Management Accounting Chapter 7

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Account Management Quizzes & Trivia

Questions from power points


Questions and Answers
  • 1. 

     What does MACS generate and uses information to do what?

    • A.

      To process the control and to have meaning and credibility to correct situations what were identified

    • B.

      To help decision makers assess whether an organization is acheiving its objectives

    • C.

      To help organizations to guide and motivate employees to achieve organizational objectives

    Correct Answer
    B. To help decision makers assess whether an organization is acheiving its objectives
    Explanation
    MACS, which stands for Management Accounting and Control Systems, generates and uses information to help decision makers assess whether an organization is achieving its objectives. This means that MACS provides data and analysis that allows decision makers to evaluate the performance of the organization and determine if it is meeting its goals. By providing this information, MACS enables decision makers to make informed decisions and take appropriate actions to ensure that the organization is on track to achieve its objectives.

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  • 2. 

    The term 'control' in management accounting and control refers to the set of:

    • A.

      Procedures, costs, tools, performance measures

    • B.

      Performance measures, values, costs, systems

    • C.

      Tools, systems, procedures, performance measures

    Correct Answer
    C. Tools, systems, procedures, performance measures
    Explanation
    The term 'control' in management accounting and control refers to the set of tools, systems, procedures, and performance measures. These elements are essential in ensuring that the organization's objectives are achieved effectively and efficiently. Tools are used to gather and analyze data, systems provide the structure for information processing and decision making, procedures outline the steps to be followed, and performance measures evaluate the success of the control processes. By having a comprehensive set of these elements, management can have a better understanding of the organization's performance and make informed decisions to improve it.

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  • 3. 

    What is used to guide and motivate all employees to achieve organizational objectives?

    • A.

      Evaluation

    • B.

      Value

    • C.

      Control

    Correct Answer
    C. Control
    Explanation
    Control is used to guide and motivate all employees to achieve organizational objectives. Control refers to the process of monitoring and regulating activities to ensure that they are aligned with the desired goals and objectives of the organization. It involves setting standards, measuring performance, comparing it to the standards, and taking corrective actions if necessary. By implementing control mechanisms, organizations can guide employees towards achieving their objectives and ensure that they stay on track. Control provides a framework for accountability, helps in identifying areas for improvement, and motivates employees to perform at their best.

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  • 4. 

    How is it determined that a system is in control?

    • A.

      If it is on the path to achieving its strategic objectives

    • B.

      If it is on the path to guiding and motivating employees to achieve organizational objectives

    • C.

      If it is the performance measures meet the organization's goal

    Correct Answer
    A. If it is on the path to achieving its strategic objectives
    Explanation
    A system is considered to be in control if it is on the path to achieving its strategic objectives. This means that the system is effectively aligned with the organization's overall goals and is progressing towards meeting them. By continuously monitoring and evaluating the system's progress, any deviations or discrepancies can be identified and corrective actions can be taken to ensure that the system stays on track. This ensures that the system is functioning optimally and contributing towards the overall success of the organization.

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  • 5. 

    What is needed for the process of control to have meaning and credibility?

    • A.

      The organizations must have the ethical code of conduct into MACS design

    • B.

      The organization must have the knowledge and ability to correct situations that it identifies as out of control

    • C.

      The organization must have the feedback about the system's current level of performance

    Correct Answer
    B. The organization must have the knowledge and ability to correct situations that it identifies as out of control
  • 6. 

    What are the five stages of the control cycle?

    • A.

      Planning, consistency, execution, monitoring, evaluation

    • B.

      Planning, execution, monitoring, evaluation, correction

    • C.

      Planning, execution, benchmarking, evaluation, correction

    Correct Answer
    B. Planning, execution, monitoring, evaluation, correction
    Explanation
    The correct answer is Planning, execution, monitoring, evaluation, correction. In the control cycle, planning involves setting goals and objectives, execution involves implementing the plans, monitoring involves tracking progress and performance, evaluation involves assessing the results, and correction involves making necessary adjustments or improvements. This sequence ensures that the control process is systematic and allows for continuous improvement.

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  • 7. 

    What does planning consist of?

    • A.

      Developing an organization's objectives, choosing activities to accomplish the objectives, selecting measures to determine how well the objectives were met

    • B.

      Developing an organization's objectives, choosing the processes of measuring the objectives, selecting measures to determine how well the objectives were met

    • C.

      Developing an organization's objectives, choosing activities to accomplish the objectives, selecting measures to determine if the system is in a control state

    Correct Answer
    A. Developing an organization's objectives, choosing activities to accomplish the objectives, selecting measures to determine how well the objectives were met
    Explanation
    Planning consists of developing an organization's objectives, choosing activities to accomplish those objectives, and selecting measures to determine how well the objectives were met. This involves setting clear goals for the organization, deciding on the necessary actions to achieve those goals, and establishing metrics to evaluate the success of the objectives.

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  • 8. 

    Exection is defined as what?

    • A.

      The process of measuring the system's current level of performance

    • B.

      The implementation of the plan

    • C.

      Taking the appropriate actions to return the system to an in-control state

    Correct Answer
    B. The implementation of the plan
    Explanation
    The correct answer is "the implementation of the plan." Execution refers to the act of carrying out or putting into effect a plan or strategy. It involves taking the necessary actions to ensure that the plan is implemented successfully. In this context, execution is the process of translating the proposed plan into action, making it a crucial step in achieving desired outcomes.

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  • 9. 

    Monitoring is the process of what?

    • A.

      Choosing activities to accomplish the objectives

    • B.

      Taking the appropriate actions to return the system to an in-control state

    • C.

      Measuring the system's current level of performance

    Correct Answer
    C. Measuring the system's current level of performance
    Explanation
    Monitoring is the process of measuring the system's current level of performance. It involves collecting data and analyzing it to assess how well the system is functioning. Monitoring helps to identify any deviations or issues that may be affecting the system's performance and allows for timely corrective actions to be taken. By regularly measuring and monitoring the system's performance, organizations can ensure that it is operating effectively and efficiently.

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  • 10. 

    Define evaluation.

    • A.

      When feedback about the system's current level of performance is compared to the planned level so that any discrepancies can be identified and corrective action prescribed

    • B.

      When measuring the system's current level of performance is compared to the planned level so that it can be determined how well the objectives were met

    • C.

      When implementing the system's current level of performance is compared to the activities to accomplish the performance

    Correct Answer
    A. When feedback about the system's current level of performance is compared to the planned level so that any discrepancies can be identified and corrective action prescribed
    Explanation
    The correct answer is "When feedback about the system's current level of performance is compared to the planned level so that any discrepancies can be identified and corrective action prescribed." This explanation accurately defines evaluation as the process of comparing the actual performance of a system to the planned performance in order to identify any differences and take corrective measures. It highlights the importance of feedback and the need for corrective action when discrepancies are found.

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  • 11. 

    Define correcting.

    • A.

      Taking the appropriate actions to return the systems to the organization's objectives

    • B.

      Taking the appropriate actions to return the systems to a state of in control

    • C.

      Taking the appropriate actions to return the systems to the previous level of performance

    Correct Answer
    B. Taking the appropriate actions to return the systems to a state of in control
    Explanation
    The correct answer for this question is "Taking the appropriate actions to return the systems to a state of in control." This means that correcting involves identifying and addressing any issues or deviations from the desired state of control in order to bring the systems back to a stable and manageable condition. It implies restoring the systems to a state where they are functioning properly and meeting the organization's objectives.

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