Exam 9: Control Processes and Systems

Return on assets = ___.

The word "control" must be used carefully because ___.

Input standards measure performance results in terms of quantity, quality, cost, or time of accomplished work.

Which of the following is the formula to measure debt ratio?

Calculate the need for action from the following information: Desired performance = 800 work units Actual performance = 580 work units.

Suppose that, in reviewing a quarterly report of a department's achievements, the manager compares desired performance with actual performance. If the manager finds no deviation (that is, actual performance is equal to the standard), the manager should ___.

Control that flows through the organization's hierarchy of authority is called

Feedforward control focuses on what happens during the work process.

The Sarbanes-Oxley Act establishes procedures to regulate financial reporting and governance in publicly traded corporations.

Business firms show the influence of ___ in the way that they adjust products, pricing, promotions and other practices in response to customer feedback as reflected in sales and profitability.

Feedback controls, or post-action controls, monitor ongoing operations and activities to make sure things are being done according to plan.

All of the following are financial performance measure that managers should know except:

Through ___ control, managers can manage in ways that allow and expect people to control their own behaviour.

Controlling ensures that the right things happen, in the right way, at the right time.

In utilizing a relative approach to compare desired and actual performance, a manager will ___.

Dillon, a senior operations manager, was assigned the task of implementing the control process for a particular production process. He first identified the performance objectives and in doing so, he identified the key results that were to be accomplished. Next, he set standards and measured the actual performance. He compared the results with the objectives and standards. Finally, as part of the corrective action step, he implemented ___, a practice that involved focusing attention on substantial differences between the actual and desired performances.

A(n) ___ is a structured review of lessons learned and results accomplished on a completed project.

The Sarbanes-Oxley Act was passed in response to major corporate failures regarding the accuracy of reported financial information, such as with Enron and WorldCom, that raised serious questions regarding top management behaviour and the accuracy of financial reports provided by the firms.

Clan control flows through an organization's hierarchy of authority.

According to financial controls, liquidity measures ___.