Question 1

The comparison of the expected cost of production against the actual cost of production typically occurs in the

Accepted Answer

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

Question 2

One of the obstacles to effective control is the difficulty in developing appropriate measures of important activities and outputs.

Accepted Answer

A) True 
 B)False

Question 3

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

Question 4

A multidivisional corporation like GE would tend to use what type of responsibility center?

Accepted Answer

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

Question 5

When GE offered its CEO 250,000 performance share units tied to performance targets achieved over five years, it was using which method of matching rewards to the accomplishment of strategic objectives?

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 6

The end result of activity is known as

Accepted Answer

A)  measurement. 
B)  gratuity. 
C)  performance. 
D)  return on equity. 
E)  achievement. 
A)  measurement. 
B)  gratuity. 
C)  performance. 
D)  return on equity. 
E)  achievement.

Question 7

ABC accounting allows accountants to charge costs more accurately than the traditional method because it allocates overhead far more precisely.

Accepted Answer

A) True 
 B)False

Question 8

The difference between the pre-strategy and post-strategy values for the business is

Accepted Answer

A)  ROI. 
B)  EPS. 
C)  ROE. 
D)  EVA. 
E)  MVA. 
A)  ROI. 
B)  EPS. 
C)  ROE. 
D)  EVA. 
E)  MVA.

Question 9

Which type of control specifies what is to be accomplished by focusing on the end result of behaviors through the use of objectives and performance targets or milestones?

Accepted Answer

A)  tactical control 
B)  strategic control 
C)  output control 
D)  functional control 
E)  behavior control 
A)  tactical control 
B)  strategic control 
C)  output control 
D)  functional control 
E)  behavior control

Question 10

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 11

ERP software provides instant access to critical information to everyone in the organization from the CEO to the factory floor worker.

Accepted Answer

A) True 
 B)False

Question 12

An emphasis on monitoring those few things which must go well to ensure corporate success is reflected in

Accepted Answer

A)  the 60/40 rule. 
B)  the 30/70 rule. 
C)  the 80/20 rule. 
D)  success factors. 
E)  key performance measures. 
A)  the 60/40 rule. 
B)  the 30/70 rule. 
C)  the 80/20 rule. 
D)  success factors. 
E)  key performance measures.

Question 13

The union of all of a company's major business activities from order processing to production within a single family of software modules is known as

Accepted Answer

A)  enterprise resource planning. 
B)  enterprise strategic planning. 
C)  information system planning. 
D)  united resource planning. 
E)  united strategic planning. 
A)  enterprise resource planning. 
B)  enterprise strategic planning. 
C)  information system planning. 
D)  united resource planning. 
E)  united strategic planning.

Question 14

The balanced scorecard combines financial measures that tell the results of actions already taken with operational measures on customer satisfaction, internal processes, and the corporation's innovation and improvement activities.

Accepted Answer

A) True 
 B)False

Question 15

According to the 80/20 rule, companies should monitor the 20% of the factors that determine 80% of the results.

Accepted Answer

A) True 
 B)False

Question 16

A study of 79 MNCs revealed that international transfer pricing from one country unit to another is primarily used to

Accepted Answer

A)  evaluate performance. 
B)  minimize taxes. 
C)  increase profits. 
D)  improve communication. 
E)  all of the above 
A)  evaluate performance. 
B)  minimize taxes. 
C)  increase profits. 
D)  improve communication. 
E)  all of the above

Question 17

One approach to better match executive rewards to the accomplishment of strategic objectives is

Accepted Answer

A)  return on investment. 
B)  year-end bonuses. 
C)  zero base budgeting. 
D)  weighted-factor method. 
E)  return on assets. 
A)  return on investment. 
B)  year-end bonuses. 
C)  zero base budgeting. 
D)  weighted-factor method. 
E)  return on assets.

Question 18

Operating cash flow is also known as free cash flow.

Accepted Answer

A) True 
 B)False

Question 19

According to the text, using a long-term performance evaluation system, a company executive might be promised incentives such as

Accepted Answer

A)  company cars. 
B)  company stock. 
C)  health insurance. 
D)  retirement plans. 
E)  vacations. 
A)  company cars. 
B)  company stock. 
C)  health insurance. 
D)  retirement plans. 
E)  vacations.

Question 20

Corporations will emphasize all types of controls (output, input, and behavior) when they are following a strategy of

Accepted Answer

A)  conglomerate diversification. 
B)  concentric diversification. 
C)  retrenchment. 
D)  divestment. 
E)  vertical integration. 
A)  conglomerate diversification. 
B)  concentric diversification. 
C)  retrenchment. 
D)  divestment. 
E)  vertical integration.

The comparison of the expected cost of production against the actual cost of production typically occurs in the

One of the obstacles to effective control is the difficulty in developing appropriate measures of important activities and outputs.

An advantage of ROI as a measure of performance is that

A multidivisional corporation like GE would tend to use what type of responsibility center?

When GE offered its CEO 250,000 performance share units tied to performance targets achieved over five years, it was using which method of matching rewards to the accomplishment of strategic objectives?

The end result of activity is known as

ABC accounting allows accountants to charge costs more accurately than the traditional method because it allocates overhead far more precisely.

The difference between the pre-strategy and post-strategy values for the business is

Which type of control specifies what is to be accomplished by focusing on the end result of behaviors through the use of objectives and performance targets or milestones?

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

ERP software provides instant access to critical information to everyone in the organization from the CEO to the factory floor worker.

An emphasis on monitoring those few things which must go well to ensure corporate success is reflected in

The union of all of a company's major business activities from order processing to production within a single family of software modules is known as

The balanced scorecard combines financial measures that tell the results of actions already taken with operational measures on customer satisfaction, internal processes, and the corporation's innovation and improvement activities.

According to the 80/20 rule, companies should monitor the 20% of the factors that determine 80% of the results.

A study of 79 MNCs revealed that international transfer pricing from one country unit to another is primarily used to

One approach to better match executive rewards to the accomplishment of strategic objectives is

Operating cash flow is also known as free cash flow.

According to the text, using a long-term performance evaluation system, a company executive might be promised incentives such as

Corporations will emphasize all types of controls (output, input, and behavior) when they are following a strategy of

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and 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

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Exam 11: Evaluation and Control

The comparison of the expected cost of production against the actual cost of production typically occurs in the

One of the obstacles to effective control is the difficulty in developing appropriate measures of important activities and outputs.

An advantage of ROI as a measure of performance is that

A multidivisional corporation like GE would tend to use what type of responsibility center?

When GE offered its CEO 250,000 performance share units tied to performance targets achieved over five years, it was using which method of matching rewards to the accomplishment of strategic objectives?

The end result of activity is known as

ABC accounting allows accountants to charge costs more accurately than the traditional method because it allocates overhead far more precisely.

The difference between the pre-strategy and post-strategy values for the business is

Which type of control specifies what is to be accomplished by focusing on the end result of behaviors through the use of objectives and performance targets or milestones?

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

ERP software provides instant access to critical information to everyone in the organization from the CEO to the factory floor worker.

An emphasis on monitoring those few things which must go well to ensure corporate success is reflected in

The union of all of a company's major business activities from order processing to production within a single family of software modules is known as

The balanced scorecard combines financial measures that tell the results of actions already taken with operational measures on customer satisfaction, internal processes, and the corporation's innovation and improvement activities.

According to the 80/20 rule, companies should monitor the 20% of the factors that determine 80% of the results.

A study of 79 MNCs revealed that international transfer pricing from one country unit to another is primarily used to

One approach to better match executive rewards to the accomplishment of strategic objectives is

Operating cash flow is also known as free cash flow.

According to the text, using a long-term performance evaluation system, a company executive might be promised incentives such as

Corporations will emphasize all types of controls (output, input, and behavior) when they are following a strategy of

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and 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