Question 1

Calculate the need for action from the following information: Desired performance = 800 work units
Actual performance = 580 work units

Accepted Answer

A)  1380 
B)  220 
C)  800 
D)  1600 
E)  510 
A)  1380 
B)  220 
C)  800 
D)  1600 
E)  510

Question 2

Which of the following statements is true about the first step of the control process?

Accepted Answer

A)  It involves the identification of key results that one wants to accomplish, by the performance objectives. 
B)  It first involves the identification of the standards of measuring performance and then the identification of key results. 
C)  It identifies the point where output standards and input standards are used to carefully document results. 
D)  It involves relative comparisons that benchmark performance against that being achieved by other people, work units, or organizations. 
E)  It focuses attention on substantial differences between actual and desired performance. 
A)  It involves the identification of key results that one wants to accomplish, by the performance objectives. 
B)  It first involves the identification of the standards of measuring performance and then the identification of key results. 
C)  It identifies the point where output standards and input standards are used to carefully document results. 
D)  It involves relative comparisons that benchmark performance against that being achieved by other people, work units, or organizations. 
E)  It focuses attention on substantial differences between actual and desired performance.

Question 3

Acid Test = _____

Accepted Answer

A)  Net Income/Total Assets 
B)  Net Income/Owner's Equity 
C)  Sales - Expenses 
D)  Total Debts/Total Assets 
E)  Current Assets - Inventories/Current Liabilities 
A)  Net Income/Total Assets 
B)  Net Income/Owner's Equity 
C)  Sales - Expenses 
D)  Total Debts/Total Assets 
E)  Current Assets - Inventories/Current Liabilities

Question 4

Which of the following is true of clan control?

Accepted Answer

A)  It influences behavior through norms and expectations set by the organizational culture. 
B)  It uses budgets for personnel, equipment, travel expenses, and the like to keep behavior targeted within set limits. 
C)  It flows through the organization's hierarchy of authority. 
D)  It refers to the influence of customers and competition on the behavior of organizations and their members. 
E)  It gives people freedom to work on their own. 
A)  It influences behavior through norms and expectations set by the organizational culture. 
B)  It uses budgets for personnel, equipment, travel expenses, and the like to keep behavior targeted within set limits. 
C)  It flows through the organization's hierarchy of authority. 
D)  It refers to the influence of customers and competition on the behavior of organizations and their members. 
E)  It gives people freedom to work on their own.

Question 5

Calculate average inventory if sales is $400,000 and the inventory turnover is 1.6.

Accepted Answer

A)  $280,000 
B)  $250,000 
C)  $150,000 
D)  $180,000 
E)  $140,000 
A)  $280,000 
B)  $250,000 
C)  $150,000 
D)  $180,000 
E)  $140,000

Question 6

Calculate return on assets from the following information: Net income $1,800,000
Current Assets $350,000
Land and building $250,000

Accepted Answer

A)  1:1 
B)  3:2 
C)  4:1 
D)  2:2 
E)  3:1 
A)  1:1 
B)  3:2 
C)  4:1 
D)  2:2 
E)  3:1

Question 7

Return on assets = _____

Accepted Answer

A)  Current Assets/Current Liabilities 
B)  Sales/Total Assets 
C)  Total Debts/Total Assets 
D)  Net Income/Total Assets 
E)  Current Assets - Inventories/Current Liabilities 
A)  Current Assets/Current Liabilities 
B)  Sales/Total Assets 
C)  Total Debts/Total Assets 
D)  Net Income/Total Assets 
E)  Current Assets - Inventories/Current Liabilities

Question 8

The breakeven point occurs where ____ just equal costs.

Accepted Answer

The answer of The breakeven point occurs where ____ just...

Question 9

Which of the following ratios is also known as acid test?

Accepted Answer

A)  Current Ratio 
B)  Debt Ratio 
C)  Asset Turnover Ratio 
D)  Inventory Turnover Ratio 
E)  Quick Ratio 
A)  Current Ratio 
B)  Debt Ratio 
C)  Asset Turnover Ratio 
D)  Inventory Turnover Ratio 
E)  Quick Ratio

Question 10

In the context of financial controls, which of the following best describes leverage?

Accepted Answer

A)  It is the ability to operate at minimum cost. 
B)  It is the ability to earn revenues greater than costs. 
C)  It is the ability to earn more in returns than the cost of debt. 
D)  It is the ability to meet short-term obligations. 
E)  It is the ability to generate cash to pay bills. 
A)  It is the ability to operate at minimum cost. 
B)  It is the ability to earn revenues greater than costs. 
C)  It is the ability to earn more in returns than the cost of debt. 
D)  It is the ability to meet short-term obligations. 
E)  It is the ability to generate cash to pay bills.

Question 11

Which of the following is true of feedforward control?

Accepted Answer

A)  It focuses on what happens during the work process. 
B)  It is preventive in nature. 
C)  It is largely reactive. 
D)  It solves problems as they occur. 
E)  It focuses on the quality of end results rather than on inputs. 
A)  It focuses on what happens during the work process. 
B)  It is preventive in nature. 
C)  It is largely reactive. 
D)  It solves problems as they occur. 
E)  It focuses on the quality of end results rather than on inputs.

Question 12

The feedback provided by the control process about mistakes already made may not be able to correct them, but it can help improve things in the future.

Accepted Answer

A) True 
 B)False

Question 13

Inventory turnover = _____

Accepted Answer

A)  Current Assets - Inventories/Current Liabilities 
B)  Net Income/Total Assets 
C)  Total Debts/Total Inventories 
D)  Net Income/Owner's Equity 
E)  Sales/Average Inventory 
A)  Current Assets - Inventories/Current Liabilities 
B)  Net Income/Total Assets 
C)  Total Debts/Total Inventories 
D)  Net Income/Owner's Equity 
E)  Sales/Average Inventory

Question 14

Calculate the expenses incurred if the net income is $500,000 and sales is $1,500,000.

Accepted Answer

A)  $800,000 
B)  $650,000 
C)  $500,000 
D)  $250,000 
E)  $1,000,000 
A)  $800,000 
B)  $650,000 
C)  $500,000 
D)  $250,000 
E)  $1,000,000

Question 15

Calculate net margin from the following information. Sales $250,000
Net Income $100,000

Accepted Answer

A)  50% 
B)  60% 
C)  40% 
D)  30% 
E)  80% 
A)  50% 
B)  60% 
C)  40% 
D)  30% 
E)  80%

Question 16

____ is the process of measuring performance and taking action to ensure desired results.

Accepted Answer

The answer of ____ is the process of measuring performance...

Question 17

Leverage differs from profitability in that leverage measures:

Accepted Answer

A)  the ability to operate at minimum cost. 
B)  the ability to meet short-term obligations. 
C)  the ability to earn revenues greater than costs. 
D)  the use of debt. 
E)  asset and inventory efficiency. 
A)  the ability to operate at minimum cost. 
B)  the ability to meet short-term obligations. 
C)  the ability to earn revenues greater than costs. 
D)  the use of debt. 
E)  asset and inventory efficiency.

Question 18

Preliminary control is also known as steering control.

Accepted Answer

A) True 
 B)False

Question 19

When a hair stylist at a salon asks a customer if she liked their services after a haircut, the hair stylist is engaging in _____ control.

Accepted Answer

A)  feedforward 
B)  steering 
C)  feedback 
D)  concurrent 
E)  throughput 
A)  feedforward 
B)  steering 
C)  feedback 
D)  concurrent 
E)  throughput

Question 20

Developing a balanced scorecard for any organization begins with a clarification of the organization's mission and vision.

Accepted Answer

A) True 
 B)False

Calculate the need for action from the following information: Desired performance = 800 work units Actual performance = 580 work units

Which of the following statements is true about the first step of the control process?

Acid Test = _____

Which of the following is true of clan control?

Calculate average inventory if sales is $400,000 and the inventory turnover is 1.6.

Calculate return on assets from the following information: Net income $1,800,000 Current Assets $350,000 Land and building $250,000

Return on assets = _____

The breakeven point occurs where ____ just equal costs.

Which of the following ratios is also known as acid test?

In the context of financial controls, which of the following best describes leverage?

Which of the following is true of feedforward control?

The feedback provided by the control process about mistakes already made may not be able to correct them, but it can help improve things in the future.

Inventory turnover = _____

Calculate the expenses incurred if the net income is $500,000 and sales is $1,500,000.

Calculate net margin from the following information. Sales $250,000 Net Income $100,000

____ is the process of measuring performance and taking action to ensure desired results.

Leverage differs from profitability in that leverage measures:

Preliminary control is also known as steering control.

When a hair stylist at a salon asks a customer if she liked their services after a haircut, the hair stylist is engaging in _____ control.

Developing a balanced scorecard for any organization begins with a clarification of the organization's mission and vision.

Management, Managers, and Careers

Management Learning Past to Present

Ethics and Social Responsibility

Environment, Technology, and Sustainability

Global Management and Cultural Diversity

Entrepreneurship and New Ventures

Data and Decision Making

Planning Processes and Techniques

Strategy and Strategic Management

Organization Structures

Organizational Culture and Change

Human Resource Management

Leading and Leadership Development

Individual Behavior

Motivation Theory and Practice

Teams and Teamwork

Communication and Collaboration

Filters

Exam 9: Control Processes and Systems

Calculate the need for action from the following information: Desired performance = 800 work units Actual performance = 580 work units

Which of the following statements is true about the first step of the control process?

Acid Test = _____

Which of the following is true of clan control?

Calculate average inventory if sales is $400,000 and the inventory turnover is 1.6.

Calculate return on assets from the following information: Net income $1,800,000 Current Assets $350,000 Land and building $250,000

Return on assets = _____

The breakeven point occurs where ____ just equal costs.

Which of the following ratios is also known as acid test?

In the context of financial controls, which of the following best describes leverage?

Which of the following is true of feedforward control?

The feedback provided by the control process about mistakes already made may not be able to correct them, but it can help improve things in the future.

Inventory turnover = _____

Calculate the expenses incurred if the net income is $500,000 and sales is $1,500,000.

Calculate net margin from the following information. Sales $250,000 Net Income $100,000

____ is the process of measuring performance and taking action to ensure desired results.

Leverage differs from profitability in that leverage measures:

Preliminary control is also known as steering control.

When a hair stylist at a salon asks a customer if she liked their services after a haircut, the hair stylist is engaging in _____ control.

Developing a balanced scorecard for any organization begins with a clarification of the organization's mission and vision.

Management, Managers, and Careers

Management Learning Past to Present

Ethics and Social Responsibility

Environment, Technology, and Sustainability

Global Management and Cultural Diversity

Entrepreneurship and New Ventures

Data and Decision Making

Planning Processes and Techniques

Strategy and Strategic Management

Organization Structures

Organizational Culture and Change

Human Resource Management

Leading and Leadership Development

Individual Behavior

Motivation Theory and Practice

Teams and Teamwork

Communication and Collaboration

Filters