Q19 – Flashcards
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Which of the following is the systematic process through which managers regulate organizational activities?
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organizational control
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Zachary, a manager at ExecuComp, receives quarterly reports, which track his department's production statistics. However, these reports lack key information regarding reject rates. Which of the following components of the control model need improvement?
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measuring actual performance
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All of the following are key steps of setting up feedback control systems EXCEPT:
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getting employee opinions
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Which of the following is a comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success factors?
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balanced scorecard
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___ indicators focus on production and operating statistics.
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business process
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All of the following are major perspectives of the Balanced Scorecard EXCEPT _____.
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competitors
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Mistletoe Corporation has a detailed set of organizational goals and management information system that delivers timely and accurate information. Mistletoe still has control problems, however, because its managers refuse to act on the information they receive. Mistletoe's control process has flaws in which of the following areas?
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its ability to take corrective action when necessary
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Your department has absenteeism standards, a way to measure absenteeism, and, based on your investigation, you have concluded that your department has an excessive absenteeism rate. What should your next step be?
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all of these would be good examples of taking corrective action
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Kyle's work group consistently exceeds the goals the members set for themselves some months ago. In an attempt to better motivate the group, Kyle thought it would be a good idea to set new goals. This is an example of Kyle exercising control by:
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taking corrective action
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In the process of implementing the balanced scorecard approach at his company, operations manager Seth Howard wonders whether internal activities and processes add value for customers and shareholders. This involves which dimension of the balanced scorecard?
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internal business processes
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All well-designed control systems involve the use of _____ to determine whether performance meets established standards.
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feedback
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What is the first step in the feedback control system?
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establishing standards of performance
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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:
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feedback control
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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?
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establishing performance standards
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According to the control model, after establishing standards of performance the manager should:
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measure actual performance
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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?
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she should investigate and discover the cause of the problem
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_____ is any organizational department or unit under the supervision of a single person who is responsible for its activity.
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responsibility center
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_____ control is the process of setting targets for an organizations expenditures.
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budgetary
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Which of the following includes anticipated and actual expenses for a responsibility center?
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expense budget
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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?
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cash budget
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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.
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capital budget
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The _____ plans future investments in major assets to be depreciated over several years.
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capital budget
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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?
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expense budget
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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?
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balance sheet
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Which financial control system measures the stock market's estimate of the value of a company's past and projected capital investment projects?
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market value added
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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:
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top down budgeting
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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:
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bottom up budgeting
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An advantage of the bottom-up budgeting process is:
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lower managers are more involved
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The firm's financial position with respect to assets and liabilities at a specific point in time is shown by its:
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balance sheet
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____ provide the basic information used for financial control of an organization.
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income statements
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____ is a control system that identifies the various activities needed to produce a product and determines the cost of those activities.
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activity based costing
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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:
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hierarchical control
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Decentralized control is usually implemented in all of the following areas EXCEPT:
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the quality control department
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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?
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decentralized control
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Which of the following allows employees to see for themselves the financial condition of the company?
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open book management
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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:
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decentralized control
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The goal of _____ is to get every employee thinking and acting like a business owner.
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open book management
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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?
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open book management
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Total quality management:
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gives all employees the responsibility for achieving quality goals
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Which of the following is a philosophy of organization-wide commitment to continuous improvement, focusing on teamwork, customer satisfaction, and lowering costs?
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total quality management
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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?
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total quality management
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To reduce the organization's cycle time is to reduce the number of:
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steps in an organizational process
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It seems that once a year the managers of Stone Construction, Inc. attempt a major organization intervention, such as management-by-objectives. They never seem to be satisfied with the performance of Stone Construction and, sure enough, 12 months later, along comes another major intervention. By implementing organizational change in this way, Stone Construction's management may well be violating the principle of:
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continuous improvement
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Contingency factors that can influence the success of a TQM program in a positive way include all of the following EXCEPT:
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managers wait for big, dramatic innovations
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A contingency factor that can influence the success of a TQM program in a negative way is that:
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union leaders are left out of QC discussions
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Contingency factors that can influence the success of a TQM program in a negative way include all of the following EXCEPT:
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tasks make high skill demands on employees
