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
True
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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
False
632
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3. Although work processes can be controlled and regulated, it is impossible to control and regulate employee behavior.
a.
True
b.
False
False
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MGMT.DAFT.12.19-01 – 19–01
4. Managers are increasingly recognizing the need to measure intangible aspects of performance such as customer service.
a.
True
b.
False
True
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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
False
636
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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
False
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7. Benchmark control focuses on the quantity of an end product or service.
a.
True
b.
False
False
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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
True
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9. A standard for performance is included in an organization’s overall strategic plan to compare organizational activities
against.
a.
True
b.
False
True
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MGMT.DAFT.12.19-02 – 19–02
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
True
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11. In most companies, managers rely exclusively on qualitative measures to measure actual performance.
a.
True
b.
False
False
MGMT.DAFT.12.19-02 – 19–02
12. The fourth step in the control process is comparing actual activities to performance standards.
a.
True
b.
False
False
636
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13. Effective management control involves subjective judgment and employee discussions, as well as objective analysis of
performance data.
a.
True
b.
False
True
636
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14. An expense budget lists forecasted and actual revenues of the organization.
a.
True
b.
False
False
638
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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
False
639
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16. A cash budget estimates receipts and expenditures of money on a daily or weekly basis..
a.
True
b.
False
639
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17. Within the balanced scorecard, customer service indicators measure things such as employee retention and
satisfaction.
a.
True
b.
False
False
639
18. An expense budget lists forecasted and actual revenues of the organization.
a.
True
b.
False
False
639
MGMT.DAFT.12.19-07 – 19–07
19. The capital budget lists planned investments in major assets such as buildings, heavy machinery, or complex
information technology systems.
a.
True
b.
False
True
639
MGMT.DAFT.12.19-07 – 19–07
20. Zero-based budgeting requires a complete justification for every line item in a budget.
a.
True
b.
False
True
640
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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
False
641
MGMT.DAFT.12.19-07 – 19–07
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
True
641
MGMT.DAFT.12.19-07 – 19–07
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
False
641
MGMT.DAFT.12.19-07 – 19–07
24. Liabilities are the firm’s debts, both current and long-term.
a.
True
b.
False
True
641
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25. The income statement shows revenues coming into the organization from all sources and subtracts all expenses.
a.
True
b.
False
True
641
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26. A responsibility center involves the coordination of mulitple managers from various departments to carry out an
activity.
a.
True
b.
False
False
MGMT.DAFT.12.19-08 – 19–08
27. The system of governing an organization so that the interests of corporate owners are protected refers to corporate
governance.
a.
True
b.
False
True
641
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28. Frequently calculated ratios typically pertain to activity, passivity, and profitability.
a.
True
b.
False
False
643
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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
True
643
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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
True
643
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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
False
643
MGMT.DAFT.12.19-07 – 19–07
32. Under hierarchical control, employees are actively engaged and committed to their work.
a.
True
b.
False
False
644
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33. The use of cultural values, traditions, shared beliefs and trust to increase compliance with goals refers to decentralized
control.
a.
True
b.
False
644
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34. Companies today are increasingly shifting from a hierarchical control process to one that is more decentralized.
a.
True
b.
False
True
644
MGMT.DAFT.12.19-04 – 19–04
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
False
645
MGMT.DAFT.12.19-07 – 19–07
36. Open-book management ties employee rewards to the company’s overall success.
a.
True
b.
False
True
647
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37. The goal of open-book management is to get every employee thinking and acting like a business owner.
a.
True
b.
False
True
647
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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
False
647
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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
False
649
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40. A Six Sigma process will typically result in one defective package of product for every three truckloads shipped.
a.
True
b.
False
False
650
MGMT.DAFT.12.19-06 – 19–06
41. TQM tends to be most successful when it enriches jobs and improves employee motivation.
a.
True
b.
False
True
651
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42. An organization-wide commitment to infusing quality into every activity through continuous improvement defines Six
Sigma.
a.
True
b.
False
False
652-653
MGMT.DAFT.12.19-06 – 19–06
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
False
652-653
MGMT.DAFT.12.19-06 – 19–06
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
True
653
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45. Benchmarking is the age-old practice of allowing the artisan to sign his name to the finished product.
a.
True
b.
False
False
653
MGMT.DAFT.12.19-06 – 19–06
46. Outsourcing is the continuous process of measuring products, services, and practices against the toughest competitors
or the industry leaders.
a.
True
b.
False
False
653
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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
True
653
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48. Six Sigma is most beneficial when employees have challenging jobs.
a.
True
b.
False
False
653
MGMT.DAFT.12.19-06 – 19–06
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
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
False
653
MGMT.DAFT.12.19-06 – 19–06
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
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
True
653
MGMT.DAFT.12.19-08 – 19–08
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
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
632
MGMT.DAFT.12.19-01 – 19–01
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
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
a
632
MGMT.DAFT.12.19-01 – 19–01
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
A
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
a
634
MGMT.DAFT.12.19-01 – 19–01
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
54. According to MANAGER’S SHOPTALK in Chapter 19, the interest in self-awareness is part of a growing discipline
called _____.
a.
b.
c.
d.
e.
e
634
MGMT.DAFT.12.19-01 – 19–01
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
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
a
634
MGMT.DAFT.12.19-02 – 19–02
United States – BUSPROG: Analytic
Bloom’s: Knowledge
A
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
634
MGMT.DAFT.12.19-08 – 19–08
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
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.
c
635
MGMT.DAFT.12.19-02 – 19–02
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
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
636
MGMT.DAFT.12.19-03 – 19–03
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
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
636
MGMT.DAFT.12.19-03 – 19–03
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
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
a
1
2
636
MGMT.DAFT.12.19-03 – 19–03
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
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
c
1
2
636
MGMT.DAFT.12.19-02 – 19–02
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
A
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
d
1
3
636
MGMT.DAFT.12.19-02 – 19–02
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
A
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.
c
636
MGMT.DAFT.12.19-02 – 19–02
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
A
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
e
636
MGMT.DAFT.12.19-03 – 19–03
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
A
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