Question 1

___ is a combination of the critical path method and the program evaluation and review technique.

Accepted Answer

A)  Gantt chart 
B)  CPM/PERT 
C)  Pie chart 
D)  Bar diagram 
E)  Run chart

Question 2

___ refer to one-time activities that have clear beginning and end points.

Accepted Answer

A)  Procedures 
B)  Rules 
C)  Projects 
D)  Budgets 
E)  Goals

Question 3

Suppose that in reviewing a quarterly report of a department's achievements, the manager compared desired performance with actual performance. If the manager found that actual performance was less than the standard, the manager should ___.

Accepted Answer

A)  take no corrective action 
B)  take corrective action 
C)  seek more resources for the department 
D)  defer action until the next quarter's reports are in and a trend is established 
E)  keep the information to himself/herself

Question 4

Cycle times, engineering efficiency, and new product time are sample measures of ___.

Accepted Answer

A)  learning 
B)  internal process improvement 
C)  innovation 
D)  financial performance review 
E)  customer satisfaction

Question 5

Calculate average inventory if sales is $400,000 and the inventory turnover is 1.6.

Accepted Answer

A)  $280,000 
B)  $250,000 
C)  $150,000 
D)  $180,000 
E)  $140,000

Question 6

A balance sheet shows profits or losses of a business at a point in time.

Accepted Answer

A) True 
 B)False

Question 7

Calculate net income from the following information: ROA = 35%
Sales = $250,000
Current assets = $30,000
Fixed assets = $70,000.

Accepted Answer

A)  $87,500 
B)  $35,000 
C)  $10,500 
D)  $24,500 
E)  $15,000

Question 8

The purpose of controlling is to ___.

Accepted Answer

A)  motivate employees to work overtime hours 
B)  make sure plans are achieved and that actual performance meets or surpasses objectives 
C)  define a plan of action for the organization 
D)  coordinate resources and task performance 
E)  develop a hierarchy of objectives for lower-level managers

Question 9

Breakeven analysis can be used to ___.

Accepted Answer

A)  improve control 
B)  examine the impact of cost control measures 
C)  experiment with different "what-if" scenarios 
D)  a and c 
E)  a, b, and c

Question 10

A shoe manufacturing company produced 300,000 pairs of shoes at the end of a certain month. If the need for action was 150,000 pairs of shoes, calculate the desired performance using the control equation.

Accepted Answer

A)  650,000 
B)  150,000 
C)  250,000 
D)  450,000 
E)  750,000

Question 11

___ is the technique of focusing managerial attention on situations where the difference between actual and desired performance is greatest.

Accepted Answer

A)  High control management 
B)  Management by exception 
C)  Progressive exception management 
D)  Critical incident management 
E)  Exception progression management

Question 12

The CFO of a company wanted to analyze the financial strength of his company. He specifically asked for information on the company's assets and liabilities. Which of the following would provide the necessary information?

Accepted Answer

A)  income statement 
B)  balance sheet 
C)  balanced scorecard 
D)  Gantt chart 
E)  breakeven analysis account

Question 13

___ = Current Assets ÷ Current Liabilities.

Accepted Answer

A)  Acid Test 
B)  Current Ratio 
C)  Debt Ratio 
D)  Assets Turnover ratio 
E)  Net Current Margin

Question 14

The potential for ___ is enhanced when capable people have a clear sense of organizational mission, know their goals, and have the resources necessary to do their jobs well.

Accepted Answer

A)  bureaucratic control 
B)  normative control 
C)  regulatory control 
D)  clan control 
E)  internal control

Question 15

Internal control occurs when motivated individuals and groups exercise self-discipline in fulfilling job requirements.

Accepted Answer

A) True 
 B)False

Question 16

The federal act which requires corporate executives like the CEO and CFO to sign off on reported financial information is the

Accepted Answer

A)  Fair Labour Standards Act. 
B)  Credit Control and Reporting Act. 
C)  Sarbanes-Oxley Act. 
D)  Landrum-Griffin Act. 
E)  Coltrane-Landy Act.

Question 17

The function of steering control is to ___.

Accepted Answer

A)  focus on the quality of end results rather than throughputs 
B)  focus on activities before they begin 
C)  ensure a proactive and forward-thinking approach to problem solving 
D)  solve problems as they occur 
E)  correct mistakes already made

Question 18

A cost report showing budget overruns on a project completed during the prior month is an example of which type of control?

Accepted Answer

A)  cost control 
B)  preliminary control 
C)  feedback control 
D)  steering control 
E)  managerial control

Question 19

___ involves making sure that the activities required to complete a project are done on time, within budget, and fulfill objectives.

Accepted Answer

A)  Strategic goal setting 
B)  Management by objectives 
C)  Project management 
D)  Zero-based budgeting 
E)  Self-control

Question 20

A Gantt chart differs from a PERT chart in that a Gantt chart

Accepted Answer

A)  uses charts to break a project into a series of small sub-activities that each has clear beginning and end points. 
B)  represents the quickest time in which the entire project can be finished. 
C)  helps with event or activity sequencing to make sure that things get accomplished in time for later work to build upon them. 
D)  shows all the interrelationships that must be coordinated for the entire project to be successfully completed. 
E)  combines critical path method and the program evaluation and review technique.

Exam 9: Control Processes and Systems