1. The Sarbanes-Oxley Take action of 2002 requires that management of publicly traded corporations:
statement on the adequacy of the company's internal handles over financial reporting.
use expense centers to judge top managers.
make up managers with fixed reimbursement plans simply.
get rid of stock options for managerial compensation.
installment payments on your
In general, there is also a direct romance between the quality of the data provided to managers plus the quality of decisions made applying that information.
An functioning unit associated with an organization is referred to as a profit centre if it is responsible:
simply for revenues.
for investments in assets.
for costs and income.
only for costs.
Effectively designed administration control systems have both set compensation and contingent payment.
Controllable earnings is included within a performance statement of a:
Internal controls include all of the following apart from:
needing management authorization for the use of a company's possessions.
reconciling various models of books.
necessitating employees to take vacations.
using conditional compensation plans.
When managers are held accountable for costs but the input-output relationship is not very well specified, a(n) ___________ is established.
standard cost centre
discretionary cost middle
Properly designed management control systems can eliminate bogus behavior simply by maximizing aim congruence in the organization.
The controllability concept states that managers ought to be held responsible to get:
costs and revenues, but not investments in assets found in their split.
just items that happen to be allocated to their very own divisions on the per-unit basis.
set compensation items, but not contingent compensation items.
most items that they have decision-making authority.
A manager constitutes a decision that is beneficial for a certain investment middle and for the complete organization. From the organization's perspective, this decision results in:
Which with the following claims is phony?
Management control systems are used to measure the performance of an agent's decisions. The level of decentralization will depend on how a large number of decisions rules delegate to agents. The U. T. military is a superb example of a company that is highly decentralized. Most organizations incorporate some operating devices that are central and some which have been decentralized.
Decentralization is the delegation from the authority to make decisions in the organization's name to subordinates.
Logical managers will always make decisions that are ideal of the corporation employing all of them.
Decentralization identifies the abordnung of decision-making authority to:
panel of owners.
top rated management.
Boxes-2-Go has two divisions, significant and small , and that talk about the common costs of the business communications network. The gross annual common costs are $4, 500, 1000. You have recently been provided with the next information for the forthcoming year:
The charge accountant established $2, seven hundred, 000 of the communication network's costs had been fixed and should be given based on the quantity of calls. The rest of the costs ought to be allocated depending on the time for the network. Precisely what is the total connection network costs allocated to the top Box Division, assuming the organization uses dual-rates to designate common costs?
$2, 700, 500.
$1, 980, 000.
$1, 500, 1000.
$2, 520, 000....