controlling

Question 1

refers to the process of ascertaining whether organizational objectives have been achieved.

Answer 1

controlling

Question 2

complete the cycle of management functions

Answer 2

controlling

Question 3

4 steps of control process

Answer 3

1. establishing performance objectives and standards
2. measuring actual performance
3. comparing actual performance to objectives and standards
4. taking necessary action based on the results of the comparisons

Question 4

5 objectives and standards

Answer 4

1. sales targets
2. production targets
3. worker attendance
4. safety record
5. supplies used

Question 5

(objectives and standards). which are expressed in quantity or monetary terms.

Answer 5

sales targets

Question 6

(objectives and standards). which are expressed in quantity or quality.

Answer 6

production targets

Question 7

(objectives and standards). which are expressed in terms of rate of absences.

Answer 7

worker attendance

Question 8

(objectives and standards). which is expressed in number of accidents for given periods.

Answer 8

safety record

Question 9

(objectives and standards). which are expressed in quantity or monetary terms for given periods.

Answer 9

supplies used

Question 10

3 necessary actions may be undertaken

Answer 10

1. hire additional personnel
2. use more equipment
3. require overtime

Question 11

3 distinct types of control

Answer 11

1. feedforward control
2. concurrent control
3. feedback control

Question 12

type of control measure undertaken when management anticipates problems and prevent their occurence.

Answer 12

feedforward control

Question 13

this type of control provides the assurance that the required human and nonhuman resources are in place before operations begin.

Answer 13

feedforward control

Question 14

this type of control is undertaken when operations are already ongoing and activities to detect variances are made.

Answer 14

concurrent control

Question 15

it is always possible that deviations from standards will happen in the ————–

Answer 15

production process

Question 16

this type of control is undertaken when information is gathered about a completed activity, and in order that evaluation and steps for improvement are derived.

Answer 16

feedback control

Question 17

aimed at improving future activities are features of feedback control.

Answer 17

corrective actions

Question 18

6 organizational control systems

Answer 18

1. strategic plan
2. long-range financial plan
3. operating budget
4. performance appraisals
5. statistical reports
6. policies and procedures

Question 19

provides the basic control mechanism for the organization.

Answer 19

strategic plan

Question 20

indicates the expenditures, revenues, or profits palnned for some future period regarding operations.

Answer 20

operating budget

Question 21

measures employee’s performance. as such, it provides employees with a guide on how to do their jobs better in the future.

Answer 21

performance appraisal

Question 22

pertain to those that contain data on various developments within the firm.

Answer 22

statistical reports

Question 23

7 statistical reports

Answer 23

1. labor efficiency rates
2. quality control rejects
3. accounts recievable
4. accounts payable
5. sales reports
6. accident reports
7. power consumption report

Question 24

refer to the framework within which the objectives must be pursued.

Answer 24

policies

Question 25

is a plan that describes the exact series of actions to be taken in a given situation.

Answer 25

procedure

Question 26

2 strategic control systems

Answer 26

1. financial analysis 2. financial ratio analysis

Question 27

contains information about the company's gross income, expenses, and profits.

Answer 27

income statements

Question 28

4 category of financial ratios

Answer 28

1. liquidity 2. efficiency 3. financial leverage 4. profitability

Question 29

these ratios assess the ability of a company to meet its current obligations.

Answer 29

liquidity ratios

Question 30

2 important indicators of liquidity

Answer 30

1. current ratio 2. acid-test ratio

Question 31

LR. this shows the extent to which current assets of the company can cover its current liabilities.

Answer 31

current ratio

Question 32

current ratio formula

Answer 32

CA or current assets / CL or current liabilities

Question 33

LR. this is a measure of the firm's ability to pay off short-term obligations with the use of current assets without relying on the sale of inventories.

Answer 33

acid-test ratio

Question 34

acid-test ratio formula

Answer 34

CA or current assets - CL or current liabilities or inventories

Question 35

these ratios show how effectively certain assets or liabilities are being used in the production of goods and services.

Answer 35

efficiency ratios

Question 36

2 common efficiency ratios

Answer 36

1. inventory turnover ratio 2. fixed asset turnover

Question 37

ER. this ratio measures the number of times an inventory is turned over (or sold) each year.

Answer 37

inventory turnover ratios

Question 38

inventory turnover ratio formula

Answer 38

cost of goods sold / inventory

Question 39

ER. this ratio is used to measure utilization of the company's investment in its fixed assets, such as its plant and equipment.

Answer 39

fixed asset turnover

Question 40

fixed asset turnover formula

Answer 40

net sales / net fixed assets

Question 41

this is a group of ratios designed to assess the balance of fianncing obtained through debt and equity sources.

Answer 41

financial leverage ratios

Question 42

2 important leverage ratios

Answer 42

1. debt to total assets ratio 2. times interest earned ratio

Question 43

FLR. this ratio shows how much of the firm's assets are financed by debt.

Answer 43

debt total assets ratio

Question 44

debt to total assets ratio formula

Answer 44

total debt / total assets

Question 45

FLR. this ratio measures the number of times that earnings before interest and taxes cover or exceed the company's interest expense.

Answer 45

times interest earned ratio

Question 46

time interest earned ratio formula

Answer 46

profit before tas + interest expense / interest expense

Question 47

these ratios measure how much operating income or net income a company is able to generate in relation to its assets, owner's equity, and sales.

Answer 47

profitability ratios

Question 48

3 notable profitability ratios

Answer 48

1. profit margin ratio 2. return on assets ratio 3. return on equity ratio

Question 49

PR. this ratio compares the net profit to the level of sales.

Answer 49

profit margin ratio

Question 50

Profit margin ratio formula

Answer 50

net profit / net sales

Question 51

PR. this ratio shows how much income the company produces for every peso invested in assets.

Answer 51

return on assets ratio

Question 52

return on assets ratio formula

Answer 52

net income / assets

Question 53

PR. this ratio measures the returns on the owner's investment.

Answer 53

return on equity ratio

Question 54

return on equity ratio formula

Answer 54

net income / equity

Question 55

3 approaches kreitner mentions

Answer 55

1. executive reality check 2. comprehensive internal audit 3. general checklist of symptoms of inadequate control

Question 56

is one undertaken to determine the efficiency and effectivity of the activities of an organization.

Answer 56

internal audit

Question 57

aims to detect dysfunctions in the organization before they bring bigger troubles to management.

Answer 57

comprehensive internal audit

Question 58

3 means to identify control problems

Answer 58

1. executive reality check 2. comprehensive internal audit 3. general checklist of symptoms of inadequate control

Question 59

is important because it compliments the other management functions.

Answer 59

controlling