Exam 16: Managerial Control

Traditional methods of cost accounting tend to be inappropriate in today's business environment because they are based on outdated methods of rigid hierarchical organization.

Leverage ratios indicate

Briefly describe market control at the corporate level, business unit level, and individual level.

Which of the following is the most pertinent argument against market control mechanisms?

Cara had to buy a lot of equipment to open her beauty salon. She bought most of it on credit. The amounts of money that she owes her creditors are called _____.

Which of the following statements about the six sigma approach to quality is true?

The activity-based costing system

A managerial principle stating that control is enhanced by concentrating on the significant deviations from the expected result or standard is referred to as the principle of ____.

Control that focuses on the use of information about previous results to correct deviations from the acceptable standard is referred to as _____ control.

The executives at Family Funstop Inc., a chain of restaurants that feature game rooms for children, believe that the company's employees share the corporate goals of service, quality, value, and "good clean fun." Because of this, corporate leadership believes that employees are motivated to work for the common good without a lot of formal controls. This is an example of _____ control.

Which of the following is the second major step in a typical control system?

Which of the following is one of the factors on which performance standards can be set?

An important purpose of external audits is to

An evaluation of the effectiveness and efficiency of various systems within an organization is called a(n) _____ audit.

Which of the following is the most common type of tactical behavior that people use to try to beat control systems?

On which of the following control systems do the middle-level managers want to focus?

Which of the following can be drawn tentatively and used as a goal against which actual performance can be measured?

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

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

Control based on the use of pricing mechanisms and economic information to regulate activities within organizations is referred to as _____ control.