Exam 14: Managerial Control

"I have to help my operations manager reduce expenses," said Oliver, "but my expense categories-salaries, fringes, supplies, and fixed costs-are too general to give me guidance." Candice, his accounting supervisor, said, "Let me show you a different approach, so that you can develop data that will identify areas for expense reduction. I suggest that you use ________. It will identify streams of activity to which you can then allocate costs across particular business processes according to the time employees devote to those activities."

The six sigma approach is based on a(n) ________ that contribute(s) to customer satisfaction.

Glynnis, an employee, received an e-mail from an angry client about a certain product. Although it was not Glynnis's fault, she hesitated to report it to her manager because she knew that she would be blamed for it and could even be fired. In this case, which of the following is true of Glynnis's company?

Traditional cost accounting

During challenging times when resources are limited and budgets need to be stretched, ________ control becomes crucial for survival.

Briefly describe market controls at the corporate level.

Why are control systems based solely on bureaucratic and market mechanisms insufficient for directing today's workforce?

The chief financial officer (CFO) upholds conflicting interests and provides unofficial sanction to the final budget.

________ ratios indicate management's ability to generate a financial return on sales or investment.

External audits are used for

A ________ is a liquidity ratio that indicates the extent to which short-term assets can decline and still be adequate to pay short-term liabilities.

A ________ refers to a control system combining four sets of performance measures: financial, customer, business process, and learning and growth.

A(n) ________ price is internally charged by one organizational unit for a good or service that it supplies to another unit.

In his new employee orientation training, Fabian heard Meredith, his new accounting supervisor, explain, "At Williams Corporation, we do not use traditional cost accounting. Rather, we use activity-based costing, or ABC. According to ABC, we ________ costs according to what our employees do, rather than what the company spends."

________ control is based on the norms, values, shared goals, and trust among group members.

________ are the values of the various items the corporation owns.

Describe the three broad strategies for achieving organizational control.

Create a comparative balance sheet.

Policies restricting workplace romantic involvement, tattoos and body art, and public disclosure of corporate information are examples of ________ control.

________ behavior occurs when employees feel forced to attempt to "beat the system."