Exam 9: Control Processes and Systems

The Sarbanes-Oxley (SOX) Act that establishes procedures to regulate financial reporting and governance in publicly traded companies was passed in response to major corporate failures such as WorldCom and Enron.

A CPM/PERT is a combination of the critical path method and the program evaluation and review technique.

The bureaucratic control system influences behaviour through norms and expectations set by the organizational culture.

A firm is considered financially weaker the more its valuation in the stock market exceeds its capital costs.

A bag manufacturing company proposed a selling price of $80 per bag for their new range of bags. Fixed costs are $10,000 and variable costs are $40 per bag. At this point their breakeven point was 250 units. What will be the breakeven point if the variable costs can be brought down to $30?

A graphic display of task scheduling required to complete a project is called a Gantt chart.

After establishing standards of performance, which of the following is the next step in the control process?

Project management is responsible for all of the following except

Which of the following is an accurate description of the control equation?

___ = Net Income ÷ Owner's Equity

Calculate sales if the net income is $200,000 and the net margin is 50%.

Feedback control takes place to

Management by exception is the practice of giving attention to situations that show the greatest need for action.

External control is based on the use of three control systems. List and explain two of these three control systems.

Some typical activities of a project that a Gantt chart would display are

The control device designed to keep all behaviour within targeted guidelines is called

Which of the following best describes bureaucratic control?

Business firms show the influence of market control in the way that they adjust products, pricing, promotions, and other practices in response to customer feedback and what competitors are doing.

Freddie, the CEO of MagTel Inc., found that employees are wasting time on unproductive tasks. To solve this issue, he measured one of his employees' performances and provided regular feedback. This helped the employee to improve his productivity. In doing so, Freddie found that "what gets measured happens." Therefore, in the context of project management and control, he must use ___ as a managerial review tool to improve financial performance and customer satisfaction of his company.

Serena's been given the task of creating a balanced scorecard for her company. Which of the following would be placed in the internal process improvement area?