Question 1

A study by Bain & Company revealed what percentage of companies using benchmarking in some manner?

Accepted Answer

A)  10% 
B)  30% 
C)  50% 
D)  65% 
E)  90% 
A)  10% 
B)  30% 
C)  50% 
D)  65% 
E)  90%

Question 2

The comparison of the expected cost of production against the actual cost of production typically occurs in the

Accepted Answer

A)  investment center. 
B)  revenue center. 
C)  standard cost center. 
D)  profit center. 
E)  expense center. 
A)  investment center. 
B)  revenue center. 
C)  standard cost center. 
D)  profit center. 
E)  expense center.

Question 3

Walt Disney Company, Dow Chemical, IBM, and General Motors are just some firms in which top management compensation is ________.

Accepted Answer

A)  contingent upon the company's achieving strategic objectives 
B)  not contingent upon the company's achieving strategic objectives 
C)  contingent upon the company's product development process 
D)  contingent upon the individual's ability to expand internationally 
E)  contingent upon the board's approval 
A)  contingent upon the company's achieving strategic objectives 
B)  not contingent upon the company's achieving strategic objectives 
C)  contingent upon the company's product development process 
D)  contingent upon the individual's ability to expand internationally 
E)  contingent upon the board's approval

Question 4

A multidivisional corporation like GE would tend to use what type of responsibility center?

Accepted Answer

A)  expense center 
B)  investment center 
C)  profit center 
D)  standard cost center 
E)  revenue center 
A)  expense center 
B)  investment center 
C)  profit center 
D)  standard cost center 
E)  revenue center

Question 5

Which is the MOST commonly used measure of corporate performance (in terms of profit)?

Accepted Answer

A)  EPS 
B)  ROE 
C)  DPS 
D)  ROI 
E)  ROVA 
A)  EPS 
B)  ROE 
C)  DPS 
D)  ROI 
E)  ROVA

Question 6

Benchmarking has been decreasing in popularity as companies emphasize uniqueness.

Accepted Answer

A) True 
 B)False

Question 7

International transfer pricing is primarily used not to evaluate performance, but to minimize taxes.

Accepted Answer

A) True 
 B)False

Question 8

Among the most important barriers to international trade are the different standards for products and services.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not descriptive of responsibility centers?

Accepted Answer

A)  They are used to the extent that they can isolate specific functional units such as R&D. 
B)  Each responsibility center has its own budget and is evaluated on its use of budgeted resources. 
C)  The responsibility center coordinates all the functional areas and project developments to implement the strategic decision plan. 
D)  The center uses resources to produce a service or a product. 
E)  A responsibility center is headed by the manager responsible for the center's performance. 
A)  They are used to the extent that they can isolate specific functional units such as R&D. 
B)  Each responsibility center has its own budget and is evaluated on its use of budgeted resources. 
C)  The responsibility center coordinates all the functional areas and project developments to implement the strategic decision plan. 
D)  The center uses resources to produce a service or a product. 
E)  A responsibility center is headed by the manager responsible for the center's performance.

Question 10

One of the obstacles to effective control is the difficulty in developing appropriate measures of important activities and outputs.

Accepted Answer

A) True 
 B)False

Question 11

ERP unites all of a company's major business activities, from order processing to production, within a single family of software modules.

Accepted Answer

A) True 
 B)False

Question 12

An emphasis on monitoring those few things which must go well to ensure corporate success is reflected in

Accepted Answer

A)  the 60/40 rule. 
B)  the 30/70 rule. 
C)  the 80/20 rule. 
D)  success factors. 
E)  key performance measures. 
A)  the 60/40 rule. 
B)  the 30/70 rule. 
C)  the 80/20 rule. 
D)  success factors. 
E)  key performance measures.

Question 13

The over-billing of customers in Sears's auto repair shops was an example of suboptimization.

Accepted Answer

A) True 
 B)False

Question 14

Behavior, output, and input controls are all interchangeable.

Accepted Answer

A) True 
 B)False

A study by Bain & Company revealed what percentage of companies using benchmarking in some manner?

The comparison of the expected cost of production against the actual cost of production typically occurs in the

Walt Disney Company, Dow Chemical, IBM, and General Motors are just some firms in which top management compensation is ________.

A multidivisional corporation like GE would tend to use what type of responsibility center?

Which is the MOST commonly used measure of corporate performance (in terms of profit)?

Benchmarking has been decreasing in popularity as companies emphasize uniqueness.

International transfer pricing is primarily used not to evaluate performance, but to minimize taxes.

Among the most important barriers to international trade are the different standards for products and services.

Which of the following is not descriptive of responsibility centers?

One of the obstacles to effective control is the difficulty in developing appropriate measures of important activities and outputs.

ERP unites all of a company's major business activities, from order processing to production, within a single family of software modules.

An emphasis on monitoring those few things which must go well to ensure corporate success is reflected in

The over-billing of customers in Sears's auto repair shops was an example of suboptimization.

Behavior, output, and input controls are all interchangeable.

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Suggestions for Case Analysis

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Exam 12: Evaluation and Control

A study by Bain & Company revealed what percentage of companies using benchmarking in some manner?

The comparison of the expected cost of production against the actual cost of production typically occurs in the

Walt Disney Company, Dow Chemical, IBM, and General Motors are just some firms in which top management compensation is ________.

A multidivisional corporation like GE would tend to use what type of responsibility center?

Which is the MOST commonly used measure of corporate performance (in terms of profit)?

Benchmarking has been decreasing in popularity as companies emphasize uniqueness.

International transfer pricing is primarily used not to evaluate performance, but to minimize taxes.

Among the most important barriers to international trade are the different standards for products and services.

Which of the following is not descriptive of responsibility centers?

One of the obstacles to effective control is the difficulty in developing appropriate measures of important activities and outputs.

ERP unites all of a company's major business activities, from order processing to production, within a single family of software modules.

An emphasis on monitoring those few things which must go well to ensure corporate success is reflected in

The over-billing of customers in Sears's auto repair shops was an example of suboptimization.

Behavior, output, and input controls are all interchangeable.

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Suggestions for Case Analysis

Filters