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34.
Ideally, a transfer price should be _____ the price that the receiving business unit would
have to pay in the marketplace.
35.
Which of the following conditions must be true for clan control to be effective?
36.
Which of the following is a symptom of an out-of-control company?
37.
Control has been called one of the conjoined twins of management. The other twin is
____.
38.
Which of the following is
not
an element of bureaucratic control?
39.
The use of budgeting, statistical reports, and performance appraisals to regulate behavior
and results is considered a component of ____.
40.
Control based on the use of pricing mechanisms and economic information to regulate
activities within organizations is referred to as _____ control.
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41.
Control based on the norms, values, shared goals, and trust among group members is
referred to as _____ control.
42.
Which of the following is the first major step in a typical control process?
43.
Which of the following is the second major step in a typical control system?
44.
A(n) _____ is the level of expected performance for a given goal; it is a target that
establishes a desired performance level, motivates performance, and serves as a
benchmark against which actual performance is assessed.
45.
Which of the following is one of the factors on which performance standards can be set?
46.
Which of the following is a commonly used source for obtaining performance data?
47.
A managerial principle stating that control is enhanced by concentrating on the significant
deviations from the expected result or standard is referred to as the principle of ____.
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48.
Scott is in charge of production at Fasteners Unlimited Inc. His job responsibilities include
eliminating defects in the equipment parts the factory produces. However, he has advised
his crew to alert him only when defects exceed 200 per million, which he considers a
serious deviation from standards. In this case, Scott is using
49.
Which of the following controls takes place before operations begin?
50.
Which of the following controls is future oriented and aims to prevent problems before
they arise?
51.
At Halsted Medical Products Corp., all assembly workers must wear specialized gear to
reduce possible injuries from minute particles in the manufacturing environment. This
requirement best reflects _____ control.
52.
The control process used while plans are being carried out, including directing, monitoring,
and fine-tuning activities as they are performed, is referred to as _____ control.
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53.
Electronic monitoring of telemarketers' conversations with potential clients is an example
of _____ control.
54.
Olympia has been put in charge of a group of young employees who were recently hired by
her company. In her new role as a supervisor, she is careful to keep an eye on the young
employees to ensure that they work efficiently and avoid making serious mistakes. Which
of the following types of control is Olympia using?
55.
Control that focuses on the use of information about previous results to correct deviations
from the acceptable standard is referred to as _____ control.
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56.
Which of the following statements about six sigma is true?
57.
An evaluation of the effectiveness and efficiency of various systems within an organization
is called a(n) _____ audit.
58.
An evaluation conducted by one organization on another organization is referred to as a(n)
_____ audit.
59.
An important purpose of external audits is to
60.
Which of the following is
not
periodically assessed as an essential part of a company's
internal audits?
61.
The process of investigating what is being done and comparing the results with the
corresponding budget data to verify accomplishments or remedy differences is referred to
as ____.
62.
The _____ budget is used for areas of an organization that incur expenses but no revenue,
such as human resources and other support departments.
63.
Adriana is a financial manager at Environmental Fuel Inc., a producer of ethanol for use as
an alternative fuel. She makes a budget that shows the anticipated receipts and expenses
of the company. As the last budget that she creates for the upcoming year, it also shows
the amount of working capital available and whether the company will need loans. Which
of the following types of budgets has Adriana created?
64.
A _____ budget is used for the cost of fixed assets, such as plants and equipment, that are
usually treated as investments instead of as regular expenses.
65.
A _____ budget is commonly expressed in physical units, and it can be prepared with
information including types and capacities of machines, economic quantity, and availability
of materials.
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66.
Procedures used to verify accounting reports and statements are referred to as ____.
