Question 1

In its technical meaning, a budget is a plan for

Accepted Answer

A)  allocating resources. 
B)  spending money. 
C)  saving money. 
D)  developing financial strategy. 
A)  allocating resources. 
B)  spending money. 
C)  saving money. 
D)  developing financial strategy. A

Question 2

The financial measure of net debt evaluates how much a company owes after taking into account

Accepted Answer

A)  the effects of inflation on debt. 
B)  money on hand that could be used to eliminate debt. 
C)  the amount of debt that could be refinanced. 
D)  how much debt could be eliminated by declaring bankruptcy. 
A)  the effects of inflation on debt. 
B)  money on hand that could be used to eliminate debt. 
C)  the amount of debt that could be refinanced. 
D)  how much debt could be eliminated by declaring bankruptcy. B

Question 3

The EVA (economic value added) is a guide to estimating how much a company earns in comparison to

Accepted Answer

A)  competitive firms. 
B)  a stock index such as the Dow Jones industrial average. 
C)  the cost of capital. 
D)  the average return on government bonds. 
A)  competitive firms. 
B)  a stock index such as the Dow Jones industrial average. 
C)  the cost of capital. 
D)  the average return on government bonds. C

Question 4

Deviation in a control system indicates the size of the discrepancy between performance standards and actual results.

Accepted Answer

A) True 
 B)False

Question 5

An example of intellectual capital is the

Accepted Answer

A)  money invested in a mainframe computer. 
B)  brainpower of a company's product development team. 
C)  money invested in advertising in trade journals. 
D)  accounts receivables for services. 
A)  money invested in a mainframe computer. 
B)  brainpower of a company's product development team. 
C)  money invested in advertising in trade journals. 
D)  accounts receivables for services.

Question 6

Four years ago, executives of Burgerville, a regional restaurant chain, agreed to pay at least 90 percent of health-care premiums for hourly employees who work at least 20 hours a week. Today, the executives say the unusual move has saved money by cutting turnover, boosting sales, and improving productivity.Burgerville say that work ethic translates into higher revenue.
1. What does this story illustrate about a manager's use of financial measures such as turnover?
2. What does this story illustrate about cost control?

Accepted Answer

1. The story about the hamburger chain i

Question 7

The purpose of a preventive (or pre-control) is to prevent

Accepted Answer

A)  existing problems from escalating. 
B)  problems caused by a deviation from performance. 
C)  feedback controls from creating damage. 
D)  quality standards from being too demanding. 
A)  existing problems from escalating. 
B)  problems caused by a deviation from performance. 
C)  feedback controls from creating damage. 
D)  quality standards from being too demanding.

Question 8

Computer-aided monitoring is used for

Accepted Answer

A)  data-loss prevention. 
B)  recording an employee's efficiency. 
C)  monitoring quality 
D)  all of the choices 
A)  data-loss prevention. 
B)  recording an employee's efficiency. 
C)  monitoring quality 
D)  all of the choices

Question 9

Dunkin' Donuts franchise manager Julie estimates how much her three stores will take in next year, as well as how much she will spend. Julie is most likely preparing which type of budget?

Accepted Answer

A)  revenue and expense 
B)  capital expenditure 
C)  cash 
D)  production 
A)  revenue and expense 
B)  capital expenditure 
C)  cash 
D)  production

Question 10

Electronic monitoring often contributes to low levels of job satisfaction, absenteeism, high turnover, and job stress.

Accepted Answer

A) True 
 B)False

Question 11

A major purpose of a pro-forma earnings statement is to exclude

Accepted Answer

A)  salaries paid to non-productive employees. 
B)  kickbacks paid to the company by large customers 
C)  one-time charges not related to future earnings. 
D)  operating costs. 
A)  salaries paid to non-productive employees. 
B)  kickbacks paid to the company by large customers 
C)  one-time charges not related to future earnings. 
D)  operating costs.

Question 12

Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a financial measure that presents an optimistic picture of a company's financial health.

Accepted Answer

A) True 
 B)False

Question 13

Describe the use of cash flow to measure the financial health of a firm.

Accepted Answer

Cash flow analysis provides a more accur

Question 14

Office manager Gus has spent all his annual money for paper towels, so he requests that until the end of the budget cycle, employees bring their own paper towels to the office. What type of budget does Gus most likely have?

Accepted Answer

A)  pro-forma 
B)  master 
C)  flexible 
D)  fixed 
A)  pro-forma 
B)  master 
C)  flexible 
D)  fixed

Question 15

Cash from (or used in) operating activities is the

Accepted Answer

A)  heart of cash flow. 
B)  cash paid to outsiders such as banks or stockholders. 
C)  cash received from selling stock or assets. 
D)  cash at the beginning and end of the period covered. 
A)  heart of cash flow. 
B)  cash paid to outsiders such as banks or stockholders. 
C)  cash received from selling stock or assets. 
D)  cash at the beginning and end of the period covered.

Question 16

A control system begins with

Accepted Answer

A)  measuring performance. 
B)  agreeing on accuracy of measurement needed. 
C)  agreeing on who will use the measurements. 
D)  setting appropriate performance standards. 
A)  measuring performance. 
B)  agreeing on accuracy of measurement needed. 
C)  agreeing on who will use the measurements. 
D)  setting appropriate performance standards.

Question 17

Which of the following is a recommended technique for preparing a sensible budget?

Accepted Answer

A)  Budget liberally for income, and conservatively for expenses. 
B)  Budget conservatively for income and liberally for expenses. 
C)  Do not allow for wiggle room. 
D)  Go light in terms of basing budgets on historical information. 
A)  Budget liberally for income, and conservatively for expenses. 
B)  Budget conservatively for income and liberally for expenses. 
C)  Do not allow for wiggle room. 
D)  Go light in terms of basing budgets on historical information.

Question 18

The heart of cash flow is the cash provided by (or used in) financing activities.

Accepted Answer

A) True 
 B)False

Question 19

Measuring performance in terms of anticipated market share is a valuable performance metric.

Accepted Answer

A) True 
 B)False

Question 20

Activity-based costing takes into account the amount of resources consumed when estimating the cost of a product.

Accepted Answer

A) True 
 B)False

In its technical meaning, a budget is a plan for

The financial measure of net debt evaluates how much a company owes after taking into account

The EVA (economic value added) is a guide to estimating how much a company earns in comparison to

Deviation in a control system indicates the size of the discrepancy between performance standards and actual results.

An example of intellectual capital is the

The purpose of a preventive (or pre-control) is to prevent

Computer-aided monitoring is used for

Dunkin' Donuts franchise manager Julie estimates how much her three stores will take in next year, as well as how much she will spend. Julie is most likely preparing which type of budget?

Electronic monitoring often contributes to low levels of job satisfaction, absenteeism, high turnover, and job stress.

A major purpose of a pro-forma earnings statement is to exclude

Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a financial measure that presents an optimistic picture of a company's financial health.

Describe the use of cash flow to measure the financial health of a firm.

Office manager Gus has spent all his annual money for paper towels, so he requests that until the end of the budget cycle, employees bring their own paper towels to the office. What type of budget does Gus most likely have?

Cash from (or used in) operating activities is the

A control system begins with

Which of the following is a recommended technique for preparing a sensible budget?

The heart of cash flow is the cash provided by (or used in) financing activities.

Measuring performance in terms of anticipated market share is a valuable performance metric.

Activity-based costing takes into account the amount of resources consumed when estimating the cost of a product.

The Managers Job

International Management and Cultural Diversity

Ethics and Social Responsibility

Essentials of Planning

Problem Solving and Decision Making

Quantitative Techniques for Planning and Decision Making

Job Design and Work Schedules

Organization Structure, Culture, and Change

Staffing and Human Resource Management

Leadership

Motivation

Communication

Teams, Groups, and Teamwork

Information Technology and E-Commerce

Managing Ineffective Performers

Enhancing Personal Productivity and Managing Stress

Filters

Exam 15: Essentials of Control

In its technical meaning, a budget is a plan for

The financial measure of net debt evaluates how much a company owes after taking into account

The EVA (economic value added) is a guide to estimating how much a company earns in comparison to

Deviation in a control system indicates the size of the discrepancy between performance standards and actual results.

An example of intellectual capital is the

The purpose of a preventive (or pre-control) is to prevent

Computer-aided monitoring is used for

Dunkin' Donuts franchise manager Julie estimates how much her three stores will take in next year, as well as how much she will spend. Julie is most likely preparing which type of budget?

Electronic monitoring often contributes to low levels of job satisfaction, absenteeism, high turnover, and job stress.

A major purpose of a pro-forma earnings statement is to exclude

Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a financial measure that presents an optimistic picture of a company's financial health.

Describe the use of cash flow to measure the financial health of a firm.

Office manager Gus has spent all his annual money for paper towels, so he requests that until the end of the budget cycle, employees bring their own paper towels to the office. What type of budget does Gus most likely have?

Cash from (or used in) operating activities is the

A control system begins with

Which of the following is a recommended technique for preparing a sensible budget?

The heart of cash flow is the cash provided by (or used in) financing activities.

Measuring performance in terms of anticipated market share is a valuable performance metric.

Activity-based costing takes into account the amount of resources consumed when estimating the cost of a product.

The Managers Job

International Management and Cultural Diversity

Ethics and Social Responsibility

Essentials of Planning

Problem Solving and Decision Making

Quantitative Techniques for Planning and Decision Making

Job Design and Work Schedules

Organization Structure, Culture, and Change

Staffing and Human Resource Management

Leadership

Motivation

Communication

Teams, Groups, and Teamwork

Information Technology and E-Commerce

Managing Ineffective Performers

Enhancing Personal Productivity and Managing Stress

Filters