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1. The systematic process of regulating organizational activities to make them consistent with the expectations in plans,
targets, and standards of performance refers to organizational control.
a.
True
b.
False
2. Effectively controlling an organization requires information about product standards and actual products, as well as
actions to correct any deviations from the standards.
a.
True
b.
False
3. Although work processes can be controlled and regulated, it is impossible to control and regulate employee behavior.
a.
True
b.
False
4. Managers are increasingly recognizing the need to measure intangible aspects of performance such as customer service.
a.
True
b.
False
5. Customer service, external business processes, financial performances, and the organization's capacity for learning and
growth are the four major perspectives of the balanced scorecard.
a.
True
b.
False
6. The feedback control model is a comprehensive management control system that balances traditional financial
measures with measures of customer service, internal business processes, and the organization's capacity for learning and
growth.
a.
True
b.
False
7. Benchmark control focuses on the quantity of an end product or service.
a.
True
b.
False
8. Managers focus on the various elements of the scorecard to set targets, evaluate performance, and guide discussion
about what further actions need to be taken.
a.
True
b.
False
9. A standard for performance is included in an organization's overall strategic plan to compare organizational activities
against.
a.
True
b.
False
10. The final step of the feedback control model is to do nothing if performance is adequate or to take corrective action if
performance is inadequate.
a.
True
b.
False
11. In most companies, managers rely exclusively on qualitative measures to measure actual performance.
a.
True
b.
False
12. The fourth step in the control process is comparing actual activities to performance standards.
a.
True
b.
False
13. Effective management control involves subjective judgment and employee discussions, as well as objective analysis of
performance data.
a.
True
b.
False
14. An expense budget lists forecasted and actual revenues of the organization.
a.
True
b.
False
15. The level of funds flowing through the organization and the nature of cash disbursements is shown through the capital
budget.
a.
True
b.
False
16. A cash budget estimates receipts and expenditures of money on a daily or weekly basis..
a.
True
b.
False
17. Within the balanced scorecard, customer service indicators measure things such as employee retention and
satisfaction.
a.
True
b.
False
18. An expense budget lists forecasted and actual revenues of the organization.
a.
True
b.
False
19. The capital budget lists planned investments in major assets such as buildings, heavy machinery, or complex
information technology systems.
a.
True
b.
False
20. Zero-based budgeting requires a complete justification for every line item in a budget.
a.
True
b.
False
21. A balance sheet budget is a budget that plans and reports investments in major assets to be depreciated over several
years.
a.
True
b.
False
22. Bottom-up budgeting is a process in which lower level managers anticipate their department's resource needs and pass
them up to top management for approval.
a.
True
b.
False
23. The balance sheet shows the firm's financial position with respect to expenses and credits at a specific point in time.
a.
True
b.
False
24. Liabilities are the firm's debts, both current and long-term.
a.
True
b.
False
25. The income statement shows revenues coming into the organization from all sources and subtracts all expenses.
a.
True
b.
False
26. A responsibility center involves the coordination of mulitple managers from various departments to carry out an
activity.
a.
True
b.
False
27. The system of governing an organization so that the interests of corporate owners are protected refers to corporate
governance.
a.
True
b.
False
28. Frequently calculated ratios typically pertain to activity, passivity, and profitability.
a.
True
b.
False
29. The liquidity ratio shows the company's ability to meet its current debt obligations and a measurement of the firm's
margin of safety.
a.
True
b.
False
30. An activity ratio that measures how many times the inventory is turned over to meet the total sales figure is called the
inventory turnover.
a.
True
b.
False
31. The return on total assets (ROA) is an activity ratio that is the percentage returned to investors on total assets.
a.
True
b.
False
32. Under hierarchical control, employees are actively engaged and committed to their work.
a.
True
b.
False
33. The use of cultural values, traditions, shared beliefs and trust to increase compliance with goals refers to decentralized
control.
a.
True
b.
False
34. Companies today are increasingly shifting from a hierarchical control process to one that is more decentralized.
a.
True
b.
False
35. A process in which lower level managers anticipate their department's resource needs and pass them to top
management for approval is called top-down budgeting.
a.
True
b.
False
36. Open-book management ties employee rewards to the company's overall success.
a.
True
b.
False
37. The goal of open-book management is to get every employee thinking and acting like a business owner.
a.
True
b.
False
38. Closed-book management helps employees appreciate why efficiency is important to the organization's success as
well as their own.
a.
True
b.
False
39. The Six Sigma approach is a comprehensive management control system that balances traditional financial measures
with operational measures relating to a company’s critical success factors.
a.
True
b.
False
40. A Six Sigma process will typically result in one defective package of product for every three truckloads shipped.
a.
True
b.
False
41. TQM tends to be most successful when it enriches jobs and improves employee motivation.
a.
True
b.
False
42. An organization-wide commitment to infusing quality into every activity through continuous improvement defines Six
Sigma.
a.
True
b.
False
43. A group of six to twelve volunteer employees who meet regularly to discuss and solve problems affecting their
common work activities refers to a quality team.
a.
True
b.
False
44. The implementation of total quality management involves the use of many techniques such as quality circles,
benchmarking, Six Sigma principles, reduced cycle time, and continuous improvement.
a.
True
b.
False
45. Benchmarking is the age-old practice of allowing the artisan to sign his name to the finished product.
a.
True
b.
False
46. Outsourcing is the continuous process of measuring products, services, and practices against the toughest competitors
or the industry leaders.
a.
True
b.
False
47. Continuous improvement is the implementation of a large number of small, incremental improvements in all areas of
the organization on an ongoing basis.
a.
True
b.
False
48. Six Sigma is most beneficial when employees have challenging jobs.
a.
True
b.
False
49. Very high expectations from senior management and a desire to share authority by middle managers are two of the
positive factors leading to success of TQM.
a.
True
b.
False
50. The certification based on a set of international standards for quality management, setting uniform guidelines for
processes to ensure that products conform to customer requirements is the ISO certification.
a.
True
b.
False
51. Which of the following is the systematic process through which managers regulate organizational activities?
a.
Strategic planning
b.
Organizational control
c.
Organizational goal setting
d.
Strategic regulation
e.
Organizational leading
52. Ophelia, the new CEO at Odyssey Inc., plans to implement a highly effective systematic process of regulating
organizational activities to make them consistent with the expectations that are established by managers within the
company. This is referred to as _____ control.
a.
organizational
b.
feedback
c.
budgetary
d.
systems
e.
quality
53. For control, this type of measure is an important part of achieving higher performance.
a.
Statistical
b.
Theoritical
c.
Emotional
d.
Employee conflict
e.
Market
54. According to MANAGER'S SHOPTALK in Chapter 19, the interest in self-awareness is part of a growing discipline
called _____.
a.
employee self promotion
b.
emotional development
c.
self-leadership
d.
emotional hueristics
e.
auto-analytics
55. Zachary, a manager at ExecuComp, receives quarterly reports, which track his department's production statistics.
However, these reports lack key information regarding reject rates. Which of the following components of the control
model need improvement?
a.
Measuring actual performance
b.
The planning and setting of performance standards
c.
SWOT analysis
d.
The ability to take corrective action when necessary
e.
All of these
56. Which of the following is a control system that measures performance in terms of after-tax profits minus the cost of
capital invested in tangible assets?
a.
Open-book management
b.
Economic value-added system
c.
Activity-based costing
d.
Inappropriate control system
e.
None of these
57. All of the following are key steps of setting up feedback control systems EXCEPT:
a.
comparing performance to standards.
b.
establishing standards.
c.
getting employee opinions.
d.
measuring performance.
e.
making necessary corrections.
58. Which of the following is a comprehensive management control system that balances traditional financial measures
with operational measures relating to a company's critical success factors?
a.
Economic value-added system
b.
Activity-based costing system
c.
Market value-added system
d.
Balanced scorecard
e.
Open-book management system
59. _____ indicators focus on production and operating statistics.
a.
Financial performance
b.
Business process
c.
Critical success
d.
Potential for learning and growth
e.
Performance measurement
60. All of the following are major perspectives of the Balanced Scorecard EXCEPT _____.
a.
competitors
b.
customers
c.
learning and growth
d.
financial
e.
internal business processes
61. Mistletoe Corporation has a detailed set of organizational goals and management information system that delivers
timely and accurate information. Mistletoe still has control problems, however, because its managers refuse to act on the
information they receive. Mistletoe's control process has flaws in which of the following areas?
a.
Its performance standards
b.
Its management information systems
c.
Its ability to take corrective action when necessary
d.
Its measurement systems
e.
None of these
62. Your department has absenteeism standards, a way to measure absenteeism, and, based on your investigation, you
have concluded that your department has an excessive absenteeism rate. What should your next step be?
a.
Set new absenteeism standards.
b.
Develop new measures of absenteeism.
c.
Terminate three employees for excessive absenteeism.
d.
All of these would be good examples of taking corrective action.
e.
None of these
63. Kyle's work group consistently exceeds the goals the members set for themselves some months ago. In an attempt to
better motivate the group, Kyle thought it would be a good idea to set new goals. This is an example of Kyle exercising
control by:
a.
comparing performance to standards.
b.
developing adequate measures of performance.
c.
taking corrective action.
d.
all of these.
e.
comparing performance to standards and developing adequate measures of performance only.
64. In the process of implementing the balanced scorecard approach at his company, operations manager Seth Howard
wonders whether internal activities and processes add value for customers and shareholders. This involves which
dimension of the balanced scorecard?
a.
Customers
b.
Learning and growth
c.
Financials
d.
External business processes
e.
Internal business processes
65. Focusing on how well resources and human capital are being managed for the company’s future refers to which
component of the balanced scorecard?
a.
Customers
b.
Learning and growth
