ACC 241 Exam 3 CH 9, 10, 11|40 Questions with Verified
Answers
Budgeting assists management in which of the following areas? - CORRECT
ANSWER -Motivation
-Planning and setting objectives
-Performance measurement
Which of the following is an advantage of the budgeting process? - CORRECT
ANSWER -Budgeting provides a standard for performance evaluation
-Budgeting provides resource information for decision making
-Budgeting improves communication and coordination within the organization
When an organization involves its many employees in the budgeting process in a
meaningful way, the organization is said to be using: - CORRECT ANSWER
Participative budgeting
"Responsibility accounting" is the concept that says: - CORRECT ANSWER
Managers should be held responsible for only those things under their control
The manager of a profit center should not be responsible for which of the
following types of decisions? - CORRECT ANSWER Deciding whether or not their
segment should purchase additional machinery
Which type of manager would most likely be held responsible for the return on
investment (ROI) of his segment? - CORRECT ANSWER Investment center
A company has computed that their "margin" is .18. Which of the following
statements is the best interpretation of these results? - CORRECT ANSWER $.18 of
every $1 made in sales is profit
A positive result that stems from the use of return on investment (ROI) is that it
encourages managers to focus on - CORRECT ANSWER -The relationship among
sales, expenses, and investment
