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Indicate whether the statement is true or false.
1. Corporate social responsibility focuses not only on the impact of a company’s operations on society but also on
improving social well-being within and outside of the firm.
a.
True
b.
False
2. A measure map is different from a strategy map because it shows which metrics are leading indicators and which
metrics are lagging indicators.
a.
True
b.
False
3. Performance measurement systems are used to assess how well a company is performing toward meeting its own goals
and objectives.
a.
True
b.
False
4. The balanced scorecard has four performance perspectives: financial, customer, learning and growth, and strategic.
a.
True
b.
False
5. A strategy map links the four perspectives of the BSC with strategic objectives, strategic initiatives, performance
metrics, and performance targets.
a.
True
b.
False
6. The balanced scorecard focuses on lagging indicators such as actual sales volume rather than including leading
indicators such as customer satisfaction.
a.
True
b.
False
7. Certain corporate social responsibility efforts, such as protecting the environment for future generations, are also
referred to as sustainability efforts.
a.
True
b.
False
8. Sometimes a strategy map is referred to as a supply chain map.
a.
True
b.
False
9. The balanced scorecard has five performance perspectives: financial, learning and growth, internal processes, customer,
and supply chain.
a.
True
b.
False
10. It is important to gather as many accounting metrics as possible because they have intrinsic value and do not need a
context in which to be understood.
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a.
True
b.
False
11. Falco Industries is adopting a balanced scorecard. It would be a positive outcome of the process if Falco’s employees
fully embraced surrogation of the metrics.
a.
True
b.
False
12. Cody is a manager at Valvco and is leading a team to create the measure map in the company’s new BSC initiative.
Cody is correct in sharing with his colleagues that a measure map provides a means for verifying the expectations of how
strategic objectives affect one another.
a.
True
b.
False
13. Performance measurement systems are used to assess how well a company is performing relative to the goals FASB
sets for the company.
a.
True
b.
False
14. The balanced scorecard is named for its view of company performance focusing only on financial measures.
a.
True
b.
False
15. A measure map is different from a strategy map because it shows the expected relationships among performance
metrics based on the strategy map.
a.
True
b.
False
16. It is important to gather meaningful accounting metrics to assess how well employees or units within a company meet
the company’s goals and objectives.
a.
True
b.
False
17. Sometimes a strategy map is referred to as a value chain.
a.
True
b.
False
18. Performance measurement systems use measures of current performance to assess how well a company is performing
toward meeting its goals and objectives.
a.
True
b.
False
19. Mason works at LoftCo, Inc., studying and improving operational efficiencies. The performance measures he gathers
include determining the number of defective units produced in a week. Mason is focused on the internal processes
perspective of the balanced scorecard performance management system.
a.
True
b.
False
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20. The balanced scorecard incorporates only qualitative performance metrics.
a.
True
b.
False
21. Corporate social responsibility efforts may be linked to the four perspectives of the balanced scorecard in a
sustainability balanced scorecard.
a.
True
b.
False
22. Miguel works at LoftCo, Inc., and has been asked to help lead the development of the company’s new balanced
scorecard. He and his multifunctional team developed strategic objectives and performance metrics for each of the four
perspectives. This work constitutes the complete set of steps in developing a BSC performance management system.
a.
True
b.
False
23. Material price variances are examples of metrics used for measuring a purchasing department’s performance.
a.
True
b.
False
24. Ben-Hal Mining, a coal mining company, invests significant funds in land, soil, and water reclamation and
conservation projects in every community impacted by its operations. This is an example of a corporate social
responsibility objective requiring an extensive capital investment by Ben-Hal Mining.
a.
True
b.
False
25. Performance measurement systems are used to prepare tax information needed by the IRS to assess a company’s
taxable income.
a.
True
b.
False
26. The budgeted income statement and balance sheet are the most important components of a company’s strategy map.
a.
True
b.
False
27. Cassie works at LoftCo, Inc., studying effective ways to retain the company’s current customers. The performance
measures she gathers include determining the number of customer returns each week. Cassie is focused on the internal
processes perspective of the balanced scorecard performance management system.
a.
True
b.
False
28. Operating income and cash flow are examples of metrics used to assess a company’s financial condition.
a.
True
b.
False
29. Accounting metrics, such as cash flow, are often used to simplify the business decision-making process.
a.
True
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b.
False
30. Cody is a manager at Valvco and is creating a measure map. Cody is correct in assessing that if median training hours
per employee predict the improvement of delivery times to the customer, then delivery times is the lagging indicator and
median training hours per employee is the leading indicator.
a.
True
b.
False
31. Performance in the financial perspective of the balanced scorecard focuses on satisfying customers.
a.
True
b.
False
32. The balanced scorecard is a marginally effective strategic performance management system.
a.
True
b.
False
33. Performance targets may be linked to employee incentives such as bonuses and additional days off.
a.
True
b.
False
34. Cassie works at LoftCo, Inc., in the Employee Training Department where her work is focused on the learning and
growth perspective of the balanced scorecard performance management system. While it is critical that the work in her
performance area is linked to at least one strategic objective within the company, it is not necessary for performance
metrics to be tied to the strategic objective.
a.
True
b.
False
35. James, an accountant at Forta Company, is preparing a report showing the production shift data for the previous day’s
production. This report will be shared with the production manager, Julia. This is an example of the role of managerial
accounting at work.
a.
True
b.
False
36. Carli is a manager at PetsCo and is leading the development of the BSC for the company. She is correct in explaining
to her development team that management may need to adjust its strategic objectives if their expectations regarding
relationships between several strategic objectives are not supported by statistical analysis.
a.
True
b.
False
37. Strategic performance measurement systems define and link strategic objectives to the external financial reports of a
company.
a.
True
b.
False
38. Sometimes a strategy map is referred to as a measure map.
a.
True
b.
False
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39. Operating income and cash flow are examples of metrics used to assess quality control.
a.
True
b.
False
40. Evaluating employee performance and making strategic decisions are two examples of how managerial accounting
information is used.
a.
True
b.
False
41. Mason works at LoftCo, Inc., in an operations department focused on the internal processes perspective of the
balanced scorecard performance management system. It is critical that the work in this performance area is linked to at
least one strategic objective within the company.
a.
True
b.
False
42. Jerome works at LoftCo, Inc., in research and development. The performance measures he gathers include assessing
progress towards developing a better form of biodegradable plastic packaging. Jerome is focused on the internal
processes perspective of the balanced scorecard performance management system.
a.
True
b.
False
43. Corporate social responsibility capital investment proposals can be analyzed using a variety of managerial accounting
methods.
a.
True
b.
False
44. Corporate social responsibility is best described as the efforts a company takes to increase corporate profits.
a.
True
b.
False
45. Performance in the customer perspective of the balanced scorecard often focuses on the ability to obtain customers.
a.
True
b.
False
46. Accounting metrics, such as operating income, make business decision-making processes more complex.
a.
True
b.
False
47. Jace is an executive at a large but decentralized corporation that uses the balanced scorecard. It would be reasonable
for her to suggest using scorecard cascading to help her large company more effectively ensure that individuals
throughout the company support its overriding strategy.
a.
True
b.
False
48. Cody is a manager at Valvco and is creating a measure map with his supervisor. Cody can be confident in telling his
boss that if customer satisfaction ratings predict sales, then customer satisfaction is the lagging indicator and sales is the
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leading indicator.
a.
True
b.
False
49. Performance measurement systems use externally imposed benchmarks of the competitive landscape to assess internal
performance.
a.
True
b.
False
50. James, an accountant at Forta Company, is preparing an income statement at the end of the year. It will be included in
the company’s annual report to be released to the public. This is an example of the managerial accounting function at
Forta.
a.
True
b.
False
51. In the strategic learning process, Carli is trying to understand why the increase in the customer satisfaction rating at
her company did not generate the expected increase in sales for the last quarter. It would be logical for her simply to
conclude that customer satisfaction has nothing to do with increased sales.
a.
True
b.
False
52. Strategic initiatives are interchangeable with strategic objectives.
a.
True
b.
False
53. Material price variances are examples of metrics used for measuring a sales department’s performance.
a.
True
b.
False
54. Corporate social responsibility efforts may require significant capital investments.
a.
True
b.
False
55. Corporate social responsibility efforts do not ever require significant capital investments.
a.
True
b.
False
56. Mila is helping to set performance targets for her company, Urban Supply. The target of increasing the company’s
online customer satisfaction rate by 1% in the next quarter is an example of a performance target focused on the customer
perspective of the balance scorecard.
a.
True
b.
False
57. One of the objectives of the four balanced scorecard performance perspectives is to help management focus on
looking beyond typical financial measures of performance.
a.
True
b.
False
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58. Strategic performance measurement systems define and link strategic objectives to the performance metrics of a
company.
a.
True
b.
False
59. Corporate social responsibility activities focus only on local issues.
a.
True
b.
False
60. Strategic performance measurement systems are commonly used by large companies around the world.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
61. Which of the following statements about corporate social responsibility (CSR) is false?
a.
CSR describes the efforts of companies to take responsibility for the impact their operations have on society.
b.
CSR describes the efforts of companies to take responsibility for improving social well-being within and
outside of the firm.
c.
Companies are taking a more active role in recent years in focusing and reporting on their own CSR
initiatives.
d.
CSR activities may include waste and pollution minimization but do not include agricultural initiatives within
farming and ranching.
62. Alexander and Kristin are reviewing the statistical analysis for the performance metrics at their company, SafeChild
Toys. Unfortunately, there is a lack of evidence that automating the warehouse has led to better inventory controls
thereby providing better customer service. Alexander and Kristin should
a.
automatically revise all strategic objectives because they are flawed
b.
review the performance metrics to make sure they are accurately measuring the strategic objectives
c.
implement a completely new balanced scorecard for SafeChild
d.
revoke performance bonuses and terminate the employees responsible for poor performance
63. The triple bottom line approach to sustainability includes all of the following reporting categories except _____
performance.
a.
financial
b.
international
c.
social
d.
environmental
64. Which of the following suggested that management efforts not directly related to increasing profits are similar to
“stealing” from a company’s shareholders?
a.
FASB
b.
Milton Friedman
c.
SEC
d.
Various accounting firms
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65. Managers can use CSR and sustainability information as important feedback to guide decision making in a variety of
areas. Which of the following areas is least likely to be impacted by this feedback?
a.
strategic and operational areas
b.
FASB compliance with U.S. GAAP
c.
cost control decisions
d.
resource allocation decisions
66. Waterfield Company is looking for a way to help its executive managers assess how its three divisions are meeting the
company’s goals and objectives for the performance of its purchasing department. Which of the following metrics might
be used for this purpose?
a.
operating income
b.
customer satisfaction rating
c.
the amount of time employees spend in training
d.
the material price variance
67. Carolina, the accountant for Duke Manufacturing, tells Jacob, who works in customer service for Duke, that that their
company’s customer satisfaction rating predicts sales revenue in dollars. Carolina’s comment indicates that the customer
satisfaction rating is
a.
a leading indicator
b.
a lagging indicator
c.
both a leading and a lagging indicator
d.
a nonfinancial metric
68. A form of CSR information that helps managers evaluate the savings generated by using fewer natural resources in a
company’s operations is known as a(n) _____ measure.
a.
corporate efficiency
b.
eco-efficiency
c.
sustainability
d.
responsibility
69. In general, corporate social responsibility activities and reporting efforts within the Fortune 500 group of companies
have _____ since 2011.
a.
decreased
b.
remained consistent
c.
increased
d.
been ignored completely
70. Which of the following statements about performance metrics is false?
a.
Performance metrics are used to assess performance in achieving the strategic objectives.
b.
Performance metrics are needed for 80% of the strategic objectives.
c.
Each strategic objective needs at least one performance metric.
d.
Performance metrics may be financial or nonfinancial in nature.
71. Juana and Carl are implementing a balanced scorecard for their company, DoItRight Manufacturing. They are
considering various performance metrics for assessing progress toward strategic objectives. Which of the following
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would be a good choice of performance metric for the strategic objective listed?
a.
The strategic objective of delighting the customer is measured by the number of repeat customers.
b.
The strategic objective of delighting the customer is measured by the average employee tenure.
c.
The strategic objective of increasing profits is measured by the number of hours provided for employee
training.
d.
The strategic objective increasing profits is measured by the customer satisfaction rating.
72. When CSR initiatives include the added dimension of ensuring the ability to meet current needs without
compromising the ability of future generations to meet their needs, the CSR activities are referred to as
a.
sustainability efforts
b.
sustainability balanced scorecard
c.
substantial efforts
d.
substantial initiatives
73. A company’s balanced scorecard may include
a.
only leading indicators
b.
only lagging indicators
c.
both leading and lagging indicators
d.
neither leading nor lagging indicators
74. Which of the following statements about performance targets is true?
a.
Performance targets are the same thing as performance metrics.
b.
Performance targets are the same thing as strategic initiatives.
c.
Performance targets are levels of improvement that management wants to achieve for performance metrics.
d.
Performance targets have nothing to do with performance metrics.
75. Johnson Lumber Mill produces various grades of cut boards from raw lumber. All of the following may be considered
an initiative undertaken as a part of the company’s CSR efforts except
a.
assessing its application of the latest tax reform laws to determine if the company can pursue new avenues of
tax savings
b.
investing in more fuel-efficient delivery vehicles when replacing worn-out trucks
c.
recycling by-products and waste
d.
reviewing joint process efforts of the operations to determine more eco-efficient ways to process cut boards
76. A company’s balanced scorecard may include
a.
only nonfinancial metrics
b.
only financial metrics
c.
both nonfinancial and financial metrics
d.
neither nonfinancial nor financial metrics
77. Waterfield Company has three decentralized segments. Executive managers are looking for a way to measure the
performance of each segment. Which of the following metrics might be used for this purpose?
a.
the operating cash flows for the entire company
b.
the residual income of each segment
c.
the number of training sessions provided to employees in each segment
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d.
the material quantity variance in each segment
78. Which of the following is not one of the elements of the balanced scorecard?
a.
strategic initiatives
b.
cost system
c.
performance targets
d.
strategy maps
79. A strategy map plays an important role for a company using the balanced scorecard approach to its performance
measurement system. Which of the following is not a function of the strategy map?
a.
A strategy map shows cause-and-effect relationships among strategic objectives.
b.
A strategy map shows how each strategic objective contributes to the overall mission of the company.
c.
A strategy map shows causal relationships between only the financial and internal processes perspectives of
the balanced scorecard.
d.
A strategy map links all elements of the balanced scorecard together.
80. Performance targets
a.
provide goals for employees
b.
are never linked to incentive compensation
c.
are always linked to employee quarterly bonuses
d.
are an optional part of the balanced scorecard
81. Carolina, the accountant for Duke Manufacturing, tells Jacob, who works in customer service for Duke, that that their
company’s customer satisfaction rating predicts sales revenue in dollars. Carolina’s comment indicates that sales revenue
is
a.
a leading indicator
b.
a lagging indicator
c.
both a leading and a lagging indicator
d.
a nonfinancial metric
82. Harrison Company uses a balanced scorecard approach to performance measurement, and company executives would
like to integrate CSR activities into the company’s core strategy. Which of the following statements regarding the
appropriate way to make this integration work for Harrison is false?
a.
Harrison may include CSR activities in a separate corporate social responsibility performance perspective.
b.
Harrison may integrate CSR strategic objectives into the four original perspectives of the BSC.
c.
Harrison will have to remove one of the original four perspectives from its BSC and include CSR activities in
a separate performance perspective because the BSC can have a maximum of four perspectives.
d.
Integrating CSR activities into the BSC creates a sustainability balanced scorecard for Harrison.
83. Ivell Packaging Company produces paper and plastic packaging products. All of the following may be considered an
initiative undertaken as a part of the company’s CSR efforts except
a.
hosting a health and wellness fair for the employees and the community
b.
training customer service employees on the latest upgrade to the technology used to take orders from
customers
c.
installing a cafeteria and coffee shop in response to an employee questionnaire about workplace well-being
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d.
investing funds in equipment to reduce the amount of plastic waste generated by the production process
84. Which of the following statements regarding CSR and sustainability reporting is false?
a.
Generally accepted accounting principles do not require firms to report CSR and sustainability efforts.
b.
The Global Reporting Initiative is an international organization that develops the use of sustainability
reporting standards.
c.
Many corporations use a triple bottom line approach to sustainability reporting.
d.
The triple bottom line approach includes financial, social, and entrepreneurial performance components.
85. AnaCarolina and Jaco, executive managers at Duke Manufacturing, are tasked with determining appropriate
performance metrics for the customer perspective of Duke’s balanced scorecard. Which of the following is the best metric
for this situation?
a.
return on investment
b.
operating throughout
c.
material price variance
d.
number of returns due to incorrect products shipped in response to orders
86. Waterfield Company is looking for a way to help its executive managers assess how its three divisions are meeting the
company’s goals and objectives for financial performance. Which of the following metrics might be used for this
purpose?
a.
operating income and cash flows
b.
customer satisfaction rating and the number of customer returns
c.
the amount of time employees spend in training and the number of training sessions provided
d.
the material price variance and the material quantity variance
87. Strategic learning results
a.
not only by verifying strategic objective expectations but also by adjusting them when expected relationships
are not supported by statistical analysis
b.
from confirming that a balanced scorecard is no longer necessary for the organization
c.
from verifying strategic objective expectations with statistical analysis
d.
from using only nonfinancial performance metrics
88. Cody Paper Mill produces various grades of paper sheeting for industrial uses. All of the following may be considered
an initiative undertaken as a part of the company’s CSR efforts except
a.
planting trees to replace those used by the paper-making process
b.
improving worker health and safety efforts to reduce injuries in the workplace
c.
expanding the customer base to increase the net income of the company
d.
investing funds in equipment to reduce greenhouse gas emissions from its production facilities
89. The tendency for managers to behave like the performance metrics are the strategic objectives is known as
a.
metrics errors
b.
motivated reasoning
c.
surrogation
d.
common measures bias
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90. Nonfinancial performance measures in the balanced scorecard such as customer satisfaction are often _____ of future
financial performance.
a.
leading indicators
b.
lagging indicators
c.
poor indicators
d.
not considered an indicator
91. Horizon Engineering and Construction incorporates various CSR initiatives into the designs and construction projects
provided for its customers. Which of the following cannot be considered a CSR initiative for the company?
a.
designing buildings that use recycled materials effectively
b.
designing buildings with high-efficiency heating systems
c.
constructing buildings with cutting-edge technology interfaces in the entry and security systems
d.
constructing buildings with renewable energy generation capabilities, such as solar panels
92. Beaver Valley Oil Refinery produces various grades of petroleum products at its refinery operations. All of the
following may be considered an initiative undertaken as a part of the company’s CSR efforts except
a.
installing equipment to reduce greenhouse gas emissions at its refinery operations
b.
donating heating fuel to the local community center so that it can host more community events and expand its
outreach to the rural populations outside the city limits
c.
providing training to the accounting staff so they better understand FASB requirements for applying
accounting standards for financial reporting
d.
investing funds in equipment to conserve water at all refinery operations
93. The signs that a manager is subject to motivated reasoning include all of the following except
a.
the manager ignores bad news
b.
the manager ignores good news
c.
the manager relies too heavily on good news
d.
the manage stops gathering information when results look good
94. Bekah and Rafael, supervisors in the Human Resources Department at James Manufacturing, are tasked with
determining appropriate performance metrics for the learning and growth perspective of their company’s balanced
scorecard. Which of the following is the best metric for this situation?
a.
return on investment
b.
operating throughout
c.
material price variance
d.
hours of employee training offered each quarter
95. Omega Energy Incorporated serves rural communities across the northeast with gas and home heating fuel. All of the
following initiatives may be considered a part of the company’s CSR efforts except
a.
providing a lunchroom and a fitness center for employees and their families
b.
building a new corporate headquarters in order to downsize several regional offices and reduce overhead costs
c.
using biofuel-powered vehicles in its transportation fleet
d.
encouraging curbside recycling efforts and incentives in the rural communities served by the company
96. Johnson Lumber Mill produces various grades of cut boards from raw lumber. All of the following may be considered
an initiative undertaken as a part of the company’s CSR efforts except
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a.
planting trees to replace those used by the mill
b.
donating lumber to the local community to construct a community center
c.
pursuing new product lines and expanding the customer base to increase profitability of the company
d.
investing funds in wind turbines or other renewable sources to provide energy to run the sawmill
97. Which of the following statements about CSR efforts and initiatives is true?
a.
CSR efforts must be focused locally to be considered a CSR initiative.
b.
CSR efforts must be focused globally to be considered a CSR initiative.
c.
CSR efforts must be focused on employees and their working conditions to be considered a CSR initiative.
d.
CSR efforts must be focused on responsibly impacting society and/or the improvement of the social well-
being within and outside the firm to be considered a CSR initiative.
98. The tendency for managers to compare the performance of divisions within a company to each other using the same
metrics regardless of each division’s unique characteristics is known as _____ bias.
a.
metrics
b.
division
c.
surrogation
d.
common measures
99. Which of the following is not one of the elements of the balanced scorecard?
a.
strategic plan
b.
performance perspectives
c.
strategic objectives
d.
performance metrics
100. Waterfield Company is looking for a way to help its executive managers assess how the three divisions within the
company are meeting the company’s overall goals and objectives. The company is looking for a(n)
a.
activity-based accounting system
b.
product costing system
c.
performance measurement system
d.
standard cost system
101. To minimize common measures bias when developing divisional balanced scorecards for unique divisions within a
corporation,
a.
one division may focus more heavily on a subset of the four perspectives, for example on learning and growth
and internal processes, while other divisions focus on different perspectives, such as customer and financial
b.
each division must focus equally on all four perspectives of the balanced scorecard
c.
the performance metrics should be treated as strategic objectives in and of themselves within each division
d.
it is important to stop gathering information when the results for the division look good
102. Which of the following is not one of the four performance perspectives included in the balanced scorecard?
a.
financial
b.
internal processes
c.
research and development
d.
customer
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103. Which of the following statements regarding strategic objectives in the balanced scorecard is false?
a.
Strategic objectives define the purpose of an action taken within a company.
b.
Strategic objectives are the same as the overall mission statement of the company.
c.
Each strategic objective is a subcomponent of the company’s mission statement.
d.
Each of the four performance perspectives in the balanced scorecard should be linked to at least one strategic
objective.
104. Which of the following is an international organization that develops and encourages the use of sustainability
reporting standards?
a.
International Accounting Standards Board (IASB)
b.
Financial Accounting Standards Board (FASB)
c.
Global Reporting Initiative
d.
United Nations
105. Which of the following is an example of a strategic performance measurement system?
a.
product costing system
b.
lean management system
c.
standard cost system
d.
balanced scorecard
106. AnaCarolina and Jaco work at Duke Manufacturing, and they are tasked with determining appropriate performance
metrics for the internal processes perspective of Duke’s balanced scorecard. Which of the following is the best metric for
this situation?
a.
operating income
b.
defective units produced
c.
sales revenue
d.
customer satisfaction rating
107. The expected relationships among performance metrics in the measure map are based on
a.
performance perspectives
b.
standard costs
c.
the strategy map links strategic objectives
d.
the financial budget
108. Which of the following statements regarding CSR and sustainability reporting is false?
a.
Generally accepted accounting principles require firms to report CSR and sustainability efforts.
b.
The Global Reporting Initiative is an international organization that develops the use of sustainability
reporting standards.
c.
Many corporations use a triple bottom line approach to sustainability reporting.
d.
The triple bottom line approach includes financial, social, and environmental performance components.
109. Motivated reasoning, surrogation, and common measures bias are three terms describing
a.
strategic initiatives within the balanced scorecard framework
b.
three perspectives of the balanced scorecard
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c.
cognitive or psychological biases that may impact decision making with the balanced scorecard
d.
mission-focused metrics commonly used in the implementation of the balanced scorecard
110. Julia and Jaime manage a glass-making company. Their company includes a manufacturing division, a warehouse
and logistics division, and a customer care division. To avoid common measures bias when analyzing the performance of
each of these unique divisions, Julia and Jaime should
a.
choose performance metrics that will be applied equally to all three divisions regardless of the division’s
unique characteristics
b.
not use the balanced scorecard performance measuring system because it cannot be applied to unique
circumstances
c.
not include the learning and growth perspective of the balanced scorecard under these circumstances
d.
create a unique divisional scorecard for each separate division
111. An important consideration in establishing a measure map includes determining the
a.
leading and lagging indicators
b.
mission of the organization
c.
standard costs of the products being manufactured
d.
net income of the company
112. Sometimes the phrase “corporate social responsibility” is used interchangeably with the phrase
a.
corporate outreach
b.
corporate efforts
c.
sustainability efforts
d.
sustainability outreach
113. Which of the following is not an eco–efficiency measure?
a.
energy efficiency
b.
fuel efficiency
c.
material price efficiency
d.
waste efficiency
114. An example of a CSR initiative focused on the social performance aspect of the triple bottom line might include
which of the following?
a.
developing a CSR initiative tackling human rights issues in countries where raw materials are sourced
b.
developing a CSR initiative tackling environmental concerns in countries where raw materials are sourced
c.
developing a CSR initiative tackling improving profitability of the company by expanding its customer base in
countries where it sources its raw materials
d.
developing a CSR initiative tackling improving return on investment for divisions of the company located in
countries where raw materials are sourced
115. Which of the following best describes a strategic performance measurement system?
a.
A strategic performance measurement system defines and links strategic objectives to the stock price of a
company.
b.
A strategic performance measurement system defines and links strategic objectives to the performance metrics
of a company.
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c.
A strategic performance measurement system defines and links strategic objectives to the standard cost system
of a company.
d.
A strategic performance measurement system defines and links strategic objectives to the bond rating of the
company.
116. The balanced scorecard elements are linked together by a
a.
strategic objective
b.
standard cost card
c.
strategic initiative
d.
strategy map
117. Metrics that are early in the value chain are normally considered to be _____ indicators.
a.
value chain
b.
leading
c.
lagging
d.
reciprocal
118. Alexander and Kristin are executive managers at Safety First Fall Safety Equipment Co. They realize that within the
last several quarters, they have been heavily focused on the online customer satisfaction rating as though it is the strategic
objective rather than focusing on the customers as the company’s real goal. Alexander and Kristin realize they have fallen
prey to a cognitive bias known as
a.
uncommon measures bias
b.
common measures bias
c.
surrogation
d.
motivated reasoning
119. Waterfield Company has three decentralized segments. Executive managers are looking for a way to measure the
performance of each segment. Which of the following metrics might be used for this purpose?
a.
the operating cash flows for the entire company
b.
the return on investment of each segment
c.
the number of training sessions provided to employees in each segment
d.
the material quantity variance in each segment
120. Which of the following is not a correct example of a performance target?
a.
Achieve 50 hours of training time per production employee per year.
b.
Reduce employee turnover by 25% in the next 12 months.
c.
Increase on-time deliveries to customers by 75% in the next quarter.
d.
Include the internal processes component in the balanced scorecard.
121. AnaCarolina and Jaco, accountants for Duke Manufacturing, are tasked with determining appropriate performance
metrics for the financial perspective of Duke’s balanced scorecard. Which of the following is the best metric for this
situation?
a.
return on investment
b.
operating throughout
c.
material price variance
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d.
customer satisfaction rating
122. Ken and Laura are working toward implementing a balanced scorecard for their company. They ask their production
and warehouse teams to provide several options regarding strategic initiatives for the internal processes perspective of the
balanced scorecard. Which of the following suggestions made by the employees would be a good choice of a strategic
initiative for this purpose?
a.
increase profits
b.
increase the average employee’s tenure
c.
tie pay raises to training objectives
d.
automate the warehouse
123. Alexander and Kristin are executive managers at Safety First Fall Safety Equipment Co. They realize that within the
last several quarters, they have been treating the performance metrics from the company’s two very distinct divisions the
same rather than focusing on the unique aspects of each division. They have inaccurately assessed divisional performance
as a result. Alexander and Kristin realize they have fallen prey to a cognitive bias known as
a.
uncommon measures bias
b.
common measures bias
c.
surrogation
d.
motivated reasoning
124. Which of the following is the best-known strategic performance measurement system?
a.
product costing system
b.
lean management system
c.
standard cost system
d.
balanced scorecard
125. Juana and Carl are reviewing their company’s balanced scorecard strategic objectives when they discover a problem.
Which of the following is not a correct matching of a strategic objective to its performance perspective in their company’s
BSC?
a.
The strategic objective in the learning and growth perspective is to reduce the number of employees who
chose to leave the company for jobs elsewhere.
b.
The strategic objective in the customer perspective is to make the customer happy.
c.
The strategic objective in the financial perspective is to reduce shipping errors.
d.
The strategic objective in the internal processes perspective is to improve delivery times of products shipping
to customers.
126. A measure map is an important aspect of the balanced scorecard performance measurement system. Which of the
following describes the role of the measure map?
a.
The measure map shows the expected relationships among the mission and strategic objectives of the
organization.
b.
The measure map provides the production departments with the metrics and measurements needed to build the
products.
c.
The measure map shows the expected relationships among the performance metrics chosen by the
organization.
d.
The measure map is representative of the value chain of the organization.
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127. Which of the following is not an example of a capital investment project that focuses on minimizing resource waste
and environmental degradation as a CSR objective?
a.
Iron Mills Event Planning invests in an employee wellness and fitness center.
b.
Foxburg Manufacturing invests in a soil reclamation project near its production plant to reclaim a piece of land
affected by its wastewater flow.
c.
Parker Mining invests in planting more trees and vegetation than required by the local laws on fields created
by its strip mining efforts.
d.
Clinton Industries invests in water shed reclamation efforts to bring trout back to local streams and waterways.
128. Metrics that are later in the value chain are normally considered to be _____ indicators.
a.
value chain
b.
leading
c.
lagging
d.
balanced
129. Alexander and Kristin are executive managers at Safety First Fall Safety Equipment Co. They decide to discontinue
gathering data and calculating performance metrics within their organization because the company’s balanced scorecard
performance metrics have produced several quarters in a row of good news. They assume the positive results will
continue. Alexander and Kristin have made this decision as a result of a cognitive bias known as
a.
uncommon measures bias
b.
common measures bias
c.
surrogation
d.
motivated reasoning
130. The benefits of CSR investments
a.
are always easy to measure quantitatively
b.
cannot be evaluated qualitatively
c.
must be evaluated qualitatively for the projects that cannot be evaluated quantitatively
d.
must be evaluated using all three aspects of the triple bottom line
131. The form of CSR information that helps managers evaluate the savings generated by using fewer natural resources in
a company’s operations is known as
a.
physical resource sufficiency metrics
b.
resource sufficiency measures
c.
eco-sufficiency measures
d.
eco-efficiency measures
132. The tendency for managers to see what they want to see in data is known as
a.
motivated reasoning
b.
surrogation
c.
common measures bias
d.
data subrogation
133. Which of the following statements regarding CSR reporting is true?
a.
CSR reporting rarely provides feedback that is helpful in guiding a company’s strategic and operational
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decision making.
b.
CSR reporting and feedback may help a company increase revenues and control costs but it rarely helps with
efficient allocation of scarce resources.
c.
CSR and sustainability information provides important feedback to guide a company’s strategic and
operational goals regarding eco-efficiency measures.
d.
CSR and sustainability reporting are helpful only to small companies with relatively simple operating
structures and processes.
134. Which of the following is false when evaluating capital investments tied to a CSR objective?
a.
CSR investment proposals cannot be analyzed with the typical managerial accounting methods used for other
types of capital projects.
b.
Companies may evaluate an investment using a qualitative approach rather than a traditional quantitative
approach.
c.
Companies may evaluate an investment considering the reduction of potential litigation risks.
d.
Companies may evaluate an investment considering the possibility of opening new consumer markets with a
sustainable product desired by consumers.
135. The index developed to help assess a company’s sustainability efforts is the
a.
Dow Jones Sustainability Index
b.
United Nations Sustainability and Human Development Index
c.
SEC Sustainability Index
d.
World Bank Index
Match the following descriptions and examples to these elements of the balanced scorecard (a or b).
a.
Measure maps
b.
Strategy maps
136. Shows the expected relationships among performance metrics
137. Shows the expected cause-and-effect relationships among strategic objectives
Match the following descriptions with the correct term (a–c).
a.
Leading indicator
b.
Lagging indicator
c.
BSC performance perspectives
138. Financial, internal processes, learning and growth, customer
139. Provides evidence of performance after activity has been completed
140. Provides evidence of possible future performance
Match the following descriptions and examples with the elements of the balanced scorecard (a–d).
a.
Performance metrics
b.
Strategic objectives
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c.
Performance targets
d.
Strategic initiatives
141. Levels or rates of improvement that management wants to achieve for performance metrics
142. Defines the purpose of an action taken within a company
143. Action plans that management implements to achieve the strategic objectives
144. Used to assess performance in achieving the strategic objectives
Match the following descriptions and examples with the four performance perspectives in the balanced scorecard (a–d).
a.
Financial
b.
Internal processes
c.
Learning and growth
d.
Customer
145. Focuses on research and development initiatives and employee training, retention, and satisfaction efforts
146. Focuses on operational efficiencies and issues like improving manufacturing performance
147. Focuses on traditional accounting measures of performance, such as net income and cash flow
148. Focuses on obtaining and retaining customers and customer base
Match the following descriptions of their use by management with the appropriate term (a or b).
a.
Performance measurement system
b.
Strategic performance measurement system
149. Used by management to define and link strategic objectives to the performance metrics of a company
150. Used by management to assess how well employees or units within a company meet the company’s goals and
objectives
151. Explain the process of strategic learning.
152. What is a sustainability balanced scorecard? What are two ways it is created?
153. Briefly explain the role of performance targets in the balanced scorecard.
154. List the seven elements that make up a complete balanced scorecard.
155. Provide a succinct definition of corporate social responsibility.
156. Describe a reason why CSR capital investments must be measured qualitatively.
157. Briefly explain the role of a measure map as an element of the balanced scorecard. How is it different from a strategy
map?
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158. List the three components of the triple bottom line.
159. Describe scorecard cascading and when it is used.
160. List the four basic performance perspectives used in the balanced scorecard.
161. Briefly explain the role of a strategy map in the balanced scorecard.
162. Briefly explain the role of the strategic objective as an element of the balanced scorecard.
163. What is the Global Reporting Initiative?
164. Briefly explain the role of performance metrics as an element of the balanced scorecard.
165. What are eco–efficiency measures?
166. Differentiate between strategic objectives and strategic initiatives as used in the balanced scorecard.
167. Describe how sustainability efforts relate to CSR activities.
168. How does the Dow Jones Sustainability Index define sustainability?
169. Briefly describe the concept of a performance measurement system.
170. List the three types of cognitive or psychological bias to which decision making with the balanced scorecard may be
subject.
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