Lesson 9 - Controlling

Question 1

Steps in the control process (in order)

Answer 1

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 comparison

Question 2

Establishing performance objectives and standards

Answer 2

1. Sales target
2. Production target
3. Worker attendance
4. Safety record
5. Supplies used

Question 3

Types of control

Answer 3

1. Feedforward control
2. Concurrent control
3. Feedback control

Question 4

Organizational control systems consist of:

Answer 4

1. Strategic plan
2. The long-range financial plan
3. The operating budget
4. Performance appraisal
5. Statistical reports
6. Policies and procedures

Question 5

Statistical reports pertains to the ff:

Answer 5

1. Labor efficiency rates
2. Quality control rejects
3. Accounts receivable
4. Accounts payable
5. Sales report
6. Accidents reports
7. Power consumption report

Question 6

Strategic control system is consist of:

Answer 6

1. Financial Analysis
2. Financial Ratio Analysis

Question 7

Financial ratios may be categorized into the ff:

Answer 7

1. Liquidity
2. Efficiency
3. Financial leverage
4. Profitability

Question 8

Indicators of Liquidity:

Answer 8

1. Current Ratio
2. Acid-test ratio

Question 9

Common efficiency ratios

Answer 9

1. Inventory turnovers
2. Fixed assets turnover

Question 10

Important leverage ratios:

Answer 10

1. Debt to total assets ratio
2. Times interest earned ratio

Question 11

Notable profitable ratios are:

Answer 11

1. Profit margin ratio
2. Return on assets ratio
3. Return on equity ratio

Question 12

Useful steps in controlling (According to Kreitner)

Answer 12

1. Executive reality check
2. Comprehensive internal audit
3. General checklist of symptoms of inadequate control