ACCT 3201 ost Accounting: A Managerial Emphasis, 16e (Horngren) Chapter 23 Performance Measurement, Compensation, and Multinational Considerations QUESTIONS WITH VERIFIED SOLUTIONS

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1) A report that measures financial and nonfinancial performance measures for various organization units in a single report is called a(n) ________. A) balanced scorecard B) financial report scorec... ard C) goal-congruence report D) investment success report Answer: A Diff: 1 Objective: 1 AACSB: Analytical thinking 2) Customer-satisfaction measures are an example of the ________. A) goal-congruence approach B) balanced scorecard approach C) financial report scorecard approach D) investment success approach Answer: B Diff: 1 Objective: 1 AACSB: Analytical thinking 3) An example of a performance measure with a long time horizon is ________. A) direct materials efficiency variances B) overhead spending variances C) number of new patents developed D) quality of room service Answer: C Diff: 2 Objective: 1 AACSB: Application of knowledge 4) Average number of repeat visits in a spa unit is a ________ measure on a balanced scorecard. A) customer perspective B) financial perspective C) learning-and-growth perspective D) internal-business-process perspective Answer: A Diff: 2 Objective: 1 AACSB: Application of knowledge5) Which of the following steps in designing an accounting-based performance measure includes decisions such as defining assets as total assets or net assets in the calculation of return on assets? A) choosing performance measures that align with top management's financial goals B) choosing the time horizon of each performance measure C) choosing the details for each performance measure D) choosing a target level of performance Answer: C Diff: 2 Objective: 1 AACSB: Analytical thinking 6) Which of the following steps in designing an accounting-based performance measure includes decisions of selecting net income as a measure of financial performance? A) choosing performance measures that align with the firm's financial goals B) choosing the time horizon of each performance measure C) choosing the details for each performance measure D) choosing a target level of performance Answer: A Diff: 2 Objective: 1 AACSB: Analytical thinking 7) Which of the following is true about designing an accounting-based performance measure? A) The decisions made in steps are followed in a hierarchial order. B) The issues considered in each step are independent. C) Management's beliefs are not required during the analyses. D) Behavioral criteria are important when evaluating the steps. Answer: D Diff: 2 Objective: 1 AACSB: Analytical thinking 8) Many common performance measures, such as customer satisfaction, rely on internal financial accounting information. Answer: FALSE Explanation: Customer satisfaction would be obtained by surveys that are not in the financial accounting records. Diff: 1 Objective: 1 AACSB: Analytical thinking 9) Some companies present financial and nonfinancial performance measures for various organization units in a single report called the balanced scorecard. Answer: TRUE Diff: 1 Objective: 1 AACSB: Analytical thinking10) The balanced scorecard in most organizations is broken down into the following categories: commercial perspective, supplier perspective, external business-process perspective, and productivity perspective. Answer: FALSE Explanation: The balanced scorecard in most organizations is broken down into the following categories: financial perspective, customer perspective, internal business-process perspective, and learning-and-growth perspective. Diff: 1 Objective: 1 AACSB: Analytical thinking 11) The first step in designing accounting based performance measures is to choose a target level of performance and feedback mechanism. Answer: FALSE Explanation: The first step in designing accounting based performance measures is to choose performance measures that align with top management's financial goals. Diff: 1 Objective: 1 AACSB: Analytical thinking12) Assume you are evaluating a manufacturing company. Match the various organizational activities and concepts with the performance measures listed. Some items may have more than one match. Activities: 1. Change in revenues 2. Cycle time 3. Economic order quantity 4. Manufacturing defects 5. Market share 6. New products 7. On-time delivery 8. Operating income 9. Product reliability 10.Time-to-market Performance measure: ________ a. Profitability ________ b. Customer satisfaction ________ c. Innovation ________ d. Efficiency, quality, and time Answer: 1, 8 a. Profitability 5, 7, 9 b. Customer satisfaction 6, 10 c. Innovation 2, 3, 4, 7, 9, 10 d. Efficiency, quality, and time Diff: 2 Objective: 1 AACSB: Application of kno [Show More]

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