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Supervision Accounting Ch 12 Problems

CHAPTER 12

FINANCIAL CONTROL

TRUE/FALSE

1 . Financial control involves the application of financial measures to assess company and administration performance. a. True

m. False

installment payments on your Financial steps identify what is wrong with an organization, not simply provide a transmission that something needs interest. a. Accurate

b. Bogus

3. Economic measures can highlight falling sales and profits in an organization, nevertheless only non-financial measures can easily identify how come this is happening. a. True

b. Fake

4. Correctly chosen non-financial measures assume and help to explain financial leads to an organization. a. True

w. False

five. In a centralized organization, front-line employees are trained to reply to changes in the organization environment. a. True

m. False

6. The amount of decentralization in an organization reflects the organization's trust in its workers and other elements. a. Accurate

b. Bogus

7. When an organization ways to decentralized decision making, control goes from effects control to task control. a. Authentic

b. Phony

8. Pertaining to an organization to be successful, activities within sales, manufacturing, and customer support need to be matched. a. Accurate

b. Fake

9. Organizations use non-financial control to realise a summary measure of how very well their devices of procedures control are working. a. Accurate

b. False

10. Effectively chosen non-financial measures anticipate and clarify financial effects. a. True

b. Bogus

11. A support department, just like human resources, ought to be evaluated like a revenue center. a. The case

b. Phony

12. A major problem faced simply by cost centers is assigning jointly attained revenues. a. True

b. False

13. A profit center is like an independent business.

a. True

m. False

13. The overall performance measures chosen should affect the employees' decision-making behavior. a. Accurate

b. False

15. Pertaining to the part manager to become properly evaluated, common costs should be invested in the various portions, even if an arbitrary portion is required. a. True

b. False

18. Contribution perimeter is the best measure of the manageable contribution of a profit middle toward organizational profit. a. True

n. False

seventeen. If a production was removed, forecasted twelve-monthly corporate earnings in the short run would decrease by the amount of that product line's net gain. a. The case

b. False

18. Generally speaking, managers will be motivated to influence generated revenues when ever those profits are included in their overall performance measures. a. True

b. False

19. Conventional segment margin profits statements obviously capture the interactive effects among responsibility centers. a. True

n. False

twenty. A major goal of copy pricing should be to motivate the choice maker to act in the organization's best interests. a. True

w. False

21. Transfer rates based on genuine costs give no bonus to the providing division to manage costs. a. True

m. False

22. If external markets can be found, then cost-based transfer prices are the most suitable. a. Authentic

b. Phony

23. Discussed transfer prices, and therefore creation decisions, might reflect the negotiating expertise of the get-togethers rather than economical considerations. a. True

w. False

twenty-four. Return on investment (ROI) encourages portion managers to reject every capital assignments with returns greater than you can actually cost of capital. a. The case

b. Bogus

25. The most widely recognized definition of output is the ratio of output over insight. a. Accurate

b. Phony

26. The financial evaluate, economic value added evaluates cash flow relative to the amount of investment required. a. Authentic

b. Bogus

27. A sole proportion value is mostly not very valuable.

a. Authentic

b. Fake

28. The internet profit...

28.08.2019

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