Compiled From 1 8
Compiled From 1 8
2. Which level of management is responsible for short-term planning and coordination of activities
necessary to accomplish organizational objectives?
a. operations management
b. middle management
c. top management
d. line management
ANS: B
4. The ability to achieve the goals of a system depends upon the effective functioning and harmonious
interaction between its subsystems. This is called
a. system decomposition
b. system redundancy
c. backup system
d. subsystem interdependency
ANS: D
5. The value of information for users is determined by all of the following but
a. reliability
b. relevance
c. convenience
d. completeness
ANS: C
9. The major difference between the Financial Reporting System (FRS) and the Management Reporting
System (MRS) is the
a. FRS provides information to internal and external users; the MRS provides information to
internal users
b. FRS provides discretionary information; the MRS provides nondiscretionary information
c. FRS reports are prepared using information provided by the General Ledger System; the
MRS provides information to the General Ledger System
d. FRS reports are prepared in flexible, nonstandardized formats; the MRS reports are
prepared in standardized, formal formats
ANS: A
10. The purpose of the Transaction Processing System includes all of the following except
a. converting economic events into financial transactions
b. recording financial transactions in the accounting records
c. distributing essential information to operations personnel to support their daily operations
d. measuring and reporting the status of financial resources and the changes in those
resources
ANS: D
11. The Transaction Processing System includes all of the following cycles except
a. the revenue cycle
b. the administrative cycle
c. the expenditure cycle
d. the conversion cycle
ANS: B
13. When designing the data collection activity, which type of data should be avoided?
a. data that is relevant
b. data that is efficient
c. data that is redundant
d. data that is accurate
ANS: C
15. In a database, a complete set of attributes for a single occurrence of an entity class is called
a. a key
b. a file
c. a record
d. a character
ANS: C
18. The author distinguishes between the Accounting Information System and the management Information
System based on
a. whether the transactions are financial or nonfinancial
b. whether discretionary or nondiscretionary reports are prepared
c. the end users of the reports
d. the organizational structure of the business
ANS: A
20. Market research and advertising are part of which business function?
a. materials management
b. finance
c. marketing
d. production
ANS: C
21. Which function manages the financial resources of the firm through portfolio management, banking,
credit evaluation, and cash receipts and disbursements?
a. accounting
b. finance
c. materials management
d. distribution
ANS: B
29. The objectives of all information systems include all of the following except
a. support for the stewardship function of management
b. evaluating transaction data
c. support for the day-to-day operations of the firm
d. support for management decision making
ANS: B
30. Which individuals may be involved in the Systems Development Life Cycle?
a. accountants
b. systems professionals
c. end users
d. all of the above
ANS: D
31. An appraisal function housed within the organization that performs a wide range of services for
management is
a. internal auditing
b. data control group
c. external auditing
d. database administration
ANS: A
33. Disadvantages of distributed data processing include all of the following except
a. mismanagement of organizationwide resources
b. hardware and software incompatibility
c. cost reductions
d. difficulty in hiring qualified IT professionals
ANS: C
34. Advantages of distributed data processing include each of the following except
a. cost reductions
b. better management of organization resources
c. improved operational efficiency
d. increased user satisfaction
ANS: B
35. Disadvantages of the distributed data processing approach include all of the following except
a. possible mismanagement of organization resources
b. redundancy of tasks
c. software incompatibility
d. system is not responsive to the users situation
ANS: D
38. Useful information must possess all of the following characteristics except
a. relevance
b. timelessness
c. accuracy
d. completeness
ANS: B
39. The objectives of an information system include each of the following except
a. support for the stewardship responsibilities of management
b. furthering the financial interests of shareholders
c. support for management decision making
d. support for the firms day-to-day operations
ANS: B
40. Accountants play many roles relating to the accounting information system, including all of the following
except
a. system users
b. system designers
c. system auditors
d. system converters
ANS: D
CHAPTER 2
2. Which system produces information used for inventory valuation, budgeting, cost control, performance
reporting, and make-buy decisions?
a. sales order processing
b. purchases/accounts payable
c. cash disbursements
d. cost accounting
ANS: D
8. Subsidiary ledgers are used in manual accounting environments. What file is comparable to a subsidiary
ledger in a computerized environment?
a. archive file
b. reference file
c. transaction file
d. master file
ANS: D
14. Which type of graphical documentation represents systems at different levels of detail?
a. data flow diagram
b. document flowchart
c. system flowchart
d. program flowchart
ANS: A
17. When determining the batch size, which consideration is the least important?
a. achieving economies by grouping together large numbers of transactions
b. complying with legal mandates
c. providing control over the transaction process
d. balancing the trade off between batch size and error detection
ANS: B
18. In contrast to a real-time system, in a batch processing system
a. there is a lag between the time when the economic event occurs and the financial records
are updated
b. relatively more resources are required
c. a greater resource commitment per unit of output is required
d. processing takes place when the economic event occurs
ANS: A
22. Which step is not found in batch processing using sequential files?
a. control totals
b. sort runs
c. edit runs
d. immediate feedback of data entry errors
ANS: D
23. Both the revenue and the expenditure cycle can be viewed as having two key parts. These are
a. manual and computerized
b. physical and financial
c. input and output
d. batch and real-time
ANS: B
24. All of the following can provide evidence of an economic event except
a. source document
b. turn-around document
c. master document
d. product document
ANS: C
25. Which method of processing does not use the destructive update approach?
a. batch processing using direct access files
b. real-time processing
c. batch processing using sequential files
d. all of the above use the destructive update approach
ANS: C
b.
c.
d.
ANS: B
b.
c.
d.
ANS: D
b.
c.
d.
ANS: A
b.
c.
d.
ANS: B
b.
c.
d.
ANS: D
b.
c.
d.
ANS: A
32. The characteristics that distinguish between batch and real-time systems include all of the following
except
a. time frame
b. resources used
c. file format
d. efficiency of processing
ANS: C
33. A file that stores data used as a standard when processing transactions is
a. a reference file
b. a master file
c. a transaction file
d. an archive file
ANS: A
CHAPTER4
1. The revenue cycle consists of
a. one subsystemorder entry
b. two subsystemssales order processing and cash receipts
c. two subsystemsorder entry and inventory control
d. three subsystemssales order processing, credit authorization, and cash receipts
ANS: B
2. The reconciliation that occurs in the shipping department is intended to ensure that
a. credit has been approved
b. the customer is billed for the exact quantity shipped
c. the goods shipped match the goods ordered
d. inventory records are reduced for the goods shipped
ANS: C
3. The adjustment to accounting records to reflect the decrease in inventory due to a sale occurs in the
a. warehouse
b. shipping department
c. billing department
d. inventory control department
ANS: D
5. Copies of the sales order can be used for all of the following except
a. purchase order
b. credit authorization
c. shipping notice
d. packing slip
ANS: A
12. Usually specific authorization is required for all of the following except
a. sales on account which exceed the credit limit
b. sales of goods at the list price
c. a cash refund for goods returned without a receipt
d. write off of an uncollectible account receivable
ANS: B
15. The most effective internal control procedure to prevent or detect the creation of fictitious credit
memoranda for sales returns is to
a. supervise the accounts receivable department
b. limit access to credit memoranda
c. prenumber and sequence check all credit memoranda
d. require management approval for all credit memoranda
ANS: D
16. The accounts receivable clerk destroys all invoices for sales made to members of her family and does not
record the sale in the accounts receivable subsidiary ledger. Which procedure will not detect this fraud?
a. prenumber and sequence check all invoices
b. reconcile the accounts receivable control to the accounts receivable subsidiary ledger
c. prepare monthly customer statements
d. reconcile total sales on account to the debits in the accounts receivable subsidiary ledger
ANS: C
19. Good internal controls in the revenue cycle should ensure all of the following except
a. all sales are profitable
b. all sales are recorded
c. credit is authorized
d. inventory to be shipped is not stolen
ANS: A
20. Which control does not help to ensure that accurate records are kept of customer accounts and inventory?
a. reconcile accounts receivable control to accounts receivable subsidiary
b. authorize credit
c. segregate custody of inventory from record keeping
d. segregate record keeping duties of general ledger from accounts receivable
ANS: B
21. Internal controls for handling sales returns and allowances do not include
a. computing bad debt expense using the percentage of credit sales
b. verifying that the goods have been returned
c. authorizing the credit memo by management
d. using the original sales invoice to prepare the sales returns slip
ANS: A
22. The printer ran out of preprinted sales invoice forms and several sales invoices were not printed. The best
internal control to detect this error is
a. a batch total of sales invoices to be prepared compared to the actual number of sales
invoices prepared
b. sequentially numbered sales invoices
c. visual verification that all sales invoices were prepared
d. none of the above will detect this error
ANS: A
26. At which point is supervision most critical in the cash receipts system?
a. accounts receivable
b. general ledger
c. mail room
d. cash receipts
ANS: C
27. EDI trading partner agreements specify all of the following except
a. selling price
b. quantities to be sold
c. payment terms
d. person to authorize transactions
ANS: D
30. Commercial accounting systems have fully integrated modules. The word integrated means that
a. segregation of duties is not possible
b. transfer of information among modules occurs automatically
c. batch processing is not an option
d. separate entries are made in the general ledger accounts and the subsidiary ledgers
ANS: B
31. The data processing method that can shorten the cash cycle is
a. batch, sequential file processing
b. batch, direct access file processing
c. real-time file processing
d. none of the above
ANS: C
32. Which of the following is not a risk exposure in a microcomputer accounting system?
a. reliance on paper documentation is increased
b. functions that are segregated in a manual environment may be combined in a
microcomputer accounting system
c. backup procedures require human intervention
d. data are easily accessible
ANS: A
34. Periodically, the general ledger department receives all of the following except
a. total increases to accounts receivable
b. total of all sales backorders
c. total of all sales
d. total decreases in inventory
ANS: B
36. Adjustments to accounts receivable for payments received from customers is based upon
a. the customers check
b. the cash prelist
c. the remittance advice that accompanies payment
d. a memo prepared in the mailroom
ANS: C
37. The revenue cycle utilizes all of the following files except
a. credit memo file
b. sales history file
c. shipping report file
d. cost data reference file
ANS: D
38. All of the following are advantages of real-time processing of sales except
a. The cash cycle is shortened
b. Paper work is reduced
c. Incorrect data entry is difficult to detect
d. Up-to-date information can provide a competitive advantage in the marketplace
ANS: C
Chapter 5
ANS: C
ANS: B
3. All of the following departments have a copy of the purchase order except
c accounts payable
.
d general ledger
.
ANS: D
ANS: A
5. The open purchase order file in the purchasing department is used to determine
ANS: C
7. The reason that a blind copy of the purchase order is sent to receiving is to
ANS: B
b advise the purchasing department of the dollar value of the goods delivered
.
ANS: A
9. When a copy of the receiving report arrives in the purchasing department, it is used to
ANS: D
a packing slip
.
b purchase requisition
.
c receiving report
.
d suppliers invoice
.
ANS: D
11. Which document is least important in determining the financial value of a purchase?
a purchase requisition
.
b purchase order
.
c receiving report
.
d suppliers invoice
.
ANS: A
12. In a merchandising firm, authorization for the payment of inventory is the responsibility of
a inventory control
.
b purchasing
.
c accounts payable
.
d cash disbursements
.
ANS: C
13. In a merchandising firm, authorization for the purchase of inventory is the responsibility of
a inventory control
.
b purchasing
.
c accounts payable
.
d cash disbursements
.
ANS: A
14. When purchasing inventory, which document usually triggers the recording of a liability?
a purchase requisition
.
b purchase order
.
c receiving report
.
d suppliers invoice
.
ANS: D
15. Because of time delays between receiving inventory and making the journal entry
ANS: A
a vendor
.
d transaction date
.
ANS: B
b the sum of the paid vouchers represents the voucher payable liability of the firm
.
c the voucher system permits the firm to consolidate payments of several invoices on one
. voucher
ANS: B
d reconcile the inventory control account with the inventory subsidiary summary
.
ANS: C
19. The documents in a voucher packet include all of the following except
a a check
.
b a purchase order
.
c a receiving report
.
d a suppliers invoice
.
ANS: A
20. To maintain a good credit rating and to optimize cash management, cash disbursements should arrive at
the vendors place of business
a as soon as possible
.
ANS: C
21. The cash disbursement clerk performs all of the following tasks except
b prepares checks
.
c signs checks
.
ANS: C
a inventory control
.
b purchasing
.
c accounts payable
.
d cash disbursements
.
ANS: C
ANS: B
25. In a firm with proper segregation of duties, adequate supervision is most critical in
a purchasing
.
b receiving
.
c accounts payable
.
d general ledger
.
ANS: B
ANS: C
27. The major risk exposures associated with the receiving department include all of the following except
ANS: D
28. When searching for unrecorded liabilities at the end of an accounting period, the accountant would search
all of the files except
a the purchase requisition file
.
ANS: B
29. In regards to the accounts payable department, which statement is not true?
c the receiving report provides evidence of the physical receipt of the goods
.
ANS: B
30. In a computerized system that uses an economic order quantity (EOQ) model and the perpetual inventory
method, who determines when to reorder inventory?
c the vendor
.
ANS: D
31. Firms can expect that proper use of a valid vendor file will result in all of the following benefits except
a purchasing agents will be discouraged from improperly ordering inventory from related
. parties
d the risk of purchasing agents receiving kickbacks and bribes will be reduced
.
ANS: C
32. In a real-time processing system with a high number of transactions, the best and most practical control
over cash disbursements is to have
d checks over a certain dollar amount manually signed by the cash disbursements clerk
.
ANS: C
33. The document which will close the open purchase requisition file is the
a purchase order
.
b vendor invoice
.
c receiving report
.
ANS: C
ANS: D
35. If a company uses a standard cost system, inventory records can be updated from the
a vendor invoice
.
b purchase order
.
c receiving report
.
d purchase requisition
.
ANS: C
36. If a company uses an actual cost system, inventory records can first be updated from the
a vendor invoice
.
b purchase order
.
c receiving report
.
d purchase requisition
.
ANS: A
37. Copies of a purchase order are sent to all of the following except
a inventory control
.
b receiving
.
c general ledger
.
d accounts payable
.
ANS: C
ANS: B
ANS: C
c a treasury function
.
ANS: C
CHAPTER 6
1. The document that captures the total amount of time that individual workers spend on each production job
is called a
a time card
.
b job ticket
.
ANS: B
a general ledger compares the labor distribution summary from cost accounting to the
. disbursement voucher from accounts payable
c production compares the number of hours reported on job tickets to the number of hours
. reported on time cards
d payroll compares the labor distribution summary to the hours reported on time cards
.
ANS: A
c Accounts payable verifies the accuracy of the payroll register before transferring payroll
. funds to the general checking accounting.
d General ledger reconciles the labor distribution summary and the payroll disbursement
. voucher.
ANS: C
a purchase of building
.
b improvement of equipment
.
ANS: C
5. Depreciation
c is recorded weekly
.
ANS: B
6. Depreciation records include all of the following information about fixed assets except
ANS: A
ANS: C
ANS: D
d Transfer of fixed assets among departments is recorded in the fixed asset subsidiary
. ledger.
ANS: A
a personnel
.
b timekeeping
.
c paymaster
.
d payroll
.
ANS: C
11. Where does the responsibility lie for reconciling the labor distribution summary and the payroll
disbursement voucher?
a cash disbursements
.
b cost accounting
.
c personnel
.
d general ledger
.
ANS: D
b Payroll clerks must verify the hours reported on the time cards.
.
c Payroll reconciles personnel action forms with time cards and prepares paychecks.
.
d Cash disbursements signs paychecks and forwards them to the paymaster for distribution.
.
ANS: B
13. In a manufacturing firm, employees use time cards and job tickets. Which of the following statements is
not correct?
a Job tickets are prepared by employees for each job worked on, so an employee may have
. more that one job ticket on a given day.
c The time reported on job tickets should reconcile with the time reported on time cards.
.
ANS: D
14. Which department is responsible for approving changes in pay rates for employees?
a payroll
.
b treasurer
.
c personnel
.
d cash disbursements
.
ANS: C
d Personnel is responsible for updating employee records, including creation of records for
. new hires.
ANS: B
16. Why would an organization require the paymaster to deliver all unclaimed paychecks to the internal audit
department?
ANS: A
17. Which of the following is not a reasonable control for fixed assets?
ANS: C
a time cards
.
c job tickets
.
ANS: C
19. Payroll uses time card data to do all of the following except
ANS: C
d petty cash
.
ANS: B
ANS: D
22. Accounting records that provide the audit trail for payroll include all of the following except
a time cards
.
b job tickets
.
c payroll register
.
ANS: D
23. Personnel actions forms are used to do all of the following except
b terminate employees
.
ANS: C
b distributes paychecks
.
d prepares paychecks
.
ANS: B
25. The document that records the total amount of time spent on a production job is the
a time card
.
b job ticket
.
ANS: C
26. A control technique that can reduce the risk of a terminated employee being paid is
ANS: C
a signs paychecks
.
ANS: B
28. All of the following are processed by the Fixed Asset System except
ANS: B
29. The Fixed Asset System performs all of the following except
ANS: A
a prepares paychecks
.
b transfers adequate funds to the payroll imprest account
.
ANS: B
31. Depreciation
ANS: C
32. The Fixed Asset System is similar to the expenditure cycle except
a fixed asset transactions are non-routine and require special authorization and controls
.
c both a and b
.
ANS: C
33. Asset maintenance involves
ANS: D
34. The Fixed Asset Systems does all of the following except
ANS: C
ANS: D
CHAPTER 7
ANS: B
ANS: D
ANS: A
4. Which process creates a homogeneous product through a continuous series of standard procedures?
a batch process
.
b make-to-order process
.
c continuous process
.
ANS: C
a wedding invitations
.
b milk products
.
c jet aircraft
.
ANS: B
ANS: D
a the expected demand for the firms finished goods for a given year
.
c a description of the type and quantity of raw materials and subassemblies used to
. produce a single unit of finished product
ANS: B
9. A move ticket
ANS: C
10. The internal control significance of the excess materials requisition is that it
b identifies materials used in production that exceed the standard amount allowed
.
ANS: B
a provides production planning and control with the inventory status report of finished
. goods
ANS: C
a production schedule
.
b materials requisition
.
c work order
.
d bill of materials
.
ANS: B
13. Which of the following is not an assumption of the Economic Order Quantity model?
ANS: B
15. What is the economic order quantity if the annual demand is 10,000 units, set up cost of placing each
order is $3 and the holding cost per unit per year is $2?
a 174
.
b 123
.
c 245
.
ANS: A
16. If the daily demand is 40 units and the lead time is 12 days, the reorder point is
a 52 units
.
b 48 units
.
c 480 units
.
ANS: C
a general ledger creates a new cost record upon receipt of a work order from production
. planning and control
b cost accounting updates the cost record with data gathered from the materials requisition
.
c general ledger posts summary information about the manufacturing process based on a
. journal voucher prepared by cost accounting
d cost accounting computes variances and applies overhead to individual cost records
.
ANS: A
18. Which of the following is not a category of critical success factors in most manufacturing companies?
a product quality
.
b customer service
.
c revenue generation
.
d resource management
.
ANS: C
19. Computer integrated manufacturing groups all of the following technologies except
a robotics
.
ANS: B
20. The SAP R/3 system provides pre-defined modules to support business processes in the all of the
following categories except
a human resources
.
c strategic
.
d financial
.
ANS: C
a production planning and control is located apart from the work centers
.
ANS: B
22. All of the following are internal control procedures that should be in place in the conversion cycle except
ANS: B
a using Computer Numerical Controlled machines which stand alone within a traditional
. setting
c reducing the complexity of the physical manufacturing layout of the shop floor
.
ANS: C
24. A manufacturing process that is organized into group technology cells utilizing no human labor is called
a islands of technology
.
b process simplification
.
d traditional manufacturing
.
ANS: C
d robotics
.
ANS: A
ANS: C
27. Firms implement a Just-In-Time inventory approach to
ANS: A
a push manufacturing
.
b zero defects
.
d reliable vendors
.
ANS: A
29. The cost of poor quality includes all of the following except
a cost of rework
.
b warranty claims
.
c scheduling delays
.
d proceeds from the sale of scrap
.
ANS: D
ANS: C
31. Deficiencies of the traditional cost accounting information system include all of the following except
ANS: D
a an activity driver is a means to measure the activity used by the cost object
.
b cost object describes the work performed in a firm
.
ANS: B
d the financial nature of the reports permits comparisons to be made among different types
. of products
ANS: B
c shows the allocation of costs first to activities and then to cost objects
.
ANS: A
35. Types of information provided by Activity Based Costing include
ANS: C
a the benchmark approach compares key activities with similar activities in other firms
.
c the ABC model includes two perspectives: an allocation of cost perspective and a
. process perspective
d in world-class manufacturing firms, quality control activities at the end of the process are
. essential
ANS: D
37. All of the following are documents in batch process production systems except
a production schedule
.
b route sheet
.
c materials requisition
.
d purchase order
.
ANS: D
38. Transaction authorization occurs in a traditional manufacturing environment in all of the following ways
except
b movement of the work through the production process follows the move ticket
.
d the materials requisition authorizes the storekeeper to release materials to the work
. centers
ANS: C
39. Manufacturing flexibility incorporates four characteristics. These include all of the following except
ANS: B
ANS: C
CHAPTER 8
4. When a firm wants its coding system to convey meaning without reference to any other document, it
would choose
a. an alphabetic code
b. a mnemonic code
c. a group code
d. a block code
ANS: B
6. Entries into the General Ledger System (GLS) can be made using information from
a. the general journal
b. a journal voucher which represents a summary of similar transactions
c. a journal voucher which represents a single, unusual transaction
d. all of the above
ANS: D
10. Which steps in the Financial Accounting Process are in the correct sequence?
a. record the transaction, post to the ledger, prepare the adjusted trial balance, enter adjusting
entries, prepare financial statements
b. record the transaction, prepare the unadjusted trial balance, record adjusting journal
entries, record closing entries, prepare financial statements
c. record the transaction, post to the ledger, record adjusting entries, prepare the unadjusted
trial balance, prepare financial statements
d. record the transaction, post to the ledger, prepare the adjusted trial balance, prepare
financial statements, record closing entries
ANS: D
14. Risk exposures in the General Ledger and Financial Reporting Systems include all of the following
except
a. loss of the audit trail
b. unauthorized access to the general ledger
c. loss of physical assets
d. general ledger account out of balance with the subsidiary account
ANS: C
15. Which situation indicates an internal control risk in the General Ledger/Financial Reporting Systems
(GL/FRS)?
a. the employee who maintains the cash journal computes depreciation expense
b. the cash receipts journal voucher is approved by the Treasurer
c. the cash receipts journal vouchers are prenumbered and stored in a locked safe
d. the employee who maintains the cash receipts journal records transactions in the accounts
receivable subsidiary ledger
ANS: D
16. With a limited work force and a desire to maintain strong internal control, which combination of duties
performed by a single individual presents the least risk exposure?
a. maintaining the inventory ledger and recording the inventory journal voucher in the
general ledger
b. recording the inventory journal voucher in the general ledger and maintaining custody of
inventory
c. maintaining the cash disbursements journal and recording direct labor costs applied to
specific jobs
d. preparing the accounts payable journal voucher and recording it in the general ledger
ANS: C
17. The audit trail fulfills all of the following purposes except
a. provides the ability to answer inquiries
b. ensures the accuracy of the application software
c. fulfills governmental regulations
d. offers a means for preventing, detecting, and correcting errors
ANS: B
18. Which best describes a batch process General Ledger System (GLS)
a. paper documents are eliminated
b. the general ledger master file is updated each night
c. there is a time lag between transaction processing and posting to the general ledger
d. no direct access or querying of the General Ledger is possible
ANS: C
27. All of the following are elements of operational control decisions except
a. determining the scope of the activity
b. setting operating standards
c. evaluating performance
d. taking corrective action when necessary
ANS: A
28. In contrast to tactical planning decisions, management control decisions, and operational control
decisions, strategic planning decisions usually
a. are more focused
b. have a shorter time frame
c. are unstructured
d. have a high degree of certainty
ANS: C
29. Which of the following management principles affects the management reporting system?
a. formalization of tasks
b. authorization
c. span of control
d. all of the above
ANS: D
34. What mechanism is used to convey to managers the standards by which their performance will be
measured?
a. the responsibility report
b. the scheduled report
c. the budget
d. all of the above
ANS: C
37. Which file has as its primary purpose to present comparative financial reports on a historic basis?
a. journal voucher history file
b. budget master file
c. responsibility file
d. general ledger history file
ANS: D
38. All of the following are characteristics of the strategic planning process except the
a. emphasis on both the short and long run.
b. review of the attributes and behavior of the organizations competition.
c. analysis of external economic factors.
d. analysis of consumer demand.
ANS: A
39. Which of the following performance measures can not result in dysfunctional behavior?
a. price variance
b. quotas
c. ROI
d. net income
e. all of the above can result in dysfunctional behavior
ANS: E