Question

In responsibility accounting,

Multiple Choice

• All of the above statements regarding responsibility accounting are true.

• decentralized organizations use responsibility accounting to link lower-level managers’ decision-making authority to the goals and objectives of the organization.

• an investment center is a segment with control over investment funds but not costs or revenues.

• all segments have control over costs and revenues

Corporate social responsibility

Multiple Choice

• includes voluntary actions that satisfy expectations of stakeholder groups.

• is a concept whereby organizations monitor the needs of their corporate stakeholders on social media.

• All of the above statements regarding corporate social responsibility are true.

• is consistent with the Balanced Scorecard approach to performance measurement.

Which of the following statements regarding enterprise risk management is false?

Multiple Choice

• When making the outsourcing decision, a company will consider whether deliveries will be reliable.

• Enterprise risk management is primarily used by companies that have adopted the Balanced Scorecard approach to performance measurement.

• When deciding whether to drop a product line, the consideration of whether competitors will capitalize on segment disposal to the company’s detriment is an example of Enterprise Risk Management.

• Enterprise risk management is a process used by a company to identify potential risks and develop responses to them that enable goal achievement.

Answer 1

1) In responsibility accounting,

decentralized organizations use responsibility accounting to link lower-level managers’ decision-making authority to the goals and objectives of the organization.

2) Corporate social responsibility

is consistent with the Balanced Scorecard approach to performance measurement.

3) Which of the following statements regarding enterprise risk management is false?

Enterprise risk management is primarily used by companies that have adopted the Balanced Scorecard approach to performance measurement.