Question 1

The price charged by one unit in an organization for a good or service that it supplies to another unit in the same organization is referred to as a(n):

Accepted Answer

A)  substitute price. 
B)  transfer price. 
C)  department price. 
D)  organizational price. 
E)  budget price. 
A)  substitute price. 
B)  transfer price. 
C)  department price. 
D)  organizational price. 
E)  budget price.

Question 2

Describe the three sources from which performance data is commonly obtained.

Accepted Answer

Performance data commonly are obtained f

Question 3

Control systems detect and correct significant variations, or discrepancies, in the results of planned activities.

Accepted Answer

A) True 
 B)False

Question 4

Control systems help create comfortable, cooperative relationships among employees.

Accepted Answer

A) True 
 B)False

Question 5

Jennifer, a manager, is in charge of production at Nanosystems, Inc. Part of her job is to ensure that the components for surgical devices are extremely accurate. In fact, it is important that they are perfectly produced. When Jennifer concentrates on the significant deviations from established standards, she is using the:

Accepted Answer

A)  balance sheet. 
B)  management myopia. 
C)  employment relationship. 
D)  principle of exception. 
E)  balance scorecard. 
A)  balance sheet. 
B)  management myopia. 
C)  employment relationship. 
D)  principle of exception. 
E)  balance scorecard.

Question 6

Traditionally, boards have tried to control CEO performance mainly through:

Accepted Answer

A)  salary schedules. 
B)  bonuses tied to productivity. 
C)  perks. 
D)  incentive pay. 
E)  bonuses tied to long-term profit targets. 
A)  salary schedules. 
B)  bonuses tied to productivity. 
C)  perks. 
D)  incentive pay. 
E)  bonuses tied to long-term profit targets.

Question 7

The chief financial officer (CFO) needs to be more concerned with details than with recommending adjustments when needed.

Accepted Answer

A) True 
 B)False

Question 8

Traditional methods of cost accounting are still appropriate in today's business environment.

Accepted Answer

A) True 
 B)False

Question 9

_____ are the values of the various items the corporation owns.

Accepted Answer

A)  Liabilities 
B)  Assets 
C)  Profits 
D)  Audits 
E)  Equities 
A)  Liabilities 
B)  Assets 
C)  Profits 
D)  Audits 
E)  Equities

Question 10

With the principle of exception, the manager is concerned with performance that equals or closely approximates the expected results.

Accepted Answer

A) True 
 B)False

Question 11

According to Michael Hammer, what are the seven "deadly sins" of performance measure to avoid?

Accepted Answer

Business consultant Michael Hammer has i

Question 12

When employees feel forced to attempt to "beat the system," their behavior is known as:

Accepted Answer

A)  rigidly bureaucratic behavior. 
B)  tactical behavior. 
C)  resisting behavior. 
D)  defensive behavior. 
E)  myopic behavior. 
A)  rigidly bureaucratic behavior. 
B)  tactical behavior. 
C)  resisting behavior. 
D)  defensive behavior. 
E)  myopic behavior.

Question 13

A report that shows the financial picture of a company at a given time and itemizes assets, liabilities and stockholders' equity is referred to as a(n):

Accepted Answer

A)  profit and loss statement. 
B)  balance sheet. 
C)  expense report. 
D)  income statement. 
E)  budget report. 
A)  profit and loss statement. 
B)  balance sheet. 
C)  expense report. 
D)  income statement. 
E)  budget report.

Question 14

The most effective standards tend to be subjective rather than objective.

Accepted Answer

A) True 
 B)False

Question 15

When a control system prompts employees to do only tasks required in their formal job descriptions, it is causing:

Accepted Answer

A)  excessive subordination. 
B)  tactical behaviors. 
C)  rigid bureaucratic behaviors. 
D)  resistance to supervision. 
E)  resistance to change. 
A)  excessive subordination. 
B)  tactical behaviors. 
C)  rigid bureaucratic behaviors. 
D)  resistance to supervision. 
E)  resistance to change.

Question 16

Which of the following is a definition of control?

Accepted Answer

A)  It refers to the expected performance for a given goal. 
B)  It is any process that directs the activities of individuals toward the achievement of organizational goals. 
C)  It is an evaluation of the effectiveness and efficacy of various systems within an organization. 
D)  It is the process of investigating what is being done and comparing the results with the corresponding budget data. 
E)  It is the procedure used to verify accounting reports and statements. 
A)  It refers to the expected performance for a given goal. 
B)  It is any process that directs the activities of individuals toward the achievement of organizational goals. 
C)  It is an evaluation of the effectiveness and efficacy of various systems within an organization. 
D)  It is the process of investigating what is being done and comparing the results with the corresponding budget data. 
E)  It is the procedure used to verify accounting reports and statements.

Question 17

_____ control involves the use of prices, competition, and exchange relationships to regulate activities in organizations as though they were economic transactions.

Accepted Answer

A)  Bureaucratic 
B)  Concurrent 
C)  Standard 
D)  Clan 
E)  Market 
A)  Bureaucratic 
B)  Concurrent 
C)  Standard 
D)  Clan 
E)  Market

Question 18

An evaluation conducted by one organization of another organization is referred to as a(n):

Accepted Answer

A)  external audit. 
B)  market control. 
C)  clan control. 
D)  budget. 
E)  activity-based costing. 
A)  external audit. 
B)  market control. 
C)  clan control. 
D)  budget. 
E)  activity-based costing.

Question 19

To be effective, control systems must:

Accepted Answer

A)  be based on subjective standards. 
B)  communicate needed information upward in the organization. 
C)  be acceptable to top stockholders. 
D)  use multiple approaches. 
E)  centralize decision making. 
A)  be based on subjective standards. 
B)  communicate needed information upward in the organization. 
C)  be acceptable to top stockholders. 
D)  use multiple approaches. 
E)  centralize decision making.

Question 20

Catherine has recently reviewed a number of indicators of financial control. The one that troubled her indicated that the company could have trouble meeting its short-term financial obligations. Which of the following was she concerned about?

Accepted Answer

A)  Profit and loss statement 
B)  Profitability ratio 
C)  Leverage ratio 
D)  Current ratio 
E)  Return on investment 
A)  Profit and loss statement 
B)  Profitability ratio 
C)  Leverage ratio 
D)  Current ratio 
E)  Return on investment

The price charged by one unit in an organization for a good or service that it supplies to another unit in the same organization is referred to as a(n):

Describe the three sources from which performance data is commonly obtained.

Control systems detect and correct significant variations, or discrepancies, in the results of planned activities.

Control systems help create comfortable, cooperative relationships among employees.

Traditionally, boards have tried to control CEO performance mainly through:

The chief financial officer (CFO) needs to be more concerned with details than with recommending adjustments when needed.

Traditional methods of cost accounting are still appropriate in today's business environment.

_____ are the values of the various items the corporation owns.

With the principle of exception, the manager is concerned with performance that equals or closely approximates the expected results.

According to Michael Hammer, what are the seven "deadly sins" of performance measure to avoid?

When employees feel forced to attempt to "beat the system," their behavior is known as:

A report that shows the financial picture of a company at a given time and itemizes assets, liabilities and stockholders' equity is referred to as a(n):

The most effective standards tend to be subjective rather than objective.

When a control system prompts employees to do only tasks required in their formal job descriptions, it is causing:

Which of the following is a definition of control?

_____ control involves the use of prices, competition, and exchange relationships to regulate activities in organizations as though they were economic transactions.

An evaluation conducted by one organization of another organization is referred to as a(n):

To be effective, control systems must:

Catherine has recently reviewed a number of indicators of financial control. The one that troubled her indicated that the company could have trouble meeting its short-term financial obligations. Which of the following was she concerned about?

Managing in a Global World

The Evolution of Management

The Organizational Environment and Culture

Ethics and Corporate Responsibility

Planning and Decision Making

Entrepreneurship

Organizing for Success

Managing Human Resources

Managing Diversity and Inclusion

Leadership

Motivating People

Teamwork

Communicating

Innovating and Changing

Filters

Exam 14: Managing Control

The price charged by one unit in an organization for a good or service that it supplies to another unit in the same organization is referred to as a(n):

Describe the three sources from which performance data is commonly obtained.

Control systems detect and correct significant variations, or discrepancies, in the results of planned activities.

Control systems help create comfortable, cooperative relationships among employees.

Traditionally, boards have tried to control CEO performance mainly through:

The chief financial officer (CFO) needs to be more concerned with details than with recommending adjustments when needed.

Traditional methods of cost accounting are still appropriate in today's business environment.

_____ are the values of the various items the corporation owns.

With the principle of exception, the manager is concerned with performance that equals or closely approximates the expected results.

According to Michael Hammer, what are the seven "deadly sins" of performance measure to avoid?

When employees feel forced to attempt to "beat the system," their behavior is known as:

A report that shows the financial picture of a company at a given time and itemizes assets, liabilities and stockholders' equity is referred to as a(n):

The most effective standards tend to be subjective rather than objective.

When a control system prompts employees to do only tasks required in their formal job descriptions, it is causing:

Which of the following is a definition of control?

_____ control involves the use of prices, competition, and exchange relationships to regulate activities in organizations as though they were economic transactions.

An evaluation conducted by one organization of another organization is referred to as a(n):

To be effective, control systems must:

Catherine has recently reviewed a number of indicators of financial control. The one that troubled her indicated that the company could have trouble meeting its short-term financial obligations. Which of the following was she concerned about?

Managing in a Global World

The Evolution of Management

The Organizational Environment and Culture

Ethics and Corporate Responsibility

Planning and Decision Making

Entrepreneurship

Organizing for Success

Managing Human Resources

Managing Diversity and Inclusion

Leadership

Motivating People

Teamwork

Communicating

Innovating and Changing

Filters