Chapter 11
Decentralization, Performance Evaluation,
and the Balanced Scorecard
Multiple Choice
1. (LO 1—Centralized organizations)
2. (LO 1—Drawbacks of decentralized organizations)
3. (LO 2—Responsibility accounting)
4. (LO 3—Revenue center)
5. (LO 3—Types of centers)
6. (LO 4—Segment costs)
7. (LO 4—Segment margin)
8. (LO 4—Segment margin)
Answer: A
9. (LO 5—ROI)
Answer: B
10. (LO 5—Residual income)
Solutions to Multiple Choice
MC11–2
11. (LO 5—ROI versus Residual income)
Answer: D
12. (LO 6—Balanced scorecard)
13. (LO 6—Benefits of balanced scorecard)
14. (LO 7—Balanced scorecard: internal business perspective)
15. (LO 7—Quality costs)
Answer: D
16. (LO 7—External failure costs)
17. (LO 7—Prevention costs)
18. (LO 8—Manager motivation)
19. (LO 8—Executive Compensation)