Exam 19: Managing Quality and Performance

Scenario - Katrina Aldridge The yearly auditing review of Pilgrim Industries is scheduled for next month. Katrina Aldridge is preparing for that audit and is also preparing her budget for the coming year. -Katrina has also requested that the financial ratios be calculated and analyzed for her. Which of the following ratios will give her the best information for evaluating liquidity?

_____ focuses on whether performance meets established standards.

Which of the following is a control system that measures performance in terms of after-tax profits minus the cost of capital invested in tangible assets?

The system of governing an organization so that the interests of corporate owners are protected refers to corporate governance.

Organizations need quality and behavioral control, which are a manager's responsibility. If you were the manager of a frozen yogurt shop, what types of controls would you use to monitor quality and behavior? How would you use the information you collect?

The _____ provides three types of information: assets, liabilities, and owners' equity.

Pauline is an area manager at Ironman Gym. She anticipates her area's needs and formulates a proposed budget every quarter. She then sends this proposal to her manager. This is an example of:

Kendra is a manager at George's Goodies. On a regular basis Kendra and her subordinates set individual and organizational goals. This process is similar to which component of the control model?

Although work processes can be controlled and regulated, it is impossible to control and regulate employee behavior.

A(n) _____ includes anticipated and actual expenses for each responsibility center and for the total organization.

The Six Sigma approach is a comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success factors.

Madison has been assigned to work on the development of a budget that plans future investments in major assets such as buildings and heavy machinery. Madison is working on a(n) _____ budget.

In a traditional _____ approach, budgeted amounts for the coming year are imposed on middle- and lower-level managers.

Very high expectations from senior management and a desire to share authority by middle managers are two of the positive factors leading to success of TQM.

A process in which lower level managers anticipate their department's resource needs and pass them to top management for approval is called top-down budgeting.

Continuous improvement is the implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis.

Six Sigma is most beneficial when employees have challenging jobs.

All of the following are major perspectives of the Balanced Scorecard EXCEPT _____.

The final step of the feedback control model is to do nothing if performance is adequate or to take corrective action if performance is inadequate.

Which of the following is a comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success factors?