Activity-based responsibility accounting

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Reference no: EM1325865

1. A competitive environment means that organizations will be

a. producing increasingly high-volume, low-variety products and services.
b. focused internally on efficiency.
c. viewing their actions independent of competitors, suppliers and customers.
d. managing cause and effect linkages to customer satisfaction.

2. Which of the following is NOT true about activity-based responsibility accounting?

a. The emphasis changes from cost reduction through change to cost control.
b. The emphasis includes financial results as well as how things are done.
c. Responsibility moves from one dimension to two dimensions.
d. It moves from a control system to a performance management system.

3. Which of the following is NOT a limitation of activity-based responsibility accounting?

a. Change efforts are often fragmented.
b. Change efforts lack connection to mission.
c. Change efforts lack connection to strategy.
d. Change efforts are driven by value-added analysis.

4. Which of the following is NOT an advantage of strategic-based responsibility accounting?

a. It includes perspectives that serve as a source of competitive advantage.
b. Change efforts are directed by the mission and strategy.
c. Responsibility is centralized within the organization.
d. All are advantages of strategic-based responsibility accounting.

5. Which is NOT a major difference between activity-based measures and strategic-based measures?

a. Strategic-based measures are linked to strategy.
b. Strategic-based measures are used to align objectives.
c. Strategic-based measures are balanced measures.
d. All are major differences.

Reference no: EM1325865

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