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36.
37.
What does dysfunctional decision making refer to?
38.
Which of the following elements is not part of a management control system?
39.
An operating unit of an organization is called a cost center if it is responsible:
40.
An operating unit of an organization is called an investment center if it is responsible:
41.
An operating unit of an organization is called a revenue center if it is responsible:
42.
An operating unit of an organization is called a profit center if it is responsible:
43.
An operating unit that is responsible for revenues and costs is commonly referred to as
a(n):
44.
An operating unit that is responsible for revenues only is commonly referred to as a(n):
45.
An operating unit that is responsible for only costs is commonly referred to as a(n):
46.
When managers are held responsible for costs but the input-output relationship is not well
specified, a(n) ________________________ is established.
47.
When managers are held responsible for costs and the input-output relationship is well
specified, a(n) ________________________ is established.
48.
49.
Controllable revenue is included in a performance report of a:
Profit Center
Investment Center
A.
Yes
No
B.
Yes
Yes
C.
No
No
D.
No
Yes
50.
Controllable revenue is included in a performance report of a:
Revenue Center
Cost Center
A.
Yes
No
B.
Yes
Yes
C.
No
No
D.
No
Yes
51.
Controllable revenue is included in a performance report of a:
Cost Center
Profit Center
A.
Yes
No
B.
Yes
Yes
C.
No
No
D.
No
Yes
52.
Assets invested in a responsibility center are included in a performance report of a:
Profit Center
Investment Center
A.
Yes
No
B.
Yes
Yes
C.
No
No
D.
No
Yes
53.
Assets invested in a responsibility center are included in a performance report of a:
Profit Center
Cost Center
A.
Yes
No
B.
Yes
Yes
C.
No
No
D.
No
Yes
54.
A manager makes a decision that is beneficial for a specific investment center and for the
entire organization. From the organization's perspective, this decision results in:
55.
Responsibility accounting defines an operating center that is responsible for revenue and
costs as a(n): (CMA adapted)
56.
The least complex segment or area of responsibility for which costs are allocated is a(n):
(CMA adapted)
57.
Which of the following statements is(are) correct?
I. A profit center has control over both cost and revenue.
II. An investment center has control over invested funds, but not over costs and revenue.
III. A cost center has no control over sales.
58.
The purpose of the Data Processing Department of Haslam Corporation is to assist the
various departments of the corporation with their information needs free of charge. The
Data Processing Department would best be evaluated as a(n):
59.
Which of the following departments would not be a cost center?
60.
Which of the following subunits would most likely be considered a only cost center?
61.
A successful responsibility accounting reporting system is dependent upon (CMA
adapted):
62.
The following is a summarized income statement for McClaron Manor Co.'s profit center
12608 for April:
Contribution Margin
$175,000
Period Expenses
$11,000
Manager' s Salary
$2,000
Corporate Expense Allocation
$8,000
($21,000)
$154,000
Which of the following amounts is most likely subject to the control of the profit center's
manager? (CPA, adapted)
