Management Accounting Information for Decision-Making and Strategy Execution Atkinson 6th Edition Test Bank
Product details:
Blending new theories and topics with the fundamentals. While Atkinson maintains its classic managerial accounting focus on planning and decision-making about product mix, customer mix, and capacity, it also includes new discussions relevant to some of the more modern topics in managerial accounting, including ethics, environmental issues, and life cycle costing and approaches.
Table contents:
Chapter 2 The Balanced Scorecard and Strategy Map
Objective 1
Answer: FALSE
Explanation: Database and information systems are intangible assets
Diff: 1
Terms: database and information systems
Objective: 1
AACSB: Reflective thinking
EXCEPT:
Answer: C
Diff: 1
Terms: performance measurement systems
Objective: 1
AACSB: Reflective thinking
Answer: A
Diff: 2
Terms: intangible assets
Objective: 1
AACSB: Reflective thinking
1
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Diff: 1
Terms: intangible assets
Objective: 1
AACSB: Reflective thinking
Diff: 1
Terms: performance measurement
Objective: 1
AACSB: Reflective thinking
Answer: Yes, business has moved from the industrial age into the information age where knowledge-based intangible assets create value and are critical for success. Examples include loyal and profitable customer relationships, high-quality processes, innovative products and services, employee skills and motivation, and database and information systems.
Diff: 2
Terms: intangible assets
Objective: 1
AACSB: Analytical skills
MAL: This question is not available in MyAccountingLab.
2
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Objective 2
Answer: FALSE
Explanation: The learning and growth perspective addresses which processes must we excel at to meet our customer and shareholder expectations
Diff: 2
Terms: learning and growth perspective
Objective: 2
AACSB: Reflective thinking
Answer: FALSE
Explanation: The Balanced Scorecard (see Exhibit 2-3) measures organizational performance across four different but linked perspectives that are derived from the organization’s mission, vision, and strategy.
Diff: 1
Terms: balanced scorecard
Objective: 2
AACSB: Reflective thinking
Answer: TRUE
Diff: 1
Terms: learning and growth perspective
Objective: 2
AACSB: Reflective thinking
Answer: FALSE
Explanation: The process perspective of the Balanced Scorecard focuses on excellence in processes which satisfy customers
Diff: 2
Terms: process perspective
Objective: 2
AACSB: Reflective thinking
Answer: TRUE
Diff: 2
Terms: balanced scorecard
Objective: 2
AACSB: Reflective thinking
3
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Answer: TRUE
Diff: 2
Terms: customer perspective
Objective: 2
AACSB: Reflective thinking
Answer: A
Diff: 1
Terms: balanced scorecard
Objective: 2
AACSB: Reflective thinking
Answer: B
Diff: 2
Terms: balanced scorecard
Objective: 2
AACSB: Reflective thinking
Diff: 1
Terms: balanced scorecard
Objective: 2
AACSB: Reflective thinking
4
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Diff: 1
Terms: balanced scorecard
Objective: 2
AACSB: Reflective thinking
Terms: financial perspective
Objective: 2
AACSB: Reflective thinking
Terms: customer perspective
Objective: 2
AACSB: Reflective thinking
Diff: 1
Terms: learning and growth perspective
Objective: 2
AACSB: Reflective thinking
5
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Answer: B
Diff: 2
Terms: balanced scorecard
Objective: 2
AACSB: Reflective thinking
Terms: process perspective
Objective: 2
AACSB: Reflective thinking
Answer: C
Diff: 2
Terms: customer perspective
Objective: 2
AACSB: Reflective thinking
6
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Diff: 3
Terms: process perspective
Objective: 2
AACSB: Reflective thinking
Answer: The primary purpose of the Balanced Scorecard is to translate an organization’s vision,
mission, and strategy into a set of performance measures that put that strategy into action with
clearly-stated objectives, measures and target.
Diff: 3
Terms: balanced scorecard
Objective: 2
AACSB: Analytical skills
MAL: This question is not available in MyAccountingLab.
Objective 3
Diff: 1
Terms: balanced scorecard
Objective: 3
AACSB: Reflective thinking
Answer: TRUE
Diff: 1
Terms: strategy
Objective: 3
AACSB: Reflective thinking
7
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3) Which of the following statements is true?
Answer: A
Diff: 2
Terms: strategy
Objective: 3
AACSB: Reflective thinking
Answer: D
Diff: 2
Terms: balanced scorecard
Objective: 3
AACSB: Reflective thinking
Diff: 2
Terms: strategy, objectives
Objective: 3
AACSB: Reflective thinking
8
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Dakota Corporation plans to grow by offering a hand held application, the Pocket Analyst 2, which is superior and unique from the competition. Dakota believes that putting additional resources into R&D and staying ahead of the competition with technological innovations is critical to implementing its strategy.
6) Dakota’s value proposition is:
Diff: 3
Terms: value proposition
Objective: 3
AACSB: Reflective thinking
Diff: 3
Terms: strategy
Objective: 3
AACSB: Reflective thinking
Splashdown Corporation manufactures water toys. It plans to grow by producing high-quality water slides at a low cost that are delivered in a timely manner. There are a number of other manufacturers who produce similar water slides. Splashdown believes that continuously improving its manufacturing processes and having satisfied employees are critical to implementing its strategy.
Answer: D
Diff: 3
Terms: value proposition
Objective: 3
AACSB: Reflective thinking
9
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Diff: 3
Terms: strategy
Objective: 3
AACSB: Reflective thinking
Objective 4
Answer: TRUE
Diff: 2
Terms: balanced scorecard
Objective: 4
AACSB: Reflective thinking
Answer: FALSE
Explanation: A company should start its process of building a Balanced Scorecard by developing word statements of strategic objectives that describe what it is attempting to accomplish with its strategy.
Diff: 2
Terms: balanced scorecard
Objective: 4
AACSB: Reflective thinking
Answer: TRUE
Diff: 2
Terms: learning and growth perspective
Objective: 4
AACSB: Reflective thinking
10
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Diff: 2
Terms: operations management processes
Objective: 4
AACSB: Reflective thinking
Answer: D
Diff: 2
Terms: customer perspective
Objective: 4
AACSB: Reflective thinking
Answer: B
Diff: 2
Terms: learning and growth perspective
Objective: 4
AACSB: Reflective thinking
11
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Answer: D
Diff: 2
Terms: learning and growth perspective
Objective: 4
AACSB: Reflective thinking
Answer: D
Diff: 2
Terms: return on investment ratio, financial perspective
Objective: 4
AACSB: Reflective thinking
Answer: B
Diff: 2
Terms: customer perspective
Objective: 4
AACSB: Reflective thinking
Answer: A
Diff: 2
Terms: process perspective
Objective: 4
AACSB: Reflective thinking
12
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Answer: C
Diff: 2
Terms: learning and growth perspective
Objective: 4
AACSB: Reflective thinking
Answer: A
Diff: 2
Terms: learning and growth perspective
Objective: 4
AACSB: Reflective thinking
13) In the Balanced Scorecard, operating income and return on investment
Answer: A
Diff: 2
Terms: strategy, balanced scorecard
Objective: 4
AACSB: Reflective thinking
Diff: 2
Terms: customer management processes
Objective: 4
AACSB: Reflective thinking
13
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Diff: 2
Terms: learning and growth perspective
Objective: 4
AACSB: Reflective thinking
Required:
Identify at least one key element that you would expect to see included in the Balanced Scorecard:
Answer: a. Grapevine’s strategy is one of product innovation and leadership because the company plans to offer a product that is superior and unique from the competition.
The company’s Balanced Scorecard should describe the product innovation and leadership strategy. Key elements should include:
Terms: balanced scorecard
Objective: 2, 3, 4
AACSB: Analytical skills
14
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Required:
Identify at least one key element that you would expect to see included in the Balanced Scorecard:
Answer:
The company’s Balanced Scorecard should describe the lowest total cost strategy. Key elements should include:
Terms: balanced scorecard
Objective: 2, 3, 4
AACSB: Analytical skills
15
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Objective 5
Diff: 2
Terms: measures
Objective: 5
AACSB: Reflective thinking
Answer: D
Diff: 2
Terms: targets
Objective: 5
AACSB: Reflective thinking
Terms: objectives
Objective: 5
AACSB: Reflective thinking
16
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Diff: 2
Terms: targets
Objective: 5
AACSB: Reflective thinking
Customer loyalty
Skilled production workers Return on investment
Answer: Skilled production workers ?Process quality?Customer loyalty?Return on investment
Diff: 1
Terms: strategy map
Objective: 5
AACSB: Analytical skills
Strategic technology availability Grow revenues
Design and develop new products
Answer: Strategic technology availability?Design and develop new products?Market share?Grow revenues
Diff: 1
Terms: strategy map
Objective: 5
AACSB: Analytical skills
Answer: The four key perspectives in the Balanced Scorecard are:
Diff: 3
Terms: balanced scorecard
Objective: 3, 5
AACSB: Analytical skills
MAL: This question is not available in MyAccountingLab.
17
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Objective 6
Answer: TRUE
Diff: 2
Terms: government and nonprofit organizations
Objective: 6
AACSB: Reflective thinking
Answer: TRUE
Diff: 1
Terms: government and nonprofit organizations, strategy
Objective: 6
AACSB: Reflective thinking
Answer: TRUE
Diff: 2
Terms: government and nonprofit organizations, strategy, objectives
Objective: 6
AACSB: Reflective thinking
Answer: C
Diff: 2
Terms: balanced scorecard, government and nonprofit organizations
Objective: 6
AACSB: Reflective thinking
18
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Diff: 2
Terms: government and nonprofit organizations
Objective: 6
AACSB: Reflective thinking
Diff: 2
Terms: strategy, government and nonprofit organizations
Objective: 6
AACSB: Reflective thinking
Diff: 2
Terms: balanced scorecard, regulatory and social processes
Objective: 6
AACSB: Reflective thinking
Answer: The organization’s mission drives the nonprofit and government agency’s Balanced Scorecard, whereas the financial perspective objectives drive the for-profit Balanced Scorecard. The for-profit must satisfy customers, while the nonprofit and government agency must satisfy funders and recipients.
Diff: 3
Terms: balanced scorecard, regulatory and social processes
Objective: 6
AACSB: Analytical skills
MAL: This question is not available in MyAccountingLab.
19
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Objective 7
Explanation: CEOs and senior leadership can effectively implement a company’s strategy by involving all levels of the organization.
Diff: 1
Terms: strategy
Objective: 7
AACSB: Reflective thinking
Answer: TRUE
Diff: 2
Terms: key performance indicator scorecard
Objective: 7
AACSB: Reflective thinking
Answer: TRUE
Diff: 2
Terms: key performance indicator scorecard
Objective: 7
AACSB: Reflective thinking
Answer: FALSE
Explanation: Poor organizational process, is the biggest threat to successful Balanced Scorecard implementation.
Diff: 1
Terms: balanced scorecard
Objective: 7
AACSB: Reflective thinking
Answer: FALSE
Explanation: There is no perfect scorecard. The balanced scorecard is adapted to each organization and is changed over time as necessary.
Diff: 1
Terms: balanced scorecard
Objective: 7
AACSB: Reflective thinking
20
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Answer: D
Diff: 2
Terms: measurement, objectives
Objective: 7
AACSB: Reflective thinking
Answer: D
Diff: 2
Terms: strategy, objectives
Objective: 7
AACSB: Reflective thinking
Diff: 2
Terms: strategy, objectives
Objective: 7
AACSB: Reflective thinking
21
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9) Which of the following statements regarding the use of strategy in companies is correct?
Answer: A
Diff: 2
Terms: strategy, objectives
Objective: 7
AACSB: Reflective thinking
10) To become a strategy-focused organization:
Answer: B
Diff: 2
Terms: strategy
Objective: 7
AACSB: Reflective thinking
EXCEPT:
Diff: 2
Terms: balanced scorecard
Objective: 7
AACSB: Reflective thinking
Answer: B
Diff: 2
Terms: key performance indicator cards
Objective: 7
22
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AACSB: Reflective thinking
13) Key performance indicator cards:
Answer: A
Diff: 2
Terms: key performance indicator cards
Objective: 7
AACSB: Reflective thinking
Diff: 2
Terms: balanced scorecard
Objective: 7
AACSB: Reflective thinking
.perspectives
Answer: A
Diff: 2
Terms: balanced scorecard
Objective: 7
AACSB: Reflective thinking
16) Successful implementation of the Balanced Scorecard:
Answer: B
Diff: 2
Terms: balanced scorecard
Objective: 7
AACSB: Reflective thinking
23
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Only senior management understands the strategy of the whole organization and is empowered to make the necessary decisions. Their involvement also builds emotional commitment that is as important as their knowledge and authority.
Diff: 3
Terms: balanced scorecard, strategy
Objective: 7
AACSB: Analytical skills
MAL: This question is not available in MyAccountingLab.
Answer: The Balanced Scorecard translates an organization’s strategy into a set of performance measures that put that strategy into action with clearly-stated objectives, whereas the key performance indicator scorecard does not link the performance indicators to a strategy. The Balanced Scorecard is more effective because it links to the performance measures to a company’s strategy.