Question 1

The continual process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders is

Accepted Answer

A) total quality management. 
B) benchmarking. 
C) action planning. 
D) reengineering. 
E) management by objectives. 
A) total quality management. 
B) benchmarking. 
C) action planning. 
D) reengineering. 
E) management by objectives.

Question 2

Which method of matching executive rewards to the accomplishment of strategic objectives is particularly appropriate for measuring and rewarding the performance of top SBU managers and group-level executives when performance factors and their importance vary from one SBU to another?

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 3

The long-term evaluation method encourages executives to look at developmental expenses as being different from expenses required for current operations.

Accepted Answer

A) True 
 B)False

Question 4

The ISO 9000 Standards Series is one example of

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 5

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 6

Which of the following is a way in which managers can improve their company's or business unit's EVA?

Accepted Answer

A) earning more profit without using more capital 
B) using more capital 
C) investing capital in multiple low-return projects 
D) extending their line of credit 
E) all of the above 
A) earning more profit without using more capital 
B) using more capital 
C) investing capital in multiple low-return projects 
D) extending their line of credit 
E) all of the above

Question 7

ISO 2000 Standards Series, developed by the International Standards Association of Geneva, Switzerland, is an example of a behavior control.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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

Question 9

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

Question 10

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(an)

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 11

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 12

EVA will never replace ROI as the standard performance measure.

Accepted Answer

A) True 
 B)False

Question 13

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 14

A limitation of ROI as a measure of performance is that

Accepted Answer

A) it is a single comprehensive figure examining only one facet of the firm. 
B) it provides disincentive to use existing assets efficiently. 
C) it provides a disincentive to acquire new assets. 
D) it is very sensitive to depreciation policy. 
E) it does not provide the basis for common comparison. 
A) it is a single comprehensive figure examining only one facet of the firm. 
B) it provides disincentive to use existing assets efficiently. 
C) it provides a disincentive to acquire new assets. 
D) it is very sensitive to depreciation policy. 
E) it does not provide the basis for common comparison.

Question 15

________ is a corporate-wide, integrated process to manage the uncertainties that could negatively or positively influence the achievement of the corporation's objectives.

Accepted Answer

A) ISO 14000 Series 
B) Input controls 
C) Activity-based costing 
D) Enterprise Risk Management 
E) Market Value Added 
A) ISO 14000 Series 
B) Input controls 
C) Activity-based costing 
D) Enterprise Risk Management 
E) Market Value Added

Question 16

Which one of the following is NOT a part of the evaluation and control of performance?

Accepted Answer

A) Establish corporate strategies. 
B) Determine what to measure. 
C) Establish standards for performance. 
D) Measure actual performance. 
E) Take corrective actions. 
A) Establish corporate strategies. 
B) Determine what to measure. 
C) Establish standards for performance. 
D) Measure actual performance. 
E) Take corrective actions.

Question 17

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 18

All of the following are examples of behavior controls EXCEPT

Accepted Answer

A) following company procedures. 
B) making sales calls to potential customers. 
C) getting to work on time. 
D) following up on sales calls with current customers. 
E) Sales quotas. 
A) following company procedures. 
B) making sales calls to potential customers. 
C) getting to work on time. 
D) following up on sales calls with current customers. 
E) Sales quotas.

Question 19

One of the key reasons for the success of Wal-Mart has been management's use of the company's sophisticated information system to control purchasing decisions.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is NOT one of the areas in which goals or objectives should be developed for use in the balanced scorecard approach?

Accepted Answer

A) customer 
B) innovation and learning 
C) financial 
D) stakeholder 
E) internal business perspective 
A) customer 
B) innovation and learning 
C) financial 
D) stakeholder 
E) internal business perspective

The continual process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders is

Which method of matching executive rewards to the accomplishment of strategic objectives is particularly appropriate for measuring and rewarding the performance of top SBU managers and group-level executives when performance factors and their importance vary from one SBU to another?

The long-term evaluation method encourages executives to look at developmental expenses as being different from expenses required for current operations.

The ISO 9000 Standards Series is one example of

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

Which of the following is a way in which managers can improve their company's or business unit's EVA?

ISO 2000 Standards Series, developed by the International Standards Association of Geneva, Switzerland, is an example of a behavior control.

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

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

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(an)

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?

EVA will never replace ROI as the standard performance measure.

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

A limitation of ROI as a measure of performance is that

________ is a corporate-wide, integrated process to manage the uncertainties that could negatively or positively influence the achievement of the corporation's objectives.

Which one of the following is NOT a part of the evaluation and control of performance?

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

All of the following are examples of behavior controls EXCEPT

One of the key reasons for the success of Wal-Mart has been management's use of the company's sophisticated information system to control purchasing decisions.

Which of the following is NOT one of the areas in which goals or objectives should be developed for use in the balanced scorecard approach?

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 continual process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders is

Which method of matching executive rewards to the accomplishment of strategic objectives is particularly appropriate for measuring and rewarding the performance of top SBU managers and group-level executives when performance factors and their importance vary from one SBU to another?

The long-term evaluation method encourages executives to look at developmental expenses as being different from expenses required for current operations.

The ISO 9000 Standards Series is one example of

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

Which of the following is a way in which managers can improve their company's or business unit's EVA?

ISO 2000 Standards Series, developed by the International Standards Association of Geneva, Switzerland, is an example of a behavior control.

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

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

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(an)

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?

EVA will never replace ROI as the standard performance measure.

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

A limitation of ROI as a measure of performance is that

________ is a corporate-wide, integrated process to manage the uncertainties that could negatively or positively influence the achievement of the corporation's objectives.

Which one of the following is NOT a part of the evaluation and control of performance?

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

All of the following are examples of behavior controls EXCEPT

One of the key reasons for the success of Wal-Mart has been management's use of the company's sophisticated information system to control purchasing decisions.

Which of the following is NOT one of the areas in which goals or objectives should be developed for use in the balanced scorecard approach?

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