Exam 13: Fundamentals of Controlling

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When a supervisor discovers a deviation from the standard, he/she should next find out who is at fault.

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In order for an organization to thrive, all of the following is necessary EXCEPT:

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Oral and written reports are necessary when:

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LaToya creates computerized Gantt and PERT charts to route and schedule operations and to keep overall operations on schedule. This demonstrates which level of specialized control?

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Employees always view controls positively because they know it will enhance the planning process.

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Without spot checking, supervisors have no control mechanisms to monitor performance.

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Since it is impossible for supervisors to check every item in production, they must:

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Standards may be defined as specific criteria against which to evaluate results.

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The extent of involvement that a supervisor has with a budget is to simply ensure performance expectations are met within the contraints of a budget.

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Albert's manufacturing company produces over 1,000 units daily. When reviewing products for defects, he randomly inspects about 10 percent of the items actually produced. This example demonstrates which of the following?

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When allowing an employee to work on an assignment without close supervision, the supervisor should leave the employee completely alone until it is time to view the final results.

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The word control often elicits negative reactions.

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Time standards are absolute and beyond dispute since they are bound by an objective, fixed measurement: the hands of the clock.

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Describe the three types of specialized controls, and for what they are used.

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Cost and revenue data are usually reported to the supervisor by his or her subordinate employees in the department.

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Historical data does not provide much value when budgeting for the future.

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The exception principle is the concept that supervisors should concentrate their investigations on activities that deviate substantially from standards.

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In a motion study, engineers analyze how a job is performed to identify ways to improve, eliminate, change, or combine steps to make the job easier and faster.

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What is an advantage and disadvantage of zero-base budgeting?

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Companies often give cost-cutting orders as a result of competition from other businesses.

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