production. This report will be shared with the production manager, Julia. This is an example of the role of managerial

Chapter 28: The Balanced Scorecard and Corporate Social Responsibility

True / False 1.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.Fals e

ANSWER: True

2.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.Fals e

ANSWER: Fals

e 3.Evaluating employee performance and making strategic decisions are two examples of how managerial accounting information is used.a.True b.Fals e

ANSWER: True

4.Performance measurement systems are used to assess how well a company is performing relative to the goals the FASB sets for the company.a.True b.Fals e

ANSWER: Fals

e 5.Performance measurement systems are used to prepare tax information needed by the IRS to assess a company’s taxable income.a.True b.Fals e

ANSWER: Fals

e 6.Performance measurement systems are used to assess how well a company is meeting its own goals and objectives.a.True b.Fals e Copyright Cengage Learning. Powered by Cognero.Page 1 Test Bank for Financial and Managerial Accounting 16th Edition By Carl Warren, Jefferson Jones, William Tayler (All Chapters 1-28)

All Chapters Arranged Reverse: 28-1 1 / 4

Name

:

Clas

s:

Dat

e:

Chapter 28: The Balanced Scorecard and Corporate Social Responsibility

ANSWER: True

• Performance measurement systems use externally imposed benchmarks of the competitive landscape to assess internal

performance.

• True
• Fals

e

ANSWER: Fals

e

• Performance measurement systems use measures of current performance to assess how well a company is performing

toward meeting its goals and objectives.

• True
• Fals

e

ANSWER: True

• 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.

• True
• Fals

e

ANSWER: Fals

e

• 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.

• True
• Fals

e

ANSWER: True

• Operating income and cash flow are examples of metrics used to assess quality control.
• True
• Fals

e

ANSWER: Fals

e

• Operating income and cash flow are examples of metrics used to assess a company’s financial condition.
• True
• Fals

e

ANSWER: True

• Accounting metrics, such as operating income, make business decision-making processes more complex.

Copyright Cengage Learning. Powered by Cognero.Page 2 2 / 4

Name

:

Clas

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Dat

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Chapter 28: The Balanced Scorecard and Corporate Social Responsibility

• True
• Fals

e

ANSWER: Fals

e

• Accounting metrics, such as cash flow, are often used to simplify the business decision-making process.
• True
• Fals

e

ANSWER: True

• Materials price variances are examples of metrics used for measuring a sales department’s performance.
• True
• Fals

e

ANSWER: Fals

e

• Materials price variances are examples of metrics used for measuring a purchasing department’s performance.
• True
• Fals

e

ANSWER: True

• Strategic performance measurement systems define and link strategic objectives to the performance metrics of a

company.

• True
• Fals

e

ANSWER: True

• Strategic performance measurement systems define and link strategic objectives to the external financial reports of a

company.

• True
• Fals

e

ANSWER: Fals

e

• Strategic performance measurement systems are commonly used by large companies around the world.
• True
• Fals

e

ANSWER: True

Copyright Cengage Learning. Powered by Cognero.Page 3 3 / 4

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Chapter 28: The Balanced Scorecard and Corporate Social Responsibility

• The balanced scorecard is a marginally effective strategic performance management system.
• True
• Fals

e

ANSWER: Fals

e

• The balanced scorecard is named for its view of company performance focusing only on financial measures.
• True
• Fals

e

ANSWER: Fals

e

• The balanced scorecard focuses on lagging indicators such as actual sales volume rather than including leading

indicators such as customer satisfaction.

• True
• Fals

e

ANSWER: Fals

e

• The balanced scorecard has five performance perspectives: financial, learning and growth, internal processes,

customer, and supply chain.

• True
• Fals

e

ANSWER: Fals

e

• The balanced scorecard has four performance perspectives: financial, customer, learning and growth, and strategic.
• True
• Fals

e

ANSWER: Fals

e

• The balanced scorecard incorporates only qualitative performance metrics.
• True
• Fals

e

ANSWER: Fals

e

• One of the objectives of the four balanced scorecard performance perspectives is to help management focus on

looking beyond typical financial measures of performance.Copyright Cengage Learning. Powered by Cognero.Page 4

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