1. The manager of a cost center is responsible for cost control and revenue generation.
(FALSE)
2. The control function entails evaluating a process against a standard and, if necessary, taking
corrective action. (TRUE)
3. Responsibility refers to an individual’s obligation to achieve desired results. (TRUE)
4. Standards are the basis for evaluating actual performance. (TRUE)
5. If a manager delegates responsibility to a subordinate, he or she must also grant the
subordinate authority to make decisions. (TRUE)
6. An inventory out-of-stock report is an example of a programmed, on-demand report.
(TRUE)
7. The Management Reporting System is a nondiscretionary system. (FALSE)
8. An inventory out-of-stock report is an example of a programmed, on-demand report.
(TRUE)
9. A principle of responsibility accounting is that managers are responsible for controllable
and uncontrollable costs. (FALSE)
10. Management reporting is often called discretionary reporting because it is not mandated as
is financial reporting. (TRUE)
11. XBRL taxonomies are classification schemes that are compliant with the XBRL
specifications to accomplish a specific information exchange. (TRUE)
12. An income statement is an example of an XBRL instance document. (TRUE)
13. Operational control involves motivating managers at all levels to use resources, including
materials, personnel, and financial assets, as productively as possible. (FALSE)
14. Each account in the chart of accounts has a separate record in the general ledger master
file. (TRUE)
15. A report is said to have information content if it eliminates uncertainty associated with a
problem facing the decision maker. (FALSE)
16. The formalization of tasks principle suggests that management should structure the firm
around the unique skills sets of key individuals. (FALSE)
17. Individuals with access authority to general ledger accounts should not prepare journal
vouchers. (TRUE)
18. Strategic decision are subordinate to tactical planning decisions. (FALSE)
19. Designing an effective management reporting system does not require an understanding of
the information managers need to deal with the problems they face. (FALSE)
20. A firm with a wide span of control tends to have relatively more layers of management.
(FALSE)
21. The journal voucher is the document that authorizes entries to be made to the general
ledger. (TRUE)
22. When evaluating decision alternatives, one option is to take no action. (TRUE)
23. The responsibility center file is primarily used by the Financial Reporting System.
(FALSE)
24. The most common means of making entries in the general ledger is via the journal voucher.
(TRUE)
25. Primary recipients of financial statement information are internal management. (FALSE)
26. In most cases intangible decision criteria can be quantified. (FALSE)
