44) Current assets, fixed assets, and liabilities are all part of an organization’s
A) cash flow statement.
B) capital expenditures budget.
C) income statement.
D) expense budget.
E) balance sheet.
45) A(n) ________ represents the profits or losses incurred by an organization.
A) expense budget
B) income statement
C) ratio analysis
D) capital expenditures budget
E) balance sheet
46) Which of the following is NOT characteristic of an external audit?
A) performed by CPAs
B) primarily used when management suspects embezzlement
C) performed by an independent organization
D) verifies that generally accepted accounting principles have been followed
E) verifies the accuracy and fairness of financial statements
47) When describing Deming’s principles to a colleague, which of the following would you NOT
discuss?
A) Quality should be aimed at the needs of the consumer.
B) Companies should determine which workers are to blame for problems.
C) Improved quality leads to increased market share and employment.
D) Quality can be improved on the basis of hard data.
E) Companies should aim at improving the system.
48) Which of the following is part of Deming’s PDCA cycle?
A) check
B) direct
C) apply
D) process
E) decide
49) TQM is a comprehensive approach dedicated to continuous
A) measurement of quantifiable goals and quick corrections.
B) product innovation and organizational learning, over fast cycles.
C) quality improvement, training, and customer satisfaction.
D) customer input into management strategy and decision making.
E) focus on components of service success: tangibles, questions, and margins.
50) TQM’s two core principles are
A) employee commitment and customer satisfaction.
B) financial health and financial stability.
C) management and leadership.
D) people orientation and improvement orientation.
E) radical innovation and continuous improvement.
51) ________ is the process of instituting ongoing small, incremental improvements in all parts of
an organization.
A) MBO
B) Reengineering
C) Radical innovation
D) Continuous improvement
E) Productivity
52) Installing quality-control procedures that can be audited by independent quality-control
experts is fundamental to
A) ISO 9000.
B) restructuring.
C) reduced cycle time.
D) the RATER system.
E) statistical process control.
53) At Fresh Bakery, Simon pulls six samples an hour from an assembly line to examine them for
quality defects. If he finds any, he makes adjustments to various pieces of equipment in his area.
Simon’s job involves
A) feed-forward control.
B) benchmarking.
C) reduced cycle time.
D) statistical process control.
E) strategic control.
54) Which kind of organization is most likely to try to exert too much control?
A) bureaucratic
B) market
C) employee-driven
D) decentralized
E) matrix
55) At Hamilton Hardware, employees were asked how the quality of the company’s customer
service could best be measured, and management then implemented a survey system based on the
feedback. The company has overcome which of the following barriers to success of control
systems?
A) overemphasis on one instead of multiple approaches
B) overemphasis on paperwork
C) overemphasis on means instead of ends
D) too little employee participation
E) too much control
56) Recruiters for Eastern Shore University were under extreme pressure to increase enrollment by
15 percent. As a result, they admitted many students who were marginally qualified and who
performed poorly in classes. This is an example of which problem associated with control
systems?
A) overemphasis on means instead of ends
B) overemphasis on paperwork
C) overemphasis on one instead of multiple approaches
D) too much control
E) too little participation
57) Anchor Resort and Casino requires its casino dealers to have licenses, observes them using
closed-circuit TV, and requires detailed reports at the end of each shift. This organization has
overcome the control system barrier of
A) too much control.
B) overemphasis on paperwork.
C) overemphasis on means instead of ends.
D) overemphasis on one instead of multiple approaches.
E) too little participation.
58) Which of the following is NOT a characteristic of a successful control system?
A) strategic and results-oriented
B) timely, accurate, and objective
C) realistic, positive, and understandable
D) flexible and encourages self-control
E) inflexible to optimize control
59) Techniques for improving quality include all of the following EXCEPT
A) Six Sigma.
B) outsourcing.
C) reduced cycle time.
D) statistical process control.
E) market share.
60) Before the fall term began, professors at Pinetops Community College were required to fill out
numerous forms, including performance objectives, surveys, and lists of their summer contacts
with prospective students. Many professors complained that their time would be better spent
preparing for their courses. This situation is an example of which barrier to successful control?
A) overemphasis on paperwork
B) overemphasis on one instead of multiple approaches
C) too much control
D) overemphasis on means instead of ends
E) too much flexibility
61) Which of the following more closely aligns with a job versus a career?
A) It belongs to you and lasts a lifetime.
B) It can be managed and nurtured.
C) It is temporary and in service of someone else.
D) It can be created to fit your values and needs.
E) There is no distinction, they are the same thing.
62) Olivia is the go-to person at her company for quick turnarounds and short-term projects. She
stays focused and meets all deadlines. Even though she seems successful, which time management
mistake may Olivia be making?
A) ignoring the more important and difficult activities
B) motivation and passion for her career
C) career readiness
D) competing priorities
E) producing effective long-term results
63) How is management using controls when they allow decision making at lower levels and
encourage employees to work together in teams?
A) They are adapting to change and uncertainty.
B) They are discovering irregularities and errors.
C) They are detecting opportunities and increasing innovation.
D) They are providing performance feedback.
E) They are decentralizing decision making.
64) All Round, a new virtual music store, is trying to compete with iTunes. One thing All Round
did was count the number of products sold and units produced. Where are they in the control
process?
A) establishing standards
B) measuring performance
C) comparing performance
D) taking corrective action
E) making changes
65) How is a control chart used?
A) to compare measured performance against the standards established
B) to show a significant deviation from standards
C) to recognize and reinforce positive performance
D) to establish the normal or desired performance with upper and lower limits
E) to quantify the performance level for a given goal
66) Evan accidentally quoted a customer a price for new flooring that was more than $1,000 less
than the actual price. His manager had a choice of punishing Evan or providing him coaching and
retraining on how to calculate the cost of flooring correctly. His manager chose to retrain Evan,
using the control of
A) feedforward.
B) concurrent.
C) feedback.
D) evaluation.
E) monitoring.
67) Janis is the CEO of Global Marketplace. She is reviewing the company’s five-year plan and
deciding if any corrective actions are needed. How would you describe her level of control?
A) operational
B) tactical
C) strategic
D) physical
E) informational
68) Which of the following is an example of a physical control?
A) drug test
B) sales forecast
C) production schedule
D) organizational chart
E) car speedometer
69) Why is it important to control the supply chain?
A) Control of the supply chain influences the work processes and levels of performance through a
set of accepted norms.
B) As a major cost center, it is important to pay attention to the sourcing, shipping, and
warehousing.
C) It is effective in ensuring that performance standards are being met.
D) It increases employee commitment and workers taking responsibility for their performance.
E) Controlling the supply chain means it can be used to monitor employees and assess job
satisfaction, engagement, and leadership.
70) Service firms are different from for-profit businesses in all of the following ways EXCEPT
A) They cannot hold inventory.
B) They develop personal relationships.
C) They offer services that are highly perishable.
D) They provide services on demand.
E) They require controls at many different points.
71) A ________ pulls data in real time from software and displays it in easy-to-read graphics.
A) dashboard
B) strategy map
C) balanced scorecard
D) control chart
E) budget
72) Why is it important for management to use a balanced scorecard?
A) to help employees understand how their work contributes to the company’s goals
B) to view performance in several areas simultaneously
C) to save companies in payroll costs
D) to actually see the sequence of suppliers that contribute to a product
E) to characterize informal structural arrangements
73) Which of the following is NOT a belief measure on the balanced scorecard in relation to
customers?
A) customer acquisition
B) market share
C) response time
D) percentage of bids won
E) innovation
74) Internal business processes influence all of the following EXCEPT
A) productivity.
B) quality.
C) access.
D) safety.
E) efficiency.
75) How would innovation and learning be measured on the balanced scorecard?
A) employee retention
B) external audits
C) decentralized controls
D) personality tests
E) strategic controls
76) A strategy map helps employees to feel engaged because it
A) helps the employees calculate their productivity metric.
B) shows how their work contributes to organizational effectiveness.
C) explains the importance of their personal relationships with clients.
D) influences the work process and levels of employee performance.
E) aims to get increased employee commitment.
77) What is the dominant approach for budgeting used today?
A) planning programming budgeting system
B) zero-base budgeting
C) incremental budgeting
D) financial control cost systems
E) expense contracting systems
78) Colin was working on his budget. He had compiled his receipts, his employee’s time sheets, the
invoices he has sent to his suppliers and his bills that he owed others. He was now ready to assess
his
A) assets.
B) income statement.
C) external audit.
D) fixed budget.
E) liabilities.
79) Which of the following best defines Kaizen?
A) ideas for making organizations more responsive, more democratic, and less wasteful
B) a comprehensive approach dedicated to continuous quality improvement, training, and
customer satisfaction
C) a cycle using observed data for continuous improvement of operations
D) a philosophy of small continuous improvement that seeks to involve everyone at every level of
the organization
E) a rigorous statistical analysis process that reduces defects in manufacturing and service-related
processes