1. The report issued about a major packaging defect showed a culture at an organization that did not listen when small
safety issues were raised. Each issue by itself might not have caused the flaw. This example illustrates:
a.
the need to understand organizational complexity.
b.
that changing conditions are influenced by innovation.
c.
the need for control in order to reduce the accumulation of errors.
d.
the way that control helps organizations respond to changing standards.
e.
the way that organizations cope with multiple control standards.
2. Which of the following is true of organizational control?
a.
Control always results in higher costs for an organization.
b.
Sales and marketing forecasting is a part of financial control.
c.
Control can help an organization adapt to environmental change.
d.
Control systems increase organizational complexity.
e.
Public relations is a part of human resources control.
p. 427
MGMT.GRIF.16. 14-1 – LO: 14-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
The Nature of Control
Bloom’s: Comprehension
Digital Story: Connect
3. When large firms merge, the results are often initially disappointing due to control systems trying to cope with a(n)
_____.
a.
rise in error accumulation
b.
increase in organizational complexity
c.
lack of environmental change
d.
increase in costs
p. 427
MGMT.GRIF.16. 14-1 – LO: 14-1
United States – BUSPROG: Analytic
United States – AK – DISC: Operations Management
The Nature of Control
Bloom’s: Application
Digital Story: Perform
e.
reduction in output
4. In organizations, sales forecasting, economic forecasting, and environmental analysis are examples of the control of
_____ resources.
a.
physical
b.
human
c.
information
d.
financial
e.
inventory
c
Easy
p. 430
MGMT.GRIF.16. 14-1 – LO: 14-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
The Nature of Control
Bloom’s: Comprehension
Digital Story: Connect
5. Performance appraisals are part of _____ control.
a.
b.
c.
d.
e.
Easy
p. 430
enterprise is so large and complex that the existing control systems are simply inadequate.
Moderate
p. 428
MGMT.GRIF.16. 14-1 – LO: 14-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
The Nature of Control
Bloom’s: Comprehension
Digital Story: Connect
6. Google partnered with Nielsen Co. to poll users about ads on Google+. Nielsen then packaged the information for
advertisers. This was a response to advertiser complaints about the effectiveness of ads on the social network. This
indicates that Google is placing an emphasis on _____ controls.
a.
operations
b.
development
c.
strategic
d.
financial
e.
structural
a
Challenging
p. 430
7. Quality control is a type of _____ control.
a.
physical
b.
human
c.
operations
d.
financial
e.
structural
c
Moderate
p. 430
8. The control of _____ affects all the other resources in an organization.
a.
physical resources
b.
human resources
c.
financial resources
d.
information resources
e.
inventory resources
9. An organization’s attempt to control the behavior of their employees by directing them toward higher performance is an
example of control of _____ resources.
a.
physical
b.
financial
c.
human
d.
information
e.
inventory
c
Easy
p. 430
MGMT.GRIF.16. 14-1 – LO: 14-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
The Nature of Control
Bloom’s: Comprehension
Digital Story: Connect
10. An organization shifts its budget from a few, large projects to accommodate a number of smaller projects every year.
It also decentralizes power and gives additional responsibilities to individual project managers. This is an example of the
use of _____ control.
a.
physical
b.
information
c.
structural
related to the control of all the other resources in an organization.
Easy
p. 430
MGMT.GRIF.16. 14-1 – LO: 14-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
The Nature of Control
Bloom’s: Knowledge
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d.
financial
e.
screening
11. Monitoring receivables to make sure customers are paying their bills on time is an example of _____ control.
a.
operations
b.
strategic
c.
structural
d.
financial
e.
physical
Moderate
p. 431
12. Monitoring the administrative ratio to make sure staff expenses do not become excessive is an example of _____
control.
a.
postaction
b.
strategic
c.
structural
d.
operations
e.
information
c
Easy
c
p. 431
13. Ensuring that receivables are collected in a timely manner is part of _____ control.
a.
physical
b.
strategic
c.
information
d.
financial
e.
structural
Easy
p. 431
MGMT.GRIF.16. 14-1 – LO: 14-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
Bloom’s: Comprehension
Digital Story: Connect
14. The first step in the control process is:
a.
modifying control standards.
b.
comparing performance against standards.
c.
measuring performance.
d.
establishing control standards.
e.
determining the need for corrective action.
The first step in the control process is establishing standards
Moderate
p. 432
MGMT.GRIF.16. 14-1 – LO: 14-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
Bloom’s: Comprehension
Digital Story: Connect
p. 431
MGMT.GRIF.16. 14-1 – LO: 14-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
The Nature of Control
Bloom’s: Comprehension
Digital Story: Connect
15. In the control process, which of the following steps follows the measurement of performance?
a.
Considering corrective action
b.
Comparing performance against standards
c.
Establishing standards
d.
Developing effective performance measures
e.
Setting standards consistent with organizational goals
16. The final step in the control process is:
a.
establishing standards.
b.
expressing standards in measurable terms.
c.
measuring performance.
d.
comparing performance against standards.
e.
considering corrective action.
The final step in the control process is determining the need for corrective action.
p. 434
MGMT.GRIF.16. 14-1 – LO: 14-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
The Nature of Control
Bloom’s: Comprehension
Digital Story: Connect
17. Following the accidental release of a batch of phones that failed screening control, a manufacturer of mobile phones
replaces all such phones at no cost to the user—even taking care of shipping and delivery. Which step in the control
process does this example represent?
a.
Taking corrective action
b.
Measuring performance
c.
Comparison of performance to standards
d.
Setting performance standards
The final step in the control process is determining the need for corrective action.
After performance is measured, it is compared against established standards.
p. 433
MGMT.GRIF.16. 14-1 – LO: 14-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
The Nature of Control
Bloom’s: Comprehension
Digital Story: Connect
18. Which of the following is a form of operations control?
a.
Financial control
b.
Screening control
c.
Strategic control
d.
Structural control
e.
Budgetary control
The three forms of operations control are preliminary, screening, and postaction control.
Moderate
p. 434
MGMT.GRIF.16. 14-2 – LO: 14-2
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
Operations Control
Bloom’s: Comprehension
Digital Story: Connect
19. A company that carefully evaluates job applicants is using _____ control.
a.
screening
b.
cybernetic
c.
postaction
d.
preliminary
e.
information
quality or quantity of these resources before they enter the organization.
Moderate
p. 434
MGMT.GRIF.16. 14-2 – LO: 14-2
United States – BUSPROG: Analytic
Operations Control
Bloom’s: Application
Digital Story: Perform
Moderate
p. 434
MGMT.GRIF.16. 14-1 – LO: 14-1
United States – BUSPROG: Analytic
United States – AK – DISC: Operations Management
The Nature of Control
Bloom’s: Application
Digital Story: Perform
20. A manufacturer of health foods ensures that at least 90 percent of all its raw materials is grown organically. This is an
example of _____ control.
a.
preliminary
b.
postaction
c.
feedback
d.
screening
e.
concurrent
21. Everyone working or volunteering for Girl Scouts goes through a background check before they can work with girls or
handle money. This is an example of:
a.
screening control.
b.
preliminary control.
c.
postaction control.
d.
information control.
e.
structural control.
Challenging
p. 434
MGMT.GRIF.16. 14-2 – LO: 14-2
United States – BUSPROG: Analytic
United States – AK – DISC: Operations Management
Operations Control
Bloom’s: Application
Digital Story: Perform
22. _____ control attempts to monitor the quality or quantity of resources before they enter an organization.
a.
Structural
b.
Postaction
c.
Preliminary
a
Moderate
p. 434
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United States – Reflective Thinking
United States – AK – DISC: Operations Management
Operations Control
Bloom’s: Application
Digital Story: Perform
d.
Screening
e.
Financial
23. Inspection reports are used to monitor the quality of raw materials delivered to manufacturers. This is an example of
_____ control.
a.
financial
b.
structural
c.
preliminary
d.
screening
e.
postaction
c
Moderate
p. 434
24. A policy think tank requires all candidates applying for the position of vice-president to have a minimum of 10 years
of experience in governmental organizations, international business, or multinational non-profits. This is an example of
_____ operations control.
a.
preliminary
b.
screening
c.
structural
d.
postaction
e.
decentralized
a
c
p. 434
25. A publisher of children’s books only uses recycled paper for all its products. This is an example of _____
operations control.
a.
preliminary
b.
screening
c.
structural
d.
postaction
e.
decentralized
a
organization brings in from the environment.
Challenging
p. 434
MGMT.GRIF.16. 14-2 – LO: 14-2
United States – BUSPROG: Analytic
United States – AK – DISC: Operations Management
Operations Management
Bloom’s: Application
Digital Story: Perform
26. Which of the following types of operations control relies heavily on feedback processes?
a.
Strategic control
b.
Financial control
c.
Postaction control
d.
Preliminary control
e.
Screening control
e
Screening control relies heavily on feedback processes.
Easy
p. 435
MGMT.GRIF.16. 14-2 – LO: 14-2
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
Operations Control
Bloom’s: Knowledge
Digital Story: Engage
Challenging
p. 434
MGMT.GRIF.16. 14-2 – LO: 14-2
United States – BUSPROG: Analytic
United States – AK – DISC: Operations Management
Operations Control
Bloom’s: Application
Digital Story: Perform
27. _____ controls are an effective way to catch problems early in the transformation process.
a.
Postaction
b.
Structural
c.
Screening
d.
Strategic
e.
Financial
28. Which of the following is true of screening control?
a.
It takes place during the transformation process.
b.
It involves interviewing potential employees.
c.
It is the same as preliminary control.
d.
It is present only in organizations with bureaucratic control.
e.
It is a part of structural control.
a
Moderate
p. 435
29. Before submitting a final policy memo, analysts may modify certain recommendations based on feedback from
experts and the general public. This is an example of _____ control.
a.
preliminary
b.
postaction
c.
screening
d.
financial
e.
structural
c
Moderate
p. 435
30. _____ control is the form of operations control that tends to be used most often.
a.
Human resources
b.
Financial
c.
Screening
d.
Postaction
e.
Preliminary
c
Screening control is the form of operations control that tends to be used most often.
Moderate
p. 435
MGMT.GRIF.16. 14-2 – LO: 14-2
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
Operations Control
Bloom’s: Comprehension
Digital Story: Connect
31. At a high school, final examinations are held online. During the examination, the difficulty level of questions assigned
to students is modified based on how well individual students perform. This is an example of _____ operations control.
a.
preliminary
b.
screening
c.
structural
d.
postaction
e.
decentralized
Challenging
p. 435
MGMT.GRIF.16. 14-2 – LO: 14-2
United States – BUSPROG: Analytic
c
during the actual transformation process itself.
Challenging
p. 435
United States – BUSPROG: Analytic
United States – AK – DISC: Operations Management
Operations Control
Bloom’s: Application
Digital Story: Perform
32. Postaction control is applied to _____.
a.
resources
b.
transformation processes
c.
subsystems
d.
controllers
e.
outputs
e
Easy
p. 436
MGMT.GRIF.16. 14-2 – LO: 14-2
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
Operations Control
Bloom’s: Knowledge
Digital Story: Engage
33. _____ control provides a basis for rewarding employees.
a.
Preliminary
b.
Strategic
c.
Postaction
d.
Structural
e.
Screening
c
Postaction control provides a basis for rewarding employees.
Easy
p. 436
MGMT.GRIF.16. 14-2 – LO: 14-2
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
Operations Control
Bloom’s: Knowledge
Digital Story: Engage
34. Intertek’s product quality inspections help protect brand reputations by minimizing defective merchandise, customer
complaints, non-compliant products, and late shipments. This is an example of _____ control.
a.
preliminary
b.
postaction
United States – AK – DISC: Operations Management
Operations Control
Bloom’s: Application
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c.
screening
d.
financial
e.
structural
35. Which of the following types of control is used for resources such as retained earnings?
a.
Financial control
b.
Structural control
c.
Operating control
d.
Interim control
e.
Nonmonetary control
a
Easy
p. 436
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United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
Financial Control
Bloom’s: Knowledge
Digital Story: Engage
36. Hermes is a taxi service that asks customers to fill out an online feedback form once their ride is complete. Hermes is
making use of _____ operations control.
a.
preliminary
b.
screening
c.
structural
d.
postaction
e.
decentralized
Challenging
p. 436
MGMT.GRIF.16. 14-2 – LO: 14-2
United States – BUSPROG: Analytic
United States – AK – DISC: Operations Management
Operations Control
Bloom’s: Application
Digital Story: Perform
37. A publishing firm will use a(n) _____ budget to forecast and plan the demand for young adult books in Southeast Asia
in the coming year.
a.
labor
b.
capital expenditures
c.
operating
d.
balance sheet
e.
space
c
will be used to create them.
Challenging
p. 437
MGMT.GRIF.16. 14-3 – LO: 14-3
United States – BUSPROG: Analytic
United States – AK – DISC: Operations Management
Financial Control
Bloom’s: Application
Digital Story: Perform
38. A state university develops a budget that shows its projected income from sources that include government funding,
tuition fees, alumni contributions, and research grants. This is an example of a(n) _____ budget.
a.
operations
b.
capital expenditures
c.
nonmonetary
d.
output
e.
revenue
e
Moderate
p. 438
MGMT.GRIF.16. 14-3 – LO: 14-3
United States – BUSPROG: Analytic
United States – AK – DISC: Operations Management
Financial Control
Challenging
p. 436
MGMT.GRIF.16. 14-2 – LO: 14-2
United States – BUSPROG: Analytic
United States – AK – DISC: Operations Management
Operations Control
Bloom’s: Application
Digital Story: Perform
39. During the scheduling of a project, a plant manager is told that she has 30 workers for 6 hours a day, 5 days a week.
This is part of a(n) _____ budget.
a.
capital expenditure
b.
master
c.
space
d.
labor
e.
personnel
The labor budget is the number of hours of direct labor available for use.
Moderate
p. 438
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United States – BUSPROG: Analytic
United States – AK – DISC: Operations Management
Financial Control
Bloom’s: Application
Digital Story: Perform
40. The _____ budget shows the anticipated differences between sales or revenue and expenses.
a.
expense
b.
profit
c.
labor
d.
capital expenditure
e.
cash flow
The profit budget shows the anticipated differences between sales or revenue and expenses.
Easy
p. 438
MGMT.GRIF.16. 14-3 – LO: 14-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
Financial Control
Bloom’s: Knowledge
Digital Story: Engage
41. A(n) _____ budget forecasts the organization’s assets and liabilities in the event that all other budgets are met.
a.
balance sheet
b.
revenue
c.
fixed asset
d.
expense
e.
labor
Bloom’s: Application
Digital Story: Perform
42. A budget that deals with costs of major assets such as a new plant, machinery, or land is known as a _____ budget.
a.
revenue
b.
balance sheet
c.
cash flow
d.
expense
e.
capital expenditures
e
Easy
MGMT.GRIF.16. 14-3 – LO: 14-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
Financial Control
Bloom’s: Knowledge
Digital Story: Engage
43. A company that specializes in indoor farming has recently acquired a large warehouse. Which of the following
budgets will this company use to determine and plan the area available for various functions?
a.
Operating budget
b.
Space budget
c.
Labor budget
d.
Revenue budget
e.
Expense budget
A space budget shows the square feet or meters of space available for various functions.
Challenging
p. 438
MGMT.GRIF.16. 14-3 – LO: 14-3
United States – BUSPROG: Analytic
a
event that all other budgets are met.
Easy
p. 438
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
Financial Control
Bloom’s: Knowledge
Digital Story: Engage
44. Which of the following shows income that the organization expects to receive from normal operations?
a.
Profit budget
b.
Balance sheet budget
c.
Cash flow budget
d.
Space budget
e.
Revenue budget
p. 438
MGMT.GRIF.16. 14-3 – LO: 14-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
Financial Control
Bloom’s: Knowledge
Digital Story: Engage
45. Which of the following is a nonmonetary budget?
a.
Labor budget
b.
Capital expenditures budget
c.
Sales budget
d.
Balance sheet budget
e.
Revenue budget
A labor budget is a nonmonetary budget.
p. 438
MGMT.GRIF.16. 14-3 – LO: 14-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
Financial Control
Bloom’s: Knowledge
Digital Story: Engage
46. Which of the following is a weakness associated with budgeting?
a.
Budgets do not allow managers to identify problem areas.
b.
Budgets do not facilitate effective control.
c.
Budgets fail to link planning and controlling.
United States – AK – DISC: Operations Management
Financial Control
Bloom’s: Application
Digital Story: Perform
d.
Budgets can limit innovation and change.
e.
Budgets hamper coordination between departments.
47. Which of the following financial documents shows a listing of all the organization’s assets and liabilities at a given
point in time?
a.
Balance sheet
b.
Expense budget
c.
Income statement
d.
Revenue budget
e.
Capital expenditures budget
p. 440
MGMT.GRIF.16. 14-3 – LO: 14-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
Financial Control
Bloom’s: Knowledge
Digital Story: Engage
48. If an energy company wants to discover the effectiveness of its wind-turbine division in a particular state, it will use
a(n):
a.
liquidity ratio.
b.
balance sheet ratio.
c.
return on investment.
d.
operating ratio.
e.
debt ratio.
total organization.
Budgets may limit innovation and change.
p. 439
MGMT.GRIF.16. 14-3 – LO: 14-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Operations Management
Financial Control
Bloom’s: Comprehension
Digital Story: Connect