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115. Which quality control technique uses a five-step methodology to define, measure, analyze, improve, and control
processes, otherwise referred to as DMAIC?
a.
Quality circles
b.
Six Sigma
c.
Benchmarking
d.
Balanced scorecard
e.
Continuous improvement
116. To reduce the organization's cycle time is to reduce the number of:
a.
of committees in the organization.
b.
layers of management.
c.
steps in an organizational process.
d.
staff employees in the organization.
e.
none of these.
117. _____ refers to the steps taken to complete a company process.
a.
Continuous improvement
b.
Cycle time
c.
Quality circles
d.
Six sigma
e.
Benchmarking
118. It seems that once a year the managers of Stone Construction, Inc. attempt a major organization intervention, such as
management-by-objectives. They never seem to be satisfied with the performance of Stone Construction and, sure
enough, 12 months later, along comes another major intervention. By implementing organizational change in this way,
Stone Construction's management may well be violating the principle of:
a.
benchmarking.
b.
continuous improvement.
c.
unity of direction.
d.
top-down control.
e.
none of these.
119. _____ is(are) most beneficial when employees have challenging jobs.
a.
Six Sigma
b.
Total Quality Management
c.
Kaizen
d.
Quality circles
e.
Continuous improvement
120. Contingency factors that can influence the success of a TQM program in a positive way include all of the following
EXCEPT:
a.
tasks make high skill demands on employees.
b.
TQM serves to enrich jobs and motivate employees.
c.
problem-solving skills are improved for all employees.
d.
participation and teamwork are used to tackle significant problems.
e.
managers wait for big, dramatic innovations.
121. _____ standards represent an international standard for quality management.
a.
ISO 9000
b.
Six Sigma
c.
TQM
d.
Kiazan
e.
Foreign Economy Index
122. A contingency factor that can influence the success of a TQM program in a negative way is that:
a.
continuous improvement is a way of life.
b.
TQM serves to enrich jobs and motivate employees.
c.
problem-solving skills are improved for all employees.
d.
participation and teamwork are used to tackle significant problems.
e.
union leaders are left out of QC discussions.
123. Contingency factors that can influence the success of a TQM program in a negative way include all of the following
EXCEPT:
a.
tasks make high skill demands on employees.
b.
management expectations are unrealistically high.
c.
middle managers are dissatisfied about loss of authority.
d.
workers are dissatisfied with other aspects of organizational life.
e.
managers wait for big, dramatic innovations.
124. Which of these is based on a set of international standards for quality?
a.
Quality circle
b.
Corporate governance
c.
ISO certification
d.
Open-book management
e.
Balance scorecard
125. Which of the following refers to the system of governing an organization so that the interests of corporate owners are
protected?
a.
Quality circle
b.
Corporate governance
c.
ISO certification
d.
Open-book management
e.
Balance scorecard
Scenario - Katrina Aldridge
The yearly auditing review of Pilgrim Industries is scheduled for next month. Katrina Aldridge is preparing for that audit
and is also preparing her budget for the coming year.
126. Which of these budgets will provide Katrina information about planned investments in major assets like buildings
and heavy machinery?
a.
Cash budget
b.
Revenue budget
c.
Capital budget
d.
Expense Budget
e.
Balance-Sheet budget
127. In planning and budgeting for the next 12 months, Katrina is participating in a budgeting process in which lower-
level manager's budget their department's resource needs and pass them up to top management for approval. This budget
process is an example of:
a.
zero-based budgeting.
b.
bottom-up budgeting.
c.
top-down budgeting.
d.
balance sheet budgeting.
e.
none of these.
128. Katrina has also requested that the financial ratios be calculated and analyzed for her. Which of the following ratios
will give her the best information for evaluating liquidity?
a.
Profit margin on sales
b.
Current ratio
c.
Conversion ratio
d.
Return on assets
e.
None of these.
129. The systematic process through which managers regulate organizational activities is known as _____.
130. _____ focuses on whether performance meets established standards.
131. When _____ deviates from a(n) _____, managers must interpret the deviation.
132. A(n) _____ is defined as any organizational department or unit under the supervision of a single person who is
responsible for its activity.
133. A(n) _____ includes anticipated and actual expenses for each responsibility center and for the total organization.
134. A(n) _____ lists forecasted and actual revenues of the organization.
135. The _____ estimates receipts and expenditures of money on a daily or weekly basis to ensure that an organization has
sufficient cash to meet its obligations.
136. The _____ lists planned investments in major assets such as buildings, trucks, and heavy machinery, often involving
expenditures over more than a year.
137. In a traditional _____ approach, budgeted amounts for the coming year are imposed on middle- and lower-level
managers.
138. A budgeting process in which middle and lower-level managers set departmental budget targets in accordance with
overall company revenues and expenditures specified by top management is called _____ budgeting.
139. A budgeting process in which lower-level managers budget their departments' resource needs and pass them up to top
management for approval is called _____ budgeting.
140. The _____ provides three types of information: assets, liabilities, and owners' equity.
141. The firm's financial performance for a given time period is shown on the _____.
142. A(n) _____ ratio indicates an organization's ability to meet its current debt obligations.
143. A(n) _____ ratio measures internal performance with respect to key activities defined by management.
144. The percentage representing what a company earned from its assets is called _____.
145. A control system that identifies the various activities needed to provide a product and determines the cost of those
activities is called _____.
146. _____ involves monitoring and influencing employee behavior through extensive use of rules, policies, hierarchy of
authority, written documentation, reward systems, and other formal mechanisms.
147. _____ control uses cultural values, traditions, shared beliefs, and trust to generate compliance with organizational
goals.
148. A control system that measures performance in terms of after-tax profits minus the cost of capital invested in tangible
assets is called the _____.
149. Sharing financial information and results with all employees in the organization is called _____ management.
150. An organization wide commitment to infusing quality into every activity through continuous improvement is called
_____.
151. A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting their common
work activities is known as a(n) _____.
152. The continuous process of measuring products, services, and practices against major competitors or industry leaders
is called _____.
153. _____ refers to the number of steps taken to complete a company process.
154. The implementation of a large number of small, incremental improvements in all areas of the organization on an
ongoing basis is referred to as _____.
155. _____ refers to the system of governing an organization so that the interests of corporate owners are protected.
156. List the four steps in the feedback control model.
157. List the four major perspectives of a balanced scorecard.
158. Identify and briefly describe the four steps of the feedback control model.
159. Discuss the evolution of the balanced scorecard from a system that places equal emphasis on performance
management categories to one that emphasizes cause and effect.
160. Describe the difference between a balance sheet and an income statement.
161. Identify and briefly describe each of the common financial ratios addressed in your text.
162. Compare hierarchical control with decentralized control.
163. Discuss open-book management and the balanced scorecard.
164. In a TQM program, what is benchmarking?
165. Discuss the positive and negative factors that can influence the success of a TQM program.
166.
Organizations need quality and behavioral control, which are a manager’s responsibility. If you were the manager of a
frozen yogurt shop, what types of controls would you use to monitor quality and behavior? How would you use the
information you collect?
167.
A feedback control model helps managers determine whether performance meets established standards. In an essay,
describe how you would utilize the four-step process of feedback control when setting up a control system in a retail
environment.
168.
The manager can use a variety of approaches when seeking to measure and control performance. Write a short essay in
which you contrast and compare the hierarchical and the decentralized control processes, and explain the factors that help
determine which method is used.
169.
Open-book management is an aspect of decentralized control in many organizations. Write a short essay in which you
assess the relationship between open-book management and employee commitment to goals. If you worked in an open-
book environment, would you be concerned about the organization’s financial situation? What would you want to know?
How would this information affect you, and how would it influence your behavior on the job?
170. Approaches to quality and financial control must change with the times. In a short essay, evaluate the effect that the
changing global economy and increased awareness of corporate accountability are having on organizational management
and processes.
