Question 1

A study by Bain & Company revealed what percentage of companies using benchmarking in some manner?

Accepted Answer

A)  10% 
B)  30% 
C)  50% 
D)  65% 
E)  90% 
A)  10% 
B)  30% 
C)  50% 
D)  65% 
E)  90%

Question 2

The revenue center is measured in terms of efficiency.

Accepted Answer

A) True 
 B)False

Question 3

A responsibility center which measures resources in dollars without consideration of service or product costs is called a(n)

Accepted Answer

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

Question 4

A responsibility center which measures performance in terms of the difference between revenues (which measure production) and expenditures (which measure resources) is a(n)

Accepted Answer

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

Question 5

Behavior substitution occurs when

Accepted Answer

A)  a division or functional unit views itself as a separate entity and refuses to cooperate with other divisions or units in order to keep its performance measures at a high level. 
B)  there is a failure to produce at or near full capacity. 
C)  individuals are placed into positions not suited to their abilities. 
D)  individuals focus more of their attention on those aspects which are measurable than on those which are not. 
E)  managers concentrate too much on short-term performance objectives. 
A)  a division or functional unit views itself as a separate entity and refuses to cooperate with other divisions or units in order to keep its performance measures at a high level. 
B)  there is a failure to produce at or near full capacity. 
C)  individuals are placed into positions not suited to their abilities. 
D)  individuals focus more of their attention on those aspects which are measurable than on those which are not. 
E)  managers concentrate too much on short-term performance objectives.

Question 6

A survey of 600 business units found that compensation programs emphasizing bonuses and other incentives were most used in those units emphasizing

Accepted Answer

A)  stability strategies. 
B)  retrenchment strategies. 
C)  cooperative strategies. 
D)  international strategies. 
E)  growth strategies. 
A)  stability strategies. 
B)  retrenchment strategies. 
C)  cooperative strategies. 
D)  international strategies. 
E)  growth strategies.

Question 7

Among the most important barriers to international trade are the different standards for products and services.

Accepted Answer

A) True 
 B)False

Question 8

List the five-step feedback model of the evaluation and control process.

Accepted Answer

The five-step feedback model is composed

Question 9

What is the balanced scorecard? What are the four areas to be addressed?

Accepted Answer

The balanced scorecard combines financia

Question 10

Which method of matching rewards to the accomplishment of strategic objectives encourages executives to look at developmental expenses as being different from those expenses required for current operations?

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

A profit center is typically established whenever an organizational unit has control over both its resources and its products or services.

Accepted Answer

A) True 
 B)False

Question 12

Return on investment (ROI) is the most widely used measure of performance in what responsibility center?

Accepted Answer

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

Question 13

The typical CEO pay package is composed of ________ long-term incentives.

Accepted Answer

A)  16% 
B)  36% 
C)  27% 
D)  21% 
E)  10% 
A)  16% 
B)  36% 
C)  27% 
D)  21% 
E)  10%

Question 14

Behavior, output, and input controls are all interchangeable.

Accepted Answer

A) True 
 B)False

Question 15

A type of responsibility center which is typically established whenever an organizational unit has control over both its resources and its products or services is a(n)

Accepted Answer

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

Question 16

The balanced scorecard approach to evaluation and control assigns to each goal/objective in an area one or more measures that are each essential for achieving a desired strategic option. These measures are called

Accepted Answer

A)  critical success factors. 
B)  strategic factors. 
C)  key performance measures. 
D)  behavioral measures. 
E)  responsibility centers. 
A)  critical success factors. 
B)  strategic factors. 
C)  key performance measures. 
D)  behavioral measures. 
E)  responsibility centers.

Question 17

One advantage of using ROI is that it is a single comprehensive figure that includes all revenues, costs, and expenses.

Accepted Answer

A) True 
 B)False

Question 18

Which type of control specifies how something is to be done through policies, rules, standard operating procedures, and orders from a superior?

Accepted Answer

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

Question 19

The use of timely, quantifiable standards guarantees good performance.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is NOT descriptive of responsibility centers?

Accepted Answer

A)  They are used to the extent that they can isolate specific functional units such as R&D. 
B)  Each responsibility center has its own budget and is evaluated on its use of budgeted resources. 
C)  The responsibility center coordinates all the functional areas and project developments to implement the strategic decision plan. 
D)  The center uses resources to produce a service or a product. 
E)  A responsibility center is headed by the manager responsible for the center's performance. 
A)  They are used to the extent that they can isolate specific functional units such as R&D. 
B)  Each responsibility center has its own budget and is evaluated on its use of budgeted resources. 
C)  The responsibility center coordinates all the functional areas and project developments to implement the strategic decision plan. 
D)  The center uses resources to produce a service or a product. 
E)  A responsibility center is headed by the manager responsible for the center's performance.

A study by Bain & Company revealed what percentage of companies using benchmarking in some manner?

The revenue center is measured in terms of efficiency.

A responsibility center which measures resources in dollars without consideration of service or product costs is called a(n)

A responsibility center which measures performance in terms of the difference between revenues (which measure production) and expenditures (which measure resources) is a(n)

Behavior substitution occurs when

A survey of 600 business units found that compensation programs emphasizing bonuses and other incentives were most used in those units emphasizing

Among the most important barriers to international trade are the different standards for products and services.

List the five-step feedback model of the evaluation and control process.

What is the balanced scorecard? What are the four areas to be addressed?

Which method of matching rewards to the accomplishment of strategic objectives encourages executives to look at developmental expenses as being different from those expenses required for current operations?

A profit center is typically established whenever an organizational unit has control over both its resources and its products or services.

Return on investment (ROI) is the most widely used measure of performance in what responsibility center?

The typical CEO pay package is composed of ________ long-term incentives.

Behavior, output, and input controls are all interchangeable.

A type of responsibility center which is typically established whenever an organizational unit has control over both its resources and its products or services is a(n)

The balanced scorecard approach to evaluation and control assigns to each goal/objective in an area one or more measures that are each essential for achieving a desired strategic option. These measures are called

One advantage of using ROI is that it is a single comprehensive figure that includes all revenues, costs, and expenses.

Which type of control specifies how something is to be done through policies, rules, standard operating procedures, and orders from a superior?

The use of timely, quantifiable standards guarantees good performance.

Which of the following is NOT descriptive of responsibility centers?

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

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Exam 11: Evaluation and Control

A study by Bain & Company revealed what percentage of companies using benchmarking in some manner?

The revenue center is measured in terms of efficiency.

A responsibility center which measures resources in dollars without consideration of service or product costs is called a(n)

A responsibility center which measures performance in terms of the difference between revenues (which measure production) and expenditures (which measure resources) is a(n)

Behavior substitution occurs when

A survey of 600 business units found that compensation programs emphasizing bonuses and other incentives were most used in those units emphasizing

Among the most important barriers to international trade are the different standards for products and services.

List the five-step feedback model of the evaluation and control process.

What is the balanced scorecard? What are the four areas to be addressed?

Which method of matching rewards to the accomplishment of strategic objectives encourages executives to look at developmental expenses as being different from those expenses required for current operations?

A profit center is typically established whenever an organizational unit has control over both its resources and its products or services.

Return on investment (ROI) is the most widely used measure of performance in what responsibility center?

The typical CEO pay package is composed of ________ long-term incentives.

Behavior, output, and input controls are all interchangeable.

A type of responsibility center which is typically established whenever an organizational unit has control over both its resources and its products or services is a(n)

The balanced scorecard approach to evaluation and control assigns to each goal/objective in an area one or more measures that are each essential for achieving a desired strategic option. These measures are called

One advantage of using ROI is that it is a single comprehensive figure that includes all revenues, costs, and expenses.

Which type of control specifies how something is to be done through policies, rules, standard operating procedures, and orders from a superior?

The use of timely, quantifiable standards guarantees good performance.

Which of the following is NOT descriptive of responsibility centers?

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