Question 1

Which of the following is NOT a guideline for proper control?

Accepted Answer

A)  Control should involve only a minimum of information. 
B)  Long-term as well as short-term controls should be used. 
C)  Controls should be timely so that corrective actions can be taken before it is too late. 
D)  Controls should measure all activities in order to be comprehensive. 
E)  Emphasize the reward of meeting or exceeding standards rather than punishment for failing to meet standards. 
A)  Control should involve only a minimum of information. 
B)  Long-term as well as short-term controls should be used. 
C)  Controls should be timely so that corrective actions can be taken before it is too late. 
D)  Controls should measure all activities in order to be comprehensive. 
E)  Emphasize the reward of meeting or exceeding standards rather than punishment for failing to meet standards. D

Question 2

Which one of the following is NOT a part of the evaluation and control of performance?

Accepted Answer

A)  Establish objectives and strategies. 
B)  Determine what to measure. 
C)  Establish standards for performance. 
D)  Measure actual performance. 
E)  Take corrective actions. 
A)  Establish objectives and strategies. 
B)  Determine what to measure. 
C)  Establish standards for performance. 
D)  Measure actual performance. 
E)  Take corrective actions. A

Question 3

Transfer pricing is heavily used by multinational corporations not only to calculate ROI, but also

Accepted Answer

A)  to reduce taxes. 
B)  to locate suppliers. 
C)  for marketing reasons. 
D)  for manufacturing location decisions. 
E)  for outsourcing. 
A)  to reduce taxes. 
B)  to locate suppliers. 
C)  for marketing reasons. 
D)  for manufacturing location decisions. 
E)  for outsourcing. A

Question 4

A limitation of ROI as a measure of performance is that

Accepted Answer

A)  it is a single comprehensive figure examining only one facet of the firm. 
B)  it provides an disincentive to use existing assets efficiently. 
C)  it provides a disincentive to acquire new assets. 
D)  it can be computed only after profits are totaled for a period. 
E)  it does not provide the basis for common comparison. 
A)  it is a single comprehensive figure examining only one facet of the firm. 
B)  it provides an disincentive to use existing assets efficiently. 
C)  it provides a disincentive to acquire new assets. 
D)  it can be computed only after profits are totaled for a period. 
E)  it does not provide the basis for common comparison.

Question 5

Which type of responsibility center will a stage III company with multiple product lines emphasize?

Accepted Answer

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

Question 6

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

Accepted Answer

A)  EVA 
B)  Gross Margin 
C)  DPS 
D)  ROI 
E)  ROVA 
A)  EVA 
B)  Gross Margin 
C)  DPS 
D)  ROI 
E)  ROVA

Question 7

A type of responsibility center which is primarily used in sales regions is aan)

Accepted Answer

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

Question 8

A responsibility center which measures resources in dollars without consideration of service or product costs is called aan)

Accepted Answer

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

Question 9

Activity-Based Costing is very useful in making outsourcing decisions by doing

Accepted Answer

A)  total quality management. 
B)  reengineering. 
C)  value-chain analysis. 
D)  MBO. 
E)  benchmarking. 
A)  total quality management. 
B)  reengineering. 
C)  value-chain analysis. 
D)  MBO. 
E)  benchmarking.

Question 10

Which of the following is NOT one of the steps followed in the benchmarking process?

Accepted Answer

A)  Develop tactical programs for closing performance gaps. 
B)  Implement tactical programs, measure and compare the results with the best-in-class company. 
C)  Link parallel activities instead of integrating their results. 
D)  Identify the area or process to be examined. 
E)  Calculate the differences among the company's measurements with those of the best-in-class company. 
A)  Develop tactical programs for closing performance gaps. 
B)  Implement tactical programs, measure and compare the results with the best-in-class company. 
C)  Link parallel activities instead of integrating their results. 
D)  Identify the area or process to be examined. 
E)  Calculate the differences among the company's measurements with those of the best-in-class company.

Question 11

Which method of matching rewards to the accomplishment of strategic objectives compensates managers for achieving objectives set over a multi-year period?

Accepted Answer

A)  strategic-funds method 
B)  segmentation method 
C)  long-term evaluation method 
D)  individual evaluation method 
E)  weighted-factor method 
A)  strategic-funds method 
B)  segmentation method 
C)  long-term evaluation method 
D)  individual evaluation method 
E)  weighted-factor method

Question 12

A type of responsibility center which is used primarily in manufacturing facilities based on historical cost data is aan)

Accepted Answer

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

Question 13

The type of multinational corporation which should use loose controls on its foreign units is a

Accepted Answer

A)  global MNC. 
B)  a company which primarily exports. 
C)  purely domestic company. 
D)  multidomestic MNC. 
E)  not-for-profit MNC. 
A)  global MNC. 
B)  a company which primarily exports. 
C)  purely domestic company. 
D)  multidomestic MNC. 
E)  not-for-profit MNC.

Question 14

Because of the belief that accounting-based numbers such as ROI, ROE, and EPS are not reliable indicators of a corporation's economic value, which method of corporate performance is now touted?

Accepted Answer

A)  shareholder value 
B)  basic earning power 
C)  price/earnings ratio 
D)  profit margin on sales 
E)  return on assets 
A)  shareholder value 
B)  basic earning power 
C)  price/earnings ratio 
D)  profit margin on sales 
E)  return on assets

Question 15

Which method of matching rewards to the accomplishment of strategic objectives is particularly appropriate for measuring and rewarding the performance of top SBU managers and group-level executives when performance factors and their importance vary from one SBU to another?

Accepted Answer

A)  strategic-funds method 
B)  segmentation method 
C)  long-term evaluation method 
D)  individual evaluation method 
E)  weighted-factor method 
A)  strategic-funds method 
B)  segmentation method 
C)  long-term evaluation method 
D)  individual evaluation method 
E)  weighted-factor method

Question 16

A type of responsibility center which is typically established whenever an organizational unit has control over both its resource costs and the selling price of its products or services is aan)

Accepted Answer

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

Question 17

The measure of corporate performance in which financial measures are combined with operational measures of customer satisfaction, internal processes, and innovation and improvement activities is called

Accepted Answer

A)  activity based costing. 
B)  market value-added. 
C)  the shareholder value. 
D)  the balanced scorecard. 
E)  the return on investment. 
A)  activity based costing. 
B)  market value-added. 
C)  the shareholder value. 
D)  the balanced scorecard. 
E)  the return on investment.

Question 18

The continual process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders is

Accepted Answer

A)  total quality management. 
B)  benchmarking. 
C)  action planning. 
D)  reengineering. 
E)  management by objectives. 
A)  total quality management. 
B)  benchmarking. 
C)  action planning. 
D)  reengineering. 
E)  management by objectives.

Question 19

An advantage of ROI as a measure of performance is that

Accepted Answer

A)  it is sensitive to book value. 
B)  it provides an incentive to use existing assets efficiently. 
C)  the time span of concern in short range. 
D)  the business cycle strongly affects ROI performance often despite managerial performance. 
E)  it is a steering control. 
A)  it is sensitive to book value. 
B)  it provides an incentive to use existing assets efficiently. 
C)  the time span of concern in short range. 
D)  the business cycle strongly affects ROI performance often despite managerial performance. 
E)  it is a steering control.

Question 20

Which method of matching rewards to the accomplishment of strategic objectives encourages executives to look at developmental expenses as being different from those expenses required for current operations?

Accepted Answer

A)  strategic-funds method 
B)  segmentation method 
C)  long-term evaluation method 
D)  individual evaluation method 
E)  weighted-factor method 
A)  strategic-funds method 
B)  segmentation method 
C)  long-term evaluation method 
D)  individual evaluation method 
E)  weighted-factor method

Which of the following is NOT a guideline for proper control?

Which one of the following is NOT a part of the evaluation and control of performance?

Transfer pricing is heavily used by multinational corporations not only to calculate ROI, but also

A limitation of ROI as a measure of performance is that

Which type of responsibility center will a stage III company with multiple product lines emphasize?

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

A type of responsibility center which is primarily used in sales regions is aan)

A responsibility center which measures resources in dollars without consideration of service or product costs is called aan)

Activity-Based Costing is very useful in making outsourcing decisions by doing

Which of the following is NOT one of the steps followed in the benchmarking process?

Which method of matching rewards to the accomplishment of strategic objectives compensates managers for achieving objectives set over a multi-year period?

A type of responsibility center which is used primarily in manufacturing facilities based on historical cost data is aan)

The type of multinational corporation which should use loose controls on its foreign units is a

Because of the belief that accounting-based numbers such as ROI, ROE, and EPS are not reliable indicators of a corporation's economic value, which method of corporate performance is now touted?

Which method of matching rewards to the accomplishment of strategic objectives is particularly appropriate for measuring and rewarding the performance of top SBU managers and group-level executives when performance factors and their importance vary from one SBU to another?

A type of responsibility center which is typically established whenever an organizational unit has control over both its resource costs and the selling price of its products or services is aan)

The measure of corporate performance in which financial measures are combined with operational measures of customer satisfaction, internal processes, and innovation and improvement activities is called

The continual process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders is

An advantage of ROI as a measure of performance is that

Which method of matching rewards to the accomplishment of strategic objectives encourages executives to look at developmental expenses as being different from those expenses required for current operations?

Basic Concepts of Strategic Management

Corporate Governance and Social Responsibility

Environmental Scanning and Industry Analysis

Internal Scanning: Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Suggestions for Case Analysis

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Exam 10: Evaluation and Control

Which of the following is NOT a guideline for proper control?

Which one of the following is NOT a part of the evaluation and control of performance?

Transfer pricing is heavily used by multinational corporations not only to calculate ROI, but also

A limitation of ROI as a measure of performance is that

Which type of responsibility center will a stage III company with multiple product lines emphasize?

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

A type of responsibility center which is primarily used in sales regions is aan)

A responsibility center which measures resources in dollars without consideration of service or product costs is called aan)

Activity-Based Costing is very useful in making outsourcing decisions by doing

Which of the following is NOT one of the steps followed in the benchmarking process?

Which method of matching rewards to the accomplishment of strategic objectives compensates managers for achieving objectives set over a multi-year period?

A type of responsibility center which is used primarily in manufacturing facilities based on historical cost data is aan)

The type of multinational corporation which should use loose controls on its foreign units is a

Because of the belief that accounting-based numbers such as ROI, ROE, and EPS are not reliable indicators of a corporation's economic value, which method of corporate performance is now touted?

Which method of matching rewards to the accomplishment of strategic objectives is particularly appropriate for measuring and rewarding the performance of top SBU managers and group-level executives when performance factors and their importance vary from one SBU to another?

A type of responsibility center which is typically established whenever an organizational unit has control over both its resource costs and the selling price of its products or services is aan)

The measure of corporate performance in which financial measures are combined with operational measures of customer satisfaction, internal processes, and innovation and improvement activities is called

The continual process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders is

An advantage of ROI as a measure of performance is that

Which method of matching rewards to the accomplishment of strategic objectives encourages executives to look at developmental expenses as being different from those expenses required for current operations?

Basic Concepts of Strategic Management

Corporate Governance and Social Responsibility

Environmental Scanning and Industry Analysis

Internal Scanning: Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Suggestions for Case Analysis

Filters