Management Accounting: The Balanced Scorecard and Strategy Map

Management Accounting, 6e (Atkinson et al.)
Chapter 2 The Balanced Scorecard and Strategy Map
Objective 1
1) Database and information systems are physical assets which create distinctive value for companies.
Answer: FALSE
Explanation: Database and information systems are intangible assets
Diff: 1
Terms: database and information systems
Objective: 1
AACSB: Reflective thinking
2) The roles of performance measurement systems in organizations include all of the following EXCEPT:
A) motivate employees to help the organization achieve its strategic objectives.
B) help managers with resource allocation.
C) create value from intangible assets as well as their physical and financial assets.
D) communicate the company's strategic objectives.
Answer: C
Diff: 1
Terms: performance measurement systems
Objective: 1
AACSB: Reflective thinking
3) Many intangible assets:
A) do not appear on the balance sheet since it is difficult to place a reliable financial value on them.
B) should be evaluated with ROI and other performance measures.
C) can be measured and managed with current financial control systems.
D) are unimportant because they have no physical substance.
Answer: A
Diff: 2
Terms: intangible assets
Objective: 1
AACSB: Reflective thinking
4) Intangible assets that are currently reported on the balance sheet include:
A) loyal and profitable customer relationships.
B) organizational culture.
C) employee skills and motivation.
D) the cost of a patent giving exclusive rights to a process.
Answer: D
Diff: 1
Terms: intangible assets
Objective: 1
AACSB: Reflective thinking
5) The saying "what gets measured gets done" refers to measuring performance:
A) so that appropriate disciplinary actions can be taken.
B) to ensure that employees perform equally in all dimensions of their jobs.
C) so that essential tasks get accomplished.
D) to ensure that the ethical code of conduct is also being enforced.
Answer: C
Diff: 1