Question 1

The accounting system used to assess the specific cost components of producing a product or service is known as

Accepted Answer

A)  economic value added. 
B)  return on equity. 
C)  activity-based costing. 
D)  economies of scale. 
A)  economic value added. 
B)  return on equity. 
C)  activity-based costing. 
D)  economies of scale.

Question 2

Budgeting involves allocating financial resources and measuring expected quantitative and qualitative outcomes of a firm.

Accepted Answer

A) True 
 B)False

Question 3

Downing Company is studying the costs required to attract new customers compared to the lifetime profitability of certain types of customers before it decides which new customers to target. Downing is focused on which of the various customer metrics?

Accepted Answer

A)  Customer retention 
B)  New customer acquisition 
C)  Customer profitability 
D)  Market share 
A)  Customer retention 
B)  New customer acquisition 
C)  Customer profitability 
D)  Market share

Question 4

The following selected data come from Celebration Company's balance sheets over three recent years. Based on the data, what is Celebration's debt ratio for each of the three years, and do the ratios show deterioration or improvement in Celebration's leverage? Assume that the industry average is 0.30 or 30%.

Accepted Answer

A)  2.12; 2.17; 2.22; strong but deteriorating slightly 
B)  0.39; 0.40; 0.41; weak but improving slightly 
C)  2.56; 2.53; 2.46; strong and improving slightly 
D)  0.47; 0.46; 0.45; weak and deteriorating slightly 
A)  2.12; 2.17; 2.22; strong but deteriorating slightly 
B)  0.39; 0.40; 0.41; weak but improving slightly 
C)  2.56; 2.53; 2.46; strong and improving slightly 
D)  0.47; 0.46; 0.45; weak and deteriorating slightly

Question 5

The following selected data come from Celebration Company's balance sheets over three recent years. Based on the data, what is Celebration's current ratio for each of the three years, and do the ratios show deterioration or improvement in Celebration's liquidity?

Accepted Answer

A)  2.12; 2.17; 2.22; strong but deteriorating slightly 
B)  0.39; 0.40; 0.41; weak but improving slightly 
C)  2.56; 2.53; 2.46; strong and improving slightly 
D)  0.47; 0.45; 0.43; weak and deteriorating slightly 
A)  2.12; 2.17; 2.22; strong but deteriorating slightly 
B)  0.39; 0.40; 0.41; weak but improving slightly 
C)  2.56; 2.53; 2.46; strong and improving slightly 
D)  0.47; 0.45; 0.43; weak and deteriorating slightly

Question 6

_____ is a quantitative approach that uses a method known as DMAIC, which stands for define, measure, analyze, improve, and control.

Accepted Answer

A)  Benchmarking 
B)  Six Sigma 
C)  Budgeting 
D)  Total Quality Management 
A)  Benchmarking 
B)  Six Sigma 
C)  Budgeting 
D)  Total Quality Management

Question 7

Describe the two primary areas in which leaders take corrective action.

Accepted Answer

Leaders generally take corrective action

Question 8

For the balanced scorecard to be valuable, measurements from the customer perspective must link directly to financial results or strategic goals.

Accepted Answer

A) True 
 B)False

Question 9

Explain the four key activities of the control cycle.

Accepted Answer

The control cycle includes four key acti

Question 10

DePaul Company has been monitoring the performance of its processes against selected measures. What is DePaul's next step in the control cycle?

Accepted Answer

A)  Identify measures that track the right information to assess performance. 
B)  Set targets for the selected measures. 
C)  Take corrective action. 
D)  Set up a balanced scorecard. 
A)  Identify measures that track the right information to assess performance. 
B)  Set targets for the selected measures. 
C)  Take corrective action. 
D)  Set up a balanced scorecard.

Question 11

The _____ was created to help businesses translate strategy into action by identifying the most critical measures to drive business success and linking long-term strategic goals with short-term operational actions.

Accepted Answer

A)  ISO 9000 program 
B)  strategic review process 
C)  balanced  scorecard 
D)  value chain analysis 
A)  ISO 9000 program 
B)  strategic review process 
C)  balanced  scorecard 
D)  value chain analysis

Question 12

The _____ perspective identifies the infrastructure and skills needed to carry out business processes, interact with customers, and achieve long-term financial growth.

Accepted Answer

A)  customer 
B)  learning and growth 
C)  financial 
D)  business process 
A)  customer 
B)  learning and growth 
C)  financial 
D)  business process

Question 13

Because GE operates in many businesses, ranging from aircraft engines to healthcare imaging, GE would

Accepted Answer

A)  not be able to use the balanced scorecard. 
B)  have to adopt a common strategy for all businesses to be able to use the balanced scorecard. 
C)  need to create a unique balanced scorecard for each of its business units. 
D)  have to choose one business unit with which it could use the balanced scorecard. 
A)  not be able to use the balanced scorecard. 
B)  have to adopt a common strategy for all businesses to be able to use the balanced scorecard. 
C)  need to create a unique balanced scorecard for each of its business units. 
D)  have to choose one business unit with which it could use the balanced scorecard.

Question 14

Which of the following is the first step involved in benchmarking?

Accepted Answer

A)  Harvesting and analyzing data 
B)  Finding the best companies for each process 
C)  Identifying the processes to benchmark 
D)  Creating plans for improvement 
A)  Harvesting and analyzing data 
B)  Finding the best companies for each process 
C)  Identifying the processes to benchmark 
D)  Creating plans for improvement

Question 15

Which of the following statements is true about the various customer metrics?

Accepted Answer

A)  The new customer metric is measured by the total number of positive feedbacks received from new and existing customers. 
B)  Some companies find it valuable to monitor the amount customers spend on their products relative to all other products. 
C)  Retaining existing customers to maintain or increase market share is not an easy task. 
D)  Customer satisfaction is one of the metrics that is the most objective and quantitative. 
A)  The new customer metric is measured by the total number of positive feedbacks received from new and existing customers. 
B)  Some companies find it valuable to monitor the amount customers spend on their products relative to all other products. 
C)  Retaining existing customers to maintain or increase market share is not an easy task. 
D)  Customer satisfaction is one of the metrics that is the most objective and quantitative.

Question 16

One of the more important measurements of TQM is _____, defined as the amount of time required to develop and deliver products and services to the customer.

Accepted Answer

A)  total cycle time 
B)  benchmarking 
C)  Six Sigma 
D)  leverage 
A)  total cycle time 
B)  benchmarking 
C)  Six Sigma 
D)  leverage

Question 17

Cardinal Company is using cost of goods sold as a measurement of performance, which will be placed under which perspective of the balanced scorecard?

Accepted Answer

A)  Financial perspective 
B)  Customer perspective 
C)  Business process perspective 
D)  Learning and growth perspective 
A)  Financial perspective 
B)  Customer perspective 
C)  Business process perspective 
D)  Learning and growth perspective

Question 18

In business, only two things can be observed, measured, and monitored:

Accepted Answer

A)  suppliers and customers. 
B)  behavior and outputs. 
C)  resources and growth. 
D)  employee satisfaction and loyalty. 
A)  suppliers and customers. 
B)  behavior and outputs. 
C)  resources and growth. 
D)  employee satisfaction and loyalty.

Question 19

When Dharmesh Shah, the chief technology officer (CTO) of HubSpot.com, traded jobs with Paul English, the CTO of Kayak.com, he was

Accepted Answer

A)  implementing the internal business perspective of the balanced scorecard. 
B)  using job swap as a means of benchmarking. 
C)  using job swap as a means of budgeting. 
D)  using job swap as a means of implementing Six Sigma. 
A)  implementing the internal business perspective of the balanced scorecard. 
B)  using job swap as a means of benchmarking. 
C)  using job swap as a means of budgeting. 
D)  using job swap as a means of implementing Six Sigma.

Question 20

Rowling Company is monitoring the amount customers spend on its products relative to all other products. Rowling is focused on which of the various customer metrics?

Accepted Answer

A)  Market share 
B)  Customer retention 
C)  Customer profitability 
D)  Account share 
A)  Market share 
B)  Customer retention 
C)  Customer profitability 
D)  Account share

The accounting system used to assess the specific cost components of producing a product or service is known as

Budgeting involves allocating financial resources and measuring expected quantitative and qualitative outcomes of a firm.

Downing Company is studying the costs required to attract new customers compared to the lifetime profitability of certain types of customers before it decides which new customers to target. Downing is focused on which of the various customer metrics?

The following selected data come from Celebration Company's balance sheets over three recent years. Based on the data, what is Celebration's current ratio for each of the three years, and do the ratios show deterioration or improvement in Celebration's liquidity?

_____ is a quantitative approach that uses a method known as DMAIC, which stands for define, measure, analyze, improve, and control.

Describe the two primary areas in which leaders take corrective action.

For the balanced scorecard to be valuable, measurements from the customer perspective must link directly to financial results or strategic goals.

Explain the four key activities of the control cycle.

DePaul Company has been monitoring the performance of its processes against selected measures. What is DePaul's next step in the control cycle?

The _____ was created to help businesses translate strategy into action by identifying the most critical measures to drive business success and linking long-term strategic goals with short-term operational actions.

The _____ perspective identifies the infrastructure and skills needed to carry out business processes, interact with customers, and achieve long-term financial growth.

Because GE operates in many businesses, ranging from aircraft engines to healthcare imaging, GE would

Which of the following is the first step involved in benchmarking?

Which of the following statements is true about the various customer metrics?

One of the more important measurements of TQM is _____, defined as the amount of time required to develop and deliver products and services to the customer.

Cardinal Company is using cost of goods sold as a measurement of performance, which will be placed under which perspective of the balanced scorecard?

In business, only two things can be observed, measured, and monitored:

When Dharmesh Shah, the chief technology officer (CTO) of HubSpot.com, traded jobs with Paul English, the CTO of Kayak.com, he was

Rowling Company is monitoring the amount customers spend on its products relative to all other products. Rowling is focused on which of the various customer metrics?

Introduction to Management

The Global Business Environment

Ethics and Corporate Social Responsibility

Introduction to Strategy

Business-Level Strategy

Corporate-Level Strategy

Organizational Design

Organizational Culture

Managing Human Capital

Organizational Change

Leadership in Organizations

Becoming a Leader: Knowing Yourself

Power and Influence

Decision Making

Conflict and Negotiation

Leading Teams

Motivation

Communication

Networking

Filters

Exam 10: Performance Management

The accounting system used to assess the specific cost components of producing a product or service is known as

Budgeting involves allocating financial resources and measuring expected quantitative and qualitative outcomes of a firm.

Downing Company is studying the costs required to attract new customers compared to the lifetime profitability of certain types of customers before it decides which new customers to target. Downing is focused on which of the various customer metrics?

The following selected data come from Celebration Company's balance sheets over three recent years. Based on the data, what is Celebration's current ratio for each of the three years, and do the ratios show deterioration or improvement in Celebration's liquidity?

_____ is a quantitative approach that uses a method known as DMAIC, which stands for define, measure, analyze, improve, and control.

Describe the two primary areas in which leaders take corrective action.

For the balanced scorecard to be valuable, measurements from the customer perspective must link directly to financial results or strategic goals.

Explain the four key activities of the control cycle.

DePaul Company has been monitoring the performance of its processes against selected measures. What is DePaul's next step in the control cycle?

The _____ was created to help businesses translate strategy into action by identifying the most critical measures to drive business success and linking long-term strategic goals with short-term operational actions.

The _____ perspective identifies the infrastructure and skills needed to carry out business processes, interact with customers, and achieve long-term financial growth.

Because GE operates in many businesses, ranging from aircraft engines to healthcare imaging, GE would

Which of the following is the first step involved in benchmarking?

Which of the following statements is true about the various customer metrics?

One of the more important measurements of TQM is _____, defined as the amount of time required to develop and deliver products and services to the customer.

Cardinal Company is using cost of goods sold as a measurement of performance, which will be placed under which perspective of the balanced scorecard?

In business, only two things can be observed, measured, and monitored:

When Dharmesh Shah, the chief technology officer (CTO) of HubSpot.com, traded jobs with Paul English, the CTO of Kayak.com, he was

Rowling Company is monitoring the amount customers spend on its products relative to all other products. Rowling is focused on which of the various customer metrics?

Introduction to Management

The Global Business Environment

Ethics and Corporate Social Responsibility

Introduction to Strategy

Business-Level Strategy

Corporate-Level Strategy

Organizational Design

Organizational Culture

Managing Human Capital

Organizational Change

Leadership in Organizations

Becoming a Leader: Knowing Yourself

Power and Influence

Decision Making

Conflict and Negotiation

Leading Teams

Motivation

Communication

Networking

Filters