Quiz 15

Question 1

Ophelia, the new CEO at Odyssey Inc., plans to implement a highly effective systematic process of regulating organizational activities to make them consistent with the expectations that are established by managers within the company. This is referred to as _____ control.

Answer 1

Organizational

Question 2

Zachary, a manager at ExecuComp, receives quarterly reports, which track his department’s production statistics. However, these reports lack key information regarding reject rates. Which of the following components of the control model need improvement?

1) Measuring actual performance
2) The planning and setting of performance standards
3) SWOT analysis
4) The ability to take corrective action when necessary
5) All of these

Answer 2

1) Measuring actual performance

Question 3

All of the following are key steps of setting up feedback control systems EXCEPT:

1) establishing standards.
2) comparing performance to standards.
3) making necessary corrections.
4) getting employee opinions.
5) measuring performance.

Answer 3

4) getting employee opinions.

Question 4

Which of the following is a comprehensive management control system that balances traditional financial measures with operational measures relating to a company’s critical success factors?

1) Market value-added system
2) Open-book management system
3) Activity-based costing system
4) Economic value-added system
5) Balanced scorecard

Answer 4

5) Balanced scorecard

Question 5

All of the following are major perspectives of the Balanced Scorecard EXCEPT _____.

1) competitors
2) customers
3) learning and growth
4) internal business processes
5) financial

Answer 5

1) competitors

Question 6

All well-designed control systems involve the use of _____ to determine whether performance meets established standards.

Answer 6

Feedback

Question 7

What is the first step in the feedback control system?

Answer 7

Establishing standards of performance

Question 8

Which of the following includes anticipated and actual expenses for a responsibility center?

1) Operating budget
2) Expense budget
3) Cash budget
4) Capital budget
5) Revenue budget

Answer 8

2) Expense budget

Question 9

Which of these is a financial budget that estimates cash flows on a daily basis or weekly basis to ensure that the company can meet its obligations?

1) Cash budget
2) Balance sheet budget
3) Capital expenditure budget
4) Revenue budget
5) Profit budget

Answer 9

1) Cash budget

Question 10

The _____ plans future investments in major assets to be depreciated over several years.

Answer 10

Capital budget

Question 11

The firm’s financial position with respect to assets and liabilities at a specific point in time is shown by its:

Answer 11

Balance sheet

Question 12

Charlie, a manager at a textile company, is bothered by a lack in quality of products manufactured by his company. Charlie hopes to infuse quality into the company through continuous improvement by involving everyone who works there. This describes which control philosophy?

Answer 12

Total quality management

Question 13

A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting their common work activities is a _____.

Answer 13

Quality circle

Question 14

Heather belongs to an informal group at work that meets twice a month to discuss common issues and problems in the workplace. Recently, this group has been focusing on ways to improve safety in the workplace. This group is an example of:

Answer 14

A quality circle

Question 15

Quality circles are based on the assumption(s) that:

Answer 15

The people who do the job know it better than anyone else.

Question 16

Which of the following is the process of measuring your organizational process against the best in the industry?

1) Continuous improvement
2) Benchmarking
3) Environmental analysis
4) Outsourcing
5) Competitive measurement

Answer 16

2) Benchmarking

Question 17

Which of the following is a quality control approach that emphasizes a relentless pursuit of higher quality and lower costs?

1) Continuous improvement
2) Six Sigma
3) Quality circles
4) Cycle time
5) Benchmarking

Answer 17

2) Six Sigma

Question 18

Which quality control technique uses a five-step methodology to define, measure, analyze, improve, and control processes, otherwise referred to as DMAIC?

Answer 18

Six Sigma

Question 19

Which of these is based on a set of international standards for quality?

1) Quality circle
2) Open-book management
3) ISO certification
4) Balance scorecard
5) Corporate governance

Answer 19

3) ISO certification

Question 20

Which of the following refers to the system of governing an organization so that the interests of corporate owners are protected?

1) Quality circle
2) Balance scorecard
3) Corporate governance
4) Open-book management
5) ISO certification

Answer 20

3) Corporate governance