Question 1

CarZ Ltd.,a car manufacturing company,calculated its debt ratio to be 2:5.Calculate the total debt for CarZ Ltd.,from the following information: Cash in hand = $120,000
Cash at bank = $180,000
Bills receivable = $200,000
Bills payable = $180,000
Land and building = $250,000
Inventories = $50,000
Machinery = $100,000

Accepted Answer

A) $360,000 
B) $240,000 
C) $280,000 
D) $300,000 
E) $270,000

Question 2

The ________ form of inventory control automatically orders a fixed number of items every time an inventory level falls to a predetermined point.

Accepted Answer

A) just-in-time scheduling 
B) breakeven 
C) balanced scorecard 
D) asset management 
E) economic order quantity

Question 3

Calculate the expenses incurred if the net income is $500,000 and sales is $1,500,000.

Accepted Answer

A) $800,000 
B) $650,000 
C) $500,000 
D) $250,000 
E) $1,000,000

Question 4

Bureaucratic control differs from clan control in that bureaucratic control:

Accepted Answer

A) influences behavior through norms and expectations set by the organizational culture. 
B) emphasizes hierarchy and authority. 
C) harnesses the power of group cohesiveness and collective identity. 
D) gives people freedom to work on their own. 
E) encourages participation,empowerment,and involvement.

Question 5

What is a balanced scorecard?

Accepted Answer

A) It shows profits or losses at a point in time,which is displayed in a Sales - Expenses = Net Income format. 
B) It shows assets and liabilities at a point in time. 
C) It tallies organizational performance in financial,customer service,internal process,and innovation and learning areas. 
D) It occurs when revenues are equal to costs. 
E) It reduces costs and improves workflow by scheduling materials to arrive at a workstation or facility just in time for use.

Question 6

Calculate the quick ratio from the following information of a manufacturing firm. Cash in hand = $200,000
Cash at bank = $100,000
Total current assets = $450,000
Accrued expenses = $100,000
Taxes payable = $100,000

Accepted Answer

A) 3:2 
B) 1:2 
C) 3:1 
D) 4:1 
E) 2:2

Question 7

What is project management? Explain the two techniques of project management.

Accepted Answer

The answer of What is project management? Explain the two...

Question 8

Calculate net margin from the following information. Sales $250,000
Expenses $100,000

Accepted Answer

A) 50% 
B) 60% 
C) 40% 
D) 30% 
E) 80%

Question 9

Calculate the net income if the net margin is 75% and expenses incurred is $160,000.

Accepted Answer

A) $480,000 
B) $640,000 
C) $360,000 
D) $570,000 
E) $600,000

Question 10

Pary's doughnuts can produce only 100 doughnuts a day.The variable cost incurred per unit is $2 and fixed costs incurred per day is $500.At what price should a doughnut be sold to break even?

Accepted Answer

A) $10 
B) $5 
C) $7 
D) $4 
E) $8

Question 11

Explain briefly the two broad options managers have with respect to control system.

Accepted Answer

The answer of Explain briefly the two broad options managers...

Question 12

Management by exception is the practice of giving attention to situations that show the greatest need for action.

Accepted Answer

A) True 
 B)False

Question 13

________ controls are largely reactive.

Accepted Answer

A) Input 
B) Concurrent 
C) Steering 
D) Post-action 
E) Feedforward

Question 14

Calculate the current ratio from the following information: Sales = $14,000
Bills receivable = $100,000
Cash in hand = $40,000
Current liabilities = $50,000
Inventories = $40,000
Net Income = $5,600

Accepted Answer

A) 8:5 
B) 3.6:1 
C) 0.4:1 
D) 3:5 
E) 2:3

Question 15

Preliminary control is also known as steering control.

Accepted Answer

A) True 
 B)False

Question 16

Earnings per share,sales growth,and market share are the input standards used by businesses.

Accepted Answer

A) True 
 B)False

Question 17

In the context of the control process,which of the following statements is true about measuring actual performance?

Accepted Answer

A) It is the point where performance objectives identify key results that one wants to accomplish. 
B) It involves a situation where outputs are difficult or expensive to measure. 
C) It is the point where output standards and input standards are used to carefully document results. 
D) It is the point where past experience becomes the baseline for evaluating current performance. 
E) It is the practice of giving attention to situations that show the greatest need for action.

Question 18

Which of the following is true of a bureaucratic control system?

Accepted Answer

A) It influences employees and members to display common behavior patterns. 
B) It harnesses the power of group cohesiveness and collective identity. 
C) It expects people to work on their own as they are given the freedom to do so. 
D) It allows and encourages people to exercise self-discipline in performing their jobs. 
E) It provides laws and regulations that govern the behavior of an organization's top executives.

Question 19

The bureaucratic control system influences behaviour through norms and expectations set by the organizational culture.

Accepted Answer

A) True 
 B)False

Question 20

________ = Net Income/Owner's Equity

Accepted Answer

A) Return on Equity 
B) Return on Assets 
C) Net Margin 
D) Inventory Turnover 
E) Acid Test

Exam 9: Control Processes and Systems

The ________ form of inventory control automatically orders a fixed number of items every time an inventory level falls to a predetermined point.

Calculate the expenses incurred if the net income is $500,000 and sales is $1,500,000.

Bureaucratic control differs from clan control in that bureaucratic control:

What is a balanced scorecard?

Calculate the quick ratio from the following information of a manufacturing firm. Cash in hand = $200,000 Cash at bank = $100,000 Total current assets = $450,000 Accrued expenses = $100,000 Taxes payable = $100,000

What is project management? Explain the two techniques of project management.

Calculate net margin from the following information. Sales $250,000 Expenses $100,000

Calculate the net income if the net margin is 75% and expenses incurred is $160,000.

Pary's doughnuts can produce only 100 doughnuts a day.The variable cost incurred per unit is $2 and fixed costs incurred per day is $500.At what price should a doughnut be sold to break even?

Explain briefly the two broad options managers have with respect to control system.

Management by exception is the practice of giving attention to situations that show the greatest need for action.

________ controls are largely reactive.

Calculate the current ratio from the following information: Sales = $14,000 Bills receivable = $100,000 Cash in hand = $40,000 Current liabilities = $50,000 Inventories = $40,000 Net Income = $5,600

Preliminary control is also known as steering control.

Earnings per share,sales growth,and market share are the input standards used by businesses.

In the context of the control process,which of the following statements is true about measuring actual performance?

Which of the following is true of a bureaucratic control system?

The bureaucratic control system influences behaviour through norms and expectations set by the organizational culture.

________ = Net Income/Owner's Equity