Chapter 6

Question 1

what is control?

Answer 1

process of measuring performance and taking action to ensure desired results

Question 2

What are the 4 steps of the control process?

Answer 2

1. objectives and standards
2. control measures actual performance
3. compares results with objectives and standards
4. control takes corrective action as needed

Question 3

What are output standards?

Answer 3

quantity, quality, cost, time

Question 4

what are input standards?

Answer 4

work efforts that go into performance task

Question 5

What is the performance gap ?

Answer 5

desired performance - actual performance = need for action

Question 6

Organizations are open systems that interact with environment with what controls?

Answer 6

input, throughput, and output

Question 7

what is input control?

Answer 7

feed forward controls, right direction, resources available, solve problems before they occur

Question 8

What is throughput?

Answer 8

concurrent controls, right thing being done, solve problems while occurring

Question 9

what is output controls?

Answer 9

feedback controls, final results are desired, solve problems after they occur

Question 10

What are internal controls?

Answer 10

motivated employees exercise self-control, participation increases self-control

Question 11

What are external control?

Answer 11

Bureaucratic, clan, and market

Question 12

what is bureaucratic controls?

Answer 12

policies, procedures, budgets, and supervision

Question 13

what is clan controls?

Answer 13

uses organizations culture

Question 14

what is market controls?

Answer 14

relies on market influences

Question 15

What do team leaders and team members do?

Answer 15

jointly control, jointly plan, and individually act

Question 16

what is jointly plan?

Answer 16

set standards

Question 17

what is individually act?

Answer 17

performing task and providing support

Question 18

what is jointly control?

Answer 18

reviewing results and discuss implications

Question 19

What is total quality management?

Answer 19

commitment to quality - goal is zero defects

Question 20

what is continuous improvement?

Answer 20

new ways to improve work quality - incremental change

Question 21

What is the purpose of project management?

Answer 21

to assume responsibility for planning and control of projects

Question 22

What is inventory control?

Answer 22

reduce inventory costs - ensures inventory meets immediate needs

Question 23

what is economic order quantity?

Answer 23

predetermined amount of inventory is ordered when inventory reaches a certain level

Question 24

what is JIT scheduling?

Answer 24

arrives exactly when needed for production sale

Question 25

What is the breakeven analysis?

Answer 25

fixed cost/(price-variable cost)

Question 26

what is the break even point?

Answer 26

revenue = costs

Question 27

What is profitablility?

Answer 27

earn revenues greater than costs

Question 28

what is liquidity?

Answer 28

generate cash to pay bills

Question 29

what is asset management?

Answer 29

uses resources efficiently and operate at minimum cost

Question 30

what is leverage ?

Answer 30

ability to earn more in return than the cost of debt

Question 31

what is a balanced scorecard?

Answer 31

combines organizational mission and vision to build goals and performance measures

Question 32

The balanced scorecard builds performance measures for what?

Answer 32

financial performances, customer satisfaction, internal process improvement, innovation and learning