CH 15 3319 – Flashcards
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Which of the following is a symptom of an out-of-control company?
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Lack of periodic reviews
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Control has been called one of the Siamese twins of management. The other twin is ____.
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planning
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The use of rules, regulations, and authority to guide performance is referred to as _____ control.
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bureaucratic
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Using budgeting, statistical reports, and performance appraisals to regulate behavior and results is considered a component of ____.
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bureaucratic control
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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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market
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Control based on the norms, values, shared goals, and trust among group members is referred to as _____ control.
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clan
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Which of the following is the first major step in the formal control process?
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Setting standards
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The final step in the control process is:
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taking corrective action.
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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.
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standard
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Which of the following is one of the factors based on which performance standards can be set?
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Time used
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Which of the following is a commonly used source for obtaining performance data?
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Personal observation
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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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exception
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Jeremy is in charge of production at Tech Farm Equipment. 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, Jeremy is using:
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the principle of exception.
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Which of the following controls takes place before operations begin?
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Feedforward control
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Which of the following controls is future oriented and aims to prevent problems before they arise?
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Feedforward control
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At Performance Instruments, all assembly workers must wear specialized gear to reduce possible injuries from minute particles in the manufacturing environment. This requirement best reflects _____ control.
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feedforward
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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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concurrent
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Electronic monitoring of telemarketers' conversations with potential clients is an example of _____ control.
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concurrent
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_____ is in effect when supervisors watch employees to ensure they work efficiently and avoid mistakes.
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Concurrent control
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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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feedback
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Which of the following statements about six sigma is true?
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It indicates how often defects in a process are likely to occur.
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An evaluation of the effectiveness and efficiency of various systems within an organization is called a(n) _____ audit.
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management
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An evaluation conducted by one organization on another organization is referred to as a(n) _____ audit.
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external
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External audits are generally used for:
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investigating possible targets for mergers or acquisitions.
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Periodically assessing a company's own planning, organizing, leading, and controlling efforts is the essential function of ____.
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internal audits
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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 ____.
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budgeting
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The _____ budget is used for areas of an organization that incur expenses but no revenue, such as human resources and other support departments.
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cost
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Kate is a financial manager at Nature Feeds, a manufacturer of cattle feed. She makes a budget that shows the anticipated receipts and expenses of the company. The budget also shows her the amount of working capital available and whether the company will need loans. This is the last budget that Kate creates for the upcoming year. Which of the following types of budget is exemplified in this scenario?
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Cash budget
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_____ budget is used for the cost of fixed assets, such as plants and equipment, that are usually treated not as regular expenses but as investments.
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Capital
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_____ 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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Production
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Procedures used to verify accounting reports and statements are referred to as ____.
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accounting audits
