Question 1

According to the text, using a long-term performance evaluation system, a company executive might be promised incentives such as

Accepted Answer

A)  company cars. 
B)  company stock. 
C)  health insurance. 
D)  retirement plans. 
E)  vacations. 
A)  company cars. 
B)  company stock. 
C)  health insurance. 
D)  retirement plans. 
E)  vacations.

Question 2

Which of the following is NOT one of the areas in which goals or objectives should be developed for use in the balanced scorecard approach?

Accepted Answer

A)  customer 
B)  innovation and learning 
C)  financial 
D)  stakeholder 
E)  internal business perspective 
A)  customer 
B)  innovation and learning 
C)  financial 
D)  stakeholder 
E)  internal business perspective

Question 3

All of the following are examples of output controls EXCEPT

Accepted Answer

A)  sales quotas. 
B)  specific cost reduction objectives. 
C)  profit objectives. 
D)  getting to work on time. 
E)  surveys of customer satisfaction. 
A)  sales quotas. 
B)  specific cost reduction objectives. 
C)  profit objectives. 
D)  getting to work on time. 
E)  surveys of customer satisfaction.

Question 4

An advantage of ROI as a measure of performance is that

Accepted Answer

A)  it is sensitive to book value. 
B)  it provides an incentive to use existing assets efficiently. 
C)  the time span of concern is short range. 
D)  the business cycle strongly affects ROI performance often despite managerial performance. 
E)  it is very sensitive to depreciation policy. 
A)  it is sensitive to book value. 
B)  it provides an incentive to use existing assets efficiently. 
C)  the time span of concern is short range. 
D)  the business cycle strongly affects ROI performance often despite managerial performance. 
E)  it is very sensitive to depreciation policy.

Question 5

The evaluation and control process ensures that the company is achieving what it set out to accomplish.

Accepted Answer

A) True 
 B)False

Question 6

A responsibility center which measures performance in terms of the difference between revenues (which measure production)and expenditures (which measure resources)is 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 7

The German company SAP AG originated the concept of ERP with its

Accepted Answer

A)  activity-based costing. 
B)  transfer pricing. 
C)  spreadsheet software. 
D)  R/3 software system. 
E)  transnational software integrator. 
A)  activity-based costing. 
B)  transfer pricing. 
C)  spreadsheet software. 
D)  R/3 software system. 
E)  transnational software integrator.

Question 8

Benchmarking involves openly learning how others do something better than one's own company so that one not only can imitate, but perhaps even improve on their current techniques.

Accepted Answer

A) True 
 B)False

Question 9

Activity-based costing is a method of accounting which is very useful in making outsourcing decisions by doing

Accepted Answer

A)  total quality management. 
B)  value-chain analysis. 
C)  reengineering. 
D)  MBO. 
E)  benchmarking. 
A)  total quality management. 
B)  value-chain analysis. 
C)  reengineering. 
D)  MBO. 
E)  benchmarking.

Question 10

The use of timely, quantifiable standards guarantees good performance.

Accepted Answer

A) True 
 B)False

Question 11

Performance is the end result of activity.

Accepted Answer

A) True 
 B)False

Question 12

A survey of 600 business units found that compensation programs emphasizing bonuses and other incentives were most used in those units emphasizing

Accepted Answer

A)  stability strategies. 
B)  retrenchment strategies. 
C)  cooperative strategies. 
D)  international strategies. 
E)  growth strategies. 
A)  stability strategies. 
B)  retrenchment strategies. 
C)  cooperative strategies. 
D)  international strategies. 
E)  growth strategies.

Question 13

Which company experienced a tarnished reputation and scandal after experiencing behavior substitution when employees altered their behavior on the job to fit the reward system?

Accepted Answer

A)  Sears, Roebuck, & Co. 
B)  J.C. Penney 
C)  Neiman Marcus 
D)  Saks 
E)  Macy's 
A)  Sears, Roebuck, & Co. 
B)  J.C. Penney 
C)  Neiman Marcus 
D)  Saks 
E)  Macy's

Question 14

The continual process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders is

Accepted Answer

A)  total quality management. 
B)  benchmarking. 
C)  action planning. 
D)  reengineering. 
E)  management by objectives. 
A)  total quality management. 
B)  benchmarking. 
C)  action planning. 
D)  reengineering. 
E)  management by objectives.

Question 15

Some takeover specialists look at the amount of money a new owner can take out of the firm without harming the business.This is known as

Accepted Answer

A)  leveraged buyout. 
B)  operating cash flow. 
C)  free cash flow. 
D)  dividends. 
E)  shareholder measure. 
A)  leveraged buyout. 
B)  operating cash flow. 
C)  free cash flow. 
D)  dividends. 
E)  shareholder measure.

Question 16

Which type of control specifies what is to be accomplished by focusing on the end result of behaviors through the use of objectives and performance targets or milestones?

Accepted Answer

A)  tactical control 
B)  strategic control 
C)  output control 
D)  functional control 
E)  behavior control 
A)  tactical control 
B)  strategic control 
C)  output control 
D)  functional control 
E)  behavior control

Question 17

Because of the belief that accounting-based numbers such as ROI, ROE, and EPS are not reliable indicators of a corporation's economic value, which method of corporate performance is now preferred?

Accepted Answer

A)  shareholder value 
B)  basic earning power 
C)  price/earnings ratio 
D)  profit margin on sales 
E)  return on assets 
A)  shareholder value 
B)  basic earning power 
C)  price/earnings ratio 
D)  profit margin on sales 
E)  return on assets

Question 18

Which is the MOST commonly used measure of corporate performance (in terms of profit)?

Accepted Answer

A)  EPS 
B)  ROE 
C)  DPS 
D)  ROI 
E)  ROVA 
A)  EPS 
B)  ROE 
C)  DPS 
D)  ROI 
E)  ROVA

Question 19

Enterprise risk management is being adopted because of the increasing amount of environmental uncertainty that can affect an entire corporation.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is NOT one of the steps followed in the benchmarking process?

Accepted Answer

A)  Develop tactical programs for closing performance gaps. 
B)  Implement tactical programs, measure the results, and compare the results with those of the best-in-class company. 
C)  Implement activity-based costing. 
D)  Identify the area or process to be examined. 
E)  Calculate the differences among the company's performance measurements and those of the best-in-class company. 
A)  Develop tactical programs for closing performance gaps. 
B)  Implement tactical programs, measure the results, and compare the results with those of the best-in-class company. 
C)  Implement activity-based costing. 
D)  Identify the area or process to be examined. 
E)  Calculate the differences among the company's performance measurements and those of the best-in-class company.

According to the text, using a long-term performance evaluation system, a company executive might be promised incentives such as

Which of the following is NOT one of the areas in which goals or objectives should be developed for use in the balanced scorecard approach?

All of the following are examples of output controls EXCEPT

An advantage of ROI as a measure of performance is that

The evaluation and control process ensures that the company is achieving what it set out to accomplish.

A responsibility center which measures performance in terms of the difference between revenues (which measure production)and expenditures (which measure resources)is a(n)

The German company SAP AG originated the concept of ERP with its

Benchmarking involves openly learning how others do something better than one's own company so that one not only can imitate, but perhaps even improve on their current techniques.

Activity-based costing is a method of accounting which is very useful in making outsourcing decisions by doing

The use of timely, quantifiable standards guarantees good performance.

Performance is the end result of activity.

A survey of 600 business units found that compensation programs emphasizing bonuses and other incentives were most used in those units emphasizing

Which company experienced a tarnished reputation and scandal after experiencing behavior substitution when employees altered their behavior on the job to fit the reward system?

The continual process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders is

Some takeover specialists look at the amount of money a new owner can take out of the firm without harming the business.This is known as

Which type of control specifies what is to be accomplished by focusing on the end result of behaviors through the use of objectives and performance targets or milestones?

Because of the belief that accounting-based numbers such as ROI, ROE, and EPS are not reliable indicators of a corporation's economic value, which method of corporate performance is now preferred?

Which is the MOST commonly used measure of corporate performance (in terms of profit)?

Enterprise risk management is being adopted because of the increasing amount of environmental uncertainty that can affect an entire corporation.

Which of the following is NOT one of the steps followed in the benchmarking process?

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

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Exam 11: Evaluation and Control

According to the text, using a long-term performance evaluation system, a company executive might be promised incentives such as

Which of the following is NOT one of the areas in which goals or objectives should be developed for use in the balanced scorecard approach?

All of the following are examples of output controls EXCEPT

An advantage of ROI as a measure of performance is that

The evaluation and control process ensures that the company is achieving what it set out to accomplish.

A responsibility center which measures performance in terms of the difference between revenues (which measure production)and expenditures (which measure resources)is a(n)

The German company SAP AG originated the concept of ERP with its

Benchmarking involves openly learning how others do something better than one's own company so that one not only can imitate, but perhaps even improve on their current techniques.

Activity-based costing is a method of accounting which is very useful in making outsourcing decisions by doing

The use of timely, quantifiable standards guarantees good performance.

Performance is the end result of activity.

A survey of 600 business units found that compensation programs emphasizing bonuses and other incentives were most used in those units emphasizing

Which company experienced a tarnished reputation and scandal after experiencing behavior substitution when employees altered their behavior on the job to fit the reward system?

The continual process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders is

Some takeover specialists look at the amount of money a new owner can take out of the firm without harming the business.This is known as

Which type of control specifies what is to be accomplished by focusing on the end result of behaviors through the use of objectives and performance targets or milestones?

Because of the belief that accounting-based numbers such as ROI, ROE, and EPS are not reliable indicators of a corporation's economic value, which method of corporate performance is now preferred?

Which is the MOST commonly used measure of corporate performance (in terms of profit)?

Enterprise risk management is being adopted because of the increasing amount of environmental uncertainty that can affect an entire corporation.

Which of the following is NOT one of the steps followed in the benchmarking process?

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