Question 1

ISO 9000 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 2

Transferring profits from a foreign subsidiary to the parent corporation through dividends, royalties, or management fees is called

Accepted Answer

A)  technology transfer. 
B)  activity-based costing. 
C)  transfer pricing. 
D)  repatriation of profits. 
E)  transnational funding. 
A)  technology transfer. 
B)  activity-based costing. 
C)  transfer pricing. 
D)  repatriation of profits. 
E)  transnational funding.

Question 3

A responsibility center which measures resources in dollars without consideration of service or product costs is called a(n)

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 4

The comparison of the expected cost of production against the actual cost of production typically occurs in the

Accepted Answer

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

Question 5

Distinguish between behavior and output controls.Provide examples of each.

Accepted Answer

Behavior controls specify how something

Question 6

Controls which measure variables that influence future profitability are called

Accepted Answer

A)  steering controls. 
B)  activity controls. 
C)  behavior controls. 
D)  output controls. 
E)  influencing controls. 
A)  steering controls. 
B)  activity controls. 
C)  behavior controls. 
D)  output controls. 
E)  influencing controls.

Question 7

The end result of activity is known as

Accepted Answer

A)  measurement. 
B)  gratuity. 
C)  performance. 
D)  return on equity. 
E)  achievement. 
A)  measurement. 
B)  gratuity. 
C)  performance. 
D)  return on equity. 
E)  achievement.

Question 8

The present value of the anticipated future stream of cash flows from the business plus the value of the company if liquidated is referred to as

Accepted Answer

A)  return on assets. 
B)  ROVA. 
C)  earnings per share. 
D)  shareholder value. 
E)  ROI. 
A)  return on assets. 
B)  ROVA. 
C)  earnings per share. 
D)  shareholder value. 
E)  ROI.

Question 9

Behavior substitution occurs when

Accepted Answer

A)  a division or functional unit views itself as a separate entity and refuses to cooperate with other divisions or units in order to keep its performance measures at a high level. 
B)  there is a failure to produce at or near full capacity. 
C)  individuals are placed into positions not suited to their abilities. 
D)  individuals focus more of their attention on those aspects which are measurable than on those which are not. 
E)  managers concentrate too much on short-term performance objectives. 
A)  a division or functional unit views itself as a separate entity and refuses to cooperate with other divisions or units in order to keep its performance measures at a high level. 
B)  there is a failure to produce at or near full capacity. 
C)  individuals are placed into positions not suited to their abilities. 
D)  individuals focus more of their attention on those aspects which are measurable than on those which are not. 
E)  managers concentrate too much on short-term performance objectives.

Question 10

The multi-domestic MNC and the global MNC should use loose controls on its foreign units.

Accepted Answer

A) True 
 B)False

Question 11

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 12

If marketing attains its goal at the expense of rising production costs for the manufacturing department, the end result of marketing's achievements and manufacturing's cost increases reflects

Accepted Answer

A)  behavior substitution. 
B)  suboptimization. 
C)  resource allocation. 
D)  resource optimization. 
E)  strategy optimization. 
A)  behavior substitution. 
B)  suboptimization. 
C)  resource allocation. 
D)  resource optimization. 
E)  strategy optimization.

Question 13

One approach to better match executive rewards to the accomplishment of strategic objectives is

Accepted Answer

A)  return on investment. 
B)  year-end bonuses. 
C)  zero base budgeting. 
D)  weighted-factor method. 
E)  return on assets. 
A)  return on investment. 
B)  year-end bonuses. 
C)  zero base budgeting. 
D)  weighted-factor method. 
E)  return on assets.

Question 14

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 15

Evaluation and control information consists only of performance data.

Accepted Answer

A) True 
 B)False

Question 16

A global MNC should use what type of controls over its foreign units?

Accepted Answer

A)  Management should be given considerable latitude, but be required to meet some predetermined performance targets. 
B)  Management should use a matrix structure allowing some limited autonomy of the foreign unit. 
C)  Management needs to exert tight controls over its many units using a centralized strategic operational decision-making format. 
D)  Management should use a functional approach assigning distinct and separate responsibilities to each department throughout the MNC. 
E)  Management should use a divisional approach assigning goals and targets for each product-group on all its foreign units collectively. 
A)  Management should be given considerable latitude, but be required to meet some predetermined performance targets. 
B)  Management should use a matrix structure allowing some limited autonomy of the foreign unit. 
C)  Management needs to exert tight controls over its many units using a centralized strategic operational decision-making format. 
D)  Management should use a functional approach assigning distinct and separate responsibilities to each department throughout the MNC. 
E)  Management should use a divisional approach assigning goals and targets for each product-group on all its foreign units collectively.

Question 17

According to the 80/20 rule, companies should monitor the 20% of the factors that determine 80% of the results.

Accepted Answer

A) True 
 B)False

Question 18

Corporations will emphasize all types of controls (output, input, and behavior)when they are following a strategy of

Accepted Answer

A)  conglomerate diversification. 
B)  concentric diversification. 
C)  retrenchment. 
D)  divestment. 
E)  vertical integration. 
A)  conglomerate diversification. 
B)  concentric diversification. 
C)  retrenchment. 
D)  divestment. 
E)  vertical integration.

Question 19

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 20

What responsibility center is judged for effectiveness rather than efficiency?

Accepted Answer

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

ISO 9000 Standards Series, developed by the International Standards Association of Geneva, Switzerland, is an example of a behavior control.

Transferring profits from a foreign subsidiary to the parent corporation through dividends, royalties, or management fees is called

A responsibility center which measures resources in dollars without consideration of service or product costs is called a(n)

The comparison of the expected cost of production against the actual cost of production typically occurs in the

Distinguish between behavior and output controls.Provide examples of each.

Controls which measure variables that influence future profitability are called

The end result of activity is known as

The present value of the anticipated future stream of cash flows from the business plus the value of the company if liquidated is referred to as

Behavior substitution occurs when

The multi-domestic MNC and the global MNC should use loose controls on its foreign units.

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

If marketing attains its goal at the expense of rising production costs for the manufacturing department, the end result of marketing's achievements and manufacturing's cost increases reflects

One approach to better match executive rewards to the accomplishment of strategic objectives is

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

Evaluation and control information consists only of performance data.

A global MNC should use what type of controls over its foreign units?

According to the 80/20 rule, companies should monitor the 20% of the factors that determine 80% of the results.

Corporations will emphasize all types of controls (output, input, and behavior)when they are following a strategy of

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

What responsibility center is judged for effectiveness rather than efficiency?

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

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Exam 11: Evaluation and Control

ISO 9000 Standards Series, developed by the International Standards Association of Geneva, Switzerland, is an example of a behavior control.

Transferring profits from a foreign subsidiary to the parent corporation through dividends, royalties, or management fees is called

A responsibility center which measures resources in dollars without consideration of service or product costs is called a(n)

The comparison of the expected cost of production against the actual cost of production typically occurs in the

Distinguish between behavior and output controls.Provide examples of each.

Controls which measure variables that influence future profitability are called

The end result of activity is known as

The present value of the anticipated future stream of cash flows from the business plus the value of the company if liquidated is referred to as

Behavior substitution occurs when

The multi-domestic MNC and the global MNC should use loose controls on its foreign units.

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

If marketing attains its goal at the expense of rising production costs for the manufacturing department, the end result of marketing's achievements and manufacturing's cost increases reflects

One approach to better match executive rewards to the accomplishment of strategic objectives is

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

Evaluation and control information consists only of performance data.

A global MNC should use what type of controls over its foreign units?

According to the 80/20 rule, companies should monitor the 20% of the factors that determine 80% of the results.

Corporations will emphasize all types of controls (output, input, and behavior)when they are following a strategy of

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

What responsibility center is judged for effectiveness rather than efficiency?

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