c.
Financials
d.
Internal business processes
e.
External business processes
636
MGMT.DAFT.12.19-03 – 19–03
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
66. Use of the balanced scorecard can hinder or decrease organizational performance if it is implemented using which
type of orientation?
a.
Performance management orientation
b.
Performance measurement orientation
c.
Customer orientation
d.
Learning and growth orientation
e.
Internal business process orientation
636
MGMT.DAFT.12.19-03 – 19–03
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
67. All well-designed control systems involve the use of _____ to determine whether performance meets established
standards.
a.
opinions
b.
advice
c.
consultants
d.
benchmarks
e.
feedback
e
638
MGMT.DAFT.12.19-03 – 19–03
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
68. What is the first step in the feedback control system?
a.
Establishing strategic objectives
b.
Establishing standards of performance
c.
Taking corrective action
d.
Comparing performance to standard
e.
Measuring previous performance
638
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
69. CyberChasers Corporation sends a post-purchase questionnaire to all consumers who buy their products. They are
interested in gathering data on product quality, customer service orientation, and customer satisfaction. This is an example
of a:
a.
concurrent control.
b.
feedback control.
c.
feedforward control.
d.
preliminary control.
e.
preventive control.
638
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
70. Kendra is a manager at George’s Goodies. On a regular basis Kendra and her subordinates set individual and
organizational goals. This process is similar to which component of the control model?
a.
Taking corrective action when necessary
b.
An information system
c.
Establishing performance standards
d.
Engaging strategic analysis
e.
None of these
638
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
71. According to the control model, after establishing standards of performance the manager should:
a.
compare performance to standards.
b.
get the standards approved by the supervisors and subordinates.
c.
measure actual performance.
d.
take corrective action.
e.
provide feedback.
638
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
72. Tiffany recently discovered that the reject rate for her department has exceeded the standard for performance in this
area. What should Tiffany do to exercise effective control?
a.
She should order more training for her workforce.
b.
She should contact the maintenance department and have them come fix her machinery.
c.
She should suspend the poorer workers in her department.
d.
She should investigate and discover the cause of the problem.
e.
None of these
638
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
73. _____ is any organizational department or unit under the supervision of a single person who is responsible for its
activity.
a.
Independent center
b.
Responsibility center
c.
Analysis center
d.
Control center
e.
Budgeting center
638
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
74. _____ control is the process of setting targets for an organizations expenditures.
a.
Quality
b.
Income
c.
Budgetary
d.
Systems
e.
Supply chain
c
638
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
75. Which of the following includes anticipated and actual expenses for a responsibility center?
a.
Revenue budget
b.
Cash budget
c.
Capital budget
d.
Expense budget
e.
Operating budget
639
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
76. Which of these is a financial budget that estimates cash flows on a daily basis or weekly basis to ensure that the
company can meet its obligations?
a.
Capital expenditure budget
b.
Balance sheet budget
c.
Cash budget
d.
Revenue budget
e.
Profit budget
c
639
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
77. Madison has been assigned to work on the development of a budget that plans future investments in major assets such
as buildings and heavy machinery. Madison is working on a(n) _____ budget.
a.
cash
b.
capital
c.
revenue
d.
operating
e.
expense
639
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
A
78. The _____ plans future investments in major assets to be depreciated over several years.
a.
capital budget
b.
balance sheet budget
c.
cash budget
d.
revenue budget
e.
profit budget
a
639
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
79. Ron meets with his company’s accountant to discuss the budget of anticipated and actual expenses for each segment
of the organization. This involves review of which type of budget?
a.
Expense budget
b.
Revenue budget
c.
Cash budget
d.
Capital budget
e.
Nonfinancial budget
639
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
80. Stella, a systems manager for a large technology company, would like to get an understanding of her company’s
financial position with respect to assets and liabilities at the end of the fiscal year. Which financial statement should she
refer to?
a.
Income statement
b.
Activity ratio
c.
TQM report
d.
Balance sheet
e.
Balance scorecard
639
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
81. Which financial control system measures the stock market’s estimate of the value of a company’s past and projected
capital investment projects?
a.
Market value-added
b.
Economic value-added
c.
System governance
d.
Activity-based costing
e.
Corporate governance
639
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
82. Brad is a department manager at Home Theater, Inc. His sole role in the budget process is to implement the budget
that is developed for him. This is an example of:
a.
strategic budgeting.
b.
operational budgeting.
c.
top-down budgeting.
d.
management by objectives.
e.
bottom-up budgeting.
c
639-640
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
A
83. Pauline is an area manager at Ironman Gym. She anticipates her area’s needs and formulates a proposed budget every
quarter. She then sends this proposal to her manager. This is an example of:
a.
top-down budgeting.
b.
strategic budgeting.
c.
revenue budgeting.
d.
bottom-up budgeting.
e.
none of these.
640
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
A
84. An advantage of the bottom-up budgeting process is:
a.
its emphasis on bureaucratic control.
b.
lower managers are more involved.
c.
top managers control the information flow.
d.
top managers are often not committed to achieving budget targets.
e.
all of these.
640
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
85. The firm’s financial position with respect to assets and liabilities at a specific point in time is shown by its:
a.
activity ratio.
b.
profitability ratio.
c.
income statement.
d.
liquidity ratio.
e.
balance sheet.
e
641
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
86. _____ provide the basic information used for financial control of an organization.
a.
Owners equity
b.
Income statements
c.
Financial position
d.
Mission Statements
e.
100-K’s
641
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
87. _____ refer(s) to the difference between assets and liabilities and is the company’s net worth in stock and retained
earnings.
a.
Assets
b.
Current debt
c.
Net profit
d.
Owners’ equity
e.
Liabilities
641
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
88. The _____ ratio refers to the ability of the organization to meet its current debt obligation.
a.
activity
b.
liquidity
c.
profitability
d.
conversion
e.
growth
643
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
89. The conversion ratio is considered to be a(n) _____ ratio.
a.
activity
b.
liquidity
c.
profitability
d.
leverage
e.
cash
a
643
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
90. Which of the following is a ratio that measures the firm’s internal performance with respect to key activities defined by
management?
a.
A liquidity ratio
b.
An activity ratio
c.
Return on total assets
d.
A current ratio
e.
Profit margin on sales
643
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
91. The _____ is purchase orders divided by customer inquiries.
a.
current ratio
b.
inventory turnover ratio
c.
conversion ratio
d.
profit margin on sales
e.
none of these
643
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
92. Tammy is a production manager at Eagle’s Nest, Inc.. She is concerned that too much money is being wasted on
inventory that is sitting in the warehouse too long. She should calculate a(n):
a.
current ratio.
b.
inventory turnover ratio.
c.
conversion ratio.
d.
profitability ratio.
e.
leverage ratio.
643
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
A
93. Net income divided by sales is the correct formula for calculating:
a.
return on total assets.
b.
a current ratio.
c.
a liquidity ratio.
d.
profit margin on sales.
e.
a corporate evaluation.
d
1
1
643
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
94. Which of the following refers to funding activities with borrowed money?
a.
ROA
b.
Leverage
c.
Liquidity
d.
Profitability
e.
Activity
b
1
2
643
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
95. _____ is a control system that identifies the various activities needed to produce a product and determines the cost of
those activities.
a.
Open-book management
b.
An economic value-added system
c.
Activity-based costing
d.
An inappropriate control system
e.
None of these
c
1
1
643
MGMT.DAFT.12.19-08 – 19–08
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
96. Which of the following is considered a leverage ratio?
a.
Debt ratio
b.
Return on total assets
c.
Profit margin on sales
d.
Conversion ratio
e.
Inventory turnover
a
643
MGMT.DAFT.12.19-07 – 19–07
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
97. The basic philosophy of control at Nutrients-For-You, Inc. is based on the policies found in the employee handbook,
as well as a strict hierarchy of authority. This philosophy is consistent with:
a.
clan control.
b.
bottom-up control.
c.
hierarchical control.
d.
culture control.
e.
decentralized control.
c
644-645
MGMT.DAFT.12.19-04 – 19–04
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
A
98. At LBK Industries, responsibility for quality control rests with a team of quality control inspectors and supervisors
rather than with employees. LBK uses what type of organizational control?
a.
Matrix control
b.
Hierarchical control
c.
Decentralized control
d.
Bottom-up control
e.
Balanced control
644-645
MGMT.DAFT.12.19-04 – 19–04
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
A
99. Decentralized control is usually implemented in all of the following areas EXCEPT:
a.
self-control.
b.
peer group.
c.
corporate culture.
d.
employee selection and socialization.
e.
the quality control department.
e
645
MGMT.DAFT.12.19-04 – 19–04
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
100. At RWI Distilleries, rules and procedures are used only when necessary. Instead, shared goals and values guide
employee behavior. RWI uses what type of organizational control?
a.
Centralized control
b.
Hierarchical control
c.
Decentralized control
d.
Top-down control
e.
Balanced control
c
645
MGMT.DAFT.12.19-04 – 19–04
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
A
101. Which of the following allows employees to see for themselves the financial condition of the company?
a.
Open-book management
b.
An economic value-added system
c.
Activity-based costing
d.
An inappropriate control system
e.
Market value-added system
a
647
MGMT.DAFT.12.19-05 – 19–05
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
102. The control “system” at FreshFood Corporation is based on the culture of the organization and norms that develop in
the individual work teams. This is an example of:
a.
bureaucratic control.
b.
decentralized control.
c.
organizational control.
d.
feedback control.
e.
none of these.
647
MGMT.DAFT.12.19-04 – 19–04
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
A
103. The goal of _____ is to get every employee thinking and acting like a business owner.
a.
management-by-walking around
b.
closed-book management
c.
MBO
d.
open-book management
e.
just-in-time inventory systems
647
MGMT.DAFT.12.19-05 – 19–05
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
104. Silver n’ Gold Inc. recently introduced a new control philosophy where all employees have access to the same
information that owners have, such as what money is coming in and where it is going. This is an example of which control
philosophy?
a.
Balanced scorecard
b.
Six Sigma
c.
Continuous improvement
d.
Total quality management
e.
Open-book management
e
1
3
647
MGMT.DAFT.12.19-05 – 19–05
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
A
105. Total quality management:
a.
is based on the ideas of Frederick Taylor.
b.
gives managers total responsibility for achieving quality goals.
c.
gives all employees the responsibility for achieving quality goals.
d.
was first successfully implemented in the United States.
e.
is all of these.
c
2
648
MGMT.DAFT.12.19-06 – 19–06
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
106. Which of the following is a philosophy of organization-wide commitment to continuous improvement, focusing on
teamwork, customer satisfaction, and lowering costs?
a.
Engineering
b.
Total quality management
c.
Outsourcing
d.
Culture
e.
Diversity
b
1
1
648
MGMT.DAFT.12.19-06 – 19–06
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
107. Charlie, a manager at a textile company, is bothered by a lack in quality of products manufactured by his company.
Charlie hopes to infuse quality into the company through continuous improvement by involving everyone who works
there. This describes which control philosophy?
a.
Balanced scorecard
b.
Six Sigma
c.
Continuous improvement
d.
Total quality management
e.
Open-book management
d
1
3
648
MGMT.DAFT.12.19-06 – 19–06
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
A
108. A quality circle is a group of _____ volunteer employees.
a.
2 to 4
b.
6 to 12
c.
10 to 20
d.
15 to 25
e.
30 to 50
b
1
1
649
MGMT.DAFT.12.19-06 – 19–06
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
109. A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting their common
work activities is a _____.
a.
feedforward control group
b.
work team
c.
quality circle
d.
committee
e.
problem team
c
649
MGMT.DAFT.12.19-06 – 19–06
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
110. Heather belongs to an informal group at work that meets twice a month to discuss common issues and problems in
the workplace. Recently, this group has been focusing on ways to improve safety in the workplace. This group is an
example of:
a.
a safety group.
b.
a quality circle.
c.
an ad–hoc committee.
d.
a problem team.
e.
none of these.
649
MGMT.DAFT.12.19-06 – 19–06
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
A
111. Quality circles are based on the assumption(s) that:
a.
the people who do the job know it better than anyone else.
b.
quality can be increased by increasing the size of the organization.
c.
quality can be increased by talking more about it.
d.
the more employees talk, the more satisfied they will be.
e.
all of these.
a
649
MGMT.DAFT.12.19-06 – 19–06
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
112. What is the key to successful benchmarking?
a.
Application
b.
Implementation
c.
Analysis
d.
Strategy
e.
Planning
c
1
2
649
MGMT.DAFT.12.19-06 – 19–06
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
113. Which of the following is the process of measuring your organizational process against the best in the industry?
a.
Outsourcing
b.
Continuous improvement
c.
Environmental analysis
d.
Benchmarking
e.
Competitive measurement
d
1
2
649
MGMT.DAFT.12.19-06 – 19–06
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge
114. Which of the following is a quality control approach that emphasizes a relentless pursuit of higher quality and lower
costs?
a.
Continuous improvement
b.
Cycle time
c.
Quality circles
d.
Six Sigma
e.
Benchmarking
d
1
1
649
MGMT.DAFT.12.19-06 – 19–06
United States – BUSPROG: Analytic
United States – LA – DISC: Operations Management
Bloom’s: Knowledge