Exam 13: Fundamentals of Controlling

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Most annual budgets are projections for the following year based on the previous year's budget.

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Time studies are supposed to be:

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Inventory control means maintaining quality standards for products and services.

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What costs does the operating budget project? Provide examples.

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Feedback controls are the most widely used category of controls at the supervisory level.

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Ron is establishing a preventative maintenance program at his work where machines are serviced on a regular schedule to prevent breakdowns in the future. This is an example of which time factor control mechanism?

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When top management issues an order to cut costs across the board, supervisors should stop buying supplies and eliminate preventive maintenance programs.

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At Best Facilities Inc., industrial engineers were brought to the assembly line to observe production and to identify ways to improve, eliminate, change, or combine steps to make the job easier and faster. This is an example of what type of study?

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For control mechanisms to work effectively, they need to be understandable, timely, suitable, economical, indicational, and flexible.

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While reviewing quality control reports, Jasper looks most closely at performance areas that are significantly higher or lower than what is normally reported. This example demonstrates use of

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Examples of feedback control include measurement of the quality and quantity of units produced.

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What is managerial control?

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Which of the following is NOT a characteristic that a supervisor looks for when choosing one standard over another as a strategic control point?

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If effective feedforward controls have been implemented, there is no need for concurrent controls.

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Supervisors who play a key role in cost reduction usually do so with the help of their employees.

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Feedback controls are essentially useless because they're providing feedback too late, when the acts have already taken place.

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A firm should never be willing to share financial information with employees.

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What are some characteristics of effective controls?

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If controls are confusing, the supervisor should devise new controls that meet the departmental needs and are understandable to everyone who uses them.

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If a cost-cutting order comes down from top management, the supervisor's best response is to:

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