Deck 16: Managerial Control

Question 1

Performance standards can be set with respect to quantity,quality,time and effort.

Answer 1

False

Question 2

When supervisors monitor employee behavior,they are exercising feedback control.

Answer 2

False

Question 3

"Love contracts" are one method of avoiding sexual harassment.

Answer 3

True

Question 4

Market control is the use of rules,regulations and formal authority to guide performance.

Question 5

Concurrent control takes place while plans are being carried out.

Question 6

One symptom of an out-of-control company is a lack of agreed-upon standards.

Question 7

Market control is control based on the use of pricing mechanisms and economic information to regulate activities within organizations.

Question 8

Personal observation involves going to the area of activity and watching what is occurring.

Question 9

According to the principle of exception,any deviation from the goal requires corrective action.

Question 10

Feedforward control means that managers monitor their distributors.

Question 11

Clan control is control based on the norms,values,shared goals,and trust among family members.

Question 12

Control has been called one of the Siamese twins of management.The other twin is organizing.

Question 13

Standards are established in order to set performance expectations.

Question 14

Control is a managerial necessity.

Question 15

Bureaucratic control uses prices,competition,profit centers and exchange relationships.

Question 16

Clan control assumes that the interests of the organization and individuals naturally diverge.

Question 17

The typical control system has five major steps.

Question 18

Measuring performance are commonly obtained from written reports,10-K reports,and personal observation.

Question 19

Control is defined as any process that directs the activities of individuals toward the achievement of organizational goals.

Question 20

The last step in the control process is to compare performance with the standard.

Question 21

Because ratios usually are expressed in compressed time horizons,they often cause management myopia.

Question 22

Liabilities are the amounts accruing to the corporation's owners.

Question 23

A control system cannot be effective without consideration of how people will react to it.

Question 24

Three key categories of financial ratios are liquidity,leverage,and profitability.

Question 25

Budgeting information is always expressed in monetary units.

Question 26

The profit and loss statement is an itemized financial statement of the income and expenses of a company's operations.

Question 27

The balance sheet shows the financial picture of a company over time.

Question 28

Traditional methods of accounting such as activity-based costing are still appropriate today.

Question 29

As long as supervisors monitor behavior,timing of the feedback is unimportant.

Question 30

In today's more complex organizations,the budget process is much more likely to be top-down.

Question 31

External audits are often used for feedback control but can also be useful for preliminary control.

Question 32

Liquidity ratios indicate a company's ability to meet its long-term financial obligations.

Question 33

Return on investment is a profitability ratio.

Question 34

By definition,management audits are internal,not external.

Question 35

Using the Six-Sigma approach to quality does not always lead to improvements in the bottom line.

Question 36

A serious mistake for an entrepreneur is to invest too much time in budgeting.

Question 37

Concurrent control is the heart of any control system.

Question 38

A master budget includes every activity of the business.

Question 39

ABC is a method of cost accounting designed to identify streams of activity and then to allocate costs across particular business processes according to the amount of time employees devote to particular activities.

Question 40

A four-sigma quality level leads to a nearly perfect level of quality.

Question 41

Increasingly,managers are discovering that control systems based solely on bureaucratic and market mechanisms are insufficient for directing today's workforce.

Question 42

According to Michael Hammer,it is important to carefully select standards that look at entire business processes and identify which actions make those processes succeed.

Question 43

In an organization,unmeasured behaviors are neglected.

Question 44

Formal bureaucratic control systems have always been the most pervasive and the most effective in organizations.

Question 45

Control based on the use of pricing mechanisms and economic information is referred to as

A)clan control.
B)feedback control.
C)market control.
D)feedforward control.
E)bureaucratic control.

Question 46

Any process that directs the activities of individuals toward achieving organizational goals is

A)planning.
B)control.
C)directing.
D)budgeting.
E)clan control.

Question 47

Which of the following is a symptom of an out-of-control company?

A)Strict top management
B)Excessive policies
C)Lack of periodic reviews
D)Bad communication systems
E)Lack of cohesiveness in the culture

Question 48

If an employee does not believe his or her performance standard is realistic,he or she is not likely to accept the standard.

Question 49

Using budgeting,statistical reports and performance appraisals to regulate behavior and results are all considered components of

A)clan control.
B)market control.
C)bureaucratic control.
D)financial audits.
E)management audits.

Question 50

Ideally the transfer price should reflect less than the price that the receiving business unit would have to pay for that product/service in the marketplace.

Question 51

Bureaucratic control has a perceived negative connotation.

Question 52

The use of rules,regulations and authority to guide performance is referred to as

A)clan control.
B)bureaucratic control.
C)market control.
D)concurrent control.
E)feedback control.

Question 53

The most common type of tactical behavior in control systems is to manipulate information or report false performance data.

Question 54

Organization culture is the foundation of clan control.

Question 55

A balanced scorecard is a control system combining four sets of performance measures: financial,customer,business process,and learning and growth.

Question 56

Bureaucratic control deals with

A)rules and regulations.
B)market forces.
C)economic forces.
D)pricing mechanisms.
E)social norms.

Question 57

A transfer price is the price charged by one unit for a good or service provided to another unit within the organization.

Question 58

In large diversified companies,market controls are often used to regulate independent business units.

Question 59

In contrast to market controls,bureaucratic controls involve the use of economic forces to regulate performance.

Question 60

Control has been called one of the Siamese twins of management.The other twin is

A)planning.
B)organizing.
C)leading.
D)directing.
E)empowerment.

Question 61

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

A)feedforward control.
B)quality control.
C)feedback control.
D)audit control.
E)performance control.

Question 62

Which type of control takes place while plans are being carried out?

A)Feedback control
B)Specialist control
C)Preliminary control
D)Feedforward control
E)Concurrent control

Question 63

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

A)the principle of control.
B)a management audit.
C)management myopia.
D)the principle of exception.
E)control stages.

Question 64

Which type of control is future oriented?

A)Feedback control
B)Specialist control
C)Feedforward control
D)Operator control
E)Concurrent control

Question 65

Which of the following is the third major step in the formal control process?

A)Comparing performance with standards
B)Setting standards
C)Taking corrective action
D)Revising standards
E)Measuring performance

Question 66

The Six Sigma approach is based on ____________ analyses that contribute to ____________.

A)statistical,increased customer base
B)budgetary,customer satisfaction
C)strategic analysis,customer satisfaction
D)statistical,customer satisfaction
E)strategic analysis,increased customer base

Question 67

The last step in the control process is

A)taking corrective action.
B)setting performance standards.
C)measuring performance.
D)comparing performance.
E)determining deviations.

Question 68

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

A)internal audit.
B)management audit.
C)external audit.
D)budget audit.
E)Six Sigma analysis.

Question 69

At Precision Instruments,it was recently announced that all assembly workers are to arrive 15 minutes early for their shift in order to be outfitted in specialized gear that will reduce minute particles from the environment from entering products that are being assembled.Products are then assembled in a controlled environment.This requirement reflects _______ control.

A)feedback
B)specialist
C)feedforward
D)operator
E)concurrent

Question 70

The heart of any control system is

A)rewards/punishments.
B)concurrent control.
C)management attitudes.
D)feedback control.
E)feedforward control.

Question 71

Performance standards can be set with respect to which of the following?

A)Quantity,quality,and temperament
B)Quality,temperament and cost
C)Cost,quality and functionality
D)Quality,time used and quantity
E)Time used,quality,functionality

Question 72

Control based on the norms,values,shared goals and trust among group members is referred to as

A)clan control.
B)feedback control.
C)concurrent control.
D)feedforward control.
E)market control.

Question 73

Jennifer Saxton is in charge of production at Nanosystems,Inc.Part of her job is to be sure that the parts produced are extremely accurate;in fact,it is important that they are perfectly produced as they are used in medical devices.When Jennifer concentrates on the significant deviations from established standards,she is using

A)unreasonable control.
B)the principle of deviation.
C)inefficient control.
D)the principle of exception.
E)behavioral standards.

Question 74

Where are performance data commonly obtained?

A)Oral and written reports and personal observation
B)Supervisors,written reports and personal observation
C)Top,middle and lower management
D)Competitors,oral reports and upper management
E)Technical analysts from outside the company

Question 75

Which of the following statements about the concept of Six Sigma is true?

A)The system was developed by GE.
B)It is designed to choose the correct organizational process for the job.
C)The lower the sigma number,the lower the level of defects.
D)It indicates how often defects in a process are likely to occur.
E)Six Sigma always improves the bottom line.

Question 76

The level of expected performance for a given goal;a target that establishes a desired performance level,motivates performance and serves as a benchmark against which actual performance is assessed is referred to as a(n)

A)goal.
B)measurement.
C)standard.
D)control process.
E)audit.

Question 77

The control process used while plans are being carried out,including directing,monitoring and fine-tuning activities as they are performed is referred to as

A)feedforward control.
B)concurrent control.
C)feedback control.
D)budgeting.
E)market control.

Question 78

Advances in information technology have created powerful

A)feedback controls.
B)auditing capabilities.
C)market controls.
D)concurrent controls.
E)organization links.

Question 79

Electronic monitoring of telemarketers' conversations with potential clients is an example of _______ control.

A)operator
B)concurrent
C)preliminary
D)technological
E)feedback

Question 80

Managers conduct __________ audits of other companies and _________ audits of their own company.

A)financial,legal and ethical
B)external,internal
C)SWOT,Six Sigma
D)internal,external
E)customer,financial