Question 1

The difference between the pre-strategy and post-strategy values for the business is

Accepted Answer

A)  ROI. 
B)  EPS. 
C)  ROE. 
D)  EVA. 
E)  MVA.

Question 2

ROI stands for return on incentives.

Accepted Answer

A) True 
 B)False

Question 3

ABC is an accounting method for allocating direct and fixed costs to individual products.

Accepted Answer

A) True 
 B)False

Question 4

The worldwide cost of software piracy is estimated to be about $63 billion.

Accepted Answer

A) True 
 B)False

Question 5

Suboptimization occurs when

Accepted Answer

A)  a division or functional unit views itself as a separate entity and refuses to cooperate with other divisions or units to the detriment of the organization as a whole. 
B)  there is a failure to produce at or near full capacity. 
C)  individuals are placed into positions not suited to their abilities. 
D)  managers tend to focus more of their attention on those aspects which are measurable than on those which are not. 
E)  managers concentrate too much on short-term performance objectives.

Question 6

If performance data and activity reports indicate undesirable performance as a result of inappropriate use of the strategic management process, operational managers must

Accepted Answer

A)  immediately notify the board of directors. 
B)  change the strategic management model. 
C)  know about it so that they can correct the employee activity. 
D)  allow sufficient time to pass to verify if it is the process or just the usage that is the problem. 
E)  check the performance data to ensure their accuracy and take two more measurements.

Question 7

Activity-based costing is a method of accounting which is very useful in making outsourcing decisions by doing

Accepted Answer

A)  total quality management. 
B)  value-chain analysis. 
C)  reengineering. 
D)  MBO. 
E)  benchmarking.

Question 8

When GE offered its CEO 250,000 performance share units tied to performance targets achieved over five years, it was using which method of matching rewards to the accomplishment of strategic objectives?

Accepted Answer

A)  strategic-funds method 
B)  segmentation method 
C)  long-term evaluation method 
D)  individual evaluation method 
E)  weighted-factor method

Question 9

Discuss the benchmarking process.

Accepted Answer

The answer of Discuss the benchmarking process....

Question 10

Behavior controls specify how something is to be done through policies, rules, standard operating procedures, and orders from a superior.

Accepted Answer

A) True 
 B)False

Question 11

Return on investment (ROI) is the most widely used measure of performance in what responsibility center?

Accepted Answer

A)  revenue center 
B)  expense center 
C)  investment center 
D)  profit center 
E)  standard cost center

Question 12

Corporations will emphasize all types of controls (output, input, and behavior) when they are following a strategy of

Accepted Answer

A)  conglomerate diversification. 
B)  concentric diversification. 
C)  retrenchment. 
D)  divestment. 
E)  vertical integration.

Question 13

Performance is the end result of activity.

Accepted Answer

A) True 
 B)False

Question 14

The balanced scorecard combines financial measures that tell the results of actions already taken with operational measures on customer satisfaction, internal processes, and the corporation's innovation and improvement activities.

Accepted Answer

A) True 
 B)False

Question 15

Which company experienced a tarnished reputation and scandal after experiencing behavior substitution when employees altered their behavior on the job to fit the reward system?

Accepted Answer

A)  Sears 
B)  J.C. Penney 
C)  Neiman Marcus 
D)  Saks 
E)  Macy's

Question 16

Controls which measure variables that influence future profitability are called

Accepted Answer

A)  steering controls. 
B)  activity controls. 
C)  behavior controls. 
D)  output controls. 
E)  influencing controls.

Question 17

________ is a corporate-wide, integrated process to manage the uncertainties that could negatively or positively influence the achievement of the corporation's objectives.

Accepted Answer

A)  ISO 14000 Series 
B)  Input controls 
C)  Activity-based costing 
D)  Enterprise Risk Management 
E)  Market Value Added

Question 18

The evaluation and control process ensures that the company is achieving what it set out to accomplish.

Accepted Answer

A) True 
 B)False

Question 19

One approach to better match executive rewards to the accomplishment of strategic objectives is

Accepted Answer

A)  return on investment. 
B)  year-end bonuses. 
C)  zero base budgeting. 
D)  weighted-factor method. 
E)  return on assets.

Question 20

What method is particularly appropriate for measuring and rewarding the performance of top SBU managers and group-level executives when performance factors and their importance vary from one SBU to another?

Accepted Answer

A)  return on investment 
B)  year-end bonuses 
C)  zero base budgeting 
D)  weighted-factor method 
E)  return on assets

Exam 12: Evaluation and Control

The difference between the pre-strategy and post-strategy values for the business is

ROI stands for return on incentives.

ABC is an accounting method for allocating direct and fixed costs to individual products.

The worldwide cost of software piracy is estimated to be about $63 billion.

Suboptimization occurs when

If performance data and activity reports indicate undesirable performance as a result of inappropriate use of the strategic management process, operational managers must

Activity-based costing is a method of accounting which is very useful in making outsourcing decisions by doing

When GE offered its CEO 250,000 performance share units tied to performance targets achieved over five years, it was using which method of matching rewards to the accomplishment of strategic objectives?

Discuss the benchmarking process.

Behavior controls specify how something is to be done through policies, rules, standard operating procedures, and orders from a superior.

Return on investment (ROI) is the most widely used measure of performance in what responsibility center?

Corporations will emphasize all types of controls (output, input, and behavior) when they are following a strategy of

Performance is the end result of activity.

The balanced scorecard combines financial measures that tell the results of actions already taken with operational measures on customer satisfaction, internal processes, and the corporation's innovation and improvement activities.

Which company experienced a tarnished reputation and scandal after experiencing behavior substitution when employees altered their behavior on the job to fit the reward system?

Controls which measure variables that influence future profitability are called

________ is a corporate-wide, integrated process to manage the uncertainties that could negatively or positively influence the achievement of the corporation's objectives.

The evaluation and control process ensures that the company is achieving what it set out to accomplish.

One approach to better match executive rewards to the accomplishment of strategic objectives is

What method is particularly appropriate for measuring and rewarding the performance of top SBU managers and group-level executives when performance factors and their importance vary from one SBU to another?