Business Controlling – Flashcards
Unlock all answers in this set
Unlock answersquestion
At which step of the control process do managers evaluate whether the actual performance of the organization differs significantly from the standards of performance being used to assess the performance of the organization?
answer
Compare actual performance to the standards
question
At which step of the control process does a manager establish the standards of performance?
answer
Step 1
question
Management by objectives is a mechanism of control for which of the following?
answer
Output control
question
Which type of financial ratio measures the ability of the organization to pay its short-term debts?
answer
Liquidity ratios
question
Hanover Insurance sets up a management information system (MIS) that gives its regional managers information about changes in the task environment that may affect the organization at some future time. This is an example of:
answer
feedforward control.
question
The managers of a division are given a fixed budget and are then evaluated on the basis of their ability to produce goods or services. This is a type of
answer
an output control
question
When processed, raw unanalyzed facts become
answer
data
question
What type of control do managers typically use at the output stage?
answer
Feedback control
question
The manager of a 7-Eleven convenience store keeps track of the average sale amount for each customer as a way of deciding on the product mix to be carried in the store. This is an example of:
answer
feedback control.
question
Why do managers seek to control and improve the quality of their organization's products?
answer
higher quality products can increase efficiency to compete for being number one product on the market
question
Which type of financial ratio indicates the degree to which the organization uses debt or equity to finance its ongoing operations?
answer
Debt-to-assets ratio
question
When one team member advises another team member that "your behavior is crossing the line in terms of our expectations for workplace civility", she is exercising a form of------control over the other's inappropriate behaviors.
answer
clan
question
The workers of an organization perform the same activities in the same way over and over again based on rules that managers have developed. We say that the behaviors of these workers have been:
answer
Standardized
question
Tim wants to compare the actual performance results with the performance standards.What should Tim have done immediately before this?
answer
setting standards
question
A worker at a motorcycle plant comes up with a new way to attach the fuel injection system to the motor, increasing the efficiency of the assembly process. Management standardize new procedure to instruct all employees to attach fuel injection systems the same way. This is an example of:
answer
bureaucratic control.
question
Which of the following is the process by which managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals?
answer
Controlling
question
Which type of control do managers typically use at the conversion stage of transforming raw materials into finished goods?
answer
Concurrent control
question
at which stage does feedforward control occur?
answer
Input stage
question
Brennan Manufacturing monitors the number of customer returns for each product model in an attempt to track when the organization is producing a large number of defective products. This is an example of:
answer
feedback control.
question
The most immediate and potent form of behavior control is:
answer
direct supervision.
question
Donna is interested in understanding the company's ability to meet the interest payments on its debt. She should be looking at the ----- ratio of the company.
answer
leverage
question
Which of the following is the most commonly used financial performance measure when evaluating an organization's performance?
answer
Return on investment
question
Marion Laboratories runs chemical analysis of all materials to be used in the production process before those materials leave the receiving area of the warehouse. What kind of operations control is this?
answer
Feedforward
question
The type of control system that uses rules and SOP's to regulate the behavior of workers within the organization is known as:
answer
a bureaucratic control system.
question
Which of the following ratio is computed by dividing the difference between current assets and inventory by current liabilities?
answer
Current ratio
question
Ives Warehousing Company is reluctant to adjust their standards despite an ever-changing business environment. Which quality of a good control system do they lack?
answer
...
question
What is the most desirable type of control that prevents anticipated problems?
answer
feedforward
question
Mel has a neatness fetish. He cannot stand to see things out of place or messed up in any way. He requires his people to have their desks completely cleaned off before they leave for the day. His subordinates really resent his demands. This is an example of
answer
Inappropriate focus
