CH 15 3319

question

Which of the following is a symptom of an out-of-control company?
answer

Lack of periodic reviews
question

Control has been called one of the Siamese twins of management. The other twin is ____.
answer

planning
question

The use of rules, regulations, and authority to guide performance is referred to as _____ control.
answer

bureaucratic
question

Using budgeting, statistical reports, and performance appraisals to regulate behavior and results is considered a component of ____.
answer

bureaucratic control
question

Control based on the use of pricing mechanisms and economic information to regulate activities within organizations is referred to as _____ control.
answer

market
question

Control based on the norms, values, shared goals, and trust among group members is referred to as _____ control.
answer

clan
question

Which of the following is the first major step in the formal control process?
answer

Setting standards
question

The final step in the control process is:
answer

taking corrective action.
question

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.
answer

standard
question

Which of the following is one of the factors based on which performance standards can be set?
answer

Time used
question

Which of the following is a commonly used source for obtaining performance data?
answer

Personal observation
question

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 ____.
answer

exception
question

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:
answer

the principle of exception.
question

Which of the following controls takes place before operations begin?
answer

Feedforward control
question

Which of the following controls is future oriented and aims to prevent problems before they arise?
answer

Feedforward control
question

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.
answer

feedforward
question

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.
answer

concurrent
question

Electronic monitoring of telemarketers’ conversations with potential clients is an example of _____ control.
answer

concurrent
question

_____ is in effect when supervisors watch employees to ensure they work efficiently and avoid mistakes.
answer

Concurrent control
question

Control that focuses on the use of information about previous results to correct deviations from the acceptable standard is referred to as _____ control.
answer

feedback
question

Which of the following statements about six sigma is true?
answer

It indicates how often defects in a process are likely to occur.
question

An evaluation of the effectiveness and efficiency of various systems within an organization is called a(n) _____ audit.
answer

management
question

An evaluation conducted by one organization on another organization is referred to as a(n) _____ audit.
answer

external
question

External audits are generally used for:
answer

investigating possible targets for mergers or acquisitions.
question

Periodically assessing a company’s own planning, organizing, leading, and controlling efforts is the essential function of ____.
answer

internal audits
question

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 ____.
answer

budgeting
question

The _____ budget is used for areas of an organization that incur expenses but no revenue, such as human resources and other support departments.
answer

cost
question

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?
answer

Cash budget
question

_____ 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.
answer

Capital
question

_____ 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.
answer

Production
question

Procedures used to verify accounting reports and statements are referred to as ____.
answer

accounting audits

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