printers per hour
Theoretical cycle time = 60 min / 3 printers = 20 minutes per copier.
Actual cycle time = 60 min / 1.5 printers = 40 minutes per copier
b. Conversion cost rate = $4,860,000 / (6,750 × 60) = $12 per minute
Ideal assignment per unit = $12 × 20 = $240
Actual assignment per unit = $12 × 40 = $480
c. MCE = processing time/(processing time + wait time + move time + rework time) =
40 / (40 + 12 + 8 + 10) = 0.571
d. If training is improved, then the wait time, move time, and rework time will be
decreased, thereby increasing the MCE. The conversion cost per unit will also
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Chapter 13
decrease.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-2 - LO: 13.02
COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 20 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 1/31/2017 3:40 AM
QUESTION ID: JFND-GO33-GINU-NC3I
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMG-GH4G-GCJ1-GYHU-G3J3-GRSS-
CATW-CESS-ECMN-GOSU-GCBO-GWSU-ECBA-GB1U-1C5D-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

122. White Industries has the theoretical capability to produce 120,000 units per month but currently produces 90,000
units. The conversion cost for the month is $2,550,000. There are 7,500 production hours available per month. In addition
to processing time, it takes 14 minutes of move time and 8 minutes of wait time to produce a unit.
Required:

1. Compute the theoretical and actual velocities per hour

Compute the theoretical and actual cycle times (minutes per unit produced). (Round
2.
answer to two decimal places.)
Compute the current manufacturing cycle efficiency (MCE). (Round answer to two
3.
decimal places.)

ANSWER: 1. Theoretical velocity = Theoretical capability / Production hours available

= 120,000 units / 7,500 hours = 16 units per hour
Actual velocity = Actual production / Production hours available
= 90,000 units / 7,500 hours = 12 units per hour
2. Theoretical cycle time = 60 minutes / Theoretical velocity
= 60 minutes / 16 units per hour = 3.75 minutes per unit
Actual cycle time = 60 minutes / Actual velocity
60 minutes / 12 units per hour = 5.00 minutes per unit
MCE = Processing time / (Processing time + Move time + Inspection time +
3.
Waiting time + Other non-value-added time)
= 5.00 minutes / (5.00 minutes + 14.00 minutes + 8.00 minutes) = 0.19

POINTS: 1
DIFFICULTY: Moderate

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Chapter 13
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 20 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 2/3/2017 6:22 AM
QUESTION ID: JFND-GO33-GINU-NC3W
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJ1-GTUD-YQDF-GF1U-K3TZ-COSS-
EPTT-8YSS-KC3T-GOSS-NC3I-GOSU-GQJS-GHAU-KQB1-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

123. Barney's Town is a local clothing store in New York. Barney's Town has been experiencing increased competition
from the national clothing chains. In an effort to improve performance, management intends to create a Balanced
Scorecard. In a meeting, several measures were suggested by various managers.

Management has identified a key problem. Customers are taking too long to pay their department store's charge card bills,
and the company has an abnormal amount of bad debts. If this problem were solved, the company would have far more
cash to invest in store improvements. Investigation has revealed that much of the problem with late payments and unpaid
bills is apparently due to disputes about incorrect charges on the customer bills. Incorrect charges usually occur because
sales clerks enter data incorrectly on the charge account slip.

The performance measures suggested by the managers are given below:

• Total sales revenue

• Sales per square foot of floor space
• Sales to inventory ratio
• Sales per employee
• Sales to total assets
• Customer satisfaction with accuracy of charge account bills from monthly customer survey
• Customer wait time for service
• Travel expenses for buyers' trips
• Average age of accounts receivable
• Courtesy shown by junior staff members based on surveys of senior staff
• Unsold inventory at the end of the season as a percentage of total cost of sales
• Percentage of suppliers making just-in-time deliveries
• Quality of food in the staff cafeteria based on staff surveys
• Written-off accounts receivable as a percentage of sales
• Percentage of charge account bills containing errors
• Percentage of employees who have attended the city's cultural diversity workshop
• Total profit
• Profit per employee
• Percentage of salesclerks trained to correctly enter data on charge account slips
Required:

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Chapter 13
a. Build an integrated Balanced Scorecard using only performance measures suggested by the
managers. You do not have to use all the measures, but build a Balanced Scorecard that reveals
a strategy for dealing with the problems with accounts receivable and unsold merchandise.

b. Construct a testable strategy by showing the causal links (with arrows) between measures in
the different perspectives, and show whether the performance measure should show an increase
or decrease.

c. Assume that the company adopts the Balanced Scorecard. After operating for a year, there are
improvements in some performance measures but not in others. What should management do
next?
ANSWER: a. Financial:
Total profit
Average age of accounts receivable

Customer:
Customer satisfaction with accuracy of charge account bills

Internal Processes:
Percentage of charge account bills containing errors

Learning and Growth:

Percentage of sales clerks trained to correctly enter data on charge

c. The results can be explored for information about the company's strategic assumptions.
Each link in the Balanced Scorecard is considered a causal link. Mixed results would
present evidence that might challenge the causal assumptions. Management should try to
figure out where the links break down. The answer may suggest a shift in strategy.
Breakdowns in the causal links underlying the company's strategy and provides
invaluable feedback that can lead to modification of the strategy.

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Chapter 13
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 20 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 1/18/2017 12:14 AM
QUESTION ID: JFND-GO33-GINU-NCNN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJI-GJ1S-GA3A-CJTD-OCJO-GOSU-
K3UD-CRSS-RPBW-GOSS-EQJW-8RSS-KCMF-CEHS-RA5D-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

124. The Sand and Sun scuba resort recently changed owners. The new owners planned to upgrade the resort into to a
destination vacation resort by improving the lodging and the restaurant. Currently, the restaurant has a limited menu of
sandwiches and little competition because of its location. The current staff has been retained and the new management
held a meeting with the employees to develop a balanced scorecard that would guide operations. All were enthusiastic
about creating the scorecard and the new management's plans for the resort.

The following measures were developed for an initiative that would improve the restaurant:

a. Resort sales
b. Resort return on investment
c. Number of menu items
d. Dining area cleanliness
e. Customer satisfaction with menu choices through satisfaction surveys
f. Customer satisfaction with service through satisfaction surveys
g. Average time to take an order
h. Average time to prepare an order
i. Percentage of the cooking staff completing a basic cooking course at the community college
j. Percentage of restaurant staff completing a hospitality course at the community college
Required:

1. For each measure, create a balanced scorecard (show the perspective, measure and measure) indicate whether the
performance measure should increase (+) or decrease (−).
2. Create a strategy map that links the performance measures.
3. What are the hypotheses built into the scorecard? Through if/then statements show how performance will be improved.
4. How will management know if one of the hypotheses is false?
ANSWER: 1.

Perspective Objective Measure Change

Financial
Revenue growth Resort sales +
Copyright Cengage Learning. Powered by Cognero. Page 73
Chapter 13
Asset utilization Resort return on investment +
Customer
Improve product Customer satisfaction with
+
functionality menu choices
Improve product Customer satisfaction with
+
delivery service
Process
Improve process
Dining area cleanliness +
quality
Increase process Average time to take an
−
efficiency order
Average time to prepare an
Decrease process time −
order
Increase number of
Number of menu items +
offerings
Learning
Increase employee % of cooking staff
+
capability completing a cooking class
% of restaurant staff
Increase employee
completing a hospitality +
capability
class

2.
Financial
return on investment

resort sales
Customer

Customer satisfaction with service Customer satisfaction with menu choices

Internal Business Processes

Dining area cleanliness Number of menu items

Average time to take an order Average time to prepare an order

Learning and Growth

Percentage of restaurant staff completing hospitality course

Percentage of cooking staff completing cooking course
3. The hypotheses underlying the balanced scorecard are indicated by the arrows in the
diagram. Reading from the bottom of the balanced scorecard, the hypotheses are:

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Chapter 13
a. If the percentage of dining room staff who complete the basic hospitality
course increases, then the average time to take an order will decrease.
b. If the percentage of dining room staff who complete the basic hospitality
course increases, then dining room cleanliness will improve.
c. If the percentage of kitchen staff who complete the basic cooking course
increases, then the average time to prepare an order will decrease.
d. If the percentage of kitchen staff who complete the basic cooking course
increases, then the number of menu items will increase.
e. If the dining room cleanliness improves, then customer satisfaction with
service will increase.
f. If the average time to take an order decreases, then customer satisfaction
with service will increase.
g. If the average time to prepare an order decreases, then customer satisfaction
with service will increase.
h. If the number of menu items increases, then customer satisfaction with
menu choices will increase.
i. If customer satisfaction with service increases, resort sales will increase.
j. If customer satisfaction with menu choices increases, resort sales will
increase.
k. If sales increase, weekly return on investment for the resort will increase.
4. Management will be able to tell if a hypothesis is false if a corresponding linkage for an
improvement in a performance measure (if statement) does not, in fact, lead to improvement
in the performance outcome measure (then statement). For example, if the number of menu
items is increased, but customer satisfaction with the menu choices does not increase,
management will immediately know that something was wrong with that particular
hypothesis.

POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-3 - LO: 13.03
NATIONAL STANDARDS: United States - BUSPROG - Reflective Thinking
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-09 - Performance Measurement
KEYWORDS: Bloom's - Applying
NOTES: Time Estimate - 20 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 1/31/2017 3:45 AM
QUESTION ID: JFND-GO33-GINU-NCNB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMMD-CRAS-ECDF-GE3S-EA3W-GYSS-
NQBI-CRSS-KCTT-GOSU-YQB1-COSS-E3T3-CEAD-GA5G-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

125. How can management communicate strategy? What are three methods for achieving strategic alignment? What
management failure can keep strategy from being actionable?

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Chapter 13
ANSWER: Strategy can be communicated to employees and lower level managers through the Balanced
Scorecard. The Balanced Scorecard shows objectives, measures, targets, and initiatives
focusing attention. The linked objectives serve to illustrate the logic of strategy. To bring
about alignment, employees must be fully informed of the strategy, employees must share
ownership of objectives and targets and initiatives, and incentives must support the strategy.
For strategy to become actionable or implemented, resources must be allocated to support the
strategy.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.13-4 - LO: 13.04
NATIONAL STANDARDS: United States - BUSPROG - Analytic
STATE STANDARDS: United States - v1 - ACBSP-APC-27 - Managerial Accounting Features/Costs
United States - v1 - AICPA-10 - FN-Measurement
United States - v1 - IMA-11 - Strategic Planning
KEYWORDS: Bloom's - Understanding
NOTES: Time Estimate - 20 min.
DATE CREATED: 10/7/2016 9:41 AM
DATE MODIFIED: 10/7/2016 9:41 AM
QUESTION ID: JFND-GO33-GINU-NCB3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GJ1D-CPTT-CPTU-NQJS-GY41-4PB1-8YHN-4AJT-GW4N-4CUN-
GPO1-43JT-GAHU-EAJS-GPDI-GWN8-EPRW-EMJI-CFOS-EPBT-CR4U-K3MG-CCSU-
G3JT-8RSU-O3MG-GOSU-E3MR-COSU-K3J1-CR3D-CPUR-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE

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