Question 1

On which of the following would Linda be working?

Accepted Answer

A)  Balance sheet 
B)  Assets 
C)  Liabilities 
D)  Stockholders' equity 
E)  Profit and loss statement 
A)  Balance sheet 
B)  Assets 
C)  Liabilities 
D)  Stockholders' equity 
E)  Profit and loss statement A

Question 2

To be effective,control systems must:

Accepted Answer

A)  keep performance standards flexible and easy. 
B)  focus on one-way top-down communication. 
C)  be acceptable to all stockholders. 
D)  use multiple control approaches. 
E)  centralize decision making. 
A)  keep performance standards flexible and easy. 
B)  focus on one-way top-down communication. 
C)  be acceptable to all stockholders. 
D)  use multiple control approaches. 
E)  centralize decision making. D

Question 3

A control system cannot be effective without consideration of how people will react to it.

Accepted Answer

A) True 
 B)False  True

Question 4

Explain the principle of exception and describe how it can help in comparing performance with the standard.

Accepted Answer

The answer of Explain the principle of exception and describe...

Question 5

_____ budget is used for the cost of fixed assets,such as plants and equipment,that are usually treated not as regular expenses but as investments.

Accepted Answer

A)  Master 
B)  Cash 
C)  Capital 
D)  Production 
E)  Sales 
A)  Master 
B)  Cash 
C)  Capital 
D)  Production 
E)  Sales

Question 6

In contrast to market controls,bureaucratic controls involve the use of economic forces to regulate performance.

Accepted Answer

A) True 
 B)False

Question 7

External audits are generally used for:

Accepted Answer

A)  assessing what the company has done for itself. 
B)  evaluating production efficiency. 
C)  evaluating sales effectiveness. 
D)  investigating possible targets for mergers or acquisitions. 
E)  assessing what the company has done for its customers. 
A)  assessing what the company has done for itself. 
B)  evaluating production efficiency. 
C)  evaluating sales effectiveness. 
D)  investigating possible targets for mergers or acquisitions. 
E)  assessing what the company has done for its customers.

Question 8

An example of feedforward control is managers monitoring their distributors.

Accepted Answer

A) True 
 B)False

Question 9

The balance sheet shows the financial picture of a company over time.

Accepted Answer

A) True 
 B)False

Question 10

In contrast to bureaucratic controls,market controls involve the use of:

Accepted Answer

A)  rules and regulations. 
B)  economic forces. 
C)  authority. 
D)  autocratic power. 
E)  norms. 
A)  rules and regulations. 
B)  economic forces. 
C)  authority. 
D)  autocratic power. 
E)  norms.

Question 11

Return on investment is a profitability ratio.

Accepted Answer

A) True 
 B)False

Question 12

The activity-based costing system:

Accepted Answer

A)  is more appropriate method of cost accounting for rigid hierarchical organizations. 
B)  effectively departmentalizes an organization based on its core functions such as human resources,purchasing,and maintenance. 
C)  provides a more accurate picture of how costs should be charged to products and services. 
D)  assumes that organizations are bureaucratic "machines" that can be separated into component functions. 
E)  fails to allocate costs across business processes and is less effective than traditional methods of cost accounting. 
A)  is more appropriate method of cost accounting for rigid hierarchical organizations. 
B)  effectively departmentalizes an organization based on its core functions such as human resources,purchasing,and maintenance. 
C)  provides a more accurate picture of how costs should be charged to products and services. 
D)  assumes that organizations are bureaucratic "machines" that can be separated into component functions. 
E)  fails to allocate costs across business processes and is less effective than traditional methods of cost accounting.

Question 13

Personal observation involves going to the area where activities take place and watching what is occurring.

Accepted Answer

A) True 
 B)False

Question 14

Periodically assessing a company's own planning,organizing,leading,and controlling efforts is the essential function of ____.

Accepted Answer

A)  strategic audits 
B)  feedforward control 
C)  feedback control 
D)  competitive audits 
E)  internal audits 
A)  strategic audits 
B)  feedforward control 
C)  feedback control 
D)  competitive audits 
E)  internal audits

Question 15

The effective use of clan control is associated with employee ____.

Accepted Answer

A)  bureaucracy 
B)  manipulation 
C)  empowerment 
D)  dissatisfaction 
E)  unionization 
A)  bureaucracy 
B)  manipulation 
C)  empowerment 
D)  dissatisfaction 
E)  unionization

Question 16

The profit and loss statement is an itemized financial statement of the income and expenses of a company's operations.

Accepted Answer

A) True 
 B)False

Question 17

Jeremy is in charge of production at Tech Farm Equipment.His job responsibilities include eliminating defects in the equipment parts the factory produces.However,he has advised his crew to alert him only when defects exceed 200 per million,which he considers a serious deviation from standards.In this case,Jeremy is using:

Accepted Answer

A)  a management audit. 
B)  the principle of deviation. 
C)  clan control. 
D)  the principle of exception. 
E)  behavioral standards. 
A)  a management audit. 
B)  the principle of deviation. 
C)  clan control. 
D)  the principle of exception. 
E)  behavioral standards.

Question 18

A master budget includes every major activity of a business.

Accepted Answer

A) True 
 B)False

Question 19

A ratio of profit to capital used,or a rate of return from capital,is referred to as ____.

Accepted Answer

A)  the debt-equity ratio 
B)  the leverage ratio 
C)  return on investment 
D)  net working capital 
E)  transfer price 
A)  the debt-equity ratio 
B)  the leverage ratio 
C)  return on investment 
D)  net working capital 
E)  transfer price

Question 20

One of the reasons standards are established is to set performance expectations.

Accepted Answer

A) True 
 B)False

On which of the following would Linda be working?

To be effective,control systems must:

A control system cannot be effective without consideration of how people will react to it.

Explain the principle of exception and describe how it can help in comparing performance with the standard.

_____ budget is used for the cost of fixed assets,such as plants and equipment,that are usually treated not as regular expenses but as investments.

In contrast to market controls,bureaucratic controls involve the use of economic forces to regulate performance.

External audits are generally used for:

An example of feedforward control is managers monitoring their distributors.

The balance sheet shows the financial picture of a company over time.

In contrast to bureaucratic controls,market controls involve the use of:

Return on investment is a profitability ratio.

The activity-based costing system:

Personal observation involves going to the area where activities take place and watching what is occurring.

Periodically assessing a company's own planning,organizing,leading,and controlling efforts is the essential function of ____.

The effective use of clan control is associated with employee ____.

The profit and loss statement is an itemized financial statement of the income and expenses of a company's operations.

A master budget includes every major activity of a business.

A ratio of profit to capital used,or a rate of return from capital,is referred to as ____.

One of the reasons standards are established is to set performance expectations.

Managing and Performing

The External and Internal Environments

Managerial Decision Making

Planning and Strategic Management

Ethics, corporate Responsibility, and Sustainability

International Management

Entrepreneurship

Organization Structure

Organizational Agility

Human Resources Management

Managing the Diverse Workforce

Leadership

Motivating for Performance

Teamwork

Communicating

Managing Technology and Innovation

Creating and Leading Change

Filters

Exam 16: Managerial Control

On which of the following would Linda be working?

To be effective,control systems must:

A control system cannot be effective without consideration of how people will react to it.

Explain the principle of exception and describe how it can help in comparing performance with the standard.

_____ budget is used for the cost of fixed assets,such as plants and equipment,that are usually treated not as regular expenses but as investments.

In contrast to market controls,bureaucratic controls involve the use of economic forces to regulate performance.

External audits are generally used for:

An example of feedforward control is managers monitoring their distributors.

The balance sheet shows the financial picture of a company over time.

In contrast to bureaucratic controls,market controls involve the use of:

Return on investment is a profitability ratio.

The activity-based costing system:

Personal observation involves going to the area where activities take place and watching what is occurring.

Periodically assessing a company's own planning,organizing,leading,and controlling efforts is the essential function of ____.

The effective use of clan control is associated with employee ____.

The profit and loss statement is an itemized financial statement of the income and expenses of a company's operations.

A master budget includes every major activity of a business.

A ratio of profit to capital used,or a rate of return from capital,is referred to as ____.

One of the reasons standards are established is to set performance expectations.

Managing and Performing

The External and Internal Environments

Managerial Decision Making

Planning and Strategic Management

Ethics, corporate Responsibility, and Sustainability

International Management

Entrepreneurship

Organization Structure

Organizational Agility

Human Resources Management

Managing the Diverse Workforce

Leadership

Motivating for Performance

Teamwork

Communicating

Managing Technology and Innovation

Creating and Leading Change

Filters