Exam 11: Foundations of Control

Sales data from the same date exactly one year ago are an example of ________.

Canadian Credit Corp.advises telephone customers that their calls may be monitored to help improve the quality of customer service.This monitoring is a form of ________ control.

In anticipation of the Christmas rush,the Toys-For-Everyone store hired another 10 sales clerks.This is an example of ________ control.

Concurrent control implements controls before an activity begins.

Employers have the legal right to monitor employees' email,telephone conversations,and computer usage at work.

Mary's job is to compare each department's monthly budget to its actual expenditures.Mary is performing part of the ________ function.

Acid test is an example of a(n)________ ratio.

________ ratios measure an organization's ability to meet its current debt obligations.

Refer to the Scenario below to answer the questions that follow. Financial Ratios (Scenario) Jan was in a big hurry.She had just been given the assignment of reporting on the financial health of her company to the new divisional vice president.Donna,the new vice president,had asked Jan to provide several calculations to help her gain an understanding of the company's financial shape.Jan realized that this was a great career opportunity--one that could make or break her reputation with the new vice president.She quickly pulled out her old financial management textbook and turned to the chapter on financial ratios to review the required calculations. -Donna was also very interested in examining the organization's use of debt to finance its assets.Therefore,Jan needed to calculate a(n)________ ratio.

Which of the following financial control measures is calculated by taking after-tax operating profit minus the total annual cost of capital?

List and briefly explain the three steps in the control process.Provide examples where appropriate.

________ refer(s)to the system used to govern a corporation so that the interests of corporate owners are protected.

The standards that managers use as specific performance indicators in the control process are developed in the ________ function.

Refer to the Scenario below to answer the questions that follow. Control Systems at Statco (Scenario) Statco is a statistical software company based in British Columbia.This publicly traded firm has grown dramatically over its 25-year history,and it now has more than 12,000 employees worldwide.As it has grown,the company has adopted a hierarchical structure,which emphasizes organizational authority.Management relies heavily on administrative rules,regulations,and policies in order to meet its goals.However,the company has struggled to meet projected revenues for each of the past 10 quarters.While it is true that world financial markets have been very turbulent over the past three years,demand for the firm's products has typically been recession-proof in the past.Now,the board of directors is growing increasingly impatient with the management team.The firm's president,Susan Wong,is concerned that recent performance may indicate that management has lost control of the work force.She has hired Mark Adams,an expert in control system design,to evaluate Statco and offer suggestions to improve the firm's performance. -Susan reminds Mark that Statco makes extensive use of teamwork,and the technology used to produce their statistical products is constantly changing.As a result,Mark recommends that Statco make better use of ________ control.

Beta Corporation has turned each of its divisions into profit centres and evaluates each division by the percentage of total corporate profits that it generates.Beta uses ________ control.

An effective feedforward strategy for dealing with employee theft is ________.

Unionized employees have less privacy with respect to their computers than non-unionized workers.

Financial statements are an example of ________ control.

Budgets provide managers with quantitative standards against which to measure and compare resource consumption.By pointing out deviations between standard and actual consumption,they become ________.

________ determines the acceptable parameters of variance between actual performance and the standard.