Question 1

When a hair stylist at a salon asks a customer if she liked their services after a haircut,the hair stylist is engaging in _____ control.

Accepted Answer

A)  feedforward 
B)  steering 
C)  feedback 
D)  concurrent 
E)  throughput 
A)  feedforward 
B)  steering 
C)  feedback 
D)  concurrent 
E)  throughput

Question 2

_____ is a function of the controlling process.

Accepted Answer

A)  Creating structures 
B)  Setting directions 
C)  Measuring performances 
D)  Allocating resources 
E)  Inspiring efforts 
A)  Creating structures 
B)  Setting directions 
C)  Measuring performances 
D)  Allocating resources 
E)  Inspiring efforts

Question 3

Drelex,a jute bag manufacturing company,checks the consistency and quality of all the raw materials before forwarding them to the production department.This is done to ensure that the bags produced are tough and strong.Which of the following types of control is being implemented by the company?

Accepted Answer

A)  Feedback control 
B)  Output control 
C)  Throughput control 
D)  Concurrent control 
E)  Feedforward control 
A)  Feedback control 
B)  Output control 
C)  Throughput control 
D)  Concurrent control 
E)  Feedforward control

Question 4

A shoe manufacturing company produced 300,000 pairs of shoes at the end of a certain month.If the need for action was 150,000 pairs of shoes,calculate the desired performance using the control equation.

Accepted Answer

A)  650,000 
B)  150,000 
C)  250,000 
D)  450,000 
E)  750,000 
A)  650,000 
B)  150,000 
C)  250,000 
D)  450,000 
E)  750,000

Question 5

A bag manufacturing company proposed a selling price of $80 per bag for their new range of bags.Fixed costs are $10,000 and variable costs are $40 per bag.At this point their break even point was 250 units.What will be the breakeven point if the variable costs can be brought down to $30?

Accepted Answer

A)  150 units 
B)  350 units 
C)  300 units 
D)  200 units 
E)  100 units 
A)  150 units 
B)  350 units 
C)  300 units 
D)  200 units 
E)  100 units

Question 6

Antonio has been working very hard since the establishment of his retail business.He is not far from the time when his revenues will match his expenses.Which of the following would best represent the time described?

Accepted Answer

A)  Just-in-time scheduling 
B)  Base period 
C)  Monetary overhang 
D)  Breakeven point 
E)  Buydown 
A)  Just-in-time scheduling 
B)  Base period 
C)  Monetary overhang 
D)  Breakeven point 
E)  Buydown

Question 7

Management by exception is the practice of giving attention to situations that show the greatest need for action.

Accepted Answer

A) True 
 B)False

Question 8

_____ = Current Assets/Current Liabilities

Accepted Answer

A)  Acid Test 
B)  Current Ratio 
C)  Debt Ratio 
D)  Assets Turnover ratio 
E)  Net Current Margin 
A)  Acid Test 
B)  Current Ratio 
C)  Debt Ratio 
D)  Assets Turnover ratio 
E)  Net Current Margin

Question 9

_____ control is also known as preliminary control.

Accepted Answer

A)  Concurrent 
B)  Steering 
C)  Feedback 
D)  Feedforward 
E)  Throughput 
A)  Concurrent 
B)  Steering 
C)  Feedback 
D)  Feedforward 
E)  Throughput

Question 10

Which of the following is true of market control?

Accepted Answer

A)  It is the way business firms use budgets for personnel, equipment, travel expenses, and the like to keep behavior targeted within set limits. 
B)  It is the way business firms emphasize hierarchy and authority. 
C)  It is the way business firms influence employees and members to display common behavior patterns. 
D)  It is the way business firms adjust products, pricing, promotions, and other practices in response to customer feedback and what competitors are doing. 
E)  It is the way business firms harness the power of group cohesiveness and collective identity. 
A)  It is the way business firms use budgets for personnel, equipment, travel expenses, and the like to keep behavior targeted within set limits. 
B)  It is the way business firms emphasize hierarchy and authority. 
C)  It is the way business firms influence employees and members to display common behavior patterns. 
D)  It is the way business firms adjust products, pricing, promotions, and other practices in response to customer feedback and what competitors are doing. 
E)  It is the way business firms harness the power of group cohesiveness and collective identity.

Question 11

Inventory turnover = _____

Accepted Answer

A)  Current Assets - Inventories/Current Liabilities 
B)  Net Income/Total Assets 
C)  Total Debts/Total Inventories 
D)  Net Income/Owner's Equity 
E)  Sales/Average Inventory 
A)  Current Assets - Inventories/Current Liabilities 
B)  Net Income/Total Assets 
C)  Total Debts/Total Inventories 
D)  Net Income/Owner's Equity 
E)  Sales/Average Inventory

Question 12

Calculate the net income if the net margin is 75% and sales is $160,000.

Accepted Answer

A)  $120,000 
B)  $240,000 
C)  $360,000 
D)  $570,000 
E)  $600,000 
A)  $120,000 
B)  $240,000 
C)  $360,000 
D)  $570,000 
E)  $600,000

Question 13

Liquidity differs from leverage in that liquidity is the:

Accepted Answer

A)  ability to operate at minimum cost. 
B)  ability to use resources efficiently. 
C)  ability to generate cash to pay bills. 
D)  ability to earn more in returns than the cost of debt. 
E)  ability to earn revenues greater than costs. 
A)  ability to operate at minimum cost. 
B)  ability to use resources efficiently. 
C)  ability to generate cash to pay bills. 
D)  ability to earn more in returns than the cost of debt. 
E)  ability to earn revenues greater than costs.

Question 14

The goal of concurrent controls is to solve problems as they occur.

Accepted Answer

A) True 
 B)False

Question 15

Rachel,the CEO of Telexon Inc.,finds that her company's current ratio is 1: 3.In this context,which of the following statements is true?

Accepted Answer

A)  The company is performing financially well. 
B)  The company's revenues are equal to their costs. 
C)  The company's leverage is relatively low. 
D)  The company has lesser liquid assets than liabilities. 
E)  The company has high owner's equity. 
A)  The company is performing financially well. 
B)  The company's revenues are equal to their costs. 
C)  The company's leverage is relatively low. 
D)  The company has lesser liquid assets than liabilities. 
E)  The company has high owner's equity.

Question 16

Feedback control takes place to:

Accepted Answer

A)  correct mistakes already made. 
B)  solve problems as they occur. 
C)  focus on activities before they begin. 
D)  ensure the implementation of a proactive approach to problem solving. 
E)  ensure direct supervision during the work process. 
A)  correct mistakes already made. 
B)  solve problems as they occur. 
C)  focus on activities before they begin. 
D)  ensure the implementation of a proactive approach to problem solving. 
E)  ensure direct supervision during the work process.

Question 17

Rex's doughnuts can produce only 100 doughnuts a day.The variable cost incurred per unit is $2 and fixed costs incurred per day is $500.At what price should a doughnut be sold to break even?

Accepted Answer

A)  $10 
B)  $5 
C)  $7 
D)  $4 
E)  $8 
A)  $10 
B)  $5 
C)  $7 
D)  $4 
E)  $8

Question 18

Traxer shoes launches baby shoes at a price of $10 per unit.The fixed costs are $15,000 and variable costs are $5 per unit.What sales volume is required to break even?

Accepted Answer

A)  7500 units 
B)  3000 units 
C)  4000 units 
D)  6500 units 
E)  3500 units 
A)  7500 units 
B)  3000 units 
C)  4000 units 
D)  6500 units 
E)  3500 units

Question 19

_____ controls are largely reactive.

Accepted Answer

A)  Input 
B)  Concurrent 
C)  Steering 
D)  Post-action 
E)  Feedforward 
A)  Input 
B)  Concurrent 
C)  Steering 
D)  Post-action 
E)  Feedforward

Question 20

Which of the following best describes bureaucratic control?

Accepted Answer

A)  It refers to the controls that influence behavior through norms and expectations set by the organizational culture. 
B)  It refers to the influence of market competition on the behavior of organizations and their members. 
C)  It involves the use of authority, policies, procedures, job descriptions, budgets, and day-to-day supervision to make sure that people act in harmony with organizational interests. 
D)  It refers to the control that is implemented when capable people have a clear sense of the organizational mission, know their goals, and have the resources necessary to do their jobs well. 
E)  It refers to the existence of participative organizational cultures in which everyone treats each other with respect and consideration. 
A)  It refers to the controls that influence behavior through norms and expectations set by the organizational culture. 
B)  It refers to the influence of market competition on the behavior of organizations and their members. 
C)  It involves the use of authority, policies, procedures, job descriptions, budgets, and day-to-day supervision to make sure that people act in harmony with organizational interests. 
D)  It refers to the control that is implemented when capable people have a clear sense of the organizational mission, know their goals, and have the resources necessary to do their jobs well. 
E)  It refers to the existence of participative organizational cultures in which everyone treats each other with respect and consideration.

When a hair stylist at a salon asks a customer if she liked their services after a haircut,the hair stylist is engaging in _____ control.

_____ is a function of the controlling process.

Drelex,a jute bag manufacturing company,checks the consistency and quality of all the raw materials before forwarding them to the production department.This is done to ensure that the bags produced are tough and strong.Which of the following types of control is being implemented by the company?

A shoe manufacturing company produced 300,000 pairs of shoes at the end of a certain month.If the need for action was 150,000 pairs of shoes,calculate the desired performance using the control equation.

A bag manufacturing company proposed a selling price of $80 per bag for their new range of bags.Fixed costs are $10,000 and variable costs are $40 per bag.At this point their break even point was 250 units.What will be the breakeven point if the variable costs can be brought down to $30?

Antonio has been working very hard since the establishment of his retail business.He is not far from the time when his revenues will match his expenses.Which of the following would best represent the time described?

Management by exception is the practice of giving attention to situations that show the greatest need for action.

_____ = Current Assets/Current Liabilities

_____ control is also known as preliminary control.

Which of the following is true of market control?

Inventory turnover = _____

Calculate the net income if the net margin is 75% and sales is $160,000.

Liquidity differs from leverage in that liquidity is the:

The goal of concurrent controls is to solve problems as they occur.

Rachel,the CEO of Telexon Inc.,finds that her company's current ratio is 1: 3.In this context,which of the following statements is true?

Feedback control takes place to:

Rex's doughnuts can produce only 100 doughnuts a day.The variable cost incurred per unit is $2 and fixed costs incurred per day is $500.At what price should a doughnut be sold to break even?

Traxer shoes launches baby shoes at a price of $10 per unit.The fixed costs are $15,000 and variable costs are $5 per unit.What sales volume is required to break even?

_____ controls are largely reactive.

Which of the following best describes bureaucratic control?

Introducing Management

Management Learning Past to Present

Ethics and Social Responsibility

Environment, innovation, and Sustainability

Global Management and Cultural Diversity

Entrepreneurship and New Ventures

Information and Decision Making

Planning Processes and Techniques

Strategy and Strategic Management

Organization Structures and Design

Organization Culture and Change

Human Resource Management

Leading and Leadership Development

Individual Behavior

Motivation Theory and Practice

Teams and Teamwork

Communication and Collaboration

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Exam 9: Control Processes and Systems

When a hair stylist at a salon asks a customer if she liked their services after a haircut,the hair stylist is engaging in _____ control.

_____ is a function of the controlling process.

Drelex,a jute bag manufacturing company,checks the consistency and quality of all the raw materials before forwarding them to the production department.This is done to ensure that the bags produced are tough and strong.Which of the following types of control is being implemented by the company?

A shoe manufacturing company produced 300,000 pairs of shoes at the end of a certain month.If the need for action was 150,000 pairs of shoes,calculate the desired performance using the control equation.

A bag manufacturing company proposed a selling price of $80 per bag for their new range of bags.Fixed costs are $10,000 and variable costs are $40 per bag.At this point their break even point was 250 units.What will be the breakeven point if the variable costs can be brought down to $30?

Antonio has been working very hard since the establishment of his retail business.He is not far from the time when his revenues will match his expenses.Which of the following would best represent the time described?

Management by exception is the practice of giving attention to situations that show the greatest need for action.

_____ = Current Assets/Current Liabilities

_____ control is also known as preliminary control.

Which of the following is true of market control?

Inventory turnover = _____

Calculate the net income if the net margin is 75% and sales is $160,000.

Liquidity differs from leverage in that liquidity is the:

The goal of concurrent controls is to solve problems as they occur.

Rachel,the CEO of Telexon Inc.,finds that her company's current ratio is 1: 3.In this context,which of the following statements is true?

Feedback control takes place to:

Rex's doughnuts can produce only 100 doughnuts a day.The variable cost incurred per unit is $2 and fixed costs incurred per day is $500.At what price should a doughnut be sold to break even?

Traxer shoes launches baby shoes at a price of $10 per unit.The fixed costs are $15,000 and variable costs are $5 per unit.What sales volume is required to break even?

_____ controls are largely reactive.

Which of the following best describes bureaucratic control?

Introducing Management

Management Learning Past to Present

Ethics and Social Responsibility

Environment, innovation, and Sustainability

Global Management and Cultural Diversity

Entrepreneurship and New Ventures

Information and Decision Making

Planning Processes and Techniques

Strategy and Strategic Management

Organization Structures and Design

Organization Culture and Change

Human Resource Management

Leading and Leadership Development

Individual Behavior

Motivation Theory and Practice

Teams and Teamwork

Communication and Collaboration

Filters