Exam 9: Control Processes and Systems

In which of the following systems of control do organizations use budgets for personnel, equipment, travel expenses, and so on to keep behavior targeted within set limits?

_____ controls are largely reactive.

Calculate the current ratio from the following information: Sales = $14,000 Bills receivable = $100,000 Cash in hand = $40,000 Current liabilities = $50,000 Inventories = $40,000 Net Income = $5,600

Calculate the debt ratio from the following information. Land and building = $500,000 Machinery = $300,000 Cash in hand = $400,000 Total debts = $300,000

With reference to profitability, Net margin = _____.

Karzon Ltd., a car manufacturing company, calculated its debt ratio to be 2:5. Calculate the total debt for Karzon Ltd., from the following information: Cash in hand = $120,000 Cash at bank = $180,000 Bills receivable = $200,000 Bills payable = $180,000 Land and building = $250,000 Inventories = $50,000 Machinery = $100,000

____ control ensures that directions and resources are right before the work begins.

An internal control strategy requires a high degree of trust.

Project management is the responsibility for overall planning, supervision, and control of projects.

Calculate the quick ratio from the following information of a manufacturing firm. Cash in hand = $200,000 Cash at bank = $100,000 Inventories = $100,000. Current Liabilities = $100,000

The Pareto Principle states that 20% of consequences come from 80% of causes.

Calculate owner's equity from the following information: Expenses $700,000 Return on equity 40% Total Assets $2,050,000 Sales $1,500,000

_____ control is also known as preliminary control.

____ are one-time activities with many component tasks that must be completed in proper order and according to budget.

The after-action review is an unstructured review of lessons learned and results in a completed project, task force assignment, or special operation.

Dillon, a senior operations manager, was assigned the task of implementing the control process for a particular production process. He first identified the performance objectives and in doing so, he identified the key results that were to be accomplished. Next, he set standards and measured the actual performance. He compared the results with the objectives and standards. Finally, as part of the corrective action step, he implemented _____, a practice that involved focusing attention on substantial differences between the actual and desired performances.

Freddie, the CEO of MagTel Inc., found that employees are wasting time on unproductive tasks. To solve this issue, he measured one of his employees' performances and provided regular feedback. This helped the employee to improve his productivity. In doing so, Freddie found that "what gets measured happens." Therefore, in the context of project management and control, he must use _____ as a managerial review tool to improve financial performance and customer satisfaction of his company.

Feedforward control differs from feedback control, in that feedforward control:

Bill, a finance manager at Iridium Inc., desires to understand why the company's profitability fell in the past 6 months. He must use _____ to understand this issue.

Rachel, the CEO of Telexon Inc., finds that her company's current ratio is 1:3. In this context, which of the following statements is true?