Exam 14: Managerial Control

The ________ budget is essential to every business.

Select the correct statement regarding six sigma.

________ control is future oriented and aims to prevent problems before they arise.

"The amount of information in the accounting reports is so overwhelming that I cannot understand it," said Ron to his division manager, Stan. "Yes," said Stan, "The sheer volume of the numbers in the reports is daunting. That's why we have decided that an effective approach for checking our firm's overall performance is to use ________, which indicate strengths and weaknesses."

TuffStone Gypsum is a corporation that produces material for wallboard and other applications. They are a hierarchical organization, with a strict chain of command culture and a strict set of rules and regulations. They track a large amount of data using statistical techniques, and they use this data to regulate behavior and results. TuffStone follows a ________ control system.

________ are targets that establish desired performance levels, motivate performance, and serve as benchmarks against which to assess actual performance.

________ provide essential feedback control when they identify legal and ethical lapses that could harm the organization and its reputation.

A(n) ________ is the internal charge by one organizational unit for a good or service that it supplies to another unit.

________ keep CEOs focused on the company's longer-term health.

A practical guideline for managing in an empowered world is to

"Over the past five years, some of our new entry-level employees have been stars, some have been solid, and some have not met our expectations," said Alexa, manager of operations. "We will be gathering data on entry-level employees' performances and correlating those performances with college GPAs and college leadership positions. We will use our results to fine-tune our campus recruiting program so that we hire more star employees." The bureaucratic control that Alexa is describing is ________ control.

________ ratios show the funds supplied by creditors and shareholders.

Sandi, shift supervisor at Johnson Meatpacking, has the highest performing team. One reason for this is how she controls her team's activities. First, she ensures that her subordinates are properly trained and properly equipped with the necessary protective equipment and work tools. Then, during the shift, she carefully monitors her workers' actions, taking notes and even measurements as needed. Finally, at the end of each work week, she analyzes her notes and measurement data, and she uses the results of her analysis to make needed production changes the following week. When Sandi is monitoring her workers' actions, she is exercising ________ control.

A(n) ________ is an itemized financial document of the income and the expenses of a company's operations.

Describe feedback control, feedforward control, and concurrent control.

________ are the amounts the corporation owes to various creditors.

Select the relationship represented by the balance sheet.

________ refers to the situation when managers focus on short-term earnings and profits at the expense of their longer-term strategic obligations.

At a town hall meeting, the CEO of a company spoke energetically about adopting cost-cutting measures due to the recent economic slump. However, a few days later, the employees found out that the CEO had gone on an exotic vacation using funds from the company. Which of the following is true about this company?

"Why is the ________ budget for next year 33 percent higher than this year's actual expenses?" asked Alicia Tobin, CEO of Peerless Group. Her CFO, Ben Burroughs, replied, "We need to hire two additional human resources professionals to oversee the new benefits program and an additional attorney to handle claims. Also, our new lease for Building A will go into effect, and that includes an 11 percent increase in the first year." Alicia replied, "Ouch. It's tough to absorb those kinds of increases from parts of our organization that generate no revenue."