Question 1

Feedforward control provides information about performance deficiencies by monitoring inputs, not outputs.

Accepted Answer

True

Question 2

____ controls should be used when it is necessary to standardize operating procedures and establish limits.

Accepted Answer

Bureaucratic

Question 3

Refer to Walgreens. When Walgreens\' managers changed how much inventory the company holds at a time, they were affecting the ____ perspective of the balance scorecard.

Accepted Answer

internal

Question 4

Imagine a manufacturer that has a 99 percent error-free production rate and decides it wants 100 percent error-free production. Its management needs to examine ____ to determine if the costs of increased controls outweigh the benefits of error-free production.

Accepted Answer

regulation costs

Question 5

A chain of specialty fashion stores has interviewed a sample of its female customers and learned that a customer can be expected to visit the store looking for new merchandise on average every two weeks. The chain of stores was able to set this standard through ____.

Accepted Answer

listening to customers

Question 6

In the traditional control systems used at most companies, ____ measures are used to assess performance.

Accepted Answer

financial

Question 7

Companies may determine standards by ____.

Accepted Answer

benchmarking other companies

Question 8

Refer to Interpublic. Why should Interpublic consider implementing the Balanced Scorecard?

Accepted Answer

to minimize the chances of suboptimization

Question 9

An organization that relies heavily on ____ controls is likely to be highly resistant to change and slow to respond to customers and competitors.

Accepted Answer

bureaucratic

Question 10

Companies may determine standards by evaluating their capacity to enable goal achievement, by listening to customers, by observing competitors, or by benchmarking other companies.

Accepted Answer

True

Question 11

In the behavioral approach to managerial control, a company\'s widely shared values and beliefs guide workers\' behavior and decisions.

Accepted Answer

False

Question 12

Concertive control produces less stress for workers than bureaucratic control.

Accepted Answer

False

Question 13

The Balanced Scorecard approach to control emphasizes measurement of organizational performance in three equally important areas. These areas are finances, internal operations, and innovation and learning.

Accepted Answer

False

Question 14

Which of the following is NOT one of the four perspectives measured in the Balanced Scorecard approach to control?

Accepted Answer

policies and procedures perspective

Question 15

Refer to C Brewing. The brewmaster is in charge of which classical management function?

Accepted Answer

controlling

Question 16

Control loss occurs when behavior and work procedures merely meet minimally acceptable standards rather than exceeding those minimal standards.

Accepted Answer

False

Question 17

____ allows a trucking company not only to compare its safety performance with other companies but to also adopt those practices found to be superior.

Accepted Answer

Benchmarking

Question 18

A large university library has decided to make it nearly impossible for all but the most renowned Civil War experts to access their Civil War collection. The librarian in charge of this collection feels that this new policy will adversely influence the use of the collection in research on the experiences of everyday people during the war. This is an example of the use of control creating ____.

Accepted Answer

suboptimization

Question 19

Economic value added (EVA) is so important because it ____.

Accepted Answer

makes managers at all levels pay much closer attention to how they run their segment of the business

Question 20

Quality is typically defined and measured in three ways. They are ____.

Accepted Answer

excellence, value, and conformance to expectations

Question 21

Control loss usually has no effect on goal achievement.

Accepted Answer

False

Question 22

____ control is a method of gathering information about performance deficiencies before they occur.

Accepted Answer

Feedforward

Question 23

A sales manager requires each member of his sales force to make three calls per day on current customers, to call on two potential customers every week, and to sell a minimum of $10,000 worth of merchandise weekly. Which of the following control methods does this indicate the sales manager is using?

Accepted Answer

Objective

Question 24

Caterpillar announced plans to cut its production of construction equipment due to forecasted increases in steel prices. By discovering the problem with product inputs and letting customers know that its output will fall short, Caterpillar used ____ controls.

Accepted Answer

feedforward

Question 25

An organization that relies heavily on ____ controls is likely to be highly resistant to change and slow to respond to customers and competitors.

Accepted Answer

bureaucratic

Question 26

____ should be used when it is difficult to create good measures of worker behavior and output and when organizational culture, values, and beliefs are strong.

Accepted Answer

normative control

Question 27

According to the text, which of the following levels produces the greatest minimization of waste?

Accepted Answer

waste prevention and reduction

Question 28

McDonald\'s fast-food restaurants have a well-designed training program for all new employees. Each new employee is supposed to learn how to perform standardized tasks. Due to labor shortages in some areas, these new employees begin work as soon as they are hired and do not receive any off-the-job training. This nonconformity to standards creates ____.

Accepted Answer

control loss

Question 29

A company makes only one product. The company is carefully evaluating what it learned in becoming such a success to see if it could use the same strategy to expand internationally. Which perspective of the Balanced Scorecard is this manufacturer emphasizing?

Accepted Answer

innovation and learning perspective

Question 30

Refer to Walgreens. If you managed a pharmacy chain that was trying to compete with Walgreen\'s, you should use ____ to determine ways to improve business efficiency

Accepted Answer

benchmarking

Question 31

Control is achieved when behavior and work procedures conform to set standards and that the company goals are accomplished.

Accepted Answer

True

Question 32

Ironically, ____ control may lead to even more pressure for workers to conform to expectations than ____ control.

Accepted Answer

concertive; bureaucratic

Question 33

Implementing controls is always worthwhile.

Accepted Answer

false

Question 34

A chain of specialty fashion stores has interviewed a sample of its female customers and learned that a customer can be expected to visit the store looking for new merchandise on average every two weeks. The chain of stores was able to set this standard through ____.

Accepted Answer

listening to customers

Question 35

One of the advantages the Balanced Scorecard has over traditional control processes that rely solely on financial measures is that it ____.

Accepted Answer

minimizes the chances of suboptimization

Question 36

____ control regulates workers\' actions and routines on the job, while ____ control measures the results of their efforts.

Accepted Answer

Behavior; output

Question 37

____ occurs when performance improvement is attained in one part of an organization but only at the expense of decreased performance in another part.

Accepted Answer

Suboptimization

Question 38

The basic control process of business begins with ____.

Accepted Answer

the establishment of clear standards of performance

Question 39

____ allows a trucking company not only to compare its safety performance with other companies but to also adopt those practices found to be superior.

Accepted Answer

Benchmarking

Question 40

Process modification, material/product substitution, and ____ are the three strategies used for waste prevention and reduction.

Accepted Answer

good housekeeping

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