Accounting/Financial TRUE & FALSE questions

These are True or False questions 

1. The balanced scorecard links the perspectives of an organization's stakeholders with the organization's mission and vision, performance measures, strategic plan, and resources. 

2. An organization's four basic stakeholder groups include investors, employees, external business processes, and customers. 

3. To succeed, an organization must add value for all of its stakeholders in the long term only. 

4. The alignment of an organization's strategy with all the perspectives of the balanced scorecard results in performance objectives that benefit all stakeholders. 

5. It is not necessary for managers to fully understand the causal relationship between their actions and the organization's overall performance to get results. 

6. A performance management and evaluation system is mainly utilized to account for and report on financial performance. 

7. A performance management and evaluation system allows a company to identify how well it is doing, where it is going, and what improvements will make it more profitable. 

8. What is being measured by managers is the same as the actual measures used to monitor performance. 

9. Performance measurement is the use of both quantitative and qualitative tools to gauge an organization's performance in relation to a specific goal or an expected outcome. 

10. Most organizations use very similar performance measures in their day-to-day business operations.

11. Standard costs are based solely on expected future costs and conditions.

12. A variance is the difference between a standard cost and a budgeted cost.

13. Service organizations use direct materials, direct labor, and overhead standard costs.

14.The importance of direct labor standards and variances has been reduced.

15.When a manufacturing company employs standard costs, all costs affecting the three inventory accounts and the Cost of Goods Sold account are stated in terms of standard or predetermined costs rather than in terms of actual costs incurred.

16.Standard costs are realistically predetermined costs of direct materials, direct labor, and overhead that usually are expressed as a cost per unit.

17.Predetermined overhead costs are the same as standard costs.

18. Standard costing is typically a sophisticated and inexpensive component to add to a company's existing cost accounting system.

19. If standard costing is not economically feasible for a company, predetermined overhead rates should not be used.

20. Although expensive to install and maintain, a standard cost accounting system can save a company considerable amounts of money by reducing resource waste.